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A Practitioner’s Guide to Instream Flow Transactions in California

The purpose of this guide is to help water right holders –and those assisting them – understand their options for keeping water instream in California.

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A Practitioner’s Guide to Instream Flow Transactions in California
SWIFT Working Group, American Rivers, Nature Conservancy, Trout Unlimited, Scott River Water Trust, River Right, Alford Environmental | March 1, 2016...
Summary
The purpose of this guide is to help water right holders –and those assisting them – understand their options for keeping water instream...

The purpose of this guide is to help water right holders –and those assisting them – understand their options for keeping water instream in California. This guide briefly describes some of the most common types of instream flow transactions (i.e., methods for restoring flow for environmental purposes), and discusses in detail how to navigate the process of completing an instream flow dedication by changing a water right, as permitted by Water Code Section 1707.

The intended audience for this document includes both water rights holders and practitioners, such as staff for land trusts, water trusts, Resource Conservation Districts (RCDs), and other organizations. This guide focuses on instream dedications via the change petition process administered by the State Water Resources Control Board (State Water Board). Other publications – for example, the Trust for Public Land’s Water Acquisition Handbook (2003) – provide a more general overview of acquiring water for environmental purposes in California. This guide will provide a description of the change petition process, and offer advice on how to navigate, troubleshoot, and work in partnership with the State Water Board and other natural resource agencies to complete an instream flow dedication.

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Background and Recent History of Water Transfers in California

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Background and Recent History of Water Transfers in California
California Department of Water Resources, State Water Resources Control Board | July 1, 2015...
Summary
The purpose of this paper is to provide a basic understanding of water transfers in California with an emphasis on transfers that move...

The purpose of this paper is to provide a basic understanding of water transfers in California with an emphasis on transfers that move water through the Sacramento-San Joaquin Delta (Delta). This paper provides an overview of various types of water transfers, their recent history, and the regulatory setting that governs transfers.

In its 1976 report, the Governor’s Commission on Water Rights recognized the importance of water transfers to the future of California’s water supply and made recommendations regarding the need for specific changes to the Water Code to facilitate the transfer of water. Many of these changes were accomplished in the following years and are reflected in the discussions below.

Water transfers involve a change in the place of water use, from the water’s historic point of diversion and use, to a new location either within or outside the watershed of origin. Water may be transferred from one user to another for a variety of purposes, including agricultural, municipal and industrial uses. It may also be transferred for environmental purposes such as in-stream flow augmentation and wildlife refuges. Water transfers and exchanges can be temporary (up to one year) or long-term (more than one year, but not permanent) or permanent.

Water transfers can be an effective water management tool providing much-needed flexibility in the allocation and use of water in California. Transfers in California are primarily executed to meet dry-year demands rather than to obtain a primary water supply for either agricultural or municipal development. Transfers are particularly useful for meeting critical needs during drought periods. Transfers, however, must be carried out in a responsible manner in order to assure that they do not result in adverse impacts to other water users or unreasonable effects to the environment.

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California’s Water Market, By the Numbers
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California’s Water Market, By the Numbers
Public Policy Institute of California | October 17, 2002...
Summary
Prepared for presentation to the Department of Water Resources, October 2002.
Prepared for presentation to the Department of Water Resources, October 2002.

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California’s Water Market, By the Numbers, Update 2012
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California’s Water Market, By the Numbers, Update 2012
Public Policy Institute of California | November 21, 2012...
Summary
This report provides a check-up on California’s progress with two innovative water management tools: water marketing and groundwater banking. These tools are part...

This report provides a check-up on California’s progress with two innovative water management tools: water marketing and groundwater banking. These tools are part of a modern approach that will enable California to manage its scarce water resources more flexibly and sustainably.

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Central Valley Project (CVP) Water Transfer Program Fact Sheet

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Central Valley Project (CVP) Water Transfer Program Fact Sheet
U.S. Bureau of Reclamation | February 1, 2015...
Summary
Water transfers and exchanges are an integral part of CVP water operations, particularly in drought years, as long as transfers can occur consistent...

Water transfers and exchanges are an integral part of CVP water operations, particularly in drought years, as long as transfers can occur consistent with state and federal laws governing water transfers. In 2014, Reclamation facilitated the transfer of over 257,000 acre-feet of water. Of the 257,000 acre-feet, 213,220 acre-feet was considered “new water” to the system, meaning specific actions (such as reservoir reoperation, crop idling/shifting, groundwater substitution, or Yuba Accord purchases) were taken to make the water available. The remaining quantity was considered an in-basin transfer or a reallocation of contract supply.

• §3405(a) of the Central Valley Project Improvement Act of 1992 (CVPIA) authorizes the transfer of all or a portion of a CVP contractors contracted water supply to any other California water user or water agency, State or Federal agency, Indian Tribe, or private non-profit organization for project purposes or any purpose recognized as beneficial under State law.

• CVP water transfers are subject to the conditions prescribed in §3405(a), 1993 Interim Guidelines for Implementation of Water Transfers, and the Department of the Interior Final CVPIA Administrative Proposal on Water Transfers (1998).

• Water transfer provisions of CVPIA do not apply to permanent contract assignments under which a CVP contractor relinquishes their contractual right to Project water; water banking and recharge actions outside of the contractors boundaries; water for water exchanges; forbearance actions whereby CVP contractors are paid not to exercise their right to water; and transfers of base supply water under settlement contracts which are carried out in accordance with State law.

• Since 1992, the Region and the State of California Department of Water Resources, owners and operators of the two largest water projects in California, have collaborated to develop criteria to facilitate water transfers.

• The Region facilitates both short and long-term transfers of CVP water. Long-term transfer approvals are accomplished through programmatic environmental documentation, with annual approvals of physical water transfers.

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Groundwater Trading as a Tool for Implementing California’s Sustainable Groundwater Management Act
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Groundwater Trading as a Tool for Implementing California’s Sustainable Groundwater Management Act
Environmental Defense Fund, Mammoth Trading, The Robert B. Daugherty Water for Food Global Institute at the University of Nebraska | December 8, 2017...
Summary
Until recently, the State of California lacked comprehensive groundwater management policy. While many basins havebeen adjudicated in court or have adopted voluntary groundwater...
Until recently, the State of California lacked comprehensive groundwater management policy. While many basins havebeen adjudicated in court or have adopted voluntary groundwater management programs following Assembly Bill 3030 and Senate Bill 1938, the vast majority of groundwater use remained unregulated. In 2014, the State Legislature passed the landmark Sustainable Groundwater Management Act (SGMA) in response to wide-ranging consequences of prolonged and unchecked groundwater pumping. While groundwater serves as an important primary and supplemental water supply for many water users, over-pumping can result in negative consequences, six of which are listed as “undesirable results” under SGMA: chronic aquifer overdraft, reduction of groundwater storage, seawater intrusion, degradation of water quality, land subsidence, and depletion of hydrologically connected surface water. SGMA requires local Groundwater Sustainability Agencies (GSAs) to develop and implement Groundwater Sustainability Plans (GSPs) to manage groundwater to avoid such consequences.

To meet the requirements of SGMA, GSAs will need to employ a wide range of management tools. This paper focuses on one set of these tools: groundwater trading programs. Trading goes by many different names, including markets, cap and trade, transfers, credit programs, banking, pooling, and exchanges. For the purposes of this paper, we have elected to use the terms “trading” and “trading programs” as the broader categorization of incentive-based management tools. Trading can be executed through a wide range of exchange vehicles, including short- and long-term leases, permanent transfers, and other more advanced or unique arrangements, such as inter-annual water exchanges or dry-year options contracts.

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Information for Parties Preparing Proposals for Water Transfers Requiring Department of Water Resources or Bureau of Reclamation Approval

The California Department of Water Resources (DWR) and Bureau of Reclamation, Mid-Pacific Region (Reclamation), referred to collectively as Project Agencies, prepared this technical information to help facilitate temporary water transfers (duration of up to 1 year) that require conveyance through Project Agencies’ facilities or otherwise require Project Agency approval.

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Information for Parties Preparing Proposals for Water Transfers Requiring Department of Water Resources or Bureau of Reclamation Approval
California Department of Water Resources, U.S. Bureau of Reclamation Mid-Pacific Region | December 1, 2015...
Summary

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The Role of Water Transfers in Meeting California’s Water Needs
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The Role of Water Transfers in Meeting California’s Water Needs
Legislative Analyst's Office | September 9, 2008...
Summary
If water transfers are to help the state meet its water needs, we think that the Legislature should address a number of issues,...
If water transfers are to help the state meet its water needs, we think that the Legislature should address a number of issues, including impediments to transfers and stakeholder concerns about potential negative impacts of transfers on "third parties." Statutory policy on water transfers should be clarified and made more consistent.

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Water transfers (Resource Management Strategy)
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Water transfers (Resource Management Strategy)
Department of Water Resources | July 29, 2016...
Summary
The California Water Code (CWC) defines a water transfer as a temporary or long-term change in the point of diversion, place of use,...
The California Water Code (CWC) defines a water transfer as a temporary or long-term change in the point of diversion, place of use, or purpose of use due to a transfer, sale, lease, or exchange of water or water rights. Temporary water transfers have a duration of one year or less (CWC Section 1725). Long-term water transfers have a duration of more than one year (CWC Section 1728).

Transfers can be between water districts that are neighboring or across the state, provided there is a means to convey or store the water. A water transfer can be a temporary or permanent sale of water or a water right by the water right holder, a lease of the right to use water from the water right holder, or a sale or lease of a contractual right to water supply. Water transfers can also take the form of long-term contracts for the purpose of improving long-term supply reliability.

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Who Should Be Allowed to Sell Water in California? Third-Party Issues and the Water Market
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Who Should Be Allowed to Sell Water in California? Third-Party Issues and the Water Market
Public Policy Institute of California | June 13, 2003...
Summary
Although significant water trading has occurred in California since the drought of the early 1990s, many localities have restricted water transfers because of...
Although significant water trading has occurred in California since the drought of the early 1990s, many localities have restricted water transfers because of the perceived harm to other users and the local economy. In Who Should Be Allowed to Sell Water in California? Third-Party Issues and the Water Market, Ellen Hanak examines water transfers in California, local resistance to them, and various approaches to resolving water disputes. Drawing on a new database of water transfers as well as interviews with state, county, and water district officials, the report calls for water management at the local level that balances the interests of other residents and the potential gains from transfers.

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A Practitioner’s Guide to Instream Flow Transactions in California

A Practitioner’s Guide to Instream Flow Transactions in California

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Background and Recent History of Water Transfers in California

Background and Recent History of Water Transfers in California

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California’s Water Market, By the Numbers

California’s Water Market, By the Numbers

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California’s Water Market, By the Numbers, Update 2012

California’s Water Market, By the Numbers, Update 2012

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Central Valley Project (CVP) Water Transfer Program Fact Sheet

Central Valley Project (CVP) Water Transfer Program Fact Sheet

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Groundwater Trading as a Tool for Implementing California’s Sustainable Groundwater Management Act

Groundwater Trading as a Tool for Implementing California’s Sustainable Groundwater Management Act

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Information for Parties Preparing Proposals for Water Transfers Requiring Department of Water Resources or Bureau of Reclamation Approval

Information for Parties Preparing Proposals for Water Transfers Requiring Department of Water Resources or Bureau of Reclamation Approval

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The Role of Water Transfers in Meeting California’s Water Needs

The Role of Water Transfers in Meeting California’s Water Needs

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Water transfers (Resource Management Strategy)

Water transfers (Resource Management Strategy)

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Who Should Be Allowed to Sell Water in California? Third-Party Issues and the Water Market

Who Should Be Allowed to Sell Water in California? Third-Party Issues and the Water Market

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