Focus and Priorities

The purpose of the CAGRD Water Supply Program is to actively pursue and secure a diverse portfolio of water supplies through voluntary, market-based transactions and to develop partnerships through direct negotiation with consideration given to local needs and conditions. Third-party impacts will be avoided or mitigated.  Water acquisition priorities have been established based on a variety of cost, legal, regulatory and technical feasibility criteria. Multiple types of water supplies will be pursued and developed concurrently to achieve target volumes. 

Target Volumes

The Program established and achieved a near-term target annualized water acquisition volume of 25,000 acre-feet by 2015. The Program exceeded the near-term goal by approximately 11,500 acre-feet by securing a current annualized volume of 36,534 acre-feet. CAGRD, in its update acquisition strategy, targeted the acquisition of an additional 45,000 acre-feet of supplies by 2025 with 25,000 acre-feet of this total acquired by 2020. 

Portfolio Diversity

The Program’s pursuit of a diverse portfolio of water supplies will minimize potential impacts to any particular area, and increase overall supply reliability under a variety of operational and hydrologic conditions. To diversify its water supply portfolio, the CAGRD is pursuing five supply classes: 

  1. CAP Entitlements
  2. Colorado River Entitlements (YMIDD Pilot Fallowing Program)
  3. Effluent (Liberty Utilities Effluent Lease)
  4. Long-Term Storage Credits (WestWater Water Market Insider Q3 2014)
  5. Imported Groundwater
Flexible Structure

CAGRD is not a water provider, and therefore has significant flexibility in the timing and location of its replenishment activities.  As a result, the Program can accommodate a number of possible transaction structures. The primary objective of the acquisition program is to build a portfolio of long-term and reliable water supplies through a series of acquisitions that are generally timed to coincide with increases in demand.  Mutually acceptable agreement terms and conditions can be structured in a flexible manner to meet the unique needs of an individual seller. The Program has developed a variety of agreement structures to promote flexibility, including: 

  1. One-Time Purchases
  2. Multi-Year Purchases
  3. Fallowing or Forbearance Agreements
  4. Long-Term Leases (10+ years)
  5. Annual and Short-Term Lease Agreements
  6. Capital Contributions to Infrastructure Projects in Exchange for Water Supplies