Summary of IAWP Reduction Guidelines
August 2007

Under the Interim Agricultural Water Program (IAWP), water is delivered at a discounted rate in exchange for up to a 30% reduction in demand by participating agricultural water users at Metropolitan Water District of Southern California's (Metropolitan or MWD) call prior to implementing mandatory cuts by municipal and industrial users.

On June 15, 2007, Metropolitan sent a letter to its member agencies requesting that agency-specific IAWP Reduction Plans be developed and submitted to MWD by August 30, 2007. It is expected that Metropolitan will send a second letter to its member agencies on November 1st notifying them that IAWP supplies will be cut 30% effective January 1, 2008. This cutback is based on Delta pumping conditions and hydrology. Should hydrologic conditions or the Delta situation improve, Metropolitan may rescind this notice.

This paper summarizes the Interim Agricultural Water Program Reduction Guidelines finalized May 2005 as administered by Metropolitan. CAC was closely involved in the development of these guidelines to ensure they were workable. Member agencies and submember agencies may administer the program differently . Additionally, the cutbacks implemented by member agencies may be different than those called for by Metropolitan, in part because of local supplies. Growers should check with their water provider for the specific administration and allocation plan for their service area.

Summary

A baseline will be established against which reductions in water use will be measured. For an allocation beginning on January 1, 2008, this baseline is fiscal year 2003-2004. Fiscal year 2003-2004 was a dry year, and most member agencies certified greater IAWP deliveries during that year than in more recent years. The baseline will remain in place until Metropolitan determines that an allocation in IAWP deliveries is no longer required. This baseline is broken down into monthly targets based on deliveries made each month of the fiscal year. A reconciliation between monthly targets and actual deliveries will be made at the end of each six-month period.

The table below reflects the baseline or total deliveries for fiscal year 2003-2004 by Metropolitan member agency and each member agency's allocation with a 30% cut.

If an agency does not use all of its allocation in the first six-month period, the unused amount may be carried over into the next six-month period. However, it cannot be carried over a second time. If an agency exceeds its allocation, penalties shall be applied .

The first penalty is a financial penalty. The penalty rate applies to all water used by a member agency that exceeds that agency's allocation. Presumably the member agency would pass that penalty charge on to the individual grower. For calendar year 2008, this penalty rate is $777 acre-foot and can be calculated as follows:

In comparison the treated IAWP rate is $394 per acre-foot. Please note that this is the Metropolitan penalty and water rate. Local agencies will have their own costs added to these figures.

The second penalty reduces the member agency's annual IAWP limit by the amount of overuse for at least one year.

Frequently Asked Questions

Why is the base year not the previous year? Metropolitan provides six months for an agency to certify it has taken IAWP deliveries. It then reconciles these deliveries to ensure accuracy. The previous year data may not show the certifications or the reconciliation before the targets are allocated thus putting the agency at risk of either penalties if too much water is taken or economic risk if not enough water is taken.

Why are municipal and industrial users not having cutbacks to deliveries? By applying for the IAWP (discounted) rates, growers agree to receive cutbacks of up to 30% before urban users face mandatory cutbacks. Municipal and industrial users are currently being asked to voluntarily conserve water. In the meantime, Metropolitan has begun developing an allocation plan for those deliveries should it be needed in the coming years.

How long must I reduce usage of water? The duration of any reduction is difficult to predict and will largely depend on hydrologic and Delta conditions. Should significant rainfall occur in the State Project watershed and Colorado River watershed this fall (November and December) or winter, there is the possibility that the call for reduction will be rescinded.

• Access the plan (PDF file, 3.26 MB)

However, please note that if a member agency supplements IAWP water with local water, the percentage cutback may be different.

Why are only growers being targeted for the reduction in water deliveries? It is expected that only those growers that participate in the Interim Agricultural Water Program will need to reduce water consumption starting January 1, 2008. These growers have been receiving a discounted water rate in exchange for the ability by Metropolitan to interrupt deliveries PRIOR to cuts in deliveries for full price water. Those growers that have been paying full price for water will not be affected. Metropolitan has launched a media campaign asking consumers to reduce water use voluntarily. Several Bay Area utilities are calling upon their urban consumers to implement measures to reduce usage by 10-15%.

How can I get out of the Program? You can get out of the Program by notifying your local water purveyor. However, please note that your obligation to reduce deliveries may not cease once you are out of the Program based on how your agency administers the IAWP to its customers. Please check with your local purveyor for more information.

Who declares a drought? According to the California Department of Water Resources, "there is no universal definition of when a drought begins or ends." Defining when supply conditions signify a drought is a combination of the condition of Metropolitan's supplies, local supplies and storage levels. The U.S. Bureau of Reclamation cites the continued 8-year drought in the Colorado River basin.

 What is the importance of the Delta? The San Joaquin-Sacramento River Delta (Bay Delta) is located between Sacramento and Stockton. It is made up of islands settled by farmers and maintained through a system of levees constructed in the 1800s to keep their lands from flooding. It is also the convergence point of a number of waterways. The water from the Feather River Watershed must cross this area to be transported south to meet both agricultural and municipal and industrial demands. Water from the Delta is transported south via the State Water Project. The State Water Project supplies approximately 2.6 maf per year to SWP contractors.

What is the importance of the Delta smelt? The Delta smelt is an approximately 3 inch fish that is believed to be a key indicator of the overall health of the Bay-Delta ecosystem. Biologists fear that once the Delta smelt is gone, other species will follow. Current population levels are showing that the smelt are in imminent danger of extinction. Biologists believe that pumping from the Delta is one factor contributing to the decline of the species. Other impacts are believed to be toxic contaminants found in the waters of the Delta and invasive species which vie for the same food source as the smelt. The current actions to curtail pumping assume such actions have some immediate benefits for the smelt.

How can I receive more information? The Southern California Agricultural Water Team of the California Avocado Commission website will post periodic updates on the actions taken by the Metropolitan Water District of Southern California. The SCAWT will also be meeting regularly to track the issues. Growers are encouraged to contact their local water agencies for details regarding how the cutbacks may be implemented locally.

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