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Water Banks in the United States

Water Banks in the United States. Draft Report Prepared Jointly by: WestWater Research Washington Department of Ecology. Public Sector Participants. Private Sector Market Participants. WaterBank SM Trust. Colorado Water Trust. Great Basin Land & Water. Acquisition Types by Region.

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Water Banks in the United States

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  1. Water Banks in the United States Draft Report Prepared Jointly by: WestWater Research Washington Department of Ecology

  2. Public Sector Participants

  3. Private Sector Market Participants WaterBankSMTrust Colorado Water Trust Great Basin Land & Water

  4. Acquisition Types by Region Source: Landry 1998

  5. Environmental Water AcquisitionsLeases, Purchases and Donations Total Quantity Acquired P. Northwest 1,234,57 af California 536,323 af Southwest 306,658 af Rockies 286,482 af Source: Landry 1998

  6. Environmental Water Acquisition Expenditures and Quantity 1990-1997 Source: Landry 1998

  7. Environmental Water Leasing Programs Note: Map depicts representative location of water right place of use and groundwater restricted area. Exact location and acreage may differ. This map is intended for illustrative purposes only and should not be Used for any other purpose.

  8. Water Banks in the West

  9. Water Bank Definition Institutional mechanism that facilitates the legal transfer and market exchange of various types of surface, groundwater, and storage entitlements.

  10. Water Bank Formats • Water Banks are designed around specific sources or water entitlements • Common Bank Formats • Institutional Banking • Surface Storage Banking • Ground Water Banking • Conjunctive Use Banking

  11. Purpose of Water Banking • Creating reliability in water supply during dry years • Creating seasonal water reliability • Ensuring water supply for farmers • Promoting water conservation by encouraging right holders to conserve and deposit rights into the bank • Acting as market mechanism • Resolving issues of inequity between groundwater and surface-water users • Ensuring compliance with intrastate agreements of instream flow

  12. Bank Administrative Functions • Registry of water rights or entitlements • Price setting and regulation • Policies administration and daily operations • Water right verification • Quantifying the bankable water • Specifying who can purchase or rent from the bank • Administering transfer or contract terms • Provide regulatory reporting or oversite • Resolving disputes

  13. Market Structure of Water Banks • Clearing House • Online Bulletin Boards • Office Posting Boards • Standing or Fixed Price • Option or Contingent Markets • Auctions

  14. CaliforniaDrought Emergency Bank Profile • Location: Statewide • River Basin: Statewide, Primarily SWP and CVP service areas • Established: 1991 • Year Active: 1991, 1992, 1994 • Bank Format: One-year leasing program • Market Structure: Clearinghouse • Participation: Supply – Northern California users; Demand – SWP and CVP contractors south of Delta • Activity: High • Pricing: Administrative • Price Range ($/AF/YR): $68-$175 • Regulatory Oversight: Streamlined transfer process • Administrator: California Department of Water Resources (DWA) • Environmental Objective: Ensure minimum stream flows through the Delta

  15. CaliforniaDrought Emergency Bank Activity

  16. Statewide Bank Location: Statewide River Basin: Statewide Year Established: 1979 Year Active: 1995 Bank Format: Institutional water bank Market Structure: Clearinghouse Participation: Supply – Open; Demand – Open Activity: Moderate Pricing: Market Based Price: $11/AF/YR Regulatory Oversight: Idaho Department of Water Resources Administrator: Idaho Department of Water Resources Environmental Objective: None Rental Pools Six Established Banks Year Active: 1932 – Snake River Bank Format: Leasing stored water Market Structure: Clearinghouse Participation: Supply – Stored water; Demand – Open Activity: Low to High Pricing: Administrative Price: $3.00 for in- basin $10.50 out-of-basin Regulatory Oversight: State Administrator: Water District #1 Environmental Objective: None - Instream transactions encumbered by “last fill” policy IdahoStatewide and Rental Pools

  17. Water BankingUpper Snake River Rental PoolThe Problem of Fixed Pricing Dry Years

  18. OregonWater Banking Profile • Emerging Water Bank Programs • Klamath Basin Water Lease Bank • Walla Walla Water Lease Bank • Deschutes Basin Groundwater Mitigation Bank • Bank Format Varies • Lease Banks are Predominate Structure • Lease Banks Operate Under Existing Regulatory Structure • Market Structure: Bilateral Trades • Participation: Supply – Open Demand – Bank Administrator • Activity: Low to High • Regulatory Oversight: State • Administrator: Federal and Nonprofit • Environmental: Yes

  19. Water Banking:Six Important Considerations • What is the legal authority of the bank? • Does the bank have authority to execute trades? • Is legislation required? • What are the banks objectives and purpose? • Enhancing stream flow • Providing drought year water supplies • Who can participate in the bank? • What is the market area served by the bank? • How is water priced? • Fixed Price • Market Based • How will community acceptance and participation be encouraged?

  20. Laramie Office: 121 Grand Avenue, Suite 222 Laramie, WY 82070 Tel: (307) 742-3232 Fax: (307) 742-3996 Houston Office: 1100 Louisiana, Suite 2675 Houston, TX 77002 Tel: (713) 652-2450 Fax: (713) 652-2452 WestWater Research

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