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Pilot System Conservation Program - Funding Agreement for Colorado River Conservation

This program aims to reduce Colorado River water demand through voluntary conservation efforts and retain conserved water in Lake Powell and Mead reservoirs. The implementation involves proposals, selection criteria, and contracts administration. The program has successfully implemented various projects in the Lower Basin, resulting in increased Lake Mead elevation and averting water shortage.

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Pilot System Conservation Program - Funding Agreement for Colorado River Conservation

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  1. PILOT SYSTEM CONSERVATION PROGRAM December 14, 2017

  2. Pilot System Conservation Funding Agreement Effective July 30, 2014 • Parties to the Funding Agreement • Reclamation, CAWCD, MWD, SNWA, Denver Water • Purpose • Reduce Colorado River water demand through voluntary, compensated system conservation • Retain conserved water in Colorado River reservoirs Lake Powell and Mead to help offset declining reservoir levels due to historic drought for the benefit of the system • Implementation • Upper Colorado River Commission - Upper Basin • Reclamation’s Lower Colorado Region - Lower Basin 2

  3. Implementation Approach • Proposals requested • Selection Criteria • Conserved water must have history of use • Cost per AF of conservation • Diversity • Project type • Water user class • Geographical location • Test new concepts • Agreements • 3 contracts per project • Contract Administration 3

  4. Pilot Program Funding and 2015 Through 2017 Costs • Total Program Funding: ≈ $23 million • Upper Basin: ≈ $4.5 million • Water conservation: ≈ 22,000 AF • Lower Basin: $18.6 million • Non-Federal/Federal cost-share: 44%/56% • Water conservation: ≈ 117,000 AF in Lake Mead • Average cost: $160/AF 4

  5. Pilot System Conservation Program Lower Basin 2015 Through 2017 10 Projects • 3 system efficiency projects - AZ and CA • 1 agricultural land fallowing project - AZ • 3 forgone offstream banking projects - AZ • 1 local water supply substitution project - AZ • 2 water importation projects - NV Critical Mechanisms • Project participant must submit a downward adjusted water order to Reclamation • Junior water user(s) in same state as system conservation project agrees not to order the conserved water 5

  6. Lower Basin Summary • Pilot Program Success • Voluntary agreements with participants in Lower Division States • Average cost is $160/AF • Wide variety of projects • All classes of water users participated • Ultimately increase Lake Mead elevation by 1.4 feet • Shortage averted in the Lower Basin • Recipient of John W. Keys III Award for Building Partnerships and Strengthening Relationships 6

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