Using Financial Incentive$ for Aquifer Mitigation

Texas Alliance of Groundwater DistrictsAugust 26, 2015

Presented by:Rick Illgner

Edwards Aquifer Authority

Landa Lake/Comal Springs - normal Landa Lake/Comal Springs - 1956

Lawsuit seeks to limit

pumping from aquifer

Sierra Club:

Protect endangered

species

(May 19, 1991)

TOM BOWER

Express-News

Staff Writer

San Antonio Express-

News

EAA Act & Directives…Still Unique

ORIGINAL STATUTE - 1993

• Limit permitted withdrawals

450,000 acre-feet initially thru 12/31/07

400,000 acre-feet beginning 01/01/08

• Permits must be based on historical use; many instructions

• Meters on all wells, EAA pay all costs for irrigators

• EAA must implement drought restrictions

2007 AMENDMENTS TO EAA ACT

• Permitted withdrawals Increased to 572,000 acre-feet

• Drought plan placed in Statute

• EAA must participate in Recovery Implementation Program

(referred to as EARIP)

Finding a Solution

Comal Springs Flow Objectives

225 cfs Long-term Average (50 year)

45 cfs Monthly Average

30 cfs Daily Average - not to exceed 6 months

1st try – drought restrictions; resulted in a 2 Phase plan, calling for 85% reduction in Phase 2,

which was in place most of the time

2nd attempt – single engineered solution 1950’s

Drought

1700 1800 1900 1979

Finding a Solution

3rd attempt – bottom-up; layered approach

Category Element Total Cost

Flow Protection Measures

Emergency Stage V Critical Period Management Reductions

$186,600,000SAWS ASR

Municipal Conservation ProgramVoluntary Irrigation Suspension Program

Option

Restoration, Minimization, and Mitigation Measures

Bio-monitoringRiparian Habitat Restoration

Water Quality Protection & Monitoring Wild Rice Restoration

$32,400,000

Other Measures Refugia $43,100,000

Grand Total $262,100,000

VISPO Highlights

Concept – provide financial incentive to suspend pumping during severe drought

• Enrollment Goal - 40,000 acre-feet

• Two options – 5 year and 10 year

• Suspension Trigger – if J-17 at/below 635’ on October 1, enrolled water suspended for following

calendar year

• Opt out of suspension - if J-17 at/above 660’ on following January 1 and permit holder notifies

EAA by January 15

VISPO Options & Payments

Fee 1 2 3 4 5

Stand-by50.00 50.75 51.26 51.77 52.29

Suspension 150.00 152.25 153.77 155.31 156.86

Fee 1 2 3 4 5 6 7 8 9 10

Stand-by 57.50 57.50 57.50 57.50 57.50 70.20 70.20 70.20 70.20 70.20

Suspension 172.50 172.50 172.50 172.50 172.50 210.60 210.60 210.60 210.60 210.60

5 Year Program Payments/ AF

10 Year Program Payments/AF

ASR Operation

ASR

• Total water rights required for ASR plan – 50,000 acre-feet (AF)

• 3 tiers of 16,666 AF each:

• Tier I – straight lease for filling

• Tier II – standby until 10-yr recharge average < 572,000 AF, then lease or forbearance

• Tier III – standby until 10-yr recharge average < 472,000 AF, then forbearance

ASR Leasing Goals

2015 ASR Lease Options

Term (Years) Original Rate New Rate

1 $100 $120*

3 $115 NA

5 $118 $140*

7 $120 NA

10 $135 $160*

15 $150 NA

* Aquifer Management Fees returned for municipal & industrial permit holders

Success!

VISPO Enrollment & 2015 Payments

VISPO Enrollment

Atascosa Bexar Comal Hays Medina Uvalde Total

%(acre-feet)

(acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet) (acre-feet)

5-year 354 884 0 123 3,693 20,397 25,451 62

10-year 0 1,573 0 0 7,803 6,094 15,470 38

Grand Total 354 2,457 0 123 11,496 26,491 40,921

Payment $70,880 $538,870 $0 $25,010 $2,538,839 $5,503,664 $8,677,263

ASR Activity

1,868

5,900

17,975

0

5000

10000

15000

20000

2013 2014 2015

Cumulative ASR Storage 2013-2015

Cumulative ASR Storage

Type Amount Number % of Total

15-Year Leases 2,252.205 12 16.8%10-Year Leases 1,210.383 19 9.0%7-Year Leases 178.726 5 1.3%5-Year Leases 696.676 9 5.2%3-Year Leases 1,202.000 4 8.9%1-Year Leases 7,893.026 60 58.8%

Total : 13,433.016 109 100.0%

2,669

6,202

14,670

0

5,000

10,000

15,000

20,000

2013 2014 2015

Acr

e-f

eet

ASR Leases 2013 - 2015

$0

$20

$40

$60

$80

$100

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Rat

e p

er A

cre

-Fo

ot

AMF Program AMF Irrigation/ Agricultural Rate

$0

$10

$20

$30

$40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Mill

ion

s

Annual Adopted Budget

HCP Impact on Budget and Fee

Questions?

Questions?