Southern California's major water wholesaler announced plans to buy billions of gallons of water from farmers in the state to make up for a shortfall left by drought and environmental regulations.
The Metropolitan Water District would buy the water from Central Valley farmers on the state grid who calculate they can make more selling their water allotment than by using it to grow crops, the agency's assistant general manager and chief operating officer, Debra Man, said Wednesday.
The purchase plan, which would increase rates for the agency's customers, is meant to shore up supply as the dry spell persists, Man said.
"We are interested in securing an insurance policy, so to speak," she said.
The MWD provides water to nearly 18 million people in Los Angeles, Orange, San Diego, Riverside, San Bernardino and Ventura counties. The district sells water at wholesale rates to local utilities, providing Southern California with half its supply. The rest comes from underground sources and other local supplies.
The agency could have trouble meeting its customers needs because of low rainfall, diminished flows in regional rivers, and a legal ruling that limits pumping in the Sacramento-San Joaquin Delta - a major water supply for the state - to protect an endangered fish species
MWD board members on Tuesday authorized the agency to seek up to 200,000 acre-feet of water - roughly 65.2 billion gallons - of water from farmers in the state. The water sale is being brokered by the state Department of Water Resources, which will look to farmers to voluntarily offer parts of their water supply for sale, Man said.
It was unknown how many farmers would sign onto the deal and how much money they would ask for the portions of their supply, Man said. Water district officials also did not know how much water user rates would increase as a result of the purchase, she said.
Observers said the supply would most likely come from farmers to the north of the Sacramento-San Joaquin Delta, where water is more abundant.
Farmers in the San Joaquin Valley to the south of the delta are dealing with their own water shortages, which were exacerbated by the August court decision limiting outflow from the delta to protect the endangered delta smelt.
The water shortage has forced some San Joaquin Valley farmers to pay dearly for their own supplemental water supplies, while others have been forced to fallow fields or leave fruit and nut trees to die.
The pumping limitations could also hinder efforts to move water to Southern California from the Central Valley's north, since it would still have to pass through the delta, said Mike Wade, who directs the California Farm Water Coalition.
:It creates a bottleneck at the delta on when you can move the water through it and how much you can get through," he said.
Even if the MWD secures the additional water from farmers, it may still have to ration water supplies among the local agencies that it serves if the shortages persist, agency officials said.
District directors will decide in coming months whether to impose the rations, along with limits on lawn watering and other outdoor water use, officials said.
MWD directors on Tuesday also approved an accord with Yuba County water officials that would improve water flow and habitat in the Yuba River, and provide up to 11.4 billion gallons to the agency's customers each year, Man said.
The state Water Resources Control Board still has to approve the accord, she said.
