Imperial Valley's Questions; San Diego's Answers

SDDR asked Rudy Yniguez, a reporter with the Imperial Valley Press, to identify the water transfer issues most troubling to Imperial Valley. We also asked San Diego County Water Authority to respond.

Will the deal lead to the fallowing of farmland? Some argue that it will. If farmers can make more money selling water rights than raising crops, then they could be motivated to conserve water by idling their land. This would have significant economic impacts in reducing sales of farm equipment, seed, fertilizer, herbicides, pesticides and insecticides, as well as reducing demand for farm laborers. In the California county with the highest unemployment rate, the lowest median income and the lowest per-capita income, the ripple effects could be particularly devastating if fallowing was widespread.

County Water Authority: The deal will only lead to a fallowing program if IID and the Imperial community decide that is in their best interests. During negotiations of the San Diego/IID water transfer, IID asked that the water transfer be a “no fallowing” agreement, and that is what the current deal is.

Some Valley residents – including at least one former IID board member who was opposed to water conservation through any fallowing – have recently stated that they now believe that fallowing may be the best way to resolve environmental issues and implement a beneficial water transfer. By definition and agreement, any such arrangement would also fully mitigate any adverse impacts to the Imperial economy (see below).

Will the price of water drop so low as to make the deal a net loser for the IID? Under the agreement, the price is linked to the Metropolitan Water District’s water rates. However, there is no floor to the price under the agreement. While it seems unlikely that water prices would go down, there is no protection for the IID. An independent study suggested that the price per acre-foot could either increase or decrease by $50. The latter would make the deal untenable.

CWA: It is correct that, under the existing contract as negotiated by IID, there is neither a floor nor a cap on the price; however, potential changes in conservation methods could lead to consideration of modifications in the pricing structure as well. From an economic point of view, the terms of the San Diego deal provide the farmers with financial protection similar to that of the recent Palo Verde Irrigation District/Metropolitan Water District deal, while also providing funds to more fully protect community and environmental interests.

Will the environmental impact on the Salton Sea be mitigated, and who will pay for it? If the transfer occurs as planned, the Salton Sea is likely to lose 300,000 acre-feet of run-off water annually. The less water is imported into the Sea, the saltier and more ecologically unfriendly it becomes. The actual impacts and the cost of mitigating them are unknown. However, it is anticipated to cost more than the IID is required (and able) to pay. One saving grace is that the agreement allows third parties to pay,and Rep. Duncan Hunter has introduced legislation that includes up to $60 million to pay for mitigation of these impacts.

CWA: The success of the transfer and even larger Colorado River agreements depends on mitigating all environmental impacts, including those at the Salton Sea. The exact nature of the mitigation is unknown, and studies and negotiations are continuing. Regardless, contractual provisions limiting liability for environmental costs protect the IID and participating farmers. Moreover, the community stands to benefit from the economic stimulus of more than $50 million annually being injected into the local economy.

Will Imperial County get enough revenues to diversify from an agricultural economy? Part of the intent of the agreement is to provide funds for diversifying Imperial’s economy. However, it is uncertain as to how much would be provided, what plan exists or needs to be created for application of the funds and whether any funds would be allocated to help finance on-farm conservation measures if the price is too high for farmers. Another issue is whether some portion of the funds will be paid upfront.

CWA: The agreement provides for payments estimated at more than $50 million annually once the transfer is in place. These funds can be used for job training and job creation programs, education, senior citizen and youth centers, parks and recreation, as well as other community and economic programs. The CWA expects to work with IID to develop methods for obtaining funding to implement the transfer and looks forward to working with the Imperial Valley community to help understand and coordinate the development of these programs.