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Using Financial Incentive$ for Aquifer Mitigation
Texas Alliance of Groundwater Districts
August 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
$186,600,000
SAWS ASR
Municipal Conservation Program
Voluntary Irrigation Suspension Program
Option
Restoration, Minimization,
and Mitigation Measures
Bio-monitoring
Riparian 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-by
50.00 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
Acre-feet
ASR Leases 2013 - 2015
$0
$20
$40
$60
$80
$100
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
RateperAcre-Foot
AMF Program AMF Irrigation/ Agricultural Rate
$0
$10
$20
$30
$40
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Millions
Annual Adopted Budget
HCP Impact on Budget and Fee
Questions?
Questions?

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Rick illgner

  • 1. Using Financial Incentive$ for Aquifer Mitigation Texas Alliance of Groundwater Districts August 26, 2015 Presented by: Rick Illgner Edwards Aquifer Authority
  • 2. Landa Lake/Comal Springs - normal Landa Lake/Comal Springs - 1956
  • 3. 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
  • 4. 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)
  • 5. 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
  • 6. Finding a Solution 3rd attempt – bottom-up; layered approach Category Element Total Cost Flow Protection Measures Emergency Stage V Critical Period Management Reductions $186,600,000 SAWS ASR Municipal Conservation Program Voluntary Irrigation Suspension Program Option Restoration, Minimization, and Mitigation Measures Bio-monitoring Riparian Habitat Restoration Water Quality Protection & Monitoring Wild Rice Restoration $32,400,000 Other Measures Refugia $43,100,000 Grand Total $262,100,000
  • 7. 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
  • 8. VISPO Options & Payments Fee 1 2 3 4 5 Stand-by 50.00 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
  • 10. 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
  • 11. 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
  • 13. 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
  • 14. 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 Acre-feet ASR Leases 2013 - 2015
  • 15. $0 $20 $40 $60 $80 $100 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 RateperAcre-Foot AMF Program AMF Irrigation/ Agricultural Rate $0 $10 $20 $30 $40 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Millions Annual Adopted Budget HCP Impact on Budget and Fee