New agricultural water rate program benefits San Diego County growers

FALLBROOK – The San Diego County Water Authority Board of Directors has approved a new and Permanent Special Agricultural Water Rate structure that offers lower water rates to

farmers in exchange for lower water supply reliability.

Unlike the current transitional program, the new program will allow new participants to

join as a way to strengthen the region’s multibillion-dollar agriculture industry. The

program will take effect Jan. 1, 2021, replacing the current program that ends

Dec. 31.

The Water Authority will be working closely with its 24 member agencies to implement

the program for 2021 by providing program details, such as qualifying criteria and the

signup process. Participants in the existing transitional program will be allowed to take

part in the permanent program on a temporary basis while being screened for eligibility

under the new program.

Member agencies have six months, through June 30, 2021, to verify eligibility for existing customers for the new program. “This unique program will benefit all regional water users and the county’s robust agricultural economy,” said Water Authority Board Chair Jim Madaffer. “It helps farmers sustain their operations – and thousands of jobs – while favoring residential and

commercial water customers in the event of future water supply reductions.”

Farmers and growers who participate in the Water Authority program will receive a

lower level of water service during water shortages or emergencies. That allows the

Water Authority to reallocate those supplies to commercial and industrial customers

who pay for full reliability benefits. In exchange, participating farmers are exempt from

fixed water storage and supply reliability charges.

Under the permanent program in 2021, participants will pay $1,295 per acre-foot for

treated water, while municipal and industrial users will pay $1,769 per acre-foot.

San Diego County is unusual among major metropolitan areas in the United States

because it includes one of the country’s most valuable and productive farm sectors

adjacent to one of the nation’s largest cities.

The region sustains 3.3 million people and a $245 billion economy, thanks to decades of regional investments in water supply reliability projects, including the nation’s largest seawater desalination plant and the biggest conservation-and-transfer agreement in U.S. history.

The Water Authority has provided lower-cost water to growers in exchange for lower

reliability since October 2008, when the Metropolitan Water District of Southern

California began phasing out a similar program. Since that time, the transitional Water

Authority program continued with a series of extensions that expire at the end of 2020.

In June 2020, the Water Authority Board set calendar year 2021 rates and charges,

including a rate category for the new ag program. Future rates will continue to reflect

cost-of-service standards and be defined annually as part of the rate-setting process.

The new permanent special ag rate was recommended by the Water Authority’s Fiscal

Sustainability Task Force, which is assessing a variety of issues to ensure the agency’s

long-term financial health. Regional farming leaders provided input to the task force on

the parameters of the new program, which will be reevaluated in five years to assess

current and forecasted demands and supplies.

Submitted by San Diego County Water Authority.