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I I I I I I I I I I I I I I I I I I I . Initial share distribution is based on splitting the difference of relative demand for water by the different types of irrigators in a dry year and historical or normal conditions. Supplemental ilTigators would be allocated additional shares and water relative to a normal year, but this supply falls short of their demand than under S2. Concurrently sole source users are restricted in a dry year; . Once initial share allocation is made, the Board may adjust the water per share allocation as needed on an armual basis; . Reduces the amOllllt of water to meet the demands of sole source irrigators during average years relative to historical use; . Creates a secondary market for leasing of armual water between supplemental and sole source users; . Creates storage reserves for initial dry years but is insufficient for subsequent dry years; . In critical dry years, it evenly distributes water demand shortfalls between sole source and supplemental irrigators (supplemental irrigators would be allocated additional water relative to a normal year, but this supply still falls short of their demand- concurrently sole source users are restricted in a dry year); . Sole source users pay a higher bill per acre foot plllTIped than supplemental users due to higher depletion factors; . Source of revenue is stable. In sununary, Altemative CI reduces water allocation during a dry year evenly among sole source and supplemental users (i.e., both would be cwtailed by the same percentage of their respective historic average use). Because reductions are based on historic use rather than actual demand in a dry year, this method places a significant burden on supplemental users whose demand increases during these years but is relatively small on an average. Alternative C2 has a different impact. In a dry year, C2 reduces water allocations so that demand shortfall is evenly distributed among supplemental users and sole source users (e.g., both users would be reduced by the same percentage of their individual demand). This structure imposes a higher percentage of curtailment on sole source irrigators. Both Alternative C 1 and Altemative C2 result in reduced revenues during dry years and, therefore, lll1stable revenue. Alternative C 1.5 is an intermediate position between C I and C2. In normal years there is no cutback. In dry years, sole users are restricted slightly allowing supplemental users to increase water use. Release of storage water also helps supplemental users. Though supplemental users get a moderate increase in water use, they also pay higher total revenues. The impacts of Altemative S I on the two irrigator groups is essentially the same as in Alternative C I and the impacts of Altemative S2 as those of Altemative C2. The principal difference between the C altematives and the S altematives is that the S alternatives would result in a stable source of revenue to meet the organizations' obligations. EnWater Resource Consultants September 5, 1997 Final Report 8