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Section 8 <br />Options for Meeting Future Water Needs <br />number of agricultural users in the program making the <br />flows available to M&I users. For example, if 10 <br />agricultural users joined the arrangement, each would <br />take their turn not irrigating in 1 year out of 10. The M&I <br />user would obtain a constant annual yield, with this yield <br />coming from a different agricultural user each year. An <br />additional element would be to set aside of a portion of <br />the water from the agricultural lands not irrigated in each <br />year to be placed into storage to firm the yield to the <br />agricultural users that are part of the agreement. This <br />agricultural firming pool would be used in below average <br />years to increase the yield for those agricultural users <br />that are irrigating that year. <br />The benefits of this rotating agricultural transfer approach <br />include: <br />^ M&I reliability is improved since there is a guaranteed <br />additional supplemental supply of water each year. <br />^ A better or more stable income can be provided to <br />agricultural users, since an income would be <br />guaranteed during the fallowing year and the firming <br />of agricultural yield will result in a more predictable <br />farm yield during a drought. <br />^ A permanent transfer of agricultural water rights may <br />not be needed, avoiding some of the negative impacts <br />of a permanent agricultural transfer. <br />^ Maximizes the benefits of a non-tributary groundwater <br />conjunctive use program. Non-tributary, non- <br />renewable groundwater has a firm annual yield that <br />does not vary from wet to dry years as long as the <br />resource is not significantly depleted. The life of this <br />groundwater resource could be extended by relying <br />on a rotating agricultural fallowing program in average <br />to above average years and pumping groundwater <br />only during below average years. In these below <br />average years, the yield from the rotating fallowing <br />can be used to firm the yield of the agricultural users <br />that are irrigating during those years. <br />Potential issues and conflicts with rotating agricultural <br />transfers include: <br />^ As for other interruptible supply arrangements, the <br />lands involved remain in irrigation in perpetuity. The <br />agricultural users would need to bind themselves to <br />continue agricultural irrigation use and to fallow the <br />land for a year as required. <br />^ This may be more expensive approach than a <br />permanent agricultural transfer. Incentives would <br />~~ <br />need to be significant to induce an agricultural user to <br />forego the right to sell the water in the future. Annual <br />payments would be required for the agricultural users <br />that are fallowing each year. In addition, the <br />transaction costs to assemble a suitable program <br />could be significant. <br />^ Some agricultural crops, such as orchards, vineyards, <br />and some hay crops are difficult to fallow and may not <br />be appropriate for a rotating fallowing program. <br />^ Agricultural supplies under a rotating program may <br />not be in the needed location or of sufficient quantity. <br />The water from the fallowed lands must be <br />transferred to the M&I water supply intakes if the yield <br />is to be used for this purpose rather than instream <br />needs. <br />^ A change of use from agricultural to M&I or other <br />uses would likely be required. Determination of the <br />transferable amount can be complicated and other <br />water users must be protected. Legal and engineering <br />costs will be incurred. <br />^ Soil, weed, labor, and equipment management issues <br />must be considered for the fallowed lands. A farm <br />operation involves not only the planting, irrigating, and <br />harvesting of crops, but the hiring of labor and <br />maintenance of equipment. In addition, the <br />management of soil erosion and weed growth will be <br />issues on irrigated fields that are temporarily dried up. <br />^ Storage would be required to firm the yield for all <br />parties. M&I users would need storage to carry <br />irrigation season water over to the non-irrigation <br />months and storage will be needed to firm the <br />agricultural supplies and provide for the replacement <br />of delayed return flows from the fallowed lands. <br />8.2.2.4 Water Bank <br />In addition to permanent agricultural transfers, water <br />banks have been authorized by the Colorado legislature. <br />A pilot program was established in the Arkansas Basin. <br />The water bank provides a mechanism for leasing water <br />on a short-term basis without permanently transferring a <br />water right to another user. Entities with stored water <br />rights have the options to lease their water during times <br />of drought or when it will not be put to beneficial use. <br />The benefits of water banks include: <br />^ Water supplies are improved for users acquiring <br />water from the water bank. <br />~~ <br />Sfvtewide Woter Supoly Initiofive <br />H-~ O S:\REPORT\WORD PROCESSING\REPORT\S8 11-9-04.DOC <br />