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<br />hundred years; and along the coast and some inland areas we have high <br />dissolved solids. Nevertheless, we have a strong commitment to make <br />use of those groundwater basins. Keep in mind: Metropolitan has no <br />rights to the groundwater basin. When Metropolitan was formed some <br />people called it "disjointed incrementalism." In other words, when <br />Metropolitan was being formed, no one gave up any of their authority <br />within their city or within their water district. Metropolitan was <br />formed to create a new district, build new facilities, and develop a <br />supplemental supply for the area with no direct authority regarding <br />water use or water supply within our service area. <br /> <br />Statewide, agriculture uses almost 85 percent of the water. <br />Urban use is about 15 percent. Within the Metropolitan service area, <br />because our water is very expensive, we carefully sell the water for a <br />little over an average cost of $300 an acre-foot. The average <br />agricultural water use in California is probably more like $15 an <br />acre-foot. So within our service area, only high value agriculture <br />survives, and only 10 percent of our water is sold for agricultural <br />use. <br /> <br />We've tried to deal with the unreliability of our supply. We've <br />developed in the last few years what we call an integrated strategy or <br />solution. It gets into demand management, conservation, water <br />pricing, and strong use of wastewater reclamation. In that regard, <br />Metropolitan has recently implemented a program of subsidizing our <br />member agencies to the tune of $154 per acre-foot for every acre-foot <br />of water reclaimed in our service area, and a new program of $250 an <br />acre-foot subsidy for member agencies using desalination technology <br />for cleaning up contaminated ground water. We've gotten into water <br />transfers (particularly in the last five or six years), primarily from <br />agriculture, and we have a large infrastructure program in order to <br />make our existing system more flexible to deal with the uncertainty of <br />all of our sources of supply. We're building an 800,000 acre-foot <br />reservoir. We've completed the environmental documentation, and, in <br />the area of environmental commitment, we have strong support from the <br />State and Federal Fish and Wildlife agencies, the Nature Conservancy, <br />and we're through the permitting process. I should hasten to add, it <br />wasn't cheap. <br /> <br />Future utilization of Colorado River water: for the last ten <br />years we have been working on programs for storing groundwater in the <br />Coachella Irrigation District near Palm Springs, the Imperial <br />Irrigation District conservation program, the land fallowing <br />demonstration program in the Palo Verde Valley, and a new program <br />whereby we're storing water today in the groundwater basin of central <br />Arizona. <br /> <br />The Palo Verde Irrigation District, a district of 100,000 acres, <br />has senior rights on the river in California -- they get water first. <br />There is another area that I don't have time to talk about -- the <br />Imperial Irrigation District. I'm going to talk about the land <br />fallowing program in that Palo Verde district, about 100 miles south <br />of Lake Mead on the Colorado River. It is a two-year program, a <br />demonstration program, that turned out to be a key concession in terms <br />of putting this together with the local farmer group. It had to be <br />approved by the other irrigation districts of California and the <br /> <br />42 <br />