Agencies Reach Agreement On Colorado Water -- California Capitol Hill Bulletin -- Volume 10, Bulletin 6 -- March 13, 2003

Negotiators from four California water districts, with the assistance of the State's water negotiating team, have presented an agreement to the U.S. Department of Interior to resolve the issue of reducing the state's dependency on Colorado River water while meeting Interior's criteria for reinstating the fifteen-year phase in of the agreement. The proposed Quantification Settlement Agreement (QSA) was agreed to by the Imperial Irrigation District, Coachella Valley Water District, Metropolitan Water District of Southern California and San Diego County Water Authority. It was presented to the U.S. Department of Interior for its approval on Wednesday, March 12.

Some major provisions in the new agreement include:

- A July 30, 2003 effective date for the QSA;

- $200 million in state funding, and $150 in state loan guarantees;

- $43 million in local funding;

- Previously off-certain "off-ramps" have been substantially eliminated;

- Water budgets and transfer schedules are unchanged from the previous agreement; and

- The lawsuit by the Imperial Irrigation District against the United States will be settled and dismissed concurrent with the QSA effective date.

In lauding the agreement, Governor Gray Davis said: "This is a major breakthrough in addressing California's long-term water needs. All the parties at the negotiating table worked diligently to make this a winning situation for everyone in California. This plan meets the needs of urban communities, rural communities and the environment."

The four agencies missed the deadline to reach an agreement last December on the QSA, when Imperial voted against the proposal then on the table. See, Bulletin, Vol. 9, No. 32 (12/18/02). As a result, Secretary of Interior Gale Norton ordered that the amount of water California could draw from the Colorado river this year be cut by 600,000 acre-feet, enough water for 1.2 million people annually.

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