The EKGSA Board of Directors will charge $500 AF over 1.65 consumed AF pumping cap for the 2022 Water Year (October 1, 2021-September 30th 2022)
Transitional changed to Tier 1 Penalty
Planned Overdraft changed to Tier 2 Penalty
Changes from board packet: Transferred water must be used in the year it was transferred, previously it said the durability of transferred water was 5 years.
2021 Water Year Consumed ET data
Historical consumed data should be available to growers by the first of the year. We encourage all growers to request their historical consumed ET data to determine projected costs for 2022 water year.
The original proposal included in the board packet from Michael Hagman for the board to consider:
- EKGSA charges no fees on the “allocation”. But charges the max fee on exceeding the allocation. So, if a landowner consumes all their allocation and doesn’t go out and transfer in some water from another landowner, they pay $500 per acre foot as a penalty allowed under SGMA law. I really don’t know how much revenue that would generate because we’d have to know what people would be willing to do and if they can find a transfer in. Challenges with this might be a landowner saying “I am going to keep my crop alive for $500 AF”.
- If the EKGSA Board wants to charge approved “SGMA Penalty Fees”, the Board needs to clearly define which allocations are penalty allocations. Retroactively applying this will have its challenges.
- If the EKGSA Board wants to charge an “Extraction Rate”, the Board needs to define what it is collecting the revenue for. I have heard a range of ideas, but the choices are clear: Projects or Management Actions as defined in the GSP. Management Actions such as fallowing programs or land purchase programs seem to bother some folks. Projects are not underway, and they need somebody else’s water. Again, a retroactive application of this rate will come with challenges.