THE DUNGENESS WATER EXCHANGE Washington Water Trust March 13, 2013 Sequim Realtors
PRESENTATION OVERVIEW Who is the Washington Water Trust? What is the Dungeness Water Exchange? How does the Exchange provide voluntary, cost effective and straightforward mitigation for those who need it?
NEW MITIGATION REQUIREMENTS STATE ENACTED WATER RULE Dungeness Water Rule: Sets instream flows Closes rivers, streams and ground water to new water withdrawal All new uses must mitigate All new uses are metered Provides 2 choices for how to obtain mitigation: Submit your own plan to Ecology or use the Exchange
WASHINGTON WATER TRUST 501(c)3 independent nonprofit Enhancing stream flows statewide Water transactions: voluntary, cooperative, market based and non-regulatory Water banking work in Walla Walla, Kittitas, Skagit and Dungeness Hired by Clallam County to set up a cost effective and simple path to mitigation
HOW DOES A WATER BANK WORK? Water Bank as Facilitator Supply Seller: water right holders Typical Functions Certifies validity of water rights Sets rules/criteria for bank Sets prices Matches buyers and sellers Determines priorities for banking transactions Demand Buyers: - Mitigation for new water use - Flow restoration
WALLA WALLA WATER EXCHANGE HOW IT WORKS WWT seeds the exchange for 2 years by acquiring existing water rights and placing into trust program Homebuilders pay WWT $2,000/exempt well Homebuilders receive mitigation certificate from Ecology Homebuilders must meter use, record monthly and report annually to Ecology In 2012 exchange handed off to local group
DUNGENESS WATER EXCHANGE
DUNGENESS WATER EXCHANGE As Envisioned by Local Leaders Restoration Funds Public Sources Watershed Implementation State Appropriation Salmon Recovery Board Federal Grants Puget Sound Partnership Private Sources Individual Donations Corporate Sponsorships Tribal Donations Exchange Water Projects Water Right Leases New Water Storage Reclaimed Water Irrigation Efficiencies Water Right Purchases Shallow Aquifer Recharge Groundwater Well Retirement Mitigation Funds Private Sources Builders/Homeowners Property Developers Other new GW Users Public Sources City Payments PUD Payments State subsidies Environmental Restoration (Dungeness River flows) Environmental Sustainability Economic Development (new groundwater uses)
WWT WORK IN THE DUNGENESS BASIN Activity Complete Water Exchange Feasibility Report draft to County/Ecology Aug 2008-Oct 2008 Water Exchange Strategy and Design draft report to County/Ecology Presentations and participation at DREC, DRMT, WUA, LLWG and outreach meetings Dec 5, 2008 Sept 2008-present Leasing program with DWUA commenced Feb 2009 Phase 2 Begins--Formalizing mitigation strategy, revisiting 2001 WUA memo, MOA w/county and WUA, cost-benefit analysis, multi-criteria analysis Jan 2010 Applied for grant with Agnew Irrigation District July 2011
RECENT DUNGENESS EXCHANGE WORK Activity Public meetings and outreach regarding the rule and the exchange Complete 2011-2013 SRFB Grant successful for recharge and storage 2012 Drafts of Exchange deliverables Mitigation Guidance July 2012, Jan 2013 Mitigation Plan submitted to Ecology Dec 2013 Dungeness Water Rule effective Jan 2013 Negotiating Purchase and Recharge Agreement with WUA Nov 2012- present First building permits approved with mitigation February 2013
EXCHANGE GUIDING PRINCIPLES ~ A product of a multi year community led process Address mitigation and restoration needs in the basin Respect irrigation district and ditch company rules and regulations Purchase water rights only from willing sellers Avoid impairment and third party impacts to other water right users Lease and transfer only water that was previously diverted and used ( wet water)
EXCHANGE ADVISORY COUNCIL WWT will be responsible for day-to-day management. A local advisory council will include: Dungeness Water Users Association Clallam County Jamestown S Klallam Tribe Ecology Clallam PUD City of Sequim WA. Dept of Fish and Wildlife Clallam Conservation District
HOW DOES THE EXCHANGE GENERATE MITIGATION? Dungeness River Small Independent Streams
DUNGENESS SUBBASINS
MITIGATING IMPACTS IN SMALL STREAMS Small independent streams in the Dungeness present a challenge Finding water for water mitigation for small streams is very difficult due to lack of beneficially used irrigation water rights as a source of supply Consideration of other water management strategies to enhance flow is key to successful mitigation or restoration programs
HOW WILL THE EXCHANGE GENERATE MITIGATION CREDITS? Purchase water rights from willing sellers Identify valid and transferable water rights Contact and negotiate with water right sellers Provide legal assistance with contracting Prepare change applications Guide change application through the Ecology process Closing and escrow costs Long-term monitoring
HOW WILL THE EXCHANGE GENERATE MITIGATION CREDITS? Implement Aquifer Recharge Projects Recharge site identification Communication with landowners Legal assistance with easements and cooperation agreements Site preparation and earth moving Installation infiltration pipes and measuring devices Continued site maintenance and monitoring
Questions? Discussion
STEPS FOR OBTAINING MITIGATION THROUGH THE EXCHANGE 1. Start the County building permit application process. 2. If you want to use outdoor water contact the Exchange directly 3. Contact a well driller and drill well (if one is not already drilled) to demonstrate adequate water is physically available. 4. Record all Mitigation Certificates on the specific parcel with the County Auditor. 5. The Mitigation Certificate will be attached to the specific parcel and cannot be transferred. 6. Deliver a copy of the notarized Mitigation Certificate to DCD. 7. Install a meter (as required by Ecology) as part of the plumbing system.
MITIGATION PACKAGES Package Description Indoor Only Package $1,000 (with minimal incidental outdoor use only) Indoor with Basic Outdoor Package $2,000 Indoor with Extended Outdoor Package $3,000 Average Amount of Indoor Use (GPD) 150 average Average Amount of Outdoor Use (GPD) Amount of irrigated lawn Area (Square Feet) 0 0 0 150 89 2,500 sq. ft. (approx. 50x50 ft) 150 200 5,625 sq. ft. (approx. 75x75 ft) Amount of irrigated lawn Area (Acres).06 acres.13 acres
WWT STEPS FOR PROCESSING MITIGATION APPLICATIONS 1. Receive mitigation application from County or directly from applicant 2. Review application, ask additional questions if necessary 3. Check availability of mitigation package selected 4. Receive check from County or Applicant directly 5. Applicant must record mitigation certificate with parcel prior to building permit issuance
WHO CAN BUY MITIGATION THROUGH THE EXCHANGE? Applicants with pending building permit applications with the County Applicants in the final plat approval process for subdivisions
WHERE DOES ECOLOGY ALLOW MITIGATION CERTIFICATES INITIALLY TO BE USED?
WHAT IF I WANT TO PLAN AHEAD AND BUY MITIGATION? You can purchase a Mitigation Certificate Option Available to people with a property interest in one or more lots within the WRIA 18 rule area Upfront payment of 25% of $1,000 ($250) and 5% per yr Cannot exercise for 2 years, but must exercise within 5 years or renew If the option is exercised, the payments are credited towards the certificate The option can be renewed; the price would be based on market conditions at the time of renewal
DUNGENESS WATER EXCHANGE As Envisioned by Local Leaders Restoration Funds Public Sources Watershed Implementation State Appropriation Salmon Recovery Board Federal Grants Puget Sound Partnership Private Sources Individual Donations Corporate Sponsorships Tribal Donations Exchange Water Projects Water Right Leases New Water Storage Reclaimed Water Irrigation Efficiencies Water Right Purchases Shallow Aquifer Recharge Groundwater Well Retirement Mitigation Funds Private Sources Builders/Homeowners Property Developers Other new GW Users Public Sources City Payments PUD Payments State subsidies Environmental Restoration (Dungeness River flows) Environmental Sustainability Economic Development (new groundwater uses)
SUMMARY OF DUNGENESS WATER EXCHANGE Exchange does this: New Home Builders do this: Restoration Funds Public Sources Watershed Implementation State Appropriation Salmon Recovery Board Federal Grants Puget Sound Partnership Private Sources Individual Donations Corporate Sponsorships Tribal Donations Exchange Water Projects Water Right Leases New Water Storage Reclaimed Water Irrigation Efficiencies Water Right Purchases Shallow Aquifer Recharge Groundwater Well Retirement Mitigation Funds Private Sources Builders/Homeowner s Property Developers Other new GW Users Public Sources City Payments PUD Payments State subsidies Apply for building permit Fill out mitigation application Pay for mitigation (if necessary) Install meter Environmental Restoration (Dungeness River flows) Environmental Sustainability Economic Development (new groundwater uses)
THANK YOU! QUESTIONS? Amanda Cronin amanda@washingtonwatertrust.org Susan Adams susan@washingtonwatertrust.org Western WA Office 1530 Westlake Ave N, Ste 400 Seattle, WA 98109 206.675.1585 Eastern WA Office 222 East 4 th Ave, Ste 109 Ellensburg, WA 98926 509.925.5600