The Cities of Napa, American Canyon and Calistoga are selling 8,259 AF of State Water Project (“SWP”) carryover water to Santa Clara Valley Water District (“Valley Water”). Napa will provide 7,000 AF, American Canyon 759 AF, and Calistoga 500 AF. The cities will complete the transactions through Napa County Flood Control and Water Conservation District, who is an SWP contractor.
Carryover water is unused SWP allocations that is stored in San Luis Reservoir and is subject to reduction if the reservoir spills. According to the City of Napa, the reservoir has not spilled in three years, water demand has been down because due to mandatory conservation, and North-of- Delta contractors received a 75% SWP allocation for 2016.
Valley Water will pay $200/AF and will make best efforts to return half of the amount received within five years, with the option to extend the deadline for an additional five years if certain conditions prevent the district from meeting the initial deadline.
Napa, like many communities, saw a drop in revenue due to a drop in sales following the state-imposed mandatory conservation regulations. The city will direct the proceeds from this sale to a water rate stabilization fund to offset those losses.
Written by Marta L. Weismann