Mojave Water Agency approves up to 7,500AF State Water Project transfer

Mojave Water Agency approves up to 7,500AF State Water Project transferMojave Water Agency’s board has authorized a transfer of between 3,500 and 7,500 acre-feet of 2026 Table A water to Westside District at $150/acre-foot. The deal is intended to reduce exposure to a 14,342AF volume that staff said faces guaranteed conversion loss on 31 December 2026.

Westside District must take a minimum of 3,500AF and may take a further 4,000AF, for a maximum transfer volume of 7,500AF.

At the maximum volume, the transfer would generate approximately $1.125 million in revenue, according to staff.

The transfer addresses excess 2026 Table A water facing conversion loss, rather than the agency’s separate Article 56 carryover water and associated spill risk.

The board approved the transfer unanimously after directors discussed the agency’s capacity and strategy for importing and storing its remaining State Water Project supplies.

Mojave Water Agency has approved a transfer of up to 7,500 acre-feet of 2026 State Water Project Table A water to Westside District, providing a route to monetize part of a supply volume that staff said will otherwise face a guaranteed conversion loss at year-end. Under the term sheet, Westside District will take a minimum 3,500AF at $150/acre-foot and has an option to acquire a further 4,000AF. The maximum 7,500AF transfer would yield about $1.125 million, staff said. The water will be delivered at Banks Pumping Plant, under the delivery-point and responsibility arrangements of the agencies’ existing long-term agreement. Staff said the proposed sale relates to 14,342AF of 2026 Table A water above Mojave’s contractual allotment that can be moved into carryover for next year. That volume is subject to conversion on 31 December 2026. The agency has separately held water in San Luis Reservoir under Article 56, which carries a different potential spill risk. The transfer market had shifted since an earlier proposed arrangement. Staff said a previous agreement, for 15,000AF at $400/acre-foot, depended on agricultural demand during a growing-season window. Board authorization was delayed from July to August while questions were addressed, and staff said the water could no longer be physically delivered within that demand window. The new arrangement reflects water that Westside intends to bank for future agreements. Directors used the debate to raise wider questions over Mojave’s strategy for importing, banking and transferring State Water Project supplies. Staff said it had submitted a delivery schedule to the Department of Water Resources for the full 14,342AF conversion-risk volume, which can be adjusted if the Westside transfer proceeds. The agency is also working with operations staff to confirm conveyance capacity through the Cone Valve. One director argued that Mojave should maximize deliveries of available entitlement water to the basin, citing uncertainty over future allocations. Staff responded that moving all supplies carries substantial delivery costs and said it is monitoring conditions in phases with finance staff. The General Manager said the Department of Water Resources’ operations group was expecting a wet water year, although he noted that El Niño conditions do not always produce that outcome. A public commenter asked that local stakeholders be offered the water before it is transferred out of the basin. Staff clarified that the $150/acre-foot figure is a commodity price before delivery; Mojave would also incur delivery charges estimated at around $300-$350/acre-foot to bring water into its service area. The board approved the Westside transfer unanimously.