Groundwater Credit System would bring economic benefit to landowners, while increasing overall water use efficiency

The McMullin Area GSA submitted an application for a grant from the US Bureau of Reclamation to conduct a Water Marketing Strategy Study and Groundwater Credit System. At the July 11th Board Meeting the GSA’s technical consultants Provost&Pritchard discussed the mechanics of a groundwater credit system and its potential benefits for landowners.

While a water marketing program would entail a proactive strategy for bringing surface water into the area, a groundwater credit system focuses on allocating groundwater resources among landowners within the GSA. The two concepts work hand-in-hand, as any additional surface water brought into the GSA offsets groundwater use whether used directly or for recharge.

Under a groundwater credit system landowners would be given a groundwater allocation based on acreage to either keep, trade, or sell to other landowners within the GSA. Under the credit system, a landowner could choose to convert a portion of their land for utilization that decreases their water demand, such as grazing or solar, resulting in surplus groundwater to trade or sell. On the supply side, surface water acquisition could be used to offset groundwater dependence allowing landowners to conserve a portion of their groundwater credit to trade.

Because of the economic benefit attached to unused groundwater under a credit system, landowners are incentivized to practice sustainable water management. With higher efficiency in water use across the GSA, there is potential for improved water reliability and increased flexibility in grower operations. A water marketing and groundwater credit system would work in tandem to bring long-term sustainability benefits while offsetting the potential burden of sustainable groundwater management experienced by landowners.

This is one of the programs the McMullin Area GSA Board is investigating to include in the Groundwater Sustainability Plan. The program aligns with the Board’s goal of integrating flexibility into compliance on behalf of the landowners they represent.