FOR IMMEDIATE RELEASE: Dec. 9, 2002

CONTACT: Susan M. Giller (760) 482-9610

The Imperial Irrigation District Board of Directors Tuesday directed its staff to develop a short-term water transfer to help California through the drought after rejecting as too risky the Quantification Settlement Agreement that included a transfer of ag water to San Diego.

Directors voted on a split vote to turn down the Quantification Settlement Agreement and the transfer of agricultural water to urban San Diego that could have lasted for up to 75 years.

Director Bruce Kuhn said, "I can't vote for it because, frankly, it is not in the best interest of the Imperial Valley."

"I wish I could support it," said Director Andy Horne, who was one of the Board's negotiators on the QSA. "But I don't think we know what we're getting into."

He said he was concerned that if the District starts putting land out of production, or fallowing, to create water for transfer it won't be allowed to stop the process. He also voiced concern about environmental issues and the potential for IID never being able to recoup money it spends for efficiencies if the deal ends because of environmental costs.

IID entered into negotiations on the transfer as a way to get an urban partner to help finance expensive conservation measures, which would improve the District's legal right by improving its water use efficiency.

IID Chief Legal Counsel John Carter said, "The transfer was never about money, it was always about protecting IID's water rights by improving its 'reasonable and beneficial use' of the water."

However, when environmental concerns about reduced flows into the Salton Sea raised a red flag, the IID came under mounting pressure to make water available for transfer through putting land out of production rather than improving conservation.

Director Lloyd Allen, who voted to approve the QSA and water transfer because of the cost of defending the District against water use challenges, said he was less enthusiastic with where the agreement ended up.

"It's a lousy deal because environmentalists and the Salton Sea changed the whole crux of the water transfer," he said.

Added Horne, "This started out as a win-win deal. It ended up with us being threatened with our very existence if we didn't sign something that was not in this community's interest."

Instead, the Board directed its staff to develop a 3 to 5 year water transfer plan that would move 100,000 acre-feet of water a year to San Diego or another willing buyer to tide the state over during the drought.

IID Board President Stella Mendoza said, "We are going to have to transfer some water. We can't avoid that. But it has to be on our terms."

Water generated through the short-term plan would come from a temporary fallowing program.

Kuhn, who proposed the short-term plan, said, "The temporary program would allow time for a more permanent transfer to be worked out."