Fenner Gap and Victor Valley Water Agencies Launch "One Water" Plan

Rhea-AI Summary

Cadiz, Inc. announced a partnership between Fenner Gap Mutual Water Company and Victor Valley Wastewater Reclamation Authority to develop a coordinated investment strategy for water infrastructure in San Bernardino County's Mojave Basin region. The 'one water' plan aims to integrate public, private, and multi-agency financing resources to improve water quality and increase reliability of local water supplies. The plan includes recycled water from VVWRA's wastewater treatment plants and water supplies from Cadiz to create a regional water management strategy. The collaboration also involves other local agencies to expand pipeline and distribution facilities, advanced water treatment, and collaborative recharge basins to capture storm water and manage imported water supplies.

Positive

• Partnership between Fenner Gap and VVWRA to develop a coordinated investment strategy for water infrastructure
• Integration of public, private, and multi-agency financing resources for water infrastructure
• Incorporation of recycled water and water supplies from Cadiz in the 'one water' plan
• Collaboration with other local agencies for the expansion of pipeline and distribution facilities, advanced water treatment, and collaborative recharge basins

Negative

• None.

Insights

Environmental Economist

An integrated water infrastructure strategy, such as the one proposed by Cadiz, Inc. and Fenner Gap, can be a significant driver for economic development and environmental sustainability in the Mojave Basin region. By leveraging a combination of public, private and multi-agency funds, this approach can optimize the allocation of financial resources toward infrastructure that enhances water quality and supply reliability. This is particularly relevant given the increasing water scarcity concerns in the Southwest.

From an economic standpoint, the plan promises to improve the efficiency of water use, which can translate into lower operational costs for local businesses and potentially attract new investments due to the enhanced sustainability profile of the region. However, the scale of investment required and the long-term nature of infrastructure returns necessitate a thorough cost-benefit analysis to ensure that the expected economic gains justify the financial commitments.

Moreover, the adoption of 'one water' principles reflects a growing trend in resource management, which recognizes the interconnectedness of all water sources and promotes an integrated approach to water planning. This is crucial for the long-term resilience of local economies that are heavily dependent on water availability.

Water Resources Engineer

The technical aspects of the proposed plan involve the integration of recycled water with existing water supply systems, which is a significant engineering challenge. By incorporating advanced water treatment technologies and expanding pipeline and distribution facilities, the project aims to enhance the overall efficiency of water resource management. This includes capturing storm water, which is often underutilized and using it for groundwater replenishment.

From an engineering perspective, the success of such a plan depends on the careful design and operation of reclamation facilities, recharge basins and storage systems to ensure that they function effectively within the regional hydrological context. The ability to manage water supplies across different sources, including natural river flow and groundwater, will be pivotal in maintaining the health of the Mojave River ecosystem and supporting sustainable agricultural and urban development.

It is important to note that the integration of water infrastructure on this scale requires meticulous planning to mitigate potential environmental impacts, such as alterations to natural flow regimes and groundwater levels. These factors must be balanced with the projected benefits of increased water supply reliability and quality.

Public Policy Analyst

The collaboration between Cadiz, Inc., Fenner Gap and VVWRA highlights the importance of multi-stakeholder engagement in regional infrastructure projects. By pooling resources and expertise, these entities aim to address complex water management challenges that single agencies might struggle to tackle alone. The potential for merging financing powers to access grants and municipal financing suggests a strategic approach to overcoming financial barriers that often impede infrastructure development.

From a policy perspective, this initiative could serve as a model for other regions facing similar water-related issues. It underscores the value of joint powers authorities and non-profit corporations in driving forward public-private partnerships that align with regional sustainability goals. The success of this plan could inform policy decisions and encourage the adoption of similar strategies elsewhere, thereby influencing water management practices on a broader scale.

However, the intricacies of inter-agency cooperation and the governance of such a large-scale project will require transparent mechanisms to ensure accountability and equitable distribution of benefits among the different communities within the Mojave Basin region.

One Water plan will integrate High Desert infrastructure investments to improve water quality and increase reliability of local water supplies.

LOS ANGELES, Jan. 26, 2024 /PRNewswire/ -- Cadiz, Inc. (NASDAQ: CDZI/CDZIP, the "Company") announced that Fenner Gap Mutual Water Company ("Fenner Gap") has signed a Letter of Intent with the Victor Valley Wastewater Reclamation Authority ("VVWRA") to develop a coordinated investment strategy for water infrastructure in San Bernardino County's Mojave Basin region.  The ambitious plan to integrate public, private and multi-agency financing resources for the design, construction and operation of water infrastructure will incorporate recycled water from VVWRA's wastewater treatment plants with pipeline facilities and water supplies from Cadiz in the eastern Mojave to create a regional "one water" plan that benefits the whole region.

Fenner Gap is the non-profit corporation established by the Company to distribute water supplies from the Cadiz Water Conservation, Supply and Storage Project. VVWRA is a Joint Powers Authority providing wastewater treatment, water recycling, and renewable green energy, whose members include the City of Victorville, City of Hesperia, the Town of Apple Valley and San Bernardino County Special Districts 42 and 64.

"Regional planning of water infrastructure is the key to sustainable water management for the entire Southwest" said Susan Kennedy, Chief Executive Officer of Cadiz. "Coordinating the design and operation of pipelines, reclamation facilities, recharge basins and storage will not only increase water supplies through efficiency and conservation but will improve the health and quality of groundwater basins throughout the region."

"We have many sources of water supply in the Mojave Basin: natural river flow, groundwater, imported water, storm water and recycled water," VVWRA's General Manager, Darron Poulsen, said. "But in the end, there is only one water, and we have to think regionally and programmatically to achieve our supply reliability and water quality goals. The "one water" concept is the foundation of regional planning that will allow us to achieve maximum benefits to the entire Mojave region and other areas of San Bernardino County."

VVWRA owns and operates three wastewater treatment and conveyance facilities in the western Mojave's Alto Basin and distributes 12,000 to 13,000 acre-feet of water resources per year to preserve the Mojave River ecosystem and facilitate groundwater replenishment in the Centro and Baja Basins. Fenner Gap and Cadiz own and manage groundwater resources in eastern Mojave watersheds including 220-miles of buried pipelines that can directly deliver water supplies to groundwater recharge basins in the Centro and Baja Basins.

Fenner Gap and VVWRA plan to collaborate with other local agencies on the expansion of pipeline and distribution facilities, advanced water treatment and collaborative recharge basins to cost-effectively capture storm water and manage imported water supplies. The agencies also plan to look at merging or integrating financing powers to maximize grant and municipal financing opportunities.

The Letter of Intent and map are attached.

About Victor Valley Wastewater Reclamation Authority

Founded in 1978, VVWRA serves a 279 square mile area that includes Apple Valley, Hesperia, Victorville, Spring Valley Lake and Oro Grande. VVWRA treats about 12 million gallons of wastewater per day. Wastewater that comes to the VVWRA plant goes through an extensive cleaning and disinfection process before being returned to the Mojave River as recycled water through direct discharge to the river or through percolation ponds located on VVWRA property. Solid waste is treated in large anaerobic digesters, where the resulting methane gas is collected and scrubbed by the VVWRA private partner Anaergia, who develops the gas into renewable natural gas (RNG). The finished RNG is injected into a Southwest Gas pipeline. Most of the RNG is being used by Toyota where it is converted into hydrogen for new vehicles being imported at their Port of Long Beach facility.

For more information, please visit https://www.vvwraca.gov/.

About Cadiz, Inc.

Founded in 1983, Cadiz, Inc. (NASDAQ: CDZI) is a California water solutions company dedicated to providing access to clean, reliable and affordable water for people through a unique combination of water supply, storage, pipeline and treatment solutions. With 45,000 acres of land in California, 2.5 million acre-feet of water supply, 220 miles of pipeline assets and the most cost-effective water treatment filtration technology in the industry, Cadiz offers a full suite of solutions to address the impacts of climate change on clean water access. 

For more information, please visit www.cadizinc.com.

Safe Harbor Statement 

This release contains forward-looking statements that are subject to significant risks and uncertainties, including statements related to the Company's ability to secure any additional necessary permits for project development. Although the Company believes that the expectations reflected in our forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Factors that could cause actual results or events to differ materially from those reflected in the Company's forward-looking statements include potential litigation that may delay project development, the Company's ability to obtain financing as needed, and other factors and considerations detailed in the Company's Securities and Exchange Commission filings.

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SOURCE Cadiz, Inc.

FAQ

What is the purpose of the partnership between Fenner Gap and VVWRA?

The purpose is to develop a coordinated investment strategy for water infrastructure in San Bernardino County's Mojave Basin region.

What does the 'one water' plan aim to achieve?

The plan aims to integrate public, private, and multi-agency financing resources to improve water quality and increase reliability of local water supplies.

What does the collaboration between Fenner Gap and VVWRA involve?

The collaboration involves integrating recycled water from VVWRA's wastewater treatment plants and water supplies from Cadiz to create a regional water management strategy, as well as expanding pipeline and distribution facilities, advanced water treatment, and collaborative recharge basins with other local agencies.

What are the main goals of the 'one water' plan?

The main goals are to improve water quality and increase the reliability of local water supplies by incorporating recycled water and water supplies from Cadiz in the regional water management strategy.