WaterSMART Grants: Water Marketing Strategy Grants

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WaterSMART Grants:Water Marketing Strategy GrantsKatie Schultz, Avra Morgan, and Julie HendricksPolicy and Administration, Water Resources and PlanningJune 21, 20191

Agenda Overview WaterSMART Program Overview Water Marketing Strategy Grants Overview Eligible Applicants and Projects Required Project Components Water Marketing Strategy Document Requirements Post-selection Requirements Evaluation Criteria Examples2

Reclamation’s MissionThe mission of the Bureau of Reclamation is to manage, develop, andprotect water and related resources in an environmentally andeconomically sound manner in the interest of the American public.3

WaterSMART Program - Overview Departmental initiative established in2010 Provides a framework for Interior tosupport water supply reliability formultiple water users WaterSMART supports Reclamation’smission through collaboration withstakeholders to improve watermanagement, increase water reliability,and optimize limited supplies Authorized under section 9504 of theSECURE Water Act, P.L. 111-114


Water Marketing Strategy Grants –Overview Program Purpose: Through WaterSMART Water Marketing Strategy Grants,Reclamation provides cost-shared financial assistance to states, tribes, and localgovernments to develop water marketing strategies to establish or expand watermarkets, or water marketing activities between willing participants. Projects Funded: Collaborative planning efforts to develop water markets that willproactively address water supply reliability and increase water managementflexibility. Pilot activities integral to the development of a strategy – i.e. themovement of water on a pilot basis in compliance with applicable laws – can alsobe included. Program Objective: Water markets between willing buyers and sellers can beused to help water users meet demands efficiently in times of shortages, therebyhelping prevent conflicts.6

Water Marketing Strategy Grants – ProjectEligibilityEligible Applicants:Ineligible Applicants: States, Tribes, irrigation districts, waterdistricts, or other organizations withwater or power delivery authority Federal government entities Institutes of higher education Individuals 501(c)4 and 501(c)6 organizationsEligible Projects:Ineligible Projects: Development of a water marketingstrategy to establish or expand currentwater markets or water marketingactivities Other types of planning Title XVI Projectsstudies Water purchases Construction activities Administrativeconstruction costs Water conservationprojects On-farm improvementprojects OM&R7

Water Marketing Strategy Grants – AwardInformationFunding Group I:Funding Group II: Up to 400,000 in Federal funds* Completed within 3 years Large project scopeUp to 200,000 in Federal funds*Completed within 2 yearsSmaller project scopeCan be less complex Few partners involved Smaller geographic area Builds on prior work More partners Larger geographic area More complex water markets*50% or greater non-Federal cost share is requiredregardless of Funding Group8

Water Marketing Strategy Grants –Required Project Components Development of a Water Marketing Strategy must include thefollowing required project components: Outreach and partnership buildingScoping and planning activitiesDevelopment of a water marketing strategy documentPilot Activities – optional9

Water MarketingStrategy Grants –Required ProjectComponents Projects proposed for funding mustaddress the 3 required projectcomponents If significant work has beencompleted under components 1 and2, applicant must explain in detailwhat work has been completed Scoping and Planning Activities caninclude a pilot projectPilotActivities(Optional)1. OutreachandPartnershipBuilding2. ScopingandPlanningActivities3. Developmentof a watermarketingstrategyWater MarketingStrategy Document10

Water Marketing Strategy Grants –Required Project ComponentsThree Required Project Components:1. Outreach and Partnership Building Conducting outreach to potential partners, participants, and interested oraffected stakeholders in the area through public meetings, webinars, notices,or other forms of communication and outreach Hosting workshops to gather information on the development of the watermarketing strategy Making available the draft strategy document for public review and comment11

Water Marketing Strategy Grants –Required Project Components cont.2. Scoping and Planning Activities Conducting financial or economic analyses to identify potential buyers and sellers, assessdemands for the water market, and research the cost of implementing the water market. Researching different water marketing approaches Analyzing water rights issues or legal requirements Quantifying water rights, consumptive use, diversions, and return flows to determine how muchwater is available for marketing and to avoid impacts to downstream water users. Analyzing economic, social, community, and environmental impacts of potentialmarket/transaction(s) Conducting hydrologic or engineering studies related to water supply, use of infrastructure, orhydrologic impacts of water marketing Analysis of decision support tools12

Water Marketing Strategy Grants –Required Project Components cont. Pilot Activities - Optional Pilot activities integral to the development of a strategy – i.e. the movement ofwater on a pilot basis in compliance with applicable laws – can be included A description of the types of pilot activities undertaken, how the activities wereimplemented and their duration The outcomes of all pilot activities including what was learned, and who thisinformation informed others and was incorporated into the strategy Caution that this will trigger environmental compliance requirements13

Water Marketing Strategy Grants –Required Project Components cont.3. Development of a Water Marketing Strategy Document A water marketing strategy is a written document that describes a proposedapproach to establish or expand a new water market or water marketingactivities based on the results of components 1 and 2 There are 4 strategy document content requirements that apply to thedevelopment of a water marketing strategy14

Water MarketingStrategy Grants –Strategy DocumentContent Requirements There are strategy documentcontent requirements that must beincluded in the water marketingstrategy document. The level of detail in addressing thestrategy document content mayvary depending on how much priorplanning has occurred, the level ofcomplexity of the issues beingaddressed, and how close theproject is to implementationWater MarketingStrategy DocumentStakeholderSupport and InputImplementationPlanHow will the watermarket/watermarketing activitiesbe implementedfollowing completionof the strategy?LegalFrameworkWhat is the legalframework for thewater market/watermarketing activities?How is stakeholderinput incorporatedinto the watermarket/watermarketing activities?MonitoringHow will watermarketing activitiesbe monitored?15

Water Marketing Strategy Grants – PostSelection RequirementsAfter the applicant is informed of being selected,Reclamation will enter into a financial assistanceagreement: The financial assistance agreement documents themilestones, project, and reporting requirements Required planning components and reporting16

Water Marketing Strategy Grants –Required Planning Steps & ReportingOngoing RequiredReporting and FinalReportConduct Outreach andPlanning Activities Informing and obtaining inputfrom potential marketparticipants and stakeholderswithin the relevant geographicareas Studies to explore the potentialto develop a new water market,or to conduct water marketingactivities A written Water MarketingStrategy consisting of the 4strategy document contentrequirements Must be submitted toReclamation for review toensure compliance withprogram requirements.Development of aWater MarketingStrategy Document Quarterly interim performancereports: compares actualaccomplishments to previously setmilestones, reasons why milestoneswere not met, schedule, etc. Final Report: details whether theproject objectives were met,discussion of the benefits achievedby the project and how the watermarketing strategy demonstratescollaboration17

Evaluation Criterion D Department of InteriorPriorities (10 points)Scored based on theextent that the proposalsupports the DOIpriorities.Criterion C - Ability toMeet ProgramRequirements (20 points)EVALUATION CRITERIA Applications will beevaluated against theevaluation criteria whichcomprise a total of 100points.Scored based on the extent towhich the proposal supportsthe applicants financial ability.Criterion A - WaterMarketing Benefits(40 points)Criterion B - Level ofStakeholder Support andInvolvement (30 points)Scored based on the extent towhich the proposal demonstratesthe strategy is supported by adiverse set of stakeholders.Scored based on the extentto which the proposedwater marketing strategywill result in significantbenefits to water supplyreliability.18

Water Marketing Strategy Grants – FY2017Project ExamplesThe New Cache La Poudre Irrigating Company, Inc., Colorado Partnering with Ducks Unlimited to develop a water marketing strategy thatfacilitates the temporary transfers of agricultural water to meet the demands ofmunicipalities, rural economic development, and wildlife habitat Emphasizes temporary water leases over permanent transfers to sustain FrontRange agriculture while meeting other needs during shortages Multiple stakeholders and collaborators19

Water Marketing Strategy Grants – FY2017Project ExamplesCentral Oregon Irrigation District, Redmond, Oregon Developing a water transaction program to facilitate the trading of water betweenirrigation districts and for environmental flows on the Deschutes River The Oregon Spotted Frog has accelerated the need to restore flows in theDeschutes River Increases the reliability for irrigators (especially Junior users), protects flows in theriver, and meets the needs of both agricultural users and municipalities20

Water Marketing Strategy Grants - ProgramRequirements SummaryEligibleApplicantsFundingGroupsStates, Tribes, irrigation districts, water districts, or other organizationswith water or power delivery authority in the western United StatesFunding Group I: Up to 200,000 for strategies completed within 2 yearsFunding Group II: up to 400,000 for strategies completed within 3 yearsCost Share50% or more non-Federal cost-share is riteriaApplications will be evaluated against the evaluation criteria whichcomprise a total of 100 points.Outreach and Partnership BuildingScoping and Planning Activities (Pilot activities are optional)Development of a Water Marketing Strategy DocumentFOA Deadline: Wednesday, July 31, 2019, at 4:00 p.m. MDT21

WaterSMART Data Visualization Provides users with interactivemaps of each WaterSMARTProgram and projects Includes Featured Project tours Shows program growth since 2010 Recently updated with newapplication featuresWaterSMART Data Visualization Tool22

WaterSMART Program LinksBasin Studies - https://www.usbr.gov/watersmart/bsp/index.htmlWWRA - ervoir Operations - pplied Science Tools - ex.htmlBasin StudiesTitle lWaterSMARTGrantsWater and Energy Efficiency Grants - ll-Scale Water Efficiency Grants - er Marketing Strategy Grants - ex.htmlField sbr.gov/watersmart/cwmp/index.html23

Katie Schultz303-445-2188kschultz@usbr.govAvra Morgan303-445-2906aomorgan@usbr.govJulie Hendricks303-445-2428jhendricks@usbr.gov24

Water Marketing Strategy Grants - Required Project Components cont. 3. Development of a Water Marketing Strategy Document A water marketing strategy is a written document that describes a proposed approach to establish or expand a new water market or water marketing activities based on the results of components 1 and 2

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