For example, the Groundwater Replenishment System (GWRS) operated by the Orange County Water District is the world’s largest water purification system for indirect potable reuse. It was funded, in part, by Metropolitan’s member agencies through the Local Resources Program. Annually, the GWRS produces approximately 103,000 acre-feet of reliable, locally controlled, drought-proof supply of high-quality water to recharge the Orange County Groundwater Basin and protect it from seawater intrusion. The GWRS is a premier example of a regional project that significantly reduced the need to utilize imported water for groundwater replenishment in Metropolitan’s service area, increasing regional and local supply reliability and reducing the region’s reliance on imported supplies, including supplies from the State Water Project. Metropolitan’s local resource programs have evolved through the years to better assist Metropolitan’s member agencies in increasing local supply production. The following is a description and history of the local supply incentive programs.
A. Local Projects Program
In 1982, Metropolitan initiated the Local Projects Program (LPP), which provided funding to member agencies to facilitate the development of recycled water projects. Under this approach, Metropolitan contributed a negotiated up-front funding amount to help finance project capital costs. Participating member agencies were obligated to reimburse Metropolitan over time. In 1986, the LPP was revised, changing the up-front funding approach to an incentive-based approach. Metropolitan contributed an amount equal to the avoided State Water Project pumping costs for each acre-foot of recycled water delivered to end-use consumers. This funding incentive was based on the premise that local projects resulted in the reduction of water imported from the Delta and the associated pumping cost. The incentive amount varied from year to year depending on the actual variable power cost paid for State Water Project imports. In 1990, Metropolitan’s Board increased the LPP contribution to a fixed rate of $154 per acre-foot, which was calculated based on Metropolitan’s avoided capital and operational costs to convey, treat, and distribute water, and included considerations of reliability and service area demands.
B. Groundwater Recovery Program
The drought of the early 1990s sparked the need to develop additional local water resources, aside from recycled water, to meet regional demand and increase regional water supply reliability. In 1991, Metropolitan conducted the Brackish Groundwater Reclamation Study which determined that large amounts of degraded groundwater in the region were not being utilized. Subsequently, the Groundwater Recovery Program (GRP) was established to assist the recovery of otherwise unusable groundwater degraded by minerals and other contaminants, provide access to the storage assets of the degraded groundwater, and maintain the quality of groundwater resources by reducing the spread of degraded plumes.
C. Local Resources Program
In 1995, Metropolitan’s Board adopted the Local Resources Program (LRP), which combined the LPP and GRP into one program. The Board allowed for existing LPP agreements with a fixed incentive rate to convert to the sliding scale up to $250 per
Appendix B - 18
IRWD – 2025 Urban Water Management Plan – Reduced Delta Reliance
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