1. Penalty fees may shift to a volume-based structure. Current fees depend on the percentage by which a landowner exceeds an allocation: $250 per acre-foot for the first 5% and $500 per acre-foot above that. Staff illustrated how two landowners each pumping 10 acre-feet over their allocations could fall into different tiers. Ad hoc members favored basing tiers on the volume of excess pumping, but differed on a threshold: two favored 10 acre-feet and one favored 300. Several Standing Advisory Committee members supported a threshold around 100 acre-feet; another favored 10 acre-feet, and one suggested a five-acre-foot buffer. One member instead proposed higher per-acre-foot penalties for repeat exceedances. The committee did not vote on a penalty policy; its differing views will go to the Board for consideration.
2. Members split on further work on a variance pool. Staff outlined a concept that could make a portion of unused allocations available after the proposed mid-February exchange deadline. One option would apply that water to the following year; another would apply it to the previous year's allocation exceedances. Three committee members supported developing the concept further, while two opposed spending more time on it for now. Members discussed helping growers with permanent crops facing deficits, but did not agree on eligibility or a pool design. No variance-pool policy or allocation change was adopted.
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