1. Board Directs Allocation Exchange Program Improvements; Penalty Fee Structure Under Review The board directed staff to create an opt-in seller contact list so growers struggling to find willing sellers can be connected more easily. The board also directed staff to revise the allocation exchange policy to allow trades of unused prior-year allocations through mid-February (before the March board reporting deadline), giving growers a short window after year-end to finalize exchanges and potentially avoid over-pumping penalties. Staff will return in November with the revised policy language and a specific cutoff date. Separately, the board directed staff to bring back a future agenda item exploring changes to the penalty fee tier structure—potentially replacing the current percentage-based tiers with absolute acre-foot thresholds so that small and large pumpers face the same per-acre-foot standard.
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