Municipal and Industrial 

Water Shortage Supply Policy

Guidelines and Procedures
Purpose

• Reclamation developed these guidelines to ensure consistent and 

equitable implementation of the Municipal and Industrial (M&I) 

Water Shortage Policy (WSP) throughout the Central Valley Project 

(CVP) for those Contractors subject to the M&I WSP. These guidelines 

primarily focus on the administrative process and calculations of 

Public Health and Safety (PHS) and possible adjustments to a 

Contractor’s Historical Use. 
Purpose

• Define water shortage terms and conditions for applicable CVP 

Contractors. 

• Determine the quantity of water made available to CVP Contractors 

from the CVP that; together with the M&I Contractors’ drought water 

conservation measures and other Non-CVP water supplies, would 

assist the M&I Contractors in their efforts to protect public health and 

safety during severe or continuing droughts.

• Provide information to Contractors for their use in water supply 

planning and development of drought contingency plans. 
General

• The M&I WSP is intended to provide clear and objective guidelines on 

the water supplies available from the CVP during a Condition of 

Shortage, thereby allowing CVP Contractors to know when, and by 

how much, water deliveries may be reduced in drought and/or other 

low water supply conditions.
General

The M&I WSP does not apply to:

1) CVP water service or repayment contractors with contracts that do 

not reference the M&I WSP;

2) Settlement, exchange, or other types of contracts or agreements in 

satisfaction of senior water rights; or 

3) CVPIA refuge contracts. 
General

• For an M&I contractor to be eligible for adjustment to its CVP water 

supply, the contractor’s water service contract must reference the 

M&I WSP. 

• In addition, the CVP contractor must: 

a) have developed and be implementing a water conservation plan 

that meets the current CVPIA criteria; 

b) be measuring such water consistent with section 3405(b) of the 

CVPIA; 

c) have and be implementing a drought contingency plan designed to 

protect public health and safety;

d) demonstrate a ‘need’ for additional water. 
Allocation of CVP Water Supplies

• For any given water year, the Allocation of CVP water supplies is 

based upon forecasted reservoir inflows and Central Valley hydrologic 

conditions, amounts of storage in CVP reservoirs, regulatory 

requirements, and management of Section 3406(b)(2) resources and 

refuge water supplies in accordance with implementation of the 

Central Valley Project Improvement Act (CVPIA). 
Allocation of CVP Water Supplies

• Under a Condition of Shortage, Contractors may experience unique 

circumstances that are not addressed in these guidelines. 

Reclamation will work with Contractors to address these unique 

circumstances as they occur.

• To ensure continued compliance with applicable federal and state 

laws, federal authorities, and CVP operational plans, Reclamation will 

update or revise these guidelines, as necessary.
Guidelines for Implementation

• PUBLIC HEALTH AND SAFETY: The amount of water determined to be 

necessary to sustain PHS is currently calculated to equal D+ CI + I + L 

Where1: 

2Domestic use (D) = Current Population X 55 gallons per capita per day3

Commercial and Institutional (CI) = 70% of Projected Commercial Demand 

Industrial (I) = 70% of Projected Industrial Demand 

System (Conveyance) Losses (L) = 10% 

• Based on the severity of the Condition of Shortage, Reclamation may 

adjust the CI, and I percentages of demands to ensure domestic use 

needs are met throughout the CVP. 
Guidelines for Implementation

• Determining Allocations for Contracts with Irrigation and M&I Water 

Supplies: Several Reclamation Contractors have both irrigation and 

M&I water supplies contracts (mixed contract); however, there is not a 

quantity of water associated for each use under contract. 

• In most water service contracts, it states, “Project water furnished 

under this contract will be allocated in accordance with the thenexisting Project M&I Water Shortage Policy. Under the M&I WSP, 

irrigation allocations for mixed contracts will be calculated as follows: 
Guidelines for Implementation

• (Total Contract Quantity – M&I Historical Use) X Irrigation Allocation 

Percentage =

Irrigation Water Available Under Contract (expressed as a quantity) 

For example:

Total Contract Supply = 10,000 AF 

Three Year M&I Historic Use = 2,000 AF 

Irrigation Allocation Percentage = 50% 

Irrigation allocation: (10,000 AF – 2,000 AF) * 50% = 4,000 AF for 

irrigation water available under contract. 
Guidelines for Implementation

• Before allocation of M&I water to a contractor will be reduced, 

allocation of irrigation water will be reduced below 75 percent of 

Contract Total, as shown in the table.
Irrigation Allocation (% of contract entitlement) M&I Allocation (1)

<100% 100% (Contract Total)

95% 100%

90% 100%

85% 100%

80% 100%

75% 100%

M&I Allocation (% of historical use)

70% 95%

65% 90%

60% 85%

55% 80%

50%-25% 75%(2)

20% 70% (2)

15% 65% (2)

10% 60% (2)

5% 55% (2)

0% 50% (2,3)

(3) Nothing in this policy prevents M&I allocation from being reduced below 50% if CVP water availability is insufficient to meet the 50% allocation.

Allocation of Irrigation and M&I Water Supply 

Under a Condition of Shortage 
• Reclamation will strive to deliver CVP water to M&I water service 

contractors at not less than the amount needed to meet PHS need, 

taking into consideration contractors’ CVP allocations and available 

non-CVP supplies, provided CVP water is available, if:

(a) The Governor declares an emergency due to water shortage 

applicable to that contractor or 

(b) Reclamation, in consultation with the contractor, determines that an 

emergency exists due to water shortage.

• Reclamation may determine that it is necessary to vary the allocation 

of M&I water by contractor, taking into consideration a contractor’s 

available non-CVP water supply. 

Guidelines for Implementation
Double Click to Open MI Water Shortage Policy

https://www.usbr.gov/mp/cvp/mandi.html
Northern California Area Office: Ryan Everest 

530-892-6220 or reverest@usbr.gov

Central California Area Office: Brad Hubbard 

916-537-7041 or bhubbard@usbr.gov

South-Central California Office: Erma Leal 

559-262-0350 or eleal@usbr.gov

BOR Contacts