Managing effluent to become millions: Strategy and successes of an effluent credit auction

Neil Wadsworth; John Munderloh; John Bowman

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Managing effluent to become millions: Strategy and successes of an effluent credit auction

Abstract

This paper outlines how the Town of Prescott Valley, Arizona, implemented an effluent credit auction – the first project of its kind in the world. In 2007, the Town auctioned 3.36 million cubic meters (2,724 acre-feet) of effluent water rights that buyers can use to support applications for Certificates of Assured Water Supply necessary for new subdivision development within the Town. This approach is revolutionary in that it establishes a market-based value for the water rights. The auction could net the Town as much as 67 million over the life of the auction agreement.

This paper outlines how the Town of Prescott Valley, Arizona, implemented an effluent credit auction – the first project of its kind in the world. In 2007, the Town auctioned 3.36 million cubic meters (2,724 acre-feet) of effluent water rights that buyers can use to support applications for Certificates of Assured Water Supply necessary for new subdivision development within the Town. This...

Author(s)

Neil WadsworthJohn MunderlohJohn Bowman

SourceProceedings of the Water Environment Federation

SubjectSession 31: Financial Management in Turbulent Times

Document typeConference Paper

PublisherWater Environment Federation

Print publication date Jan, 2008

ISSN1938-6478

SICI1938-6478(20080101)2008:14L.2313;1-

DOI10.2175/193864708788734430

Volume / Issue2008 / 14

Content sourceWEFTEC