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NEW STUDY; CADIZ PROJECT YIELDS $6+ BILLION ECONOMIC BENEFIT

Implementation of the Cadiz Water Project will deliver $6.1 billion in economic benefits to Southern California over its 50-year life, according to a new peer-reviewed analysis by the economic consulting firm Stratecon Inc. Benefits will be enjoyed both by those receiving Cadiz water and by water users throughout the entire Southern California region.

The benefits were determined using the same methodology California used in determining the economic benefits of the Bay Delta Conservation Plan. They are:

  • A more reliable water supply – $3 billion. Savings come from Cadiz customers having less dependence on traditional imported water sources and from providing all of Southern California more protection from water shortages.
  • New groundwater storage – $631 million. The Project provides a 1 million acre-feet underground storage facility for water from the Sacramento Delta or Colorado River, which could help avoid future water shortages and related economic losses.
  • Improved water quality – $240 million. Because Cadiz water is less salty than Southern California’s other imported water, its introduction into the MWD water system will reduce economic damages currently caused by high salt content.
  • Intentionally Created Storage Credits – up to $2.2 billion. Using Cadiz groundwater would gain MWD additional storage credits, so it could store more water in Lake Mead. This would help Southern California avoid the economic costs of water shortages.

The report also confirms there will be nearly $1 billion in additional economic benefits from the construction of the project’s facilities.

To read a more detailed Cadiz news release on the report, click here.

To read or download the Stratecon report, click here.

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