Water Bank

Selah-Moxee Irrigation District began operating the SMID Water Bank in 2021 that sells and/or leases the District’s conserved water supplies that stem from the District’s senior water rights from the Yakima River. Based upon available supply, this water may be available to interested customers with a viable water use project located downstream from our Yakima River Pomona diversion in East Selah all the way down to the Columbia River. Please contact the District office if you have any questions or you are interested in obtaining water from the SMID Water Bank.

Water Bank FAQs

The District created surplus water savings through conservation projects over the last 20 years. These water savings are in addition to water services provided to all existing SMID customers.

The District plans to sell or lease portions of the surplus water to generate revenue for its Enhanced Water Conservation Program.

The District has a water conservation program that consists of over $100 million for capital improvements that include new piping/lining projects to modernize its aging irrigation system and improve reliability of water for its customers. By operating the SMID Water Bank, the District can keep assessments low and avoid long-term debt.

By operating the SMID Water Bank, your assessment will be lower than it would be without the bank because the District will be able to pay for the capital improvements through water bank generated revenue.

The District’s rights are mostly senior and even in drought years, all SMID customers receive enough water to grow their crops and irrigate their lawns. That will not change.

The District seeded the water bank with surplus water of 8,783.11 acre-feet/year, as approved by Ecology in 2021. So far the District has obligated 18.06 acre-feet in a 1st round auction open only to District landowners earlier in 2022, in 2023 the 2nd round auction obligated 382 acre-feet in sales and 426 acre-feet in leases.

A total of 5,957.05 acre-feet is available for lease (short-term, long-term, or drought lease) or sale on a case by case basis.

This Water Bank is open to any party who can physically access water from the Yakima River and groundwater in continuity therewith, generally downstream of Selah and subject to Ecology approval.

The SMID Water Bank has the potential to last indefinitely, depending on the availability of water in the water bank.

The District is open to offers for sales, short and long-term leases, and drought-year leases while water supplies are available. Please check with the District for water availability for sales and leases.

No, the District retains the discretion to reject any offers. The District will be looking for the highest value offers by qualified applicants to maximize benefit for District members and to fund its capital improvement plan. The District also reserves the right to reject offers if it is not reflective of fair market value and would result in “gifting” of District assets; if the applicant is speculating in District assets without a viable project; if it is not likely to be approved by Ecology (if required); or any other reason.

Following payment of required fees, the District will provide written notice, clarifying the terms of the agreement. This will include issuance of a draft Mitigation Certificate that can be used for future permitting with Ecology, counties, or other parties. A Final Mitigation Certificate will be issued once water use is ready to begin.

In general, bidders will be required to independently develop the source of water (e.g. a well, a surface diversion) and obtain a mitigation permit approval from Ecology. However, if the property can be served by District canals, the District is open to considering such a project.

The District will issue the user a Mitigation Certificate. Ecology relies on these documents as evidence of legal water supply.

This water can be used on land within the current District service area and also on land not currently served by the District, but generally must be from surface water downstream of the District’s Pomona diversion or groundwater in continuity with the Yakima River downgradient of the Pomona diversion. The user will need to demonstrate hydraulic continuity as part of their application for a groundwater mitigation permit from Ecology. It will be the bidder’s responsibility for obtaining the means to deliver the water to their property.

No, the mitigation certificates are intended to be appurtenant to the land where the use occurs for the term of the mitigation.

The user has up to two years to obtain Ecology authorizations and finalize the Mitigation and begin using water. If the applicant is unable to obtain the required authorizations within the two years, the District may cancel the draft Mitigation Certificate or may extend it for good cause at the discretion of the District.

The District cannot guarantee that the proposed use will be approved. The District has general knowledge about what uses may be approved, but it will be up to the applicant to do its own due diligence including any contacts with Ecology or other regulatory agencies.

Yes, a one-time application fee of $500 is required. This fee is non-refundable.

The cost of the water is based on the current fair market value.

Yes, the applicant may submit multiple offers in multiple categories (e.g. purchase, lease).

Any approved applicant applying to purchase or lease water, will need to pay 10% of the purchase or lease price within 30 days and will then receive a draft Mitigation Certificate. A final Mitigation Certificate will be issued once the remainder is paid (remaining 90%), permits are received (from Ecology, if required), and water use begins.

The District intends to scrutinize bids so only viable projects are offered draft mitigation certificates. In the situation where a project is not completed (e.g. permits not received, construction does not proceed), the applicant will be refunded half of the 10% initial purchase or lease price.

Yes, the applicant will be required to monitor their use and report it to the District annually because the District is required by Ecology to track usage under its water bank. The District may also have to provide similar reporting to Ecology.