City of Adelanto to Join Mojave Basin “One Water” Plan

Adelanto joins Fenner Gap and Victor Valley water agencies in regional planning, infrastructure investment strategy to improve reliability and quality of local water supplies.

Los Angeles, CALIFORNIA (02.01.24) – Cadiz, Inc. (NASDAQ: CDZI / CDZIP, the “Company”) announced today that the City of Adelanto, California has signed a Letter of Intent with Fenner Gap Mutual Water Company (“Fenner Gap”) to join Victor Valley water agencies in developing an integrated water management and infrastructure investment plan for the Mojave Basin region. As part of the agreement, Fenner Gap will provide 25,000 acre-feet of water to the City of Adelanto from the Cadiz Water Conservation, Supply and Storage Project.

By signing the Letter of Intent, the City of Adelanto joins Fenner Gap, Victor Valley Wastewater Reclamation Authority (“VVWRA”) and local Victor Valley water agencies in launching the Mojave – San Bernardino “One Water” plan, an ambitious plan to integrate public, private and multi-agency financing resources and maximize grant and municipal financing opportunities for the design, construction and operation of regional water infrastructure including pipelines, groundwater recharge basins, groundwater storage banks and water treatment facilities benefitting the entire Mojave Basin region.

“We are proud to work with the City of Adelanto as part of this important regional effort to develop a sustainable, reliable water supply strategy,” said Susan Kennedy, Chief Executive Officer of Cadiz. “Coordinating infrastructure investments and groundwater replenishment strategies on a regional basis will improve the health and reliability of water supplies not only for Adelanto, but for all communities in the Mojave Basin.”

“Adelanto is one of the fastest growing cities in the High Desert,” said Mayor Gabriel Reyes. “But we cannot thrive and grow without clean, affordable water and the infrastructure to deliver that water to people. This “one water” regional planning process will allow us to pool our resources to manage water supplies and efficiently invest in water infrastructure that benefits the whole Mojave Basin.”

In accordance with the LOI, Adelanto and Fenner Gap will enter a definitive agreement reserving up to 25,000 AF of water from the Cadiz Project as supplemental water supply for the City of Adelanto. Under the LOI, Project water would be delivered to designated points of delivery within the Mojave River Basin on a space available basis. The cost of the water will be limited to the actual incremental expense of pumping, delivery and exchange. A copy of the Letter of Intent is attached.

The Mojave-San Bernardino County One Water Project was launched by VVWRA as a collaboration among public agencies and water providers in eastern San Bernardino County to develop a regional, integrated and sustainably managed water system that considers the current and future needs of all its users, meets human needs with environmental best practices, and makes cost-effective investments in infrastructure to preserve access and affordability for all. Under the plan, pipelines, groundwater recharge basins, water supply, groundwater storage banks and water treatment facilities in Mojave River Basin, Fenner Valley and Morongo Basin would be integrated for the benefit of the region.

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