Fenner Gap and Victor Valley Water Agencies Launch “One Water” Plan

One Water Plan Will Integrate High Desert Infrastructure Investments To Improve Water Quality And Increase Reliability Of Local Water Supplies.

Los Angeles, California (01.26.24) – Cadiz, Inc. (NASDAQ: CDZI/CDZIP, the “Company”) announced that Fenner Gap Mutual Water Company (”Fenner Gap”) has signed a Letter of Intent with the Victor Valley Wastewater Reclamation Authority (“VVWRA”) to develop a coordinated investment strategy for water infrastructure in San Bernardino County’s Mojave Basin region.  The ambitious plan to integrate public, private and multi-agency financing resources for the design, construction and operation of water infrastructure will incorporate recycled water from VVWRA’s wastewater treatment plants with pipeline facilities and water supplies from Cadiz in the eastern Mojave to create a regional “one water” plan that benefits the whole region.

Fenner Gap is the non-profit corporation established by the Company to distribute water supplies from the Cadiz Water Conservation, Supply and Storage Project. VVWRA is a Joint Powers Authority providing wastewater treatment, water recycling, and renewable green energy, whose members include the City of Victorville, City of Hesperia, the Town of Apple Valley and San Bernardino County Special Districts 42 and 64.

“Regional planning of water infrastructure is the key to sustainable water management for the entire Southwest” said Susan Kennedy, Chief Executive Officer of Cadiz. “Coordinating the design and operation of pipelines, reclamation facilities, recharge basins and storage will not only increase water supplies through efficiency and conservation but will improve the health and quality of groundwater basins throughout the region.”

“We have many sources of water supply in the Mojave Basin: natural river flow, groundwater, imported water, storm water and recycled water,” VVWRA’s General Manager, Darron Poulsen, said. “But in the end, there is only one water, and we have to think regionally and programmatically to achieve our supply reliability and water quality goals. The “one water” concept is the foundation of regional planning that will allow us to achieve maximum benefits to the entire Mojave region and other areas of San Bernardino County.”

VVWRA owns and operates three wastewater treatment and conveyance facilities in the western Mojave’s Alto Basin and distributes 12,000 to 13,000 acre-feet of water resources per year to preserve the Mojave River ecosystem and facilitate groundwater replenishment in the Centro and Baja Basins. Fenner Gap and Cadiz own and manage groundwater resources in eastern Mojave watersheds including 220-miles of buried pipelines that can directly deliver water supplies to groundwater recharge basins in the Centro and Baja Basins.

Fenner Gap and VVWRA plan to collaborate with other local agencies on the expansion of pipeline and distribution facilities, advanced water treatment and collaborative recharge basins to cost-effectively capture storm water and manage imported water supplies. The agencies also plan to look at merging or integrating financing powers to maximize grant and municipal financing opportunities.

The Letter of Intent and a map are attached.

About Victor Valley Wastewater Reclamation Authority

Founded in 1978, VVWRA serves a 279 square mile area that includes Apple Valley, Hesperia, Victorville, Spring Valley Lake and Oro Grande. VVWRA treats about 12 million gallons of wastewater per day. Wastewater that comes to the VVWRA plant goes through an extensive cleaning and disinfection process before being returned to the Mojave River as recycled water through direct discharge to the river or through percolation ponds located on VVWRA property. Solid waste is treated in large anaerobic digesters, where the resulting methane gas is collected and scrubbed by the VVWRA private partner Anaergia, who develops the gas into renewable natural gas (RNG). The finished RNG is injected into a Southwest Gas pipeline. Most of the RNG is being used by Toyota where it is converted into hydrogen for new vehicles being imported at their Port of Long Beach facility.

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