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What are extinguishment credits?

April 26, 2017Credits extinguishment

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What are extinguishment credits?

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Extinguishment credits are generated when a grandfathered groundwater right is extinguished. The extinguished right can never be used again; however, the credits generated can be pledged to a Certificate of Assured Water Supply or Designation of Assured Water Supply to help meet the consistency with management goal requirement. This criterion must be met in order to obtain the Certificate or Designation of Assured Water Supply. Extinguishment credits are not the only way to prove consistency with management goal, but they are helpful in doing so (see also CAGRD membership). Essentially, the credits offset groundwater use by the proposed subdivision.