Cadiz to supply water to over 4,000 California homes through revamped Northern Pipeline

(UI) – Cadiz, Inc. and Fenner Gap Mutual Water Company signed a water supply agreement with Solstra Communities California LLC for the delivery of 1,275 acre-feet per year of water from the Cadiz Water Supply and Storage Project to support more than 4,000 homes for military and working families along the Central California coast.

Water supply from Cadiz will be delivered through exchanges of water with regional water contractors utilizing the company's Northern Pipeline, a 220-mile natural gas pipeline originally built to transport oil from the California coast to Texas oil refineries.

Cadiz anticipates final development of the Northern Pipeline conversion project will occur in 2024, with construction beginning in 2025 and commencement of water delivery as early as 2026.

The water supply agreement announced follows the execution of three additional water supply agreements entered since the beginning of the year reserving a total of 15,000 acre-feet per year (AFY). Following execution of the Solstra Agreement, 65% of the capacity of Cadiz's Northern Pipeline is under contract.

"We need water to solve the housing crisis in California," said Susan Kennedy, CEO of Cadiz, Inc. "We are proud to work with innovative companies like Solstra who are at the forefront of building sustainable communities with safe neighborhoods and affordable homes for working families."

Solstra, owner of private land near Vandenburg Space Force Base, is pursuing development of up to 4,000 sustainable housing units, parks, trails, open space, to support military families and a diverse workforce.

Under California's state housing plan, one million of the 2.5 million required homes that must be built by 2030 to address the state's urgent housing crisis must meet the needs of lower-income households. California law also requires new housing development to demonstrate access to reliable water prior to construction.

Under the terms of the Solstra Agreement, water supply will be made available to Solstra via the Coastal Branch of the State Water Project through an exchange with one or more contractors of the California State Water Project.

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