The Lake Agassiz Water Authority (LAWA) has developed an Assurance Policy for participants of the Red River Valley Water Supply Project (RRVWSP). The goal is to reduce financial risk for project participants while the project is under construction and initially operated. Since the RRVWSP Assurance Policy was announced in late 2024, the number of signed memorandums of commitment (MOCs) has increased substantially.

LAWA is a co-sponsor of the RRVWSP alongside Garrison Diversion Conservancy District and represents the end users of the project. The development of the RRVWSP Assurance Policy is the result of conversations with potential participants who had concerns about investing in the emergency and supplemental water supply, but ultimately not needing it. The policy is limited to 10 years from the date the RRVWSP becomes operational. The drought mitigation project is expected to be constructed by 2032.

“The Assurance Policy works like this – a user that decides to no longer be served by the project within the first decade of the project’s operation will be eligible to be reimbursed for the principal payments for their nomination,” explains Dr. Tim Mahoney, LAWA Chair and Fargo Mayor. “Allowing users’ nominations to be relinquished provides opportunities for other participants to access more water from the project. LAWA or LAWA member entities will reimburse the outgoing participant for their principal contributions toward the project.”

When a participant signs an MOC, they are nominating for (or committing to) a specific amount of water from the RRVWSP. For instance, if a RRVWSP user nominates for 2 cubic feet per second (cfs) and decides within the 10-year period the water is not needed, the 2 cfs of water becomes available to other RRVWSP users.

If no other RRVWSP users want the relinquished water nominations, the Cities of Fargo and Grand Forks have committed to assuming unwanted nominations along with the associated financial commitments proportional to their vested interests in the project. The two cities are the largest of the 17 RRVWSP participants.

The RRVWSP will utilize a 72” diameter buried pipeline with a capacity of 165 cfs. To date, 152.37 cfs, are spoken for.

The following participants have signed MOCs: the Cities of Carrington, Cooperstown, Fargo, Grafton, Grand Forks, Hillsboro, Jamestown, Lisbon, Mayville, Valley City, Wahpeton, Washburn; McLean-Sheridan Rural Water District and Southeast Water Users District; as well as Dickey, LaMoure, and Sargent Counties. Richland County has approved joining the RRVWSP but has not yet submitted a signed MOC.