California Water Project Allocations Drop; Nasdaq Veles California Water Index (NQH2O) and Futures Jump Nearly 30%

On Tuesday, California’s Department of Water Resources made a decision that will impact 27 million state residents and 750,000 acres of farmland. The Department lowered the State Water Project (SWP) allocation to 5%, potentially decreasing water supplies from the California aqueduct by 95% for 2021. The United States Bureau of Reclamation also announced a 5% allocation for Central Valley Project (CVP) contractors located south of the Delta.