Los Vaqueros Reservoir Expansion Investigation Update on Draft Feasibility Report and State Funding Application

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1 Los Vaqueros Reservoir Expansion Investigation Update on Draft Feasibility Report and State Funding Application February 22, 2018

2 Los Vaqueros Reservoir Off-stream storage facility currently served by two Delta intakes Located in the coastal foothills west of the Sacramento-San Joaquin Delta and east of the San Francisco Bay Area Owned and operated by Contract Costa Water District (CCWD) primarily for water quality, emergency storage and dry year supplies Contra Costa Water District Sacramento-San Joaquin Delta San Francisco Los Vaqueros Reservoir 2

3 Project Milestones TAF Los Vaqueros Project completed CALFED Surface Storage Program established PL authorized Federal feasibility study Reclamation & CCWD completed Draft EIS/EIR Reclamation & CCWD completed Final EIS/EIR CCWD completed Phase 1 Expansion to 160 TAF 2017 (July) - Draft Supplement to the Final EIS/EIR Phase (August) - CCWD submitted application for State funding under Proposition (February) Reclamation released Draft Feasibility Report for Phase 2 3

4 Planning Objectives Primary Develop water supplies for environmental water management that supports fish protection, habitat management, and other environmental water needs. Increase water supply reliability for water providers within the Bay Area to help meet M&I water demands during drought periods and emergencies or to address shortages due to regulatory and environmental restrictions. Secondary Improve the quality of water deliveries to M&I customers in the Bay Area, without impairing the project s ability to meet the environmental and water supply reliability objectives stated above. 4

5 Potential Local Agency Partners Alameda County Water District Bay Area Water Supply and Conservation Agency Byron-Bethany Irrigation District City of Brentwood Del Puerto Water District East Bay Municipal Utility District East Contra Costa Irrigation District Grassland Water District San Francisco Public Utilities Commission San Luis & Delta-Mendota Water Authority San Luis Water District Santa Clara Valley Water District Westlands Water District Zone 7 Water Agency CCWD Brentwood EBMUD SFPUC Zone 7 BAWSCA ACWD SCVWD ECCID BBID SLDMWA Westlands SLWD DPWD GWD 5

6 CVPIA South-of-Delta Wildlife Refuge Beneficiaries Habitat managed by U.S. Fish and Wildlife Service (federal) California Department of Fish and Wildlife (state) Grassland Water District (local) South-of-Delta Refuge Water Supplies obligated under the Central Valley Project Improvement Act are managed by Reclamation Level 2 271,000 Incremental Level 4 105,500* Total 376,500 acre-feet *not including conveyance losses 6

7 Public Draft Feasibility Report Contents Executive Summary Main Body Technical Appendices: Appendix A Plan Formulation Appendix B Modeling Appendix C Engineering Designs and Costs Appendix D Economic Analysis Appendix E Real Estate Appendix F Climate Change Appendix G Cost Allocation

8 Existing and Proposed Facilities 1. Los Vaqueros Reservoir Proposed 115 TAF additional storage 2. Old River & Middle River Intakes Old River Pipeline & Proposed Delta-Transfer Pipeline 7 4. Transfer Pump Station 5. Transfer-LV Pipeline Proposed Transfer-Bethany Pipeline 7. Los Vaqueros Pipeline CCWD-EBMUD Intertie 6 9. Rock Slough Intake 10. Proposed Neroly High-Lift Pump Station 8

9 Feasibility Report Alternatives No Action Alternative 1A - Water Supply Reliability Alternative 1B - Environmental Water Management & Water Supply Reliability Alternative 2A - Environmental Water Management Alternative 4A - Environmental Water Management & Water Supply Reliability without reservoir expansion 9

10 Alternatives Comparison Long-Term Average Annual Benefits Benefit Category Increase in M&I Water Supply Reliability Emergency Water Supplies Available to M&I Purveyors ALTERNATIVE Unit 1A 1B 2A 4A TAF/ year TAF Increase in Incremental Level 4 Refuge Water Supplies Increase in Agricultural Water Supplies Increase in Recreation Days to the Los Vaqueros Watershed TAF/ year TAF/ year visits/ year , , ,

11 Determining Economic Benefits Economic analysis converts physical benefits such as acre-feet of water supplies, or numbers of recreational visitors to monetary benefits Monetary value is assigned based on different economic methods and approaches specific to each benefit type, consistent with Federal economic principles and guidelines Once the monetary value of all benefits is estimated and summed, it can be compared to the total cost of the alternative 11

12 Example Economic Analysis 1 Estimate the physical benefits of a project 2 Assign an economic value to the benefits 3 Compare the cost of the project with the value of the benefits 10 acre-feet $200 / acre-foot $2000 $2000 benefits $1000 capital cost 2:1 or 2.0 Benefit-Cost Ratio 12

13 Alternatives Comparison Economic Benefits BENEFIT CATEGORY ALTERNATIVE 1A 1B 2A 4A M&I Water Supplies $12.4 $10.3 $(5.0) $9.5 Emergency Water Supplies $24.7 $23.8 $10.4 $11.6 Refuge Water Supplies $17.9 $23.6 $37.4 $21.1 Agricultural Water Supplies $1.9 $0.6 $0.6 $0.4 Recreation $0.3 $0.3 $0.3 $0.0 TOTAL BENEFITS ($million/year) $57.2 $58.6 $43.7 $ Dollars 13

14 Alternatives Comparison Benefits and Costs $ Millions Total Annual NED Benefits ALTERNATIVE 1A 1B 2A 4A $57.2 $58.6 $43.7 $42.6 Total Capital Cost $922 $922 $922 $411 Total Annual Cost $46.6 $47.0 $46.9 $25.7 Net NED Benefits $10.6 $11.6 -$3.2 $16.9 Benefit Cost/Ratio Dollars NED National Economic Development Locally Preferred Plan (LPP) NED Plan 14

15 Allocation of Capital Cost NED Plan and LPP $ Millions NED Plan Alternative 4A LPP Alternative 1B LPP Alternative 1B Constrained by NED Plan Non-Reimbursable Federal Costs $103 $230 $103 Non-Federal Costs $308 $692 $820 TOTAL CAPITAL COSTS $411 $922 $922 Percentage of Capital Costs that are Non-Reimbursable Federal Costs 25.0% 25.0% 11.1% 2015 Dollars, $million Non-Federal costs would include the $434 million requested in the CWC application for funding NED National Economic Development 15

16 Public Draft FR Findings There is a need for the project, and Federal interest in the project The Central Valley Project Improvement Act (Public Law ) institutes a Federal obligation for refuge water supply There is additional need for M&I and agricultural water supplies, particularly in dry years Multiple cost-effective alternative plans were identified Three alternative plans have positive NED benefits Alternative 4A is the NED Plan, and is basis for Federal participation The Locally Preferred Plan, Alternative 1B, is recommended for implementation Expansion of reservoir to 275 TAF and construction of new Transfer- Bethany Pipeline and Neroly High Lift pump station Operated for both M&I and Refuge water supply reliability $839.3 million construction cost, net economic benefit of $11.6M per year 16

17 Public Draft FR Findings (cont.) Authorization can be provided under the Water Infrastructure Improvements for the Nation Act (WIIN) (Public Law ) Authorizes Federal participation in State-led projects providing a benefit in meeting any obligation under Federal law $335 million of funding provided in the Act Limits Federal cost-share to no more than 25 percent total costs If a project meets the requirements of the Act, the Secretary of Interior recommends the project to the appropriate committee(s) within Congress, which then makes appropriations for planning, design, and construction CCWD or a future Joint Powers Authority (JPA) would take lead role in final design and construction, in coordination with Reclamation 17

18 Draft FR Recommendations Secretary authorize Reclamation participation in implementing Alternative 1B under WIIN Act Federal investment for Alternative 1B is 11% of the total construction cost of $922 million, which meets WIIN requirements Annual appropriations should support completion of preconstruction activities within 5 years, and reservoir area construction completion within 10 years Secretary authorize Reclamation to enter into agreements with CCWD, as the local facility owner and operator, for Securing water rights and/or changes to existing water rights necessary to deliver water supplies to Refuges The long-term use of existing facilities and authorized new facilities, including provisions for operations, maintenance, and replacement Updating the existing integrated operations agreement between CCWD and Reclamation Utilizing CVP power for delivering water supplies to Refuges 18

19 Other Considerations The Recommended Plan is consistent with CALFED, CVPIA, and other existing projects and programs The Recommended Plan would continue to provide benefits under a wide range of future hydrologic conditions The Recommended Plan retains its benefits with California WaterFix 19

20 California Proposition 1 Funding The Water Storage Investment Program (WSIP) is being implemented by the California Water Commission (CWC) Provides funding for the public benefits of qualifying storage projects Ecosystem Emergency response Recreation Water quality* Flood Control* * Note: CCWD did not apply for public benefits related to water quality and flood control. 20

21 California Proposition 1 Funding CCWD applied to the California Water Commission for $434M in Prop 1 funding in August 2017 The CWC is reviewing 11 applications CCWD is responding to CWC s technical review comments on their application Preliminary funding decisions are expected in July

22 CWC Water Storage Investment Program Schedule Feb 23 April 20 May 1-3 May 25 June July 6 July Appeal letters due CWC staff issue response to appeals CWC meeting to determine final public benefit ratios Preliminary funding application scores released CWC meeting to determine final scores Final scores and application ranks posted CWC meeting to determine conditional funding awards 22

23 Comparison of Draft Feasibility Report and CWC Application Federal Feasibility Report CCWD WSIP Application Recommended Plan Alternative 1B Alternative 1B Benefits Evaluated Economic Analysis Methods Federal Benefits: - Water supply M&I Emergency Refuge Agricultural - Recreation Consistent with Federal P&Gs California Public Benefits: - Ecosystem - Emergency response - Recreation Consistent with CWC Technical Reference Document guidance Comparison of Benefits and Costs Cost assignment and allocation Federal Ratio of Annual Benefits to Costs (B-C ratio) Costs assigned to Federal benefits and allocated to beneficiaries according to federal laws & regulations Public Benefits Ratio (PBR) Costs assigned to Public Benefits and assigned to beneficiaries, consistent with CWC guidance 23

24 Implications of CWC Funding Decision on the Project CWC funding would provide for a substantial portion of the non-federal cost share of the Recommended Plan CWC funding was not considered in the cost allocation or financial feasibility analyses presented in the Draft Feasibility Report Even without CWC funding, local beneficiaries were found to have the capacity to pay for the project The cost to the Federal government for the LPP would not change, with or without CWC funding 24

25 Next Steps Draft Feasibility Report Respond to Comments Prop 1 Funding Review by CWC CWC Funding Decision Final Feasibility Report and Final SEIS/R Appropriations Funding Agreements Submit your comments by March 3! 25

26 Thank You Download a copy of the Draft Feasibility Report here: 26