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Water Supply Project Application to the California Water Commission (CWC)

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Water Supply Project Application to the California Water Commission (CWC) Nevada Irrigation District Staff Report for the Regular Meeting of the Board of Directors of February 14, 2018 TO: Board of Directors FROM: Remleh Scherzinger MBA, P.E. , General Manager DATE: February 5, 2016 SUBJECT: Foothills Water Network Request MANAGEMENT RECOMMENDATION: Direct Staff to not appeal the PBR scores or to remove the Centennial Reservoir Project application from further consideration by the California Water Commission BACKGROUND: See attached Letter BUDGETARY IMPACT: No budgetary impact. Attachment: FWN letter CWC Public Benefit Ratio Review Letter NID Abbreviated Application package - 1 - FOOTHILLS WATER NETWORK Foothills Water Network PO Box 573 Coloma, CA 95613 February 2, 2018 Remleh Scherzinger, General Manager William Morebeck, Division IV, President, Board of Directors Nancy Weber, Division I Board Member John H. Drew, Division II Board Member Dr. Scott Miller, MD, Division III Board Member Nick Wilcox, Division V Board Member Nevada Irrigation District 1036 West Main Street Grass Valley, CA 95945 Re: Placing the Centennial CWC application appeal on the February 14, 2018 Board agenda Dear Mr. Scherzinger, President Morebeck, and Board Members, The Foothills Water Network (the Network) is a coalition of non-governmental organizations concerned with watershed management issues in the American, Bear, and Yuba River watersheds, in this case, specifically, the Nevada Irrigation District’s Centennial Water Supply Project application to the California Water Commission (CWC). The CWC issued the Public Benefit Ratio (PBR) today for the Centennial Water Supply Project, starting a very short timeframe for the Nevada Irrigation District (NID) to appeal the PBR score to the CWC. Independent evaluators have given NID a PBR score of 0. This means, according to the evaluators, that for every dollar of funding, the project will provide zero cents of public ecosystem and recreation benefits, that is, a net monetized loss to California tax payers. NID is restricted to amending its application based only on the specific concerns and questions the independent evaluators present. The Network believes it is in the best interest of NID, its rate and tax payers, and the people of California that NID not appeal the CWC PBR scores and withdraw its Centennial Water Supply Project application. The Network strongly recommends that the Board be given the opportunity at its February 14, 2018 meeting to tell NID staff, by motion and vote, to not expend further NID resources on the CWC Water Storage Investment Program application for the Centennial Water Supply Project. The Network has commented to the CWC in writing and in oral public comment regarding the deficiencies of NID’s application and the inappropriateness of the Centennial Dam project for funding under the CWC Water Storage Investment Program (WSIP). The Network’s written comments can be found at the CWC WSIP Project Correspondence website: https://cwc.ca.gov/Pages/ProjectCorrespondence.aspx . Amongst many application deficiencies, but of particular concern to the Network and the CWC’s goals and purpose, is NID’s stated conviction in the application that, “The proposed project does not provide measurable improvement to the Delta Ecosystem or tributary to the Delta.” Stipulated clearly in the enabling statute, California Water Code Chapter 8, Section 79752, is that, “A project shall not be funded pursuant to this chapter unless it provides measurable improvements to the Delta ecosystem or to the tributaries to the Delta.” Thus, NID’s application is based on ecosystem and recreation benefits. For recreation benefits the application focuses on additional revenue to NID’s recreation budget resulting from the destruction of existing prized recreation. For ecosystem benefits the application focuses on manufacturing 210 acres of wetlands resulting from the destruction of 2200 acres of rare west slope Sierra riparian canyon forest habitat. The Centennial Dam project will result in a net loss of public recreation and ecosystem benefits because the existing conditions within the sacrifice zone constitute significant ecosystem and public recreation value already. While loss of these values and benefits are well described in NID’s application narrative, their loss is not adequately accounted for in NID’s PBR scoring. The Network will make these and many other points to the CWC if the application proceeds. The CWC WSIP application process is complex and unpredictable. The District has not been forthcoming about the amount of District resources expended in pursuit of the $11.95 million WSIP funds requested. At the September 27, 2017 NID Board meeting under agenda item 3, three NID board members expressed concerns about the implications, obligations, and restrictions the District could face were the relatively small amount of encumbered State funds be awarded. The Network agrees with these concerns and suggests that the Board and District demonstrate their commitment to fiscal responsibility by not expending further resources in pursuit of the WSIP Proposition 1 funding. Specifically, the Network respectfully requests that the Centennial CWC application be placed on the February 14th Board agenda to allow the public to comment on and the Board to deliberate and vote on directing staff to not appeal the PBR scores or to remove the Centennial Water Supply Project application from further consideration by the California Water Commission. Sincerely, ______________________ Traci Sheehan Coordinator Foothills Water Network STATE OF CALIFORNIA -- THE CALIFORNIA NATURAL RESOURCES AGENCY EDMUND G. BROWN, JR., Governor CALIFORNIA WATER COMMISSION 901 P STREET, P.O. BOX 942836 SACRAMENTO, CA 94236-0001 (916) 651-7501 Armando Quintero February 1, 2018 Chair Carol Baker Doug Roderick, Senior Engineer Vice-Chair Centennial Water Supply Project Andrew Ball Member VIA EMAIL Daniel Curtin Member [email protected] Joseph Byrne Member Subject: Public Benefit Ratio Review Joe Del Bosque Member Dear Mr. Roderick, Maria Herrera Member As you know, the Water Storage Investment Program is an important opportunity to Catherine Kelg invest in California's water future. Staff from the California Water Commission, the Member California Department of Fish and Wildlife, the California Department of Water David Orth Resources and the State Water Resources Control Board are working diligently to Member meet the statutory requirements of Proposition 1 and move forward with funding projects that provide the best return on the public's investment. The enclosed packet includes the results of the initial technical review of information supplied in your application to quantify the public benefits associated with your proposed project. Please note that this represents the initial reviewer assessment and does not represent a Commission decision. In many cases, technical reviewers found that additional supporting information is needed from applicants to properly verify the Public Benefit Ratio associated with their projects. Applicants have the opportunity over the next three weeks to provide additional clarifying information and address specific comments from the review process. It is anticipated that many recommendations from the technical staff review will change once the additional information is received and evaluated. The additional information must be received by 5 p.m. February 23. Specifics on how to submit the additional information can be found in the transmittal email to this packet. In addition, Commission staff will be scheduling individual one-hour meetings with applicants on February 7 and 8 to answer clarifying questions related to the initial technical review. This step has been added in response to feedback received from many applicants and engaged stakeholders. These meetings will be open to the public. To schedule a meeting with Commission staff and technical reviewers on February 7 or 8, please consult the information included in the transmittal email to this packet. This program is the first of its kind in California. In many respects, Commission staff, technical reviewers and applicants are navigating the rules and regulations together. We appreciate your continued participation and consider it critical to the success of the program. Doug Roderick, Senior Engineer Centennial Water Supply Project February 1, 2018 Page 2 · Sincerely, Joe Y n Executive Officer, California Water Commission Public Benefit Ratio Review Summary: Centennial Water Supply Project Overview This Public Benefit Ratio (PBR) review is the first component of the California Water Commission’s (Commission’s) technical assessment of applications for Water Storage Investment Program (WSIP) funding. This review serves as official notification to the applicant, and begins the appeal process. The reviewer-adjusted PBR indicates the need for additional information or clarification, which the applicant may submit in an appeal following the process described in the Commission’s regulations section 6008(a)(2)1 (also described below). The applicant may appeal any adjustments described in this review. The reviewer-adjusted PBR does not reflect a Commission decision on this project’s PBR; it is the result of the Commission’s technical review team’s assessment of the information provided in the application. The review team consists of Commission staff and consultants as well as agency staff from the California Department of Fish and Wildlife (CDFW), the California Department of Water Resources (DWR), and the State Water Resources Control Board
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