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California Waterfix Overview

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California Waterfix Overview California WaterFix Book TABLE OF CONTENTS California WaterFix Overview Materials for Discussion and Decision Compiled by the Kern County Water Agency 1 California WaterFix Overview NOTE TO READERS This overview was compiled by Kern County Water Agency (Agency) staff from materials prepared by Paul Weiland and Rob Thornton at Nossaman, LLP, Stefanie Morris, general counsel for the State Water Project Contractors, the Metropolitan Water District of Southern California (Metropolitan) and Agency staff. The Agency thanks Paul, Rob and Stefanie for their contributions, as well as Metropolitan for allowing the Agency to use large portions of its “white papers” on physical facilities of California WaterFix1 and operation of the California WaterFix.2 This overview is a public document and is intended to assist landowners, Agency Member Units and the Board of Directors with making decisions related to California WaterFix. Agency staff has compiled this overview from the best available information developed over 11 years of study and analysis performed by the California Department of Water Resources (DWR). DWR worked with the California Department of Fish and Wildlife (CDFW), the U.S. Bureau of Reclamation (USBR), the U.S. Fish and Wildlife Service (USFWS), the National Marine Fisheries Service (NMFS) and a broad range of stakeholders to develop the concept for California WaterFix, and to perform the environmental analysis necessary to comply with the State and federal Endangered Species Acts, the California Environmental Quality Act and the National Environmental Policy Act, as well as several other State and federal environmental permitting requirements. This draft version of the overview includes information on the infrastructure that will be constructed, and how that infrastructure will be operated. Additional information on the cost allocation methodology and potential methods for financing California WaterFix will be provided in the next version. At the time this version of the overview was released, the environmental compliance for California WaterFix was complete for the State Endangered Species Act in the form of a 2081 permit issued by CDFW and for the federal Endangered Species Act in the form of Biological Opinions from USFWS and NMFS. Permits were in process for compliance with sections 401 and 404 of the Clean Water Act, and a permit for a change in point of diversion was under consideration by the State Water Resources Control Board, but potential issuance of that permit was more than a year away. Additional review is necessary by the Delta Stewardship Council, but has not yet started. 1 Modernizing the System: California WaterFix Infrastructure. http://www.mwdh2o.com/DocSvcsPubs/WaterFix. 2 Modernizing the System: California WaterFix Operations. http://www.mwdh2o.com/DocSvcsPubs/WaterFix. 2 California WaterFix Overview TABLE OF CONTENTS TABLE OF CONTENTS Introduction ................................................................................................................................................ 6 Background Current Regulatory Context and Forecasted SWP Reliability Purposes of California WaterFix Why Build It Now? California WaterFix Facilities ....................................................................................................... 11 Major Components and Facilities Supporting Infrastructure Approach to Design and Construction Environmental Considerations Management of Design and Construction .......................................................................................... 22 Introduction and Overview Benefits of Governance Structure Scope of DWR Delegation of Design and Construction Management Cost Estimate ............................................................................................................................................ 26 Overview Cost Estimate Confidence Project Schedule Risk Management and Mitigation ........................................................................................................ 31 Risk Management Process Design, Construction and Operation Environmental Mitigation California WaterFix Operations and Related Regulations ................................................................ 36 Description of Proposed California WaterFix Operations SWP and CVP Operations, and Performance of California WaterFix ............................................. 39 SWP and CVP Supply Reliability Operational Flexibility with California WaterFix Compliance with D-1641 Water Quality Standards with California WaterFix Export Water Quality Allow Flexible Pumping Operations to Address Changing Fishery Restrictions Reduce Climate Change Risks Reduce Seismic Risks Enhance Ecosystem Fishery Habitat Throughout Delta Considering Delta Communities and Environment ........................................................................... 51 California WaterFix is Sized to Protect the Delta Environment California WaterFix is Designed to Avoid Impacts to Delta Communities 3 California WaterFix Overview TABLE OF CONTENTS Managing Uncertainties ......................................................................................................................... 53 Adaptive Management ........................................................................................................................... 54 Introduction and Purpose Background Adaptive Management Program Consultation Under Section 7 of the Endangered Species Act ........................................................ 56 Future Consultations Role of Contractors Permits....................................................................................................................................................... 57 SWRCB Permits Cost Allocation and Financing ............................................................................................................... 58 Cost Allocation Financing Water Contractor Finance Joint Powers Authority Description of Potential Financing Structures Analysis of California WaterFix Impacts .............................................................................................. 68 Assumptions for Cost Impact Analysis Range of SWP California WaterFix Costs Range of Kern County Water Agency Costs 4 California WaterFix Overview TABLE OF CONTENTS FIGURES Figure 1: History of Regulatory Restrictions ................................................................................................ 8 Figure 2: Schematic of California WaterFix Facilities ................................................................................. 11 Figure 3: California WaterFix Facilities – Alignment and Major Components ........................................... 14 Figure 4: Clifton Court Forebay, Including Proposed Modifications .......................................................... 15 Figure 5: Proposed Pumping Facilities at Clifton Court Forebay ............................................................... 17 Figure 6: Large Diameter TBM Projects ..................................................................................................... 18 Figure 7: California WaterFix – Program Estimate ..................................................................................... 26 Figure 8: California WaterFix – Cost Estimate Confidence Curves............................................................. 28 Figure 9: Annual Construction Expenditures for Base, Risk and Inflation ................................................. 29 Figure 10: California WaterFix – Program Summary Schedule .................................................................. 30 Figure 11: Risk Identification Process ........................................................................................................ 31 Figure 12: Alternatives Comparison ........................................................................................................... 37 Figure 13: Total Exports With and Without California WaterFix ............................................................... 40 Figure 14: Winter 2013 Reoperation Analysis with California WaterFix ................................................... 41 Figure 15: Potential Water Transfer Capability, SWP and CVP Total ......................................................... 42 Figure 16: North Delta Diversion Bypass Criteria ....................................................................................... 45 Figure 17: California WaterFix Cost Allocation Framework ....................................................................... 65 TABLES Table 1: Cost Comparison, Risk Adjusted Cost at 75% Confidence Level vs. Initial Cost Estimates .......... 29 Table 2: Proposed Operating Alternatives and Boundaries ....................................................................... 38 Table 3: Environmental Commitments under California WaterFix ............................................................ 47 Table 4: Key Uncertainties and Mitigation Measures ................................................................................ 53 Table 5: Key Uncertainties and Risk Reduction Strategies ......................................................................... 61 Table 6: Summary of Total California WaterFix Construction Cost Estimate ............................................ 69 Table 7: Summary of SWP Share of California WaterFix Construction Cost Estimate ............................... 69 Table 8: Summary of Agency’s Share of California WaterFix Construction Cost Estimate .......................
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