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Bay Delta Conservation Plan/ California Water Fix

Industrial Environmental AssociationSeptember 10, 2015

Amy Chen, Director of MWD Program

San Diego County Water Authority background

Reliability through diversification Bay-Delta issues

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Presentation Outline

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San Diego County Water Authority

Wholesale water agency created by State Legislature in 1944 24 member agencies 36-member board of directors Serves 3.2 million people and region’s

$206 billion economy Service area

◦ 950,000 acres◦ 97% of county’s population

Imports 80%-90% of water used in San Diego County

Builds, owns, operates and maintains regional water infrastructure

Largest member agency of Metropolitan Water District of Southern California

Sources of San Diego County’s Water Supply (2010-14 five-year average)

LAKESHASTA

LAKEOROVILLE

19% State Water Project

(Bay-Delta via MWD)

64% Colorado River

(Long-term transfers and

MWD)Local Supplies and

Conservation 17%

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Northwest MWD Service Area Basins

San Fernando Valley Basins

LA County Coastal Plain Basins

San Gabriel Valley Basins

Orange County Basins

Inland Empire Basins

Eastside MWD Service Area Basins

San Diego County Basins

San Diego CountyHas Very Little Groundwater 945,000

505,000

450,000

245,000

135,000

439,000

500,000

19,000 5

AvailableGroundwater Basin Storage Space (AF)

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San Diego County Water Supply 1991

Total = 578,000 AF

Metropolitan Water District 552,000 AF

95%

Local Supplies26,000 AF

5%

San Diego has very few natural water assets

Employ resource strategies unique to local conditions

No single resource strategy can manage all uncertainties

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Reliability Through Diversification

Reclaimed water pipelines

Multi-faceted approach• Conservation• New diversified supplies

• Imported• Local

• Infrastructure improvements

Lining the Coachella Canal

Cornerstone of Water Authority’s Diversification Plan: 2003 Water Conservation & Transfer Agreements

Water Authority secures new, more reliable Colorado River supplies Imperial Irrigation District transfer

200,000 AF/year for 45 to 75 years Canal-lining projects

80,000 AF/year for 110 years Key to diversification strategy

Provides 180,000 acre-feet in 2015 By 2021, 46% of region’s supply

Lining the Coachella Canal

IID and Canal Lining Deliveries 2003-2021

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Historic Investments in Infrastructure

Carlsbad Seawater Desalination Project• $1 billion

investment• 56,000

acre-feet/year of drought-proof supplies• Largest seawater

desalination facility in North America

• Expected on-line in late 2015

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Investments in Local Supplies

Increasing San Diego County's Water Supply Reliability through Supply Diversification

1991

550 TAF 95%

28 TAF 5%

Total = 578 TAF

TAF=Thousand Acre-Feet

Imperial Irrigation District Transfer

Metropolitan Water District

All American & Coachella Canal Lining

Local Surface Water

Groundwater

Recycled Water

Seawater DesalinationPotable Reuse (Includes conceptual and planned projects)

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2015

Total = 534 TAF

304 TAF 57%

5 TAF 1%

18 TAF 3%

27 TAF 5%

80 TAF 15%100 TAF

19%

Estimated 2020

Total = 587 TAF

150 TAF 26% 48 TAF

8%

27 TAF 5%

44 TAF 7%

80 TAF 14%

190 TAF 32%

48 TAF 8%

Projected 2035

Total = 680 TAF

120 TAF 18%

50 TAF 7%

30 TAF 4%

50 TAF 7%80 TAF

12%

200 TAF 30%

50 TAF 7%

100 TAF 15%

39% Decline in Per Capita Water Use in Water Authority Service Area Since 1990

1990

2000

2005

2010

2015

2020

100

150

200

250235

216

190

152143

167

Tota

l Pota

ble

GPC

D

SBX7-7 2020 Target

The reduction in potable per capita water use since 1990 offsets the need for over 300,000 acre-feet per year within the region.

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Bay-DeltaWater Authority’s Effort to

Support a Solution

Sources of San Diego County’s Water Supply (2010-14 five-year average)

LAKESHASTA

LAKEOROVILLE

19% State Water Project

(Bay-Delta via MWD)

64% Colorado River

(Long-term transfers and

MWD)Local Supplies and

Conservation 17%

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Sacramento-San Joaquin Bay-Delta

CalFed formed to resolve issue of transporting SWP water through the Delta

Bay-Delta Accord initiated long-term planning process to improve the Delta

CalFed published plan to fix Delta and address challenges over next 50 years

State created California Bay Delta Authority to oversee implementation of CalFed’s plan

Bay-Delta Efforts: A Long Road

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1994

1994

2000

2003

2005

2006

2007

2009

2013

Little Hoover Commission found CalFed to be “costly, underperforming, unfocused and unaccountable.”

Legislature dissolves CBDA and California Natural Resources absorbed its functions

Bay Delta Conservation Plan process initiated

Delta Reform Act creates Delta Stewardship Council (Delta Plan) to achieve state mandated co-equal goals

Administrative Drafts of BDCP released

BDCP Public Comments Received

California WaterFix Released2014

2015

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Water Authority Support for a Bay-Delta Solution

Water Authority and San Diego business community support a Bay-Delta fix◦ Supported 2009 legislation that established co-equal goals:

Water Supply Reliability Ecosystem Restoration

◦ San Diego legislative delegation’s support vital to passage of legislation

Water Authority Board of Directors:◦ Adopted Bay-Delta Policy Principles to guide review of a Delta

solution

◦ No water agency in California has undertaken a more rigorous, independent evaluation of BDCP than the Water Authority

◦ Has not endorsed a specific project or solution

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Bay Delta ConservationPlan (BDCP)

The BDCP is a joint Habitat Conservation Plan/Natural Communities Conservation Plan

◦ Provides regulatory stability and assurances for 50-year term

Purpose is to contribute to co-equal goals (eco-restoration and water supply reliability)

Uses adaptive management and monitoring to adjust to changed conditions and new information

What is the BDCP?

BDCP Preferred Project: Twin Tunnels

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BDCP Estimate: $25 billion

Water Authority’s BDCP Review Process

Years-long Board and staff education process on BDCP proposal and related issues 20 public meetings since January

2013

Intensive, multi-disciplinary staff analysis of BDCP environmental and planning documents Year of extensive Board discussion

Water Authority comment letters submitted May and July 2014

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BDCP Plan and EIR/EIS

Water Authority’s BDCP Analyses

San Diego’s Water Future: Imported or Local?1. Continue to Rely on Imported

Supplies?

2. Invest in New Local Water Reuse Supplies?

BDCP Cost to S.D Ratepayers1

$1.1 Billion to $2.2 Billion

Potential Restored Imported Water Supplies

54,000 to 76,000 AF/Year2

City of San Diego Pure Water Project

$2 Billion to $2.2 Billion3

New, Drought-Proof, Local Water Supplies

96,000 AF/Year

North County Recycled Water Program

$420 Million to $730 Million

New, Drought-Proof, Local Water Supplies

19,000 to 35,400 AF/Year1 Assumes BDCP cost estimates are accurate and costs are divided among water contractors in proportion to each contractor’s water supply contract.2 Average annual restored Bay-Delta yield based upon BDCP estimates and the Water Authority’s preferential right to MWD supplies.

3 Capital cost only.

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Water Authority purchases from MWD: 1990: 672,800 acre-feet 2015: 304,000 acre-feet 2020: 150,000 acre-feet: 78% less than

1990

Reducing Reliance on MWD and Bay-Delta by 66%

1990 2015 20200

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

MWD purchases

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Reduced Demands Going Forward (Water Authority Service Area)

Reduced demands/increased conservation (2010 UWMP) compared to earlier forecasts

Increased supply diversification Significant member agency planned/conceptual local projects

Water rates and increasing price sensitivity

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1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2015

2017

2019

2021

2023

2025

2027

2029

2031

2033

2035

450

500

550

600

650

700

750

800

850

Tota

Dem

and

(TA

F)

2010 UWMP Lowered Projected Demand (after SBX7-7 retail com-pliance)

1990-2011 Historic Demand

2005 UWMP Projected Demand(with BMP based conservation)

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1. How big does the project need to be?

2. How much will it cost?3. How much water will San

Diego get?4. What is the portion of the

cost San Diego will be obligated to pay?

Unanswered Questions

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5. Who is going to commit to pay for it?6. How will Water Authority ratepayers be protected

from paying disproportionate share of BDCP costs?7. Will the costs of BDCP to San Diego ratepayers

negatively impact local supply development?

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California WaterFix

What is the California Water Fix?

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Approach to make physical and operational improvements to delivery system in Delta◦ Responds to unprecedented level of public review and

comment Released July 10, 2015 Lead agencies:

◦ Department of Water Resources (CEQA)

◦ Bureau of Reclamation (NEPA)◦ Cooperating Agencies:

National Marine Fisheries Services and US Fish and Wildlife Service (Section 7)

CA Fish and Wildlife (Permit after EIR/EIS Approval)

Key Difference Between BDCP and California Water Fix

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BDCP’s strategy (Alternative 4) proposed as a Habitat Conservation Plan (HCP) ◦ 50-year permit assurances

Permit through ESA Section 10 and Natural Community Conservation Plan

Large-scale regional habitat restoration and new Delta water delivery infrastructure

California Water Fix (Alternative 4A)◦ No long-term permit assurances (year-to-

year) Proposes Section 7 consultation and CESA

Section 2081(b) permit process Includes new Delta water delivery

infrastructure, without HCP

Introduction of three new sub-alternatives

Design Modification to Alternative 4 (BDCP Preferred Alternative)

Updated environmental analysis Fish and Aquatic Habitat Water Quality Effects Downstream of the Delta Air Quality Health Risk Assessment, Traffic and Noise Geotechnical Investigations Inclusion of Additional NEPA Determinations

Estimated cost: $14.9 billion (2014$) Public comment deadline: October 30, 2015

What’s Changed since the 2013 BDCP Draft EIR/EIS?

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Key questions remain unanswered:1. After accounting for local supply development, what is

the real demand for water from the Delta?

2. What is the right-sized project to meet the demand?

3. Where is a financing plan to pay for the project?

4. Who is going to commit to pay for it?

5. Should MWD contractually commit to pay billions of dollars without contractual commitments from its 26 member agencies to pay it?

Without such commitments, how will San Diego County businesses and ratepayers be protected from shouldering a disproportionate cost burden in the future

What Hasn’t Changed?

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Water Authority’s Supply Conditions2015

0

100

200

300

400

500

600

Su

pp

ly (

TA

F)

~1% Supply Shortfall

Water Authority Can Meet 99% of Projected Demands in FY 2016, Even with 15% MWD Shortage Allocation

Estimated FY 2016 Potable M&I Demand ~ 523 TAF *

Local Supplies 25 TAF

Long-Term Colorado River Transfers 180 TAF

Water Authority CDP 39 TAF

MWD Initial Allocation

M&I274 TAF

• Based on actual FY 2014, escalated at 1/2% per year. • MWD supply allocation in effect 7/1/15 through June 30, 2016.

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* 2015 dollars

San Diego County: 1990 vs. 2015

Potable water use (thousand acre-feet)

Cost of water per acre-foot (full service treated water rate)

Population (millions) Gross Domestic Product (billions)

Jobs (millions)

Potable gallons per capita daily use

1990 2015

641507

2.4

3.2

235

143

.97

1.3

$114*

$218

$505*

$1365

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Stay in Touch with the Water Authority

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