San Joaquin River Settlement

Water Supply ImpactsAnd

Water Management Goal

San Joaquin River Settlement

Water Supply ImpactsAnd

Water Management Goal

ByRonald D. JacobsmaGeneral ManagerFriant Water Authority

ByRonald D. JacobsmaGeneral ManagerFriant Water Authority

Friant Division Service Area and ContractorsFriant Division Service Area and Contractors

Alpaugh I.D.

Arvin-Edison W.S.D.

Atwell Island W.D.

Chowchilla W.D.

Delano-Earlimart I.D.

Exeter I.D.

Fresno I.D.

Garfield W.D.

Hills Valley I.D.

International W.D.

Ivanhoe I.D.

Kern-Tulare W.D.

Lewis Creek W.D.

Lindmore I.D.

Lindsay-Strathmore I.D.

Lower Tule River I.D.

Madera I.D.

Orange Cove I.D.

Pixley I.D.

Porterville I.D.

Rag Gulch W.D.

Saucelito I.D.

Shafter-Wasco I.D.

Southern San Joaquin M.U.D.

Stone Corral I.D.

Tea Pot Dome W.D.

Terra Bella I.D.

Tulare I.D.

City of Fresno

City of Orange Cove

City of Lindsay

Fresno Co. WWD #18

Madera County

M&I ContractorsM&I ContractorsM&I Contractors

Ag Water ContractorsAg Water ContractorsAg Water Contractors

Service AreaService AreaService AreaMerced CountyMadera CountyFresno CountyTulare CountyKern County

MercedMercedMerced

BakersfieldBakersfieldBakersfield

VisaliaVisaliaVisalia

Madera CanalMadera CanalMadera Canal

Millerton LakeMillerton LakeMillerton Lake

FriantFriant-- Kern CanalKern Canal

FresnoFresnoFresno

1,000,000 Acres15,000 Farmers$4B+ Ag Economy

How The Friant Division WorksHow The Friant Division WorksThe SJR Exchange Contract

Cross Valley Canal

128,300 AF

Federal Delta

Project Supply

Friant-Kern Canal1,050,000 AF

Madera Canal250,000 AF

Delta Mendota Pool

Delta Mendota Canal840,000 AF

San Joaquin River

Exchange

Contractors

Friant Division Friant Division

Flood ReleasesFlood Releases

Friant DivisionFriant Division

Class 2Class 2 Water SupplyWater Supply and and Groundwater Groundwater StorageStorage RelationshipRelationship

Cumulative Groundwater

Storage Change

Cumulative Groundwater

Storage Change

SJR Restoration SectionsSJR Restoration Sections

Why settle?Why settle?

From Friant Contractors' perspective:From Friant Contractors' perspective:

1. Judge Karlton had ruled Friant operations violated State 1. Judge Karlton had ruled Friant operations violated State F&G Code 5937 for the F&G Code 5937 for the ““historichistoric”” salmon fishery downstream. salmon fishery downstream. The The ““remedyremedy”” phase of the trial was forthcoming.phase of the trial was forthcoming.

2. Significant uncertainty as to what the water supply 2. Significant uncertainty as to what the water supply impacts would be, particularly if a Court imposed impacts would be, particularly if a Court imposed ““MasterMaster”” had had broad authority to implement broad authority to implement ““adaptive managementadaptive management””, as , as advocated by the Plaintiffs in the litigation.advocated by the Plaintiffs in the litigation.

3. Significant uncertainty as to the costs of litigation, and 3. Significant uncertainty as to the costs of litigation, and the potential significant increase in water and possibly the potential significant increase in water and possibly restoration funding costs to Friant Contractors and to all CVP restoration funding costs to Friant Contractors and to all CVP contractors (as the CVP is financially integrated).contractors (as the CVP is financially integrated).

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Why Settle? Why Settle? -- continuedcontinued

4. Settlement is a global settlement 4. Settlement is a global settlement ––

•• It resolves all claimsIt resolves all claims (ESA, NEPA, Rec Law, F&G 5937, (ESA, NEPA, Rec Law, F&G 5937, etc.)etc.)

•• It affirms that the long term renewal contracts entered It affirms that the long term renewal contracts entered into by the Friant Contractors in 2001 are valid and full into by the Friant Contractors in 2001 are valid and full force and effect and provides for minor amendments to force and effect and provides for minor amendments to refer to the Settlement Agreement.refer to the Settlement Agreement.

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Why Settle? Why Settle? -- continuedcontinued5. Settlement and enabling legislation provide water 5. Settlement and enabling legislation provide water recovery opportunitiesrecovery opportunities•• Recirculation downstream of confluence with the Recirculation downstream of confluence with the

Merced River (and upstream if due to channel Merced River (and upstream if due to channel restrictions)restrictions)

•• Reduced price Reduced price ““wet yearwet year”” (RWA) water(RWA) water•• Canal conveyance capacity improvementsCanal conveyance capacity improvements•• Reverse pumping on FKC for recirculationReverse pumping on FKC for recirculation•• Authorization for federal funding assistance for Authorization for federal funding assistance for

Groundwater programsGroundwater programs•• Relief from certain CVPIA water transfer provisionsRelief from certain CVPIA water transfer provisions

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Why Settle? Why Settle? -- continuedcontinued

6. Opportunity to convert Water Service Contracts to 6. Opportunity to convert Water Service Contracts to perpetual Repayment Contractsperpetual Repayment Contracts

•• Greater contract certainty Greater contract certainty –– no further renewalsno further renewals

•• Accelerated repayment using a discount factor and Accelerated repayment using a discount factor and future price relief for irrigation contracts future price relief for irrigation contracts –– intent that intent that no cost for conversion and up front funding for no cost for conversion and up front funding for SettlementSettlement

•• Relief from certain RRA land use and pricing Relief from certain RRA land use and pricing provisionsprovisions

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Friant Dam Restoration Base Flows*Riparian Flows (Current Release) and Full Restoration Flows

Interim Flows Begin 2009Full Restoration Flows Required by January 1, 2014

117 117 117 117 117 1170

71184

248356

556

050

100150200250300350400450500550600650700

CriticalLow Year

Critical DryYear

Dry Year Normal-DryYear

Normal-Wet Year

Wet Year

Hydrologic Water Year Type

Ann

ual C

umul

ativ

e Fr

iant

Dam

R

elea

se (T

AF)

Riparian Flow Full Restoration Release

* "Buffer Flows" of up to 10% of Base flows may be added in any year

Restoration FlowsRestoration Flows

20%30%30%15%5%

(Frequency)

SJR Implementation SJR Implementation October 1, 2009October 1, 2009--September 30, 2010September 30, 2010

Interim Flow releases: Interim Flow releases: 260,000 a.f.260,000 a.f.(less than full normal(less than full normal--wet year flows wet year flows due to channel restrictions)due to channel restrictions)

Recirculated Water:Recirculated Water: 42,000 a.f.42,000 a.f.(all via Mendota Pool)(all via Mendota Pool)

RWA water ($10/a.f.RWA water ($10/a.f.--aids in GW recharge):aids in GW recharge): 82,000 a.f.82,000 a.f.

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Recirculation: Lower SJR, Delta, Exchanges, Cross Valley Canal, AEWSD

AEWS D

Canal fixes

1,800 TAF/yrInflow

MillertonLake

520 TAF

Friant Dam

450,000 AF Average Annual Flood Releases To

SJR *

* Based on the past 30 years approximately 14 million AF of water supplies have been lost as flood flows

1,250,000 AF delivered FKC

and MC

Status of Water Management GoalStatus of Water Management Goal•• Initial Recirculation Plan to be developedInitial Recirculation Plan to be developed

–– Interim recirculation due to channel Interim recirculation due to channel restrictions are via Mendota Pool and Friant restrictions are via Mendota Pool and Friant Contractor exchange/conveyance proposalsContractor exchange/conveyance proposals

–– Delta OperationsDelta Operations–– Lower San Joaquin River evaluationLower San Joaquin River evaluation–– Conveyance Agreements (e.g., DWR)Conveyance Agreements (e.g., DWR)–– Exchange/Transfer AgreementsExchange/Transfer Agreements

•• Recovered Water Account (RWA)Recovered Water Account (RWA)–– Accounting methodologyAccounting methodology–– Availability determinationsAvailability determinations

WMG Status, cont.WMG Status, cont.•• FriantFriant--Kern Canal (FKC) and Madera Canal Kern Canal (FKC) and Madera Canal

rehabilitationrehabilitation–– Feasibility, environmental study, fundingFeasibility, environmental study, funding–– ConstructionConstruction

•• FKC reverse PumpFKC reverse Pump--backback–– Operational evaluationOperational evaluation–– Feasibility/sizingFeasibility/sizing–– FundingFunding

•• Groundwater ProgramsGroundwater Programs–– Settlement Act Part III GuidelinesSettlement Act Part III Guidelines–– FundingFunding

Estimated Friant LT Irrigation water Estimated Friant LT Irrigation water contractor impacts (no third parties)contractor impacts (no third parties)

SETTLEMENTSETTLEMENTWithout buffer flows and Without buffer flows and

NO recovery of water supplies. NO recovery of water supplies. THIS IS BEST CASE IMPACT TO BE THIS IS BEST CASE IMPACT TO BE

MITIGATED BY WATER MITIGATED BY WATER MANAGEMENT GOAL.MANAGEMENT GOAL.

Reduction in Water Deliveries Reduction in Water Deliveries 145,000 acre145,000 acre--feetfeet

Current Riparian ReleasesCurrent Riparian Releases 117,000 acre117,000 acre--feetfeet

Additional Releases for FisheriesAdditional Releases for Fisheries 320,000 acre320,000 acre--feetfeet

Remaining Flood ReleasesRemaining Flood Releases 140,000 acre140,000 acre--feetfeet

Farm land out of productionFarm land out of production 51,300 acres51,300 acres

Lost Crop ProductionLost Crop Production $159.3 million direct$159.3 million direct$264.9 million total$264.9 million total

Income ImpactIncome Impact $36.6 million direct$36.6 million direct$80.7 million total$80.7 million total

Employment ImpactEmployment Impact(jobs lost)(jobs lost)

1,360 direct1,360 direct3,070 total3,070 total

Potential Consequences of Failure to Meet Water Management Goal

Questions?Questions?