Bay-Delta Quarterly Update, July 26, 2012


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Bay-Delta Quarterly Update, July 26, 2012

  1. 1. Bay-Delta Quarterly Update Imported Water Committee July 26, 2012
  2. 2. Bay-Delta Announcement  July 25  Governor and Secretary of Interior  State and Federal Joint Recommendations  Amend draft BDCP:  Downsize tunnel project  Use “decision tree” over 15 years to determine operations and yield of the project 2
  3. 3. Downsize Tunnel Project  Draft BDCP called for double tunnel under Delta with capacity of 15,000 cfs  Five intakes on Sacramento River with capacities of 3,000 cfs  Revised BDCP will call for double tunnel with capacity of 9,000 cfs  Three intakes with capacities of 3,000 cfs  Gravity flow, instead of pumped 3
  4. 4. Decision Tree  At the outset, the state and federal water projects will operate under the best criteria available.  As the tunnel project is built, operating criteria will be adjusted either up or down depending on achievement of biological goals and objectives.  When the tunnel is completed, operating criteria will be based on adjustments. 4
  5. 5. Concerns  Outcome of decision tree may result in less water being available when tunnels are complete than present 4.9 maf per average year.  While yield is expected to be between 4.5 and 5.3 maf per year. Actual outcome water supply yield will not be known until tunnels are complete. 5
  6. 6. Finance  Expected cost of tunnels is $13 billion over 10 years.  Cost will be born by the state and federal water contractors.  “Step up” provisions will be required by bond holders.  Require remaining contractors to pick up default if one or more contractors back out. 6
  7. 7. Finance  MWD is expected to pick up 25 percent or more of cost of tunnel project.  MWD does not have contractual commitments from its member agencies to pay for project.  MWD could be faced with a larger burden if other contractors back out or default. 7
  8. 8. Next Steps  State and federal water contractors have to decide whether the reduced yield is worth the expense.  A public review draft of the BDCP and its companion EIR/EIS are expected in September. 8
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