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Bay-Delta Quarterly Update
Imported Water Committee
July 26, 2012
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
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
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
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
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
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
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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Bay-Delta Quarterly Update, July 26, 2012

  • 1. Bay-Delta Quarterly Update Imported Water Committee July 26, 2012
  • 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. 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. 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. 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. 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. 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. 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