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A Portfolio-Based BDCP Conceptual
            Alternative
              February 20, 2013




Barry Nelson, Natural Resources Defense Council
A Portfolio-Based BDCP Conceptual
                Alternative

•   Delta challenges
•   Current BDCP choices and issues
•   A portfolio-based alternative
•   Next steps
Current challenges in the Delta


  Crashing ecosystem

                             Institutions
                            struggling to
Vulnerable levee system         solve
                              problems

Water quality concerns
Current choices in BDCP



                   Large facility

Status Quo   or

                   Aggressive pumping


                   Habitat restoration
Questions about current direction
               • How would it reduce physical vulnerability?
  Water
 Reliability   • Would it provide improved reliability in droughts?


               • Would it improve, or worsen, ecosystem
 Ecosystem     health and water quality?
and Science
               • Is it legally permitable?



Economics      • Is it financially feasible?
Selection criteria for Delta solution
                        Financial
                        Viability




   Ecosystem                               Water Supply
   Restoration                              Reliability



             Better performance at
                   lower cost
           Science-
            based,                  Water Quality
          Permittable
Best solution will require thinking outside
         the current BDCP “Box”
Alternative portfolio-based approach

                             In Delta    South of Delta


                             Smaller     Local water
                             facility     supplies
 Large facility
                            Protective
                      vs    pumping
                              rules
                                          South of
                                           Delta
                              Levee       storage
    Aggressive             improvement
     pumping                                Water
                             Smaller       agency
                             habitat     integration
Habitat restoration
                           restoration
Alternative portfolio-based approach
          Summary of costs
Potential benefits of portfolio approach
                 • Lower capital cost for export water users
  Financial
                 • Reduced energy use
  viability      • Faster delivery of benefits

                 • Greater water supply reliability
  Reliability           • Less vulnerable to levee failures, earthquakes and sea level rise
                        • Less affected by extended droughts
                 • More water for export water agencies?

 Ecosystem
                 • Contributes to Bay-Delta ecosystem and salmon restoration
 restoration

Science-based,
                 • Based on science, more likely to successfully obtain permits
  Permittable


Water quality    • Promising, but additional modeling required


                 •   Reduced reliance on Bay-Delta water supplies – Per SB 7X7
         Other   •   More local control
                 •   Creation of local jobs in export areas that are paying for project
                 •   Reduced greenhouse gas emissions
Potential benefits of portfolio approach
            The bottom line
• More water
• Improved reliability
    • Dry years
    • Droughts
    • Levee failures
• More local jobs
• More local control
• Better environmental results
• Lower cost
• Broad support for further analysis
    • Southern California
    • Bay Area
    • Delta
Water supply reliability

• A large facility still relies on south of Delta
  pumping

          Normal Year               Dry Year

                                          North
                                  South   Delta
         South   North                     25%
         Delta   Delta            Delta
          50%     50%              75%
Water supply reliability

• Even with a large facility, a Delta levee failure
  leads to a large water supply loss

         Normal Year               Dry Year

                                         North
                                 South   Delta
         South   North                    25%
         Delta   Delta           Delta
          50%     50%             75%
Water supply reliability

• Even with a large facility, a Delta levee failure
  leads to a large water supply loss

         Normal Year               Dry Year

                                         North
                                         Delta
        South   North            South
                                 Delta    25%
        Delta   Delta
                 50%              75%
         50%
Water supply reliability

• Even with a large facility, a Delta levee failure
  leads to a large water supply loss

         Normal Year               Dry Year

                                        North
                                South   Delta
        South   North           Delta    25%
        Delta   Delta
                 50%             75%
         50%
Water supply reliability
           Portfolio-based approach
•   Smaller facility
•   Levee investments
•   Conservation and water recycling
•   South of Delta storage
Portfolio-based approach
Balancing reliability and ecosystem health




• Declining flows
• 69% of inflows diverted in Spring of 2010
• Increased flow and ecosystem conflicts
Portfolio-based approach
    Balancing reliability and ecosystem health




Ecosystem Restoration      Water Supply Reliability

• Science-based Bay-       • South of Delta storage
Delta standards
                           • Local tools to reduce
•Habitat restoration       Delta reliance
Conceptual alternative –
           Not a proposed project
• Based on currently available information and
  science
• Limited modeling
• Better cost estimates needed
• Refinements required for final plan

• Request that BDCP analyze, not adopt, the
  portfolio-based alternative
Support for further analysis
• 7 urban water providers
   –   1/16/13     Alameda County Water District
   –   1/16/13     City of San Diego
   –   1/16/13     Contra Costa Water District
   –   1/16/13     East Bay Municipal Utility District
   –   1/16/13     Otay Water District
   –   1/16/13     San Diego County Water Authority
   –   1/16/13     San Francisco Public Utilities Commission

• 4 environmental groups
   –   1/16/13     Defenders of Wildlife
   –   1/16/13     Natural Resources Defense Council
   –   1/16/13     Planning and Conservation League
   –   1/16/13     The Bay Institute

• 3 business groups
   –   1/16/13     Contra Costa Council
   –   1/16/13     Environmental Entrepreneurs
   –   1/22/13     San Diego Regional Economic Development Corporation
Support for further analysis
• Elected officials
   –   1/15/13     San Diego Mayor Bob Filner
   –   1/16/13     Congressman George Miller
   –   1/17/13     Contra Costa County Supervisor Mary Piepho
   –   1/17/13     Contra Costa County Supervisor Karen Mitchoff
   –   1/18/13     Congressman John Garamendi
   –   1/18/13     Congresswoman Doris Matsui
   –   1/18/13     Congressman Jerry McNerney
   –   1/18/13     Congressman Mike Thompson
   –   1/12/13     Contra Costa County Board of Supervisors (Board of Supervisors Vote 2/12/13)

• Delta Protection Commission
• Newspaper Editorials
   –   1/20/13     San Diego Union Tribune
   –   1/23/13     Merced Sun Star
   –   1/24/13     Sacramento Bee
   –   2/7/13      Chico News and Review
Next steps


• Discuss with BDCP agencies
• Discuss alternative among stakeholders
• Further analysis by BDCP agencies?

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Portfolio-Based BDCP Conceptual Alternative

  • 1. A Portfolio-Based BDCP Conceptual Alternative February 20, 2013 Barry Nelson, Natural Resources Defense Council
  • 2. A Portfolio-Based BDCP Conceptual Alternative • Delta challenges • Current BDCP choices and issues • A portfolio-based alternative • Next steps
  • 3. Current challenges in the Delta Crashing ecosystem Institutions struggling to Vulnerable levee system solve problems Water quality concerns
  • 4. Current choices in BDCP Large facility Status Quo or Aggressive pumping Habitat restoration
  • 5. Questions about current direction • How would it reduce physical vulnerability? Water Reliability • Would it provide improved reliability in droughts? • Would it improve, or worsen, ecosystem Ecosystem health and water quality? and Science • Is it legally permitable? Economics • Is it financially feasible?
  • 6. Selection criteria for Delta solution Financial Viability Ecosystem Water Supply Restoration Reliability Better performance at lower cost Science- based, Water Quality Permittable
  • 7. Best solution will require thinking outside the current BDCP “Box”
  • 8. Alternative portfolio-based approach In Delta South of Delta Smaller Local water facility supplies Large facility Protective vs pumping rules South of Delta Levee storage Aggressive improvement pumping Water Smaller agency habitat integration Habitat restoration restoration
  • 10. Potential benefits of portfolio approach • Lower capital cost for export water users Financial • Reduced energy use viability • Faster delivery of benefits • Greater water supply reliability Reliability • Less vulnerable to levee failures, earthquakes and sea level rise • Less affected by extended droughts • More water for export water agencies? Ecosystem • Contributes to Bay-Delta ecosystem and salmon restoration restoration Science-based, • Based on science, more likely to successfully obtain permits Permittable Water quality • Promising, but additional modeling required • Reduced reliance on Bay-Delta water supplies – Per SB 7X7 Other • More local control • Creation of local jobs in export areas that are paying for project • Reduced greenhouse gas emissions
  • 11. Potential benefits of portfolio approach The bottom line • More water • Improved reliability • Dry years • Droughts • Levee failures • More local jobs • More local control • Better environmental results • Lower cost • Broad support for further analysis • Southern California • Bay Area • Delta
  • 12. Water supply reliability • A large facility still relies on south of Delta pumping Normal Year Dry Year North South Delta South North 25% Delta Delta Delta 50% 50% 75%
  • 13. Water supply reliability • Even with a large facility, a Delta levee failure leads to a large water supply loss Normal Year Dry Year North South Delta South North 25% Delta Delta Delta 50% 50% 75%
  • 14. Water supply reliability • Even with a large facility, a Delta levee failure leads to a large water supply loss Normal Year Dry Year North Delta South North South Delta 25% Delta Delta 50% 75% 50%
  • 15. Water supply reliability • Even with a large facility, a Delta levee failure leads to a large water supply loss Normal Year Dry Year North South Delta South North Delta 25% Delta Delta 50% 75% 50%
  • 16. Water supply reliability Portfolio-based approach • Smaller facility • Levee investments • Conservation and water recycling • South of Delta storage
  • 17. Portfolio-based approach Balancing reliability and ecosystem health • Declining flows • 69% of inflows diverted in Spring of 2010 • Increased flow and ecosystem conflicts
  • 18. Portfolio-based approach Balancing reliability and ecosystem health Ecosystem Restoration Water Supply Reliability • Science-based Bay- • South of Delta storage Delta standards • Local tools to reduce •Habitat restoration Delta reliance
  • 19. Conceptual alternative – Not a proposed project • Based on currently available information and science • Limited modeling • Better cost estimates needed • Refinements required for final plan • Request that BDCP analyze, not adopt, the portfolio-based alternative
  • 20. Support for further analysis • 7 urban water providers – 1/16/13 Alameda County Water District – 1/16/13 City of San Diego – 1/16/13 Contra Costa Water District – 1/16/13 East Bay Municipal Utility District – 1/16/13 Otay Water District – 1/16/13 San Diego County Water Authority – 1/16/13 San Francisco Public Utilities Commission • 4 environmental groups – 1/16/13 Defenders of Wildlife – 1/16/13 Natural Resources Defense Council – 1/16/13 Planning and Conservation League – 1/16/13 The Bay Institute • 3 business groups – 1/16/13 Contra Costa Council – 1/16/13 Environmental Entrepreneurs – 1/22/13 San Diego Regional Economic Development Corporation
  • 21. Support for further analysis • Elected officials – 1/15/13 San Diego Mayor Bob Filner – 1/16/13 Congressman George Miller – 1/17/13 Contra Costa County Supervisor Mary Piepho – 1/17/13 Contra Costa County Supervisor Karen Mitchoff – 1/18/13 Congressman John Garamendi – 1/18/13 Congresswoman Doris Matsui – 1/18/13 Congressman Jerry McNerney – 1/18/13 Congressman Mike Thompson – 1/12/13 Contra Costa County Board of Supervisors (Board of Supervisors Vote 2/12/13) • Delta Protection Commission • Newspaper Editorials – 1/20/13 San Diego Union Tribune – 1/23/13 Merced Sun Star – 1/24/13 Sacramento Bee – 2/7/13 Chico News and Review
  • 22. Next steps • Discuss with BDCP agencies • Discuss alternative among stakeholders • Further analysis by BDCP agencies?