SITES Project Overview
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1 SITES Project Overview 2016 J u l y 2 0 D r a f t, p l a n n i n g p h a s e c o n c e p t s July 2016 Page 1
2 Why Sites? If the reservoir operated in 2016: * 1,065, * CA Rice Commission CA Rice Commission J a n u a r y D r ajuly f t, 2016 p l a n n i n g p h a s e c o n c e p t s * T h r o u g h M a y 1 Page 2
3 Why SITES is Good for California 1. Restore operational flexibility to State s water system 2. Achieve the co-equal goals (2009 Delta Reform Act) 3. Dedicate water to DFW & SWRCB 4. Contribute flows to meet SWRCB s pending actions 5. Help mitigate for the effects of climate change 6. Contribute to State s renewable energy goals July
4 Benefits of SITES to N. California 1. Job creation Construction Operations & support recreation 2. Additional water Beneficial uses such as agriculture Environment & ecosystem for fish and birds 3. Local ownership More control over how the water is to be used - now and into the future More receptive to the needs of the community and landowners July
5 SITES Proposition 1 (Phase 1) 2016 J u l y 2 0 D r a f t, p l a n n i n g p h a s e c o n c e p t s July 2016 Page 5
6 Proposition 1, Chapter 8: Eligible Projects CALFED & Groundwater Storage Conjunctive Use and Reservoir Reoperation Local and Regional Surface Storage Eligible Public Benefits Ecosystem Improvement DFW Water Quality Improvement SWRCB Emergency Response DWR Flood Control DWR Recreation DWR J a n u a r y D r ajuly f t, 2016 p l a n n i n g p h a s e c o n c e p t s 6
7 Proposition 1, Chapter 8: Key Performance Measures: Priority will be given to projects that leverage private, federal, or local funding to produce the greatest public benefit (chapter 4) Funds provided for public benefits associated with water storage projects that improve the operation of the state water system, are cost effective, and provide a net improvement in ecosystem and water quality conditions (b) Projects selected through a competitive public process [ranked by] the [magnitude of the] expected return for public investment (c) The project provides measureable improvement to the Delta ecosystem or to tributaries to the Delta The project will advance the long-term objectives of restoring ecological health and improving water management for beneficial uses of the Delta 79755(a)(5)(B) J a n u a r y D r ajuly f t, 2016 p l a n n i n g p h a s e c o n c e p t s 7
8 Water Commission s Selection Criteria: Increasing climate change predictions Return on Investment Future without Climate Change Where does the Water Commission want to land? Moderate Climate Change Moderate Climate Change w/ Sea Level Rise Delta or Tributaries: Measureable Improvement ( 79752) Non-linear scales Delta: Long-term Ecological Health ( 79755(a)(5)(B)) July
9 SITES Proposed Operations 2016 J u l y 2 0 D r a f t, p l a n n i n g p h a s e c o n c e p t s July 2016 Page 9
10 Schematic Sites Reservoir (N) H = 330 ft. H = 120 ft. Max fill rate: 11,682 acre-ft/day 2,100 cfs TC Canal (E) Sacramento River Diversions Red Bluff (E) River Mile Pump (N) Low Level Outlets: Stone Corral Funks Creek A b b r e v i a t i o n s : ( N ) N e w ( E ) E x i s t i n g ( M ) M o d i f i e d (N) Holthouse Reservoir (M) TCCA s southern To Colusa Basin service area (E) Drain & Sacramento River at Knights Landing (River Mile 90) WS E l e v 210 (N) 1,800 cfs GCID Canal (E) 2,000 ( ), 1,500 ( ) cfs Delevan Pipeline (N) (E) Terminal Regulating Reservoir (N) GCID s southern service area (E) (N) Hamilton City (E) River Mile 205 River Mile (N) July
11 Annualized Storage (By Water Year Type) w / P r o j e c t J a n u a r y D r ajuly f t, 2016 p l a n n i n g p h a s e c o n c e p t s 11
12 Water Supply Benefits September Storage (Shasta, Oroville & Sites) w / o P r o j e c t w / P r o j e c t ~ 8 0 0, a c r e - f t. ~ 4 0 0, a c r e - f t. DRY Sac. Valley Demand AVERAGE Non-Sac. Valley Demand 250 TAF Public Benefit Water A (direct release from Sites Reservoir) Public Benefit Water B (releases from Sites in lieu of releases from existing reservoirs) WET 2016 May Page 12
13 Dry Year Operations: Average using prior drought periods 28-34, 76-77, 87-92): Storage Percent Reservoir (acre-ft.) increase Shasta 240, Oroville 105, Folsom 37, Trinity 79, Sites 660,000 (*) Total 1,121, Ecosystem Benefits P r o p 1 E l i g i b l e ( c o l d - w a t e r p o o l & D e l t a Wa t e r q u a l i t y ) Non- P r o p 1 ( p o s s i b l e Fe d e ra l ) 5 0 % P r o p 1 ( w a t e r q u a l i t y, e c o s y s t e m, & e m e r g e n c y r e s p o n s e ) W h i l e m e e t i n g t h e e x i s t i n g w a t e r q u a l i t y a n d f l o w o b l i g a t i o n s o f t h e C V P & S W P (*) T h i s w a t e r i s i n d e p e n d e n t o f C V P & S W P w a t e r c o n t ra c t s J a n u a r y D r a f t, p l a n n i n g p h a s e c o n c e p t s 2015 April S o u r c e : D W R, FA Q Page 13
14 Integrated Operations (Today) Shasta (4 MAF) Storage Withdrawals for : Sacramento River Flows In-Basin Demand & Export Ecosystem & Water Quality Trinity (2.1 MAF) TC Canal & GCID Canal Oroville (3.5 MAF) Feather River Flows American River Flows Folsom (1 MAF) Tidal Influence Delta Outflows in-delta diversions Contracted/ Consumptive Uses CVP & SWP Exports San Joaquin River Flows Environmental & Water Quality Uses 2016 Jun The Delta is in Balanced Conditions Page 14
15 Integrated Operations (Proposed) Shasta (4 MAF) Storage Withdrawals for : Sacramento River Flows In-Basin Demand & Export Ecosystem & Water Quality Trinity (2.1 MAF) Shasta cold water pool releases can be pumped into Sites Oroville (3.5 MAF) Feather River Flows Sites (1.8 MAF) CBD American River Flows Folsom (1 MAF) Tidal Influence Delta Outflows in-delta diversions Contracted/ Consumptive Uses CVP & SWP Exports San Joaquin River Flows Environmental & Water Quality Uses 2016 Jun The Delta is in Balanced Conditions Page 15
16 Integrated Operations (filling the reservoir) Trinity (2.1 MAF) Shasta (4 MAF) Sacramento River Flows During Excess Flow Conditions MAF in MAF long-term average Oroville (3.5 MAF) Feather River Flows Sites (1.8 MAF) Tidal Influence Delta Outflows CBD in-delta diversions American River Flows Folsom (1 MAF) Contracted/ Consumptive Uses CVP & SWP Exports San Joaquin River Flows Environmental & Water Quality Uses 2016 Jun The Delta is not in Balanced Conditions Page 16
17 Making Water Available In Other Areas: 3 Trinity (2.1 MAF) Shasta (4 MAF) \ 1 Sacramento River Flows Storage Withdrawals for : Carryover Storage (only when reservoirs are not prone to spill) Oroville (3.5 MAF) Sites (1.8 MAF) 2 Feather River Flows \ Tidal Influence Delta Outflows CBD in-delta diversions American River Flows \ Folsom (1 MAF) Contracted/ Consumptive Uses CVP & SWP Exports San Joaquin River Flows Environmental & Water Quality Uses 2016 Jun The Delta is in Balanced Conditions Page 17
18 Making Water Available In Other Areas: 3 Trinity (2.1 MAF) Shasta (4 MAF) \ 4 Sacramento River Flows Storage Withdrawals for : Carryover Storage (only when reservoirs are not prone to spill) Oroville (3.5 MAF) Feather River Flows \ Sites (1.8 MAF) Tidal Influence Delta Outflows CBD in-delta diversions American River Flows \ Folsom (1 MAF) Contracted/ Consumptive Uses CVP & SWP Exports San Joaquin River Flows Environmental & Water Quality Uses 2016 Jun The Delta is in Balanced Conditions Page 18
19 Creating Public Benefits: 3 Trinity (2.1 MAF) Shasta (4 MAF) \ 1 Sacramento River Flows Storage Withdrawals for : Carryover Storage (only when reservoirs are not prone to spill) Oroville (3.5 MAF) Sites (1.8 MAF) 2 Feather River Flows \ Tidal Influence Delta Outflows CBD in-delta diversions American River Flows \ Folsom (1 MAF) Contracted/ Consumptive Uses CVP & SWP Exports San Joaquin River Flows Environmental & Water Quality Uses 2016 Jun The Delta is in Balanced Conditions Page 19
20 Creating Public Benefits: 3 Trinity (2.1 MAF) Shasta (4 MAF) 4 1 Sacramento River Flows Storage Withdrawals for : Carryover Storage (only when reservoirs are not prone to spill) Oroville (3.5 MAF) Sites (1.8 MAF) 2 Feather River Flows CBD American River Flows Folsom (1 MAF) Tidal Influence Delta Outflows in-delta diversions Contracted/ Consumptive Uses CVP & SWP Exports San Joaquin River Flows Environmental & Water Quality Uses 2016 Jun The Delta is in Balanced Conditions Page 20
21 Creating Public Benefits: Shasta (4 MAF) Storage Withdrawals for : Sacramento River Flows Delta Ecosystem & Water Quality Trinity (2.1 MAF) Oroville (3.5 MAF) Feather River Flows Sites (1.8 MAF) CBD American River Flows Folsom (1 MAF) Tidal Influence Delta Outflows in-delta diversions Contracted/ Consumptive Uses CVP & SWP Exports San Joaquin River Flows Environmental & Water Quality Uses 2016 Jun The Delta is in Balanced Conditions Page 21
22 SITES Project Development J u l y 2 0 D r a f t, p l a n n i n g p h a s e c o n c e p t s July 2016 Page 22
23 Sites Project Authority & Prop 1, Chapter 8 Sites Project Authority (10) Voting: 1 member, 1 vote Dams Project Agreement Committee Pumping Intakes & Pipelines Diversions J a n u a r y D r a f t, p l a n n i n g p h a s e c o n c e p t s 2016 January Advisory Ex Officio DWR (& USBR) Voting: pro-rated by acre-ft. 100% Before Prop 1 Funds Awarded 79759(a): The funds [] may be provided [] to local joint powers authorities formed by irrigation districts and other local water districts and local governments within the applicable hydrologic region to design, acquire, and construct those projects 79759(b): JPA shall not include in their membership any for-profit corporation or any mutual water company whose shareholders and members include a for-profit corporation or any other private entity (b): [T]he department shall not control the governance, management, or operation of the surface water storage projects 79759(b): The joint powers authorities [] may include in their membership governmental partners that are not located within their respective hydrologic regions in financing the surface storage projects Page 23
24 Governance: Sites Project Authority (10) 100% Sac Valley (per 79759(a) Advisory Ex Officio DWR (& USBR) 79759(b) Authority Members (10) Colusa County Glenn County Maxwell ID Tehama-Colusa Canal Authority Annualized Acre-Ft. Colusa Co. WD 32,111 Glenn-Colusa ID 20,000 Orland-Artois WD 20,000 Proberta WD 3,000 Reclamation District ,000 Westside WD 25,000 Dams Project Agreement Committee Pumping 100% Before Prop 1 Funds Awarded 79759(c) Represented Members Acre-Ft. Cortina WD 300 Davis WD 2,000 Dunnigan WD 5,000 LaGrande WD 1,000 Other Sac. Valley WD TBD Intakes & Pipelines Non-Sac Valley, M&I TBD Diversions J a n u a r y Non-Sac Valley, Agriculture TBD D r ajuly f t, 2016 p l a n n i n g p h a s e c o n c e p t s 24
25 Decision Making: Material Change Threshold Delegations of Authority Material Change Threshold Approach: Sites Project Authority Voting: 1 member, 1 vote Sites Project Authority: Chartering Document and Bylaws Project Agreement Committee: Bylaws and compliance with terms and conditions of the Project Agreement (delegated by the Sites Project Authority). Material Change Categories: Prop 1 eligibility Project Agreement Committee Voting: pro-rated by acre-ft. Changes in scope, schedule &/or cost Changes in facility performance or reliability Change in power or generation Shifting of significant risk Dams Pumping Changes to water rights and/or annualized yield Compliance with laws & regulations (e.g. dam safety) Pipelines Intakes & Diversions Changes in environmental mitigation or compliance July 2016 obligations. 25
26 Our Values: a. Transact all business in an open and honest manner b. Communicate effectively c. Build trust and confidence both internally and externally d. Be a respectful community partner e. Make decision that are fiscally prudent with a focus on creating value f. Utilize best-in-class processes and procedures Source: Executed Phase 1 Reservoir Project Agreement, page May Page 26
27 Phase Schedule: Tracks: Planning & Permitting Phase 1: CWC WSIP Application Project Management Direct funding by Members Prepare Proposal 1 Phase 2: 2 Phase 3: 3 Phase 4: Final EIR/S & Permits, ROW, Construction & 4 Preliminary engineering & Final Design Close-out N e g o tiate Secure short-term debt 1. Grant Awarded 2. Contract w/ DFW, SWRCB, & DWR Add l short-term debt Acquire Permits pre-construction Issue long-term debt Earliest date Prop 1, Chapter 8 Grant Funds available Construction Permits Phase 5: Transfer to Ops Repayment Managing Public Benefits Pre-public draft EIR/S Draft EIR/S Public Input Final EIR/S Engineering I n corporate CWC Changes O p timize Feasibility Preliminary Final Design & Contract Documents Construction Management Real Estate / Rights of Way Temporary Field Data Collection Acquire Permanent Rights of Way Owner-furnished Equipment Target $/acre-ft. Risk allocation, Financing, & Power Generation needs to be factored into pricing Construction & Commissioning 2015 November NOTE: The subsequent phase can only start once the Members have rebalanced the project and financing agreements are executed. Bid/Award W a ter Users Multiple Construction Packages Commissioning Public Benefit Page 27
28 Stock Value Risk & Uncertainty Project s Risk & Uncertainty vs. Value: High 1. WSIP funds 1. Certified EIR/S 1. Construction 1 awarded 2 3 financing secured 2. CWC Funding 4 2. Contracts with DFW. SWRCB, 2. Prop 1 bond funds for construction & DWR +$$ / share Start-up testing complete $$$ / share $$ / share Medium Low $ / share Residual / share Time (years) NOTE: Cost to participate later in time continues to increases July
29 Range of Project Development Costs Reservoirs and Dams: Pumping and Generating Plants: Pipelines: Total: Escalated to 2015 dollars w/o finance cost Includes contingency $1. B - $1.7 B $1. B - $1.5 B $1. B - $1.2 B $3. B - $4.4 B July
30 Costs/acre-ft: (with financing) * P r i c e i s F O B S a c r a m e n t o R i v e r M i l e ( N o r t h o f M a x w e l l ) NOTE: RIFIA could reduce finance costs over $100/acre-ft. (requires congressional approval) J a n u a r y D r ajuly f t, 2016 p l a n n i n g p h a s e c o n c e p t s 30
31 Capital Cost Allocation: 50% (minimum) Water User Funded 50% (maximum) Public Benefit Funded 2016 January Current Sacramento Valley Demand Needed for Prop 1 funds to be allocated Ecosystem & Water Quality Enhancement Cold Water Pool All Other Nonwater public benefits (*) Water-derived public benefits 50% (minimum) Ecosystem Benefits (*) Includes flood control and recreation Page 31
32 Yield-Based Allocation (Public Benefits) Base Scenario 1 Dedicated B : W, AN, & BN WYT Dedicated A : all WYT, including back-toback dry or critical WYT (highest value water) Annual A : W, AN, & BN WYT (based on carryover & hydrology) WYT W AN BN D C Water Year Type Wet Above Normal Below Normal Dry Critical Annual B : Generate revenue for other ecosystem benefits (e.g. habitat) after providing a public benefit (e.g. water quality) Annual C : To cover public benefit share of (a) annual O&M (pumping) & (b) Adaptive Management & Monitoring costs after providing a public benefit (e.g. cold water pool) Carryover A & B : Available for multiple uses, including the creation of a pool available for infrequent emergency response events. Federal Benefits which are non-prop 1 eligible (e.g. Trinity river, refuge supplies, additional cold water pool for dry and critical years until Shasta enlargement is completed, refuges) 2016 January Page 32
33 Yield-Based Allocation: (Water Users) Base Class 1 At Risk Current Sacramento Valley Demand Needed for Prop 1 funds to be allocated Class 2 ~ 170 TAF 75% Prop 1 Minimum (~ 188 TAF) 2016 April ~ 250 TAF Page 33
34 Financing: (with Federal Participation) Phase 1 (prepare Prop 1 application): Memberfunded Repay sunk costs 50% (minimum) Water User Funded 50% (maximum) Public Benefit Funded Phase 2 (complete Environmental Review): Member-funded &/or short-term debt Repay sunk costs Current Sacramento Valley Demand Prop 1: Ecosystem & Water Quality Enhancement Phase 3 (complete final design & pre-construction activities): Memberfunded &/or shortterm debt Repay sunk costs Phase 4: (construction and start-up): longterm debt finance Additional Water Users Fed. Water Supply Prop 1: Other Non- Prop 1 Federal (e.g. Trinity) State Taxpayers (General Obligation Bonds) Phase 5 (operations): Repayment 2015 July US Dept. of Treasury (Method is dependent upon congressionally authorized role & appropriations Page 34
35 Repayment: (with Federal Participation) 50% (minimum) Water User Funded 50% (maximum) Public Benefit Funded Pumpedstorage ($/kwh generated) Carryover (variable $/year) Annual Use (fixed $/year) Water ($/acre-ft. of water) Current Sacramento Valley Demand Additional Water Users Fed. Water Supply Prop 1: Ecosystem & Water Quality Enhancement Prop 1: Other Non- Prop 1 Federal (e.g. Trinity, refuges) State Taxpayers (General Obligation Bonds) 2015 May Storage Interior &/or Reclamation (Method is dependent upon congressionally authorized role & appropriations. Could include pumped -storage) Page 35
36 What Potential New Members Need to Know 1. Membership information is available on: 2. July 29 is the closing date to become a member for Phase 1 3. Prop 1 limits participation Authority Members are required to be within the Sacramento Valley Hydrologic Region Specific Limitations apply to for -profit corporations 4. Additional questions, please call me: (530) May Page 36
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