Cachuma Project Agreements Water Supply and Long Range Planning Committee July 16, 2020 1 1
Overview • Cachuma Project Background • Cachuma Master Contract • COMB Transfer of O&M Agreement • CCWA and Warren Act Contract • SWRCB Water Rights Order • Federal Biological Opinion 2
Cachuma Project Background • Constructed in the early 1950’s to provided reliable water supplies to the Santa Barbara County South Coast • Main source of supply for Santa Barbara County South Coast • Serves as storage facility for imported State Water Project water • District entitlement is 9,322 acre feet per year (AFY) • Water provided pursuant to a Master Contract between USBR and the Santa Barbara County Water Agency (SBCWA) (1996) 3
Cachuma Project Contracts • Cachuma Master Contract (USBR‐SBCWA) EXPIRES: September 30, 2020 • Cachuma Water Supply Agreements between SBCWA and each Cachuma Member Unit EXPIRES: September 30, 2020 • Transfer of O&M Agreement (USBR‐COMB) related to maintenance of Cachuma Project facilities and South Coast Conduit EXPIRES: July 20, 2020 • Warren Act Contract (USBR‐State) for conveyance and storage of imported State Water in Lake Cachuma EXPIRES: July 25, 2020 4
Cachuma Master Contract 5
Cachuma Master Contract • USBR to make available up to 25,714 acre‐feet (AF) per year of Project water for the benefit of the five Cachuma Member Units (MUs) • Santa Barbara County Water Agency (SBCWA) is the contractor under the Master Contact. • Renewed in 1996 for a 25‐year term • Expires September 30, 2020 6
Cachuma Master Contract Discussions to Date • 11‐18‐2016: SBCWA initiates discussions with USBR regarding contract renewal • Late 2016/early 2017, SBCWA and Cachuma MUs (including GWD staff) meet multiple times regarding contract renewal • 5‐2‐17: SBCWA sends formal request to USBR to renew contract through 2045 • May–August 2017: Three “Technical Sessions” held by USBR with MUs to discuss the contracting process and formulate the “Basis of Negotiation” Neither the District nor the other MUs have received any substantive status updates on the contract or the proposed terms since the 2017 Technical Sessions • 6‐10‐2020: USBR recognizes there is insufficient time to negotiate a long‐term renewal, instead proposes simple contract extension • 7‐13‐2020: Negotiation Sessions scheduled with USBR, SBCWA, and MUs 7
Cachuma Master Contract Extension • Three‐year contract extension instead of a long‐term renewal • USBR distributed a draft contract extension document on July 7, 2020 • USBR responsible for conducting the required environmental review needed to approve the contract • SBCWA must negotiate and finalize the sub‐contract Water Supply Agreements with the MUs SBCWA has stated its intention to simply extend the current sub‐contracts, contingent on County Board of Supervisors approval 8
Cachuma Master Contract Administration • USBR introduced a new potential concern about the amount of “carryover water” stored in Cachuma in a given year • New allocation potentially reduced based upon proportionate amounts of carryover in the lake • The MUs have continued to engage USBR on this issue • On June 25, 2020, the MUs submitted their joint allocation request for a full allocation for WY 2020‐21 9
COMB Transfer of O&M Agreement 10
COMB Transfer of O&M Agreement • Original Agreement executed in 1956, renewed in 2003 • Transferred responsibility to operate, repair and maintain Cachuma Project facilities from USBR to COMB • COMB operates and maintains the intake tower, South Coast Conduit pipeline, flow control valves, meters and instrumentation at control stations and turnouts along the South Coast Conduit 11
COMB Transfer of O&M Agreement • USBR has indicated a simple three‐year extension of the existing 2003 O&M Agreement will be forthcoming • USBR has set a separate negotiation session with COMB and its Member Agencies for July 20, 2020 • Contract approval requirements: USBR environmental review Approval by the COMB Board of Directors 12
Central Coast Water Authority & Warren Act Contract 13
CCWA & Warren Act Contract • Storage of non‐federal water in a federal water project requires a Warren Act contract • Storage of water in Cachuma is a vital element of South Coast agencies’ water supply management, and is key during droughts • Central Coast Water Authority’s (CCWA) contract expires July 25, 2020 14
CCWA and Warren Act Contract • On June 16, 2020, CCWA received a draft proposed Warren Act contract • Draft proposed Temporary Contract provided by USBR significantly deviates from the prior agreement • Draft Contract eliminates CCWA’s ability to store water in Cachuma • CCWA pursuing simple extension of prior terms in old agreement 15
State Water Resources Control Board Water Rights Order 16
SWRCB Water Rights Order • Water Rights Order 2019‐0148 approved on September 17, 2019 • Cachuma Conservation Release Board (CCRB) represents the District’s interests in the state water rights forum. • USBR must comply with the updated Water Rights Order in Master Contract renewal. Further work on required plans will occur once the Master Contract terms are understood. 17
Biological Opinion & Reconsultation 18
Biological Opinion Summary • National Marine Fisheries Service (NMFS) began Federal Endangered Species Act consultation for steelhead as part of the Cachuma Project operations • In 2000, NMFS issues the currently applicable Biological Opinion (BiOp) • Dictates releases from the Lake, timing and operational restrictions • Significantly reduced the amount of water available in Cachuma for allocation to Member Units 19
Biological Opinion Reconsultation • The Master Contract is currently implemented in accordance with the directives contained in the 2000 Biological Opinion • The 2016 (updated) draft Biological Opinion issued by NMFS would require further large releases from the dam for downstream habitat • Consultation was terminated after USBR sent NMFS a new proposed revised action • Currently, consultation is informal while USBR provides additional information to NMFS 20
Next Steps • July 13, 2020: Final negotiation session with USBR on the Master Contract Draft contract extension expected from USBR ahead of meeting • July 20, 2020: Separate USBR‐COMB negotiation session regarding Transfer of O&M Agreement • CCWA continues to work with USBR to obtain a simple extension to the existing Warren Act Contract • CCRB continues to assist USBR in formulating its plans to comply with the SWRCB Water Rights requirements Further development of the required plans will occur when the terms of the contract extension are known 21
Recommendation Receive an update and presentation on contract renewals for the Cachuma Project, and provide further direction to staff as appropriate, including forwarding to the Board of Directors. 22
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