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All right. Calling the meeting to order for imported water, August 25, 2026. Before we begin, I'd like to check if there are any directors requesting use of alternative teleconferencing to participate in today's meeting.

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I'm if I could just state that we're calling to meeting to order at 1010 and we do have

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one director vice-chair accurement if she can please go ahead and make her statement.

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Yes, I'm joining the meeting today using just cause I'm recovering from race and surgery.

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Thank you.

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And I'm alone in the room and I was there under 18 in the room with me.

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Thank you.

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Thank you, director.

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Dr. Ackerman, hopefully you're feeling okay.

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Thank you.

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I'm feeling much better.

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Thank you.

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Thank you.

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Board office, we have any members

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and non-members participating

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via traditional teleconference.

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Yes, we have members and non-members,

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Director Alvers, Director DeJesus,

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Director Denham, Director Luit, Director Miller.

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Wow, full boat.

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All right, thank you so much for that.

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Yes.

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All right, moving along, Ms. Harms, please administer the roll call for committee membership.

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I will now call on committee members only.

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Director Ackerman.

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Here.

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Alvarez,

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Camacho.

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Cordero.

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Here.

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Crane.

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Here.

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DeJesus.

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Here.

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Denham.

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Here.

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Garza.

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Here.

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Gold.

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Kurtz.

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Here.

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Louis.

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Here.

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Miller.

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Here.

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And then I do want to state that we do have Chair Ortega for the quorum.

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Now display the roll call back to you, Chair Gold.

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All right.

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Now's an opportunity for members of the public to address the committee and matters within the committee's jurisdiction.

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Board office, is there anyone in the room that wishes to speak?

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No request for the room.

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Thank you.

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Board office, do we have members of the public on the telephone line that wish to speak?

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Yes, Chair.

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We have public commenters.

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You will have three minutes to speak.

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I will call on your area code in the last three digits

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of your telephone number or by your name is provided.

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When I call on you, please send me yourself

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and begin your comment.

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Call our area code 2, 0, 3,

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last three digits of your number, 5, 8, 4.

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Please send me yourself and begin your comment.

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Good morning.

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Good morning.

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This is Katie Wagner, Sierra Club, California.

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We submitted a letter on Friday,

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along with a number of other Southern California stakeholder organizations,

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employing you to consider the cost, lengthy time and environmental impacts of

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sites reservoir compared to a number of local projects that will bolster

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met supplies while creating more jobs and keeping those jobs local.

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Water stored inside tests to travel over 400 miles and be pumped through

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aspects that are heavily impacted by subsidence, making energy cost skyrocket,

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while also losing water to leak from the operation.

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Producing more local supply means we can store more water locally

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while also cleaning up groundwater storage.

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We list a number of projects by member agencies in the letter

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and I urge you to consider them thoughtfully.

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That's that last week that the revenue surplus was due to one-time events

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and cannot be counted on in the future.

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If the budget will continue to be unpredictable,

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then count on reliable projects close to home

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and don't waste money on future stranded assets.

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Thank you.

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Thank you, Ms. Weinman.

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Thank you, Collar.

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Next, Collar.

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Next, Collar.

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Miguel.

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Miguel.

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Please style Star Six to unmute yourself

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and begin your comments.

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Thank you, everyone.

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Good morning.

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My name is Miguel.

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Miguel, I'm the Director of Sierra Club, California,

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and it's my colleague.

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Thank you for their comment.

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I'm here today because, as we mentioned,

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submitted a letter and a comment.

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And as we received updates on multiple projects today

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including sites reservoir. I think we wanted to look at them not only as a question of water supply,

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but as a question of what kind of water future we are choosing for Southern California.

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In my work, I spend a lot of time working with communities who are constantly thinking about

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climate resilience, water reliability, and most importantly, day-to-day the affordability.

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And what I continue to see is that we have enormous needs right here in Southern California that

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we have not fully invested in, we have communities that need groundwater cleaners, we have opportunities

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Recapture and washed from water, expanded recycled water, recharging or groundwater basins, and

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build projects that reduce flooding, low-encleasing our local water supply. Those investments

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be more than produced water, they create jobs here directly. They make our communities

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more resilient to drought and climate change, they reduce their dependence from water coming

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from hundreds of miles away. And more importantly, they give us an opportunity to build the water

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systems that people can actually afford.

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That is why I'm here today to continue to urge us to have metropolitan water district seriously

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consider the effects of continuing to make major long-term investments in sites reservoir

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without first asking whether those same dollars could accomplish more for the people of

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certain California.

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Every major investment creates an opportunity cost and before committing ratepayers to additional

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costs for sites.

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I hope this committee will fully evaluate what we could accomplish by accelerating the local

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solutions already in front of us because resilience should not just mean having water available

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somewhere and should mean building a system that is reliable, locally sustainable, and affordable

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for the families who ultimately have to pay credit. Thank you. Thank you, Director.

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Thank you. Thank you. Chair, there are no other public commenters.

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Along with remain open for remote public attendance. Thank you. All right, thank you so much.

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All right, sorry, I was jumping ahead.

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We will now consider the item listed on the consent calendar under Agenda Item 2A, which

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is approval of the minutes of the subcommittee on imported water for July 28, 2026 on

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can someone make a motion in a second to approve the item?

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A check-out before we proceed if we can just like to state that the public comment is now closed.

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Oh, I'm sorry.

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Okay.

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Thank you.

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I'm really trying to rush this.

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Sorry about that.

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All right.

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Okay.

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We have Director Crane on made the motion, is there a second?

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Okay, and thank you, Director Camacho, for the second.

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Please administer the vote.

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Thank you, Chair Gold.

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I have a motion by Director Crane, seconded by Director Camacho for item 2A.

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I will be calling on committee members only for the vote.

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Director Ackerman?

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Yes.

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Alvarez?

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Yes.

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Dr. Accomend if you could state if you're alone in the room, please. I'm sorry. I'm alone in the room. There's no one under 18 in the room over 18

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No one under okay. Thank you

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Alvarez

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Camacho

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Cordero. Yes, Crane

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Jay Jesus. Yes, Denham. Yes, Garza. Hi, Gold. Yes, Kurtz. Yes, Louis. Yes, no

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The vote passed.

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We will now...

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Go ahead, sir.

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Your vote, please.

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Yes or no?

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Yes.

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Thank you.

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Yes.

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And Director Alvers had stated your vote if you could restate, please, before I interrupted.

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Yes.

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Thank you.

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The vote passed.

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We will now display the vote back to you, Chair Gold.

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All right.

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Thank you so much.

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So as everybody knows, we have a really full agenda today.

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And that's changed pretty dramatically because of the events of the last few days on the Colorado.

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But these are pretty important issues up front that we're going to get presentations on.

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And so the first item is an update on Northern Sierra watershed activities.

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Mr. Bernarski.

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Yeah, thank you, Chair Gold. Good morning, everybody. For item 3A, Jennifer Neville is our

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program manager within the Bay Delta Group and everybody knows Jen. She's done a great

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job working up in our watersheds and she's going to give us an update today on the work that

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she's been doing. Also talking about efforts to develop a business case that will lay the

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ground for future board actions in this area. And then also talk about our continued activities

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to support collaborative relationship building up in the watershed, so Jen, take it away, thank you.

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All right. Thank you, Chair Gold, members of the subcommittee. This is item 3A, an update on Northern Sea Watershed activities.

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Okay. So as John mentioned, my report today will cover Northern Sea Watershed updates since my last presentation at one water and adaptation committee in May.

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This will include updates on the progress of our three pilot investigations, the associated

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business case development, and the collaborative and relationship building efforts we've been engaged in.

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So first, a few quick updates on the progress of our pilot investigations.

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Just a little bit of background as a reminder. So in September 2024, your board authorized the general manager to enter into agreements for three pilot investigations to evaluate the potential benefits to metropolitan of restoring and protecting watershed health in key Northern Sierra watersheds. These pilot investigations are facilitated

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targeted by our long-term non-profit partner,

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through Forest, through what's called a Forest Resilience Bond.

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And this is really a conservation financing mechanism

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or then what you would think of as a traditional bond.

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And then those projects are implemented

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by local partners and the national forests.

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And so they do the permitting and the actual work on the ground.

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And each pilot also includes a number of additional funding

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partners and funding sources in addition to metropolitan contributions.

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Okay, so in terms of updates, I'll start with the North Feather One Forest Resilience Fund.

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So the Sierra Institute, the implementing partner on that project conducted site prep

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and land owner outreach this spring and summer, in preparation for work to ramp up again

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this fall. Wildfire risk reduction treatments are set to begin in the next few

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weeks on key private lands in the Genesee Valley, which is in the Feather River

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watershed. Whoops, getting ahead of myself. Got that from Director Gold.

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Alright, so

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next is the Plumas Community Protection 1, Forest Resilience Bond. Wildfire

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risk reduction treatments related to this project are ongoing.

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The National Forest Foundation, who is the implementer on this project, is preparing

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contracts for additional implementation work to be completed this summer and fall.

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And finally, I did it again.

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And the Upper Butte Creek One Forest Resilience Bond, Butte County Resource Conservation

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District, the implementation agency on this project utilized forest resilience bond funds to conduct

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California spotted owl surveys and complete site prep and layout work in preparation for

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implementation to start this fall and that work would not have happened without this mechanism in

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place. So that's exactly what we're looking for with these investments. All right, so moving on to

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potential benefits and business case development. This is a key focus of staff's work activities

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right now.

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So I presented this table in my May update. Essentially it shows where areas

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of potential benefit may be evaluated in terms of the camp for water, evaluative criteria.

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As we discussed in May we anticipate that some of these benefits will be sort of quantifiable

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and monetizable, so we'll be quantifiable and some will be qualitative.

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So I wanted to quickly highlight two areas where we are doing additional analysis to

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quantify benefits that could then be monetized and to support that business casal timely.

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So those are water supply and reduced sediment and debris flows.

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Essentially, right now we're working to feed blue forest modeling on the restoration into

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to look at how full-scale implementation of these projects would affect the upper watershed reservoirs above Warville.

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So then, calcium is able to translate those changes down to how they impact metropolitan in terms of water supply reliability on the state water projects,

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which we could then assign that change, some kind of monetary value, too.

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So that will be sort of the basis of our monetizable business case with obviously a lot of other benefits that come along with that investment.

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So more to come on this front, but again this is an area of active development on our part.

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Next up is relationship building and collaboration.

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So our relationship building and collaboration efforts remain focused on the upper feather watershed.

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We continue to work closely with Booth Forest and our pilot investigation partners, as I noted earlier.

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And we continue to cultivate relationships with upper feather regional water management group leaders

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through the watershed framework process.

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And support of these efforts, we are planning a communications focus.

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Local staff trip in mid-September. And in addition, we are now supporting your board's State

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Water Project inspection trips with a new option for an upper watershed presentation at Lake

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Orville. So that's a new option for all of you.

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We are also working to explore other partnerships

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and develop other strategic connections. These include seeking out ways to collaborate with

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aqua as well as the State Water Contractors Association and the individual contractor agencies.

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We are participating in the aqua headwaters working group and looking for ways that metropolitan can

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engage in the state's wildfire and forest resilience task force process.

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And then there are some upcoming opportunities to connect more formally with other Western

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water professionals that are working in this space.

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So hoping to do that as well.

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So at this point, staff is really working to balance sort of seeing a prize of current

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events and developing strategic relationships with not getting out ahead of the business

246
00:16:16,120 --> 00:16:19,180
case in any future board decisions.

247
00:16:19,180 --> 00:16:20,220
in

248
00:16:23,520 --> 00:16:27,820
terms of next steps we're currently working to develop those business

249
00:16:27,820 --> 00:16:34,000
case analyses that I talked about. This information would be used to help inform a

250
00:16:34,000 --> 00:16:38,200
draft recommendation for your board's consideration and we're hoping to start

251
00:16:38,200 --> 00:16:45,260
that process. The process of bringing that forward early next year. We continue to

252
00:16:45,260 --> 00:16:49,140
look for opportunities to support the involvement of additional beneficiary

253
00:16:49,140 --> 00:16:55,880
partners, and we look to continue work on those relationship building and collaboration

254
00:16:56,460 --> 00:16:56,800
efforts.

255
00:17:00,390 --> 00:17:03,490
So, that concludes my update, and I'd be happy to take any questions.

256
00:17:05,860 --> 00:17:07,640
Thank you so much for that presentation.

257
00:17:08,560 --> 00:17:09,340
Any questions?

258
00:17:10,200 --> 00:17:10,680
Of course.

259
00:17:10,840 --> 00:17:11,300
Terrible to go.

260
00:17:11,980 --> 00:17:12,560
Thank you.

261
00:17:13,300 --> 00:17:21,780
So, in my time, it metropolitan, this is one of the more, I think, constructive things that

262
00:17:21,780 --> 00:17:24,380
It's new that metropolitan has been involved in.

263
00:17:25,040 --> 00:17:36,880
It really opens the dialogue to the benefit for both the public and for the regions involved

264
00:17:37,500 --> 00:17:39,780
for where our water really comes from.

265
00:17:40,440 --> 00:17:42,000
Water doesn't come from the Delta.

266
00:17:42,660 --> 00:17:47,520
I think there's a misimpression that it does, primarily promoted by us.

267
00:17:47,520 --> 00:17:51,700
You look at the inspection trip program.

268
00:17:52,340 --> 00:18:02,260
I'm still dissatisfied. I don't think that having a presentation about the Northern watershed is as effective as what we would do anywhere else.

269
00:18:02,560 --> 00:18:08,260
We just got done with the presentation. We do a lower Colorado River tour.

270
00:18:08,940 --> 00:18:22,000
And so why the obstacle in being able to expand our trip options so that there's some option where you physically go up there not to steer a lecture is something that I guess I'll leave unsatisfied with.

271
00:18:23,100 --> 00:18:31,120
But there's other organizations that we encountered over there that I don't understand the roles of. For example, there's a group called the Water Solutions Network.

272
00:18:31,120 --> 00:18:37,300
work. They recently invited me to a tour of our own service area with people from Northern

273
00:18:37,300 --> 00:18:43,260
California. And it'd be interesting I know that they did facilitate a couple of discussions

274
00:18:43,260 --> 00:18:48,640
we had during the trips that I took there, and they're not on this list. And then the

275
00:18:48,640 --> 00:18:55,980
other group I think that's been very active here. They were here last week. They did a forum

276
00:18:55,980 --> 00:19:01,040
that I was invited to speak at at the end of Urban Water Institute on fire resiliency

277
00:19:01,040 --> 00:19:06,560
and emergency management and that's the Mountain Counties Association and I don't see

278
00:19:06,560 --> 00:19:07,940
them on this list either.

279
00:19:08,720 --> 00:19:13,020
And is that because they overlap with others or I just don't understand what their role

280
00:19:13,020 --> 00:19:18,520
is because you know I found it interesting to be invited by a group that I encountered

281
00:19:19,180 --> 00:19:24,580
for two of our own service area after we were supposed to do one in January that included

282
00:19:24,580 --> 00:19:31,560
them. They ended up not going forward because we got our wires crossed, I guess, during the holidays.

283
00:19:32,360 --> 00:19:33,820
So, you know, thank you.

284
00:19:36,060 --> 00:19:40,220
Yeah, so we are working with the Watershed Solutions Network, so they

285
00:19:40,220 --> 00:19:46,960
are facilitating the Watershed framework test drive that I talked about. So that's to connect

286
00:19:46,960 --> 00:19:53,320
all of Southern California and not just metropolitan with folks, leaders in the upper feather. So that

287
00:19:53,320 --> 00:19:59,620
is an ongoing process. In terms of the mountain counties, we've been involved with them.

288
00:20:00,000 --> 00:20:29,880
Here and there. I mean, that's a great suggestion. I think, you know, again, sort of trying to balance operating under this general direction in terms of paid off to policies and the board's approval of pilot investigations, but not getting ahead of a future board decision. So navigating that space still, but yeah, things like that. Yeah, so when I hear those kind of comments, it means we haven't provided some clear

289
00:20:29,880 --> 00:20:35,860
direction. And I noticed that in our review of the Delta Policies last week, it's called

290
00:20:35,860 --> 00:20:43,580
the Delta Policies. And this area of focus gets buried within those policies. And my hope

291
00:20:43,580 --> 00:20:53,180
is that this committee might be able to elevate them to a more prominent and how can I say

292
00:20:53,180 --> 00:20:58,500
separate set of policies that ultimately will interact with the Delta just like everything

293
00:20:58,500 --> 00:21:00,960
being south of the Delta interacts with the Delta.

294
00:21:01,760 --> 00:21:07,660
But I think we need to have a more honest conversation about where water comes from, what impacts

295
00:21:07,660 --> 00:21:17,780
that water, how it traverses areas that impair it, and the challenges that we have south of

296
00:21:17,780 --> 00:21:19,820
the Delta like the subsidence issues.

297
00:21:20,040 --> 00:21:26,520
So I hope this committee can move forward with some policy principles that give very clear

298
00:21:26,520 --> 00:21:34,680
direction to the staff about both its priority and you know give them license to work broadly

299
00:21:34,680 --> 00:21:36,200
with the communities there.

300
00:21:36,700 --> 00:21:36,900
Thank you.

301
00:21:37,160 --> 00:21:38,500
Yeah, thank you for your comments.

302
00:21:39,960 --> 00:21:48,060
I would just remind everybody that the context of this presentation really is that bigger

303
00:21:48,060 --> 00:21:54,660
picture of how do you build resilience in our northern water supply, especially at a time

304
00:21:54,660 --> 00:22:00,240
when we're seeing the vulnerability on the Colorado River on Cumpi any worse.

305
00:22:01,600 --> 00:22:08,300
And so we talk about resiliency, always from the standpoint of these larger projects,

306
00:22:08,840 --> 00:22:14,060
from the standpoint of looking at sites, which will be the next item, or talking about

307
00:22:14,060 --> 00:22:21,920
the DCP, but from the standpoint of, what do we need to do overall to build resiliency

308
00:22:21,920 --> 00:22:27,620
see now, and for the years into the future before those projects get constructed, if

309
00:22:27,620 --> 00:22:33,760
they get constructed, is something that we need to do and is really one of the reasons

310
00:22:33,760 --> 00:22:36,280
why this committee was created.

311
00:22:36,980 --> 00:22:42,380
And so hopefully we'll start doing some of that as early as October, as I think what I was

312
00:22:42,380 --> 00:22:49,600
asking for to try to get us moving in the direction of not just getting presentations, but

313
00:22:49,600 --> 00:22:54,880
actually having discussions on what those policies can be moving forward a lot of different

314
00:22:54,880 --> 00:22:55,300
topics.

315
00:22:55,300 --> 00:23:02,180
Obviously fit into that from subsidence to the levees to obviously this is great work on watershed

316
00:23:02,180 --> 00:23:07,800
management that's incredibly innovative getting quantification on that would be really,

317
00:23:07,800 --> 00:23:11,700
really helpful and sounds like we're going to get some of that early next year which I

318
00:23:11,700 --> 00:23:12,360
look forward to.

319
00:23:13,360 --> 00:23:21,340
So with that, you know, I think it's a really important presentation leading us, leading us down that to have that discussion.

320
00:23:21,580 --> 00:23:26,100
Are there any other comments before we move on to the next item or questions?

321
00:23:27,880 --> 00:23:28,960
All right. Thank you so much.

322
00:23:31,510 --> 00:23:38,910
All right. So the next item with that segue is the update on the Sites Reservoir Project. Mr. Renarski.

323
00:23:38,910 --> 00:23:43,970
Yeah, thank you. So it's been a little while since we've talked to this committee or to the board about sites reservoir

324
00:23:43,970 --> 00:23:51,370
But the time is ripe to give an update on on the progress that the project has made itself and some of the permitting issues that

325
00:23:51,370 --> 00:23:58,750
They're kind of working through so Randall Newdeck is the manager of Bay Delta programs. He's kind of our lead person on

326
00:23:59,270 --> 00:24:02,870
Everything to do with sites reservoir. We last updated

327
00:24:04,230 --> 00:24:16,450
You on this project last fall when Jerry Brown, the executive director for the Sites Resort Project, came down and talked to all of you and prior to that, we got a presentation on the most recent cost estimate for the project.

328
00:24:16,650 --> 00:24:20,850
So Randall's going to bring us up to date on all things sites today. So Randall, take it away.

329
00:24:20,850 --> 00:24:20,890
Okay.

330
00:24:21,550 --> 00:24:22,350
Thanks, Sean.

331
00:24:22,550 --> 00:24:23,270
Chair Gold.

332
00:24:25,970 --> 00:24:27,930
Let's start with today's discussion.

333
00:24:28,050 --> 00:24:31,270
We're just going to give a quick overview of the site's reservoir.

334
00:24:31,830 --> 00:24:40,070
Give a status to some of the key contracts that were released in 24, 25, and 26.

335
00:24:41,350 --> 00:24:45,510
Status update on the draft, state board, water rights permit.

336
00:24:46,290 --> 00:24:51,270
And then kind of a schedule of when we are planning to come back to the board or the next tier

337
00:24:51,270 --> 00:24:58,490
and early 2027. So many of you have seen this slide before.

338
00:24:58,490 --> 00:24:59,970
or science is located-

339
00:25:00,000 --> 00:25:25,040
We've got an hour north of Sacramento in the foothills. It is currently planned for a 1.5 million acre-foot project. If implemented, be the largest environmental storage project in California with about 244,000 acre-feet dedicated to that purpose. It does have broad state-wide support. You can see areas of the Bay Area,

340
00:25:25,040 --> 00:25:35,840
San Joaquin Valley, Southern California, and the Sacramento Valley here representing participants in the program as well as state and federal agencies.

341
00:25:38,540 --> 00:25:52,680
If I break down that 1.5 million acre foot from a planning purpose, metropolitan share would be 311,700 acre feet or about 22% of the reservoir.

342
00:25:52,680 --> 00:25:57,220
or north of Delta participants would be about 19%.

343
00:25:57,220 --> 00:26:01,760
South of Delta, including metropolitan, would be about 54%

344
00:26:02,580 --> 00:26:06,440
and the Bureau of Reclamation and the state of California combined

345
00:26:06,440 --> 00:26:09,580
would be about 26%.

346
00:26:10,980 --> 00:26:15,960
So over the last two or three years, there's been some key,

347
00:26:16,340 --> 00:26:22,100
well one that's already approved and one that's in the process contracts.

348
00:26:22,100 --> 00:26:29,300
The first one is a Reservoir and Roads construction manager at RIS, some of you may hear it

349
00:26:29,300 --> 00:26:30,940
referred to as CMAR contract.

350
00:26:31,800 --> 00:26:36,720
This was awarded in January of 2026 to Barnard Construction.

351
00:26:37,800 --> 00:26:42,560
They are going to be performing pre-construction planning and design integration.

352
00:26:43,360 --> 00:26:46,500
So their initial contract is limited to $1 million.

353
00:26:46,500 --> 00:26:53,580
dollars, they've also negotiated a project labor agreement with a number of the unions out

354
00:26:53,580 --> 00:26:59,740
there as well. The second contract, which is targeted for approval by the Sensitivity

355
00:26:59,740 --> 00:27:07,780
Board in early 2027, would be another CMAR construction manager at risk contract, but for

356
00:27:07,780 --> 00:27:15,280
conveyance and pipelines. Right now, they've released or the applicants have submitted

357
00:27:15,280 --> 00:27:22,800
the statements of qualifications and they're looking at those and requests for

358
00:27:22,800 --> 00:27:28,140
proposals are scheduled for later on in the fall. Metropolitan staff engineering

359
00:27:28,140 --> 00:27:33,160
staff is involved in this as well and then there's two other legal services

360
00:27:33,160 --> 00:27:39,120
contracts for civil works and environmental mitigation. Those contracts are under

361
00:27:39,120 --> 00:27:40,160
of $500,000.

362
00:27:42,200 --> 00:27:48,260
So on the state board permit process, the draft would they call AHO, or administrative

363
00:27:48,260 --> 00:27:54,160
hearing officer, draft permit was released in March of 2026.

364
00:27:55,060 --> 00:28:00,860
Metropolitan submitted an individual comment letter, as well as working with other member

365
00:28:00,860 --> 00:28:01,440
H.C.

366
00:28:01,600 --> 00:28:07,080
state contractors in South of Delta participants on joint comments as well.

367
00:28:07,080 --> 00:28:13,180
So there's some key issues we added to that letter.

368
00:28:13,980 --> 00:28:17,160
The first one was additional operational constraints.

369
00:28:18,080 --> 00:28:26,800
The draft permit imposes new constraints such as 55% unimpaired by-plast flow, some

370
00:28:26,800 --> 00:28:32,920
new pulse flows, and we believe these lacks some of the scientific backing that we put in

371
00:28:32,920 --> 00:28:36,340
we and the size authority put in their application.

372
00:28:37,180 --> 00:28:47,100
Note these additional restrictions are an addition to what was already released in the 2024

373
00:28:47,920 --> 00:28:51,660
incidental take permit by the California Department of Fish and Wildlife.

374
00:28:51,660 --> 00:29:03,900
life. There are some additional terms in there that say we the site's authority negatively

375
00:29:03,900 --> 00:29:10,560
impacts south of Delta water levels. We do not believe that is true and we argue in our

376
00:29:10,560 --> 00:29:16,760
comments with regard to that. And there's some additional legal due process issues as well.

377
00:29:18,120 --> 00:29:24,160
So the current schedule, again, the March 2026 was, this initial draft was released.

378
00:29:24,960 --> 00:29:30,820
The state board had a few, one hearing to look at the modeling impacts of that.

379
00:29:31,780 --> 00:29:36,020
In September 3rd, I believe, is there going to revise, or submit,

380
00:29:36,380 --> 00:29:38,680
excuse me, release a revised draft.

381
00:29:39,240 --> 00:29:41,580
After that, there'll be a 30-day comment period.

382
00:29:42,680 --> 00:29:48,980
In addition to, after the comment period, the State Department of Water Resources will

383
00:29:48,980 --> 00:29:53,800
be doing additional modeling on the impacts, those impacts will then go to the California

384
00:29:53,800 --> 00:29:59,680
Department of Fish and Wildlife to look at how those impacts affect fisheries.

385
00:30:00,400 --> 00:30:27,700
And then from there, it'll go into the California Water Commission to revise the Prop 1 funding award based on the fishery benefits and the other public benefits. The current schedule right now by the state is to have a final water rights permit by November, early November of this year. So this is a tentative timeline to bring back to your board updates on the project.

386
00:30:27,700 --> 00:30:34,340
obviously today August 2026. In the fall, we're going to bring back operational water supply,

387
00:30:34,660 --> 00:30:45,060
and other permitting issues. In the winter of 2027, and probably early, this should say winter of

388
00:30:45,060 --> 00:30:54,360
2026 and early 2027, we'll bring you back funding and authorization, funding information and the

389
00:30:54,360 --> 00:31:03,140
funding agreements and an info board letter and then in the spring this would be the current

390
00:31:03,140 --> 00:31:11,600
schedules to have the investors, all of the investors either commit to the project or commit

391
00:31:11,600 --> 00:31:15,120
to a portion of the project by spring of 2027.

392
00:31:17,840 --> 00:31:19,380
Mr. Chair, that's all I have at this point.

393
00:31:19,380 --> 00:31:20,040
Thank

394
00:31:29,890 --> 00:31:35,750
you for the update on the question on the comments on the water rights,

395
00:31:35,990 --> 00:31:42,990
Jeff Water Rights permit to any of these issues have a material impact on how sites would

396
00:31:42,990 --> 00:31:52,230
be operated from that perspective and materially affect moving water or the share of volumes

397
00:31:52,230 --> 00:31:53,090
or whatever.

398
00:31:53,750 --> 00:31:59,870
The way I'm going to answer that two ways, one is each individual participant will move

399
00:31:59,870 --> 00:32:04,270
water differently, some will hold water for drought years, some will move it on an

400
00:32:04,270 --> 00:32:05,150
annual basis.

401
00:32:06,110 --> 00:32:13,670
The permits, the permit terms could have a material impact on those yields of the project,

402
00:32:13,670 --> 00:32:14,590
depending on that.

403
00:32:15,130 --> 00:32:20,590
From a staff standpoint, we're still analyzing that, but from an overall standpoint, yes,

404
00:32:20,590 --> 00:32:27,070
that, especially the 55% unimpaired flow could have a material impact on the yield of the project.

405
00:32:27,690 --> 00:32:35,930
Okay, so by the time you would come back for the funding authorization, we'll know what those impacts are.

406
00:32:36,350 --> 00:32:44,530
Correct. We will have a way before then. We'll have something in September, October, knowing the impacts, yes.

407
00:32:45,050 --> 00:32:45,690
Okay, thank you.

408
00:32:45,690 --> 00:32:48,550
Thank you for asking that.

409
00:32:48,710 --> 00:32:53,350
That was my question exactly in the reason that Director

410
00:32:53,350 --> 00:32:58,010
Vice Chair Ackerman and I put that on the agenda was that question exactly.

411
00:32:58,290 --> 00:32:59,810
So thank you for asking that.

412
00:33:00,410 --> 00:33:05,070
Now there were estimates that were in the newspaper that were pretty scary on

413
00:33:05,070 --> 00:33:10,330
and do you have any comments on that on what the reductions would be?

414
00:33:11,010 --> 00:33:14,190
You think those were just people just jumping ahead of it and

415
00:33:14,190 --> 00:33:18,790
and being alarmist or that's where this came to my attention to be in one.

416
00:33:19,510 --> 00:33:25,970
Now, some of those estimates in the paper were some of the initial modeling that was done on the impacts of the project.

417
00:33:26,670 --> 00:33:35,110
Like I said, depending on when you take the water and how you release it into your system, you could have much different impacts.

418
00:33:35,470 --> 00:33:40,490
For example, if you keep the water for a dry year, some of those impacts would not happen.

419
00:33:40,490 --> 00:33:43,050
And if you took it on every year basis,

420
00:33:43,430 --> 00:33:45,370
some of those impacts would happen.

421
00:33:45,990 --> 00:33:47,470
So we're still analyzing that.

422
00:33:48,470 --> 00:33:50,890
And we expect there'll be changes

423
00:33:50,890 --> 00:33:53,470
in the upcoming revised document as well.

424
00:33:54,450 --> 00:33:56,950
And we'd like to provide that to you

425
00:33:56,950 --> 00:33:58,870
as it comes along in September.

426
00:33:59,530 --> 00:34:02,190
After the September 3rd release of that document.

427
00:34:03,010 --> 00:34:03,690
All right, thank you.

428
00:34:03,930 --> 00:34:06,370
So it means we'll be having probably

429
00:34:07,030 --> 00:34:08,750
for the foreseeable future,

430
00:34:08,750 --> 00:34:14,190
maybe till the end of the year, maybe monthly updates, even if it's a short item in this

431
00:34:14,190 --> 00:34:14,470
committee.

432
00:34:14,970 --> 00:34:15,870
So that sounds good.

433
00:34:16,190 --> 00:34:18,330
Director, I'm sorry, Chair Ortega.

434
00:34:18,590 --> 00:34:18,890
Thank you.

435
00:34:19,370 --> 00:34:19,470
Chair.

436
00:34:20,110 --> 00:34:26,890
So, first of the affordability question, I think there's a mismatch when we insert affordability

437
00:34:28,530 --> 00:34:32,070
into decisions like site's reservoir and infrastructure.

438
00:34:32,070 --> 00:34:38,570
structure. I think consumer affordability and the economic feasibility of projects are

439
00:34:38,570 --> 00:34:45,150
two different things. And they shouldn't be conflated. I mean, we sell tier one water,

440
00:34:45,190 --> 00:34:50,890
those that have tiered great structures for about a penny a gallon at the higher end. And

441
00:34:50,890 --> 00:34:59,630
the other tiers are meant to discourage waste. So saying that it's unaffordable is like

442
00:34:59,630 --> 00:34:59,970
let's say

443
00:35:00,000 --> 00:35:29,500
I mean, that wasting water should be cheap, and I think we all would disagree with that. Economic feasibility is a whole different thing because that test financing it accounts for risk and a lot of other things that need to be incorporated when agencies like ours have to make decisions about building large infrastructure. And one of the things I've been saying, and I was hoping that maybe this committee could agree by consensus,

444
00:35:29,500 --> 00:35:36,740
this as direction to the staff, is that we should look into mitigating the risks involved

445
00:35:36,740 --> 00:35:43,820
I think by Sir Sutley talks about the uncertainty of what future water boards, state water boards

446
00:35:43,820 --> 00:35:51,440
might do with, for example, the transfer window, so that we might be able to improve and mitigate

447
00:35:51,860 --> 00:35:58,740
any risks associated with this project by looking at which member agencies might be willing

448
00:35:58,740 --> 00:36:06,160
to invest in a portion of the 300,000 plus acre fee that metropolitan has subscribed to.

449
00:36:06,920 --> 00:36:13,120
The feasibility of providing freewheeling, it would be free if they bought our water.

450
00:36:13,880 --> 00:36:16,440
It's already subscribed or being subscribed.

451
00:36:17,160 --> 00:36:24,180
And then in order to manage the risk of the transfer windows changing, providing them the

452
00:36:24,180 --> 00:36:29,800
opportunity to sell that water to other member agencies for whom the change transfer window

453
00:36:29,800 --> 00:36:30,460
might work.

454
00:36:32,600 --> 00:36:38,100
And so that's, you know, something that I hope can at least be explored as we're looking

455
00:36:38,100 --> 00:36:43,340
at, you know, the financing portion of this project and how to mitigate the risk.

456
00:36:43,380 --> 00:36:49,220
I know the project is very popular with our member agencies and or some member agencies.

457
00:36:49,220 --> 00:37:03,680
And I would hope to see them step up and I think some of the submember agencies as well might benefit by working through their member agencies to be able to buy into a portion of this supply.

458
00:37:05,060 --> 00:37:15,640
And so I hope that a member of this committee might request whether there's consensus by this committee that staff be directed at looking at that option.

459
00:37:15,640 --> 00:37:16,460
This

460
00:37:20,490 --> 00:37:25,050
is the part that always confuses me, you have to admit, you know, because I always

461
00:37:25,050 --> 00:37:29,150
feel like, okay, we have a discussion, we're pretty clear that, you know, these are common

462
00:37:29,150 --> 00:37:33,590
sense things that we want to move forward on in our part of the review, and then sometimes

463
00:37:33,590 --> 00:37:34,690
they're not part of the review.

464
00:37:35,410 --> 00:37:40,330
And so, I'll do that, I have not really done that much in this committee.

465
00:37:40,630 --> 00:37:47,190
Is there general consensus on, in what Chair Ortega saying that is a reasonable ask to be part

466
00:37:47,190 --> 00:37:47,690
of that review?

467
00:37:47,690 --> 00:37:49,550
or any objection.

468
00:37:49,930 --> 00:37:50,750
Or any objection?

469
00:37:51,910 --> 00:37:52,390
Anybody?

470
00:37:53,010 --> 00:37:53,670
Seeing none.

471
00:37:54,030 --> 00:37:54,170
Okay.

472
00:37:54,450 --> 00:37:54,810
Thanks.

473
00:37:54,930 --> 00:37:55,990
And then I have one more question.

474
00:37:56,590 --> 00:38:03,730
There had been an issue with respect to out-of-state contractors being contracted to do this work.

475
00:38:04,090 --> 00:38:06,370
Has that been resolved already, Mr. Nuda?

476
00:38:07,150 --> 00:38:08,470
Mr. Bidenersky.

477
00:38:09,710 --> 00:38:12,990
Yeah, Randall's probably the better person to answer this, but I believe it has.

478
00:38:12,990 --> 00:38:19,690
a lot of that discussion came up in regards to the negotiation of the project labor agreement

479
00:38:19,690 --> 00:38:26,390
for that. They have successfully negotiated that with the labor unions, the one union

480
00:38:26,390 --> 00:38:30,910
that was not interested in participating in the negotiations is not part of that project

481
00:38:30,910 --> 00:38:37,630
labor agreement. I think Randall maybe you can confirm that some of that controversy over

482
00:38:37,630 --> 00:38:42,770
the contractor has died down now in moving ahead. They do have a $1 million contract

483
00:38:42,770 --> 00:38:44,510
back to this point that they're working on to write.

484
00:38:45,130 --> 00:38:54,050
They do have a $1 million contract, the Project Labor Agreement was signed by the State Building of Trades Council.

485
00:38:54,470 --> 00:38:57,330
That represents 150 unions.

486
00:38:58,130 --> 00:39:04,710
And as John said, the one union that did not sign was the Carpenters, nor State Carpenters Union.

487
00:39:05,170 --> 00:39:07,310
Okay. Thank you, Mr. Newdack, for your presentation.

488
00:39:08,350 --> 00:39:08,950
Please get to see.

489
00:39:08,950 --> 00:39:10,350
Director Curse.

490
00:39:13,000 --> 00:39:19,820
Shins much more specific to one part of this and that's the water that the state of California is purchasing.

491
00:39:20,720 --> 00:39:29,980
And I guess I will state what I was told and then ask if I'm understanding this correctly because it's a new way for the state to operate if I am.

492
00:39:29,980 --> 00:39:35,340
So they don't have a lot of water, they want to increase it, they want to buy a little bit

493
00:39:35,340 --> 00:39:40,460
more as what I was told, but that this water, that the state owns would be used for the

494
00:39:40,460 --> 00:39:46,180
highest priority of environmental and dish purposes, which would mean that they would go

495
00:39:46,180 --> 00:39:54,160
there first before they cut water to water agencies when they tell us how much water we will

496
00:39:54,160 --> 00:39:59,960
be getting from Auroville. That was awkwardly said, but hopefully it was unequal.

497
00:40:00,000 --> 00:40:29,480
Is that what's going on? Is it that new for the state to actually purchase water, then just take it off our allocation at the top? Yeah, Randall, do you want to speak to that? Dr. Kurt, so that's pretty much pretty much true. This would be used. This is not used for to mitigate any impacts caused by the project or requirement water, environmental requirements required. I say projects either side spreads or central valid project or

498
00:40:29,480 --> 00:40:35,220
state water project. So it's in addition to that, yes, if in event of a large drought,

499
00:40:35,520 --> 00:40:41,460
this water could be used to, we'd be the first taken. Or even during a regular period

500
00:40:41,460 --> 00:40:47,420
of the state federal agencies, state agencies that would be state water, excuse me, felt

501
00:40:47,420 --> 00:40:54,040
that the water should be put out for whatever reason, cold water, pool for salmon or whatever.

502
00:40:54,580 --> 00:40:56,980
They could utilize this water for that period.

503
00:40:56,980 --> 00:41:01,540
If there's a new way that the state's looking at their obligation for environmental and

504
00:41:01,540 --> 00:41:04,980
fish purposes, or have they done this before?

505
00:41:05,160 --> 00:41:06,560
Do they own other water that?

506
00:41:08,960 --> 00:41:16,000
I would say this is a new way for California because the California passed Proposition 1 that

507
00:41:16,000 --> 00:41:20,220
included funding for this type of effort in there.

508
00:41:20,220 --> 00:41:23,560
So the answer is yes.

509
00:41:23,980 --> 00:41:24,620
So

510
00:41:27,440 --> 00:41:31,880
just a comment on that.

511
00:41:32,060 --> 00:41:35,940
So the state is paying to create this water

512
00:41:35,940 --> 00:41:38,980
that then they will be using for environmental purposes.

513
00:41:40,020 --> 00:41:43,780
So it doesn't affect the allocations.

514
00:41:43,780 --> 00:41:46,520
They're creating the water along

515
00:41:46,520 --> 00:41:50,700
with the other participants in sites and then using it.

516
00:41:53,160 --> 00:41:58,200
All right. Thank you. Any other comments? All right. Thank you so much.

517
00:42:00,930 --> 00:42:08,150
All right. So the next, yeah, I'm sorry. I didn't see sorry director Daniels.

518
00:42:10,210 --> 00:42:15,370
Sorry about that. I'm not a member of the committee. So I just have a quick question and I appreciate the opportunity to do that.

519
00:42:15,990 --> 00:42:21,970
My question was about finances and I know that wasn't part of your prepared presentation. So it may not be fair to ask now.

520
00:42:21,970 --> 00:42:27,290
but I was curious, Randall, you and I connected on this about 10 years ago when I was in the

521
00:42:27,290 --> 00:42:34,590
California water commission and nice to see you again. How was this project doing relative

522
00:42:34,590 --> 00:42:42,590
to its projected costs about 10 years ago? And where are we in terms of expenditures and what do

523
00:42:42,590 --> 00:42:47,090
you expect is going to happen with the prop one reallocate? Yeah, that's a great question.

524
00:42:47,090 --> 00:42:52,670
And the price has moved around significantly over the last few years.

525
00:42:53,370 --> 00:43:01,150
About five years ago was $5 billion, excuse me, we went through a value planning phase

526
00:43:01,150 --> 00:43:03,190
where we reduced the cost by a million.

527
00:43:05,110 --> 00:43:11,670
Currently it is up at a 6.2 to 6.8 construction, what they feel is a construction cost.

528
00:43:12,590 --> 00:43:15,750
And they say it's $7.5 billion governance.

529
00:43:15,750 --> 00:43:25,690
Now, the governance cost includes both the usual escalation causes, causes depending

530
00:43:25,690 --> 00:43:30,550
where you are as far as the cost estimate and then additional on top of that.

531
00:43:31,410 --> 00:43:39,150
We did about a year ago, metropolitan's engineering group compared this to Diamond Valley Reservoir.

532
00:43:39,690 --> 00:43:45,090
It was fairly consistent when you escalated all the costs and the different sizes of reservoirs.

533
00:43:45,090 --> 00:43:52,450
We haven't done that in the last year or so, so I can't guarantee you this is the same as Diamond Valley, which will probably do that again.

534
00:43:56,290 --> 00:43:59,010
But, you know, these reservoirs cost a lot of money.

535
00:44:00,110 --> 00:44:09,150
It's a fairly simple reservoir. It's not a big design res, you know, from a construction standpoint, but it does cost money.

536
00:44:09,150 --> 00:44:14,030
And we will you will start seeing those costs are in twenty twenty four dollars.

537
00:44:14,390 --> 00:44:19,910
So if we bring them up to twenty twenty six, you're going to see about a four to percent increase each year.

538
00:44:19,910 --> 00:44:24,530
So you could add on another eight percent if you want to bring it up to twenty twenty six.

539
00:44:24,530 --> 00:44:36,280
And then depending on when the project gets if and when the project gets eventually discussed at the board level.

540
00:44:36,680 --> 00:44:37,460
Thank you.

541
00:44:37,460 --> 00:44:45,160
All right. Thank you. All right. Moving on to the next item, which is the report on the Delta

542
00:44:45,160 --> 00:44:51,060
Convince Design and Construction Authority meeting on Director Garza. Thank you chair for the

543
00:44:51,060 --> 00:44:56,300
opportunity. So this is an update on the Delta Convince Design and Construction Authority Board

544
00:44:56,300 --> 00:44:59,980
of Directors Meeting that took place on last week on August 20th.

545
00:45:00,270 --> 00:45:30,030
In attending that, we're Director Pauli and myself in person, Sacramento. I have five items to report to you on this morning. They have to do with a services agreement that was agreed to by the board. Community benefits agreements, communications, updates from the Department of Water Resources on their efforts, and that's been at least a board reorganization. On the services agreement, the DCA Board approved a five-year, not to exceed 200

546
00:45:30,030 --> 00:45:38,350
and $5.7 million agreement with AECOM for programmatic geotechnical and field services work,

547
00:45:38,430 --> 00:45:39,410
field work services.

548
00:45:39,990 --> 00:45:43,850
The contract will be managed through task orders and annual appropriations.

549
00:45:45,290 --> 00:45:51,250
On community benefits agreements, our staff should have an update on the community benefits

550
00:45:51,250 --> 00:45:54,030
plan and current community benefits agreements.

551
00:45:54,030 --> 00:46:00,290
So far, seven community benefits agreements have been signed with two more in progress.

552
00:46:01,130 --> 00:46:07,030
These agreements support projects such as agricultural education, sandhill-crain conservation,

553
00:46:07,830 --> 00:46:13,990
support, environmental literacy, and improvements to our supply and emergency response infrastructure.

554
00:46:14,690 --> 00:46:18,170
These agreements are contingent on the project moving forward.

555
00:46:19,230 --> 00:46:20,410
Moving on to communications.

556
00:46:20,410 --> 00:46:23,190
The communications manager noted that the executive director,

557
00:46:23,690 --> 00:46:27,290
Graham Bradner, was recently featured on the California Insider

558
00:46:27,290 --> 00:46:31,350
podcast where he highlighted the purpose, approach, and benefits

559
00:46:31,350 --> 00:46:34,190
of the Delta Convince Project to a statewide audience.

560
00:46:35,050 --> 00:46:37,530
Regarding updates from the Department of Water Resources,

561
00:46:38,570 --> 00:46:42,370
the DWR Environmental Program Manager provided an update on the

562
00:46:42,370 --> 00:46:45,830
water rights proceedings, the Delta Plan Consistency,

563
00:46:46,430 --> 00:46:49,270
and the studies and data collection required under the sequel

564
00:46:49,270 --> 00:46:56,650
mitigation monitoring and reporting plan and the CSI incidental take permits. DWR is developing

565
00:46:56,650 --> 00:47:04,090
the tracking systems and plans needed to monitor and implement these requirements. The DC Executive

566
00:47:04,090 --> 00:47:08,770
Director noted that the additional costs and timing of these requirements will be incorporated

567
00:47:08,770 --> 00:47:13,190
into the next overall schedule and budget and that was something that I personally asked regarding

568
00:47:13,190 --> 00:47:18,130
the timing. I want to make sure that we're all in lockstep in terms of how these requirements

569
00:47:18,130 --> 00:47:19,510
in tip back the timing of the project.

570
00:47:20,750 --> 00:47:24,510
And then last but not least on the board reorganization,

571
00:47:26,090 --> 00:47:28,850
the Office of Vice President will be nominated

572
00:47:28,850 --> 00:47:34,010
and appointed at the next DCA meeting October 15, 2026

573
00:47:34,570 --> 00:47:36,830
during the consideration of that office,

574
00:47:37,550 --> 00:47:39,370
there's a bill that will rate the duration.

575
00:47:41,090 --> 00:47:45,170
And so we'll ensure that we get that squared away

576
00:47:45,170 --> 00:47:46,510
for the October 15 meeting.

577
00:47:48,290 --> 00:47:54,390
Director Adnan Avanotawi representing the Mojave Water Agency was unanimously appointed

578
00:47:54,390 --> 00:47:57,410
as a DCA Secretary for the next year's term.

579
00:47:58,450 --> 00:48:04,270
Metropolitan's Katana Kasain was reappointed as DCA Treasurer for the next term, and last

580
00:48:04,270 --> 00:48:11,410
but not least, I myself was appointed by a unanimous vote as a DCA Board Chair to serve as a

581
00:48:11,410 --> 00:48:16,890
the DCA Board President for the fiscal year's 2627 and 2728.

582
00:48:17,550 --> 00:48:18,290
And that concludes my report.

583
00:48:22,000 --> 00:48:23,160
That concludes my report, Chair.

584
00:48:23,240 --> 00:48:23,480
Thank you.

585
00:48:25,410 --> 00:48:26,010
Thank you.

586
00:48:26,150 --> 00:48:29,570
And congratulations, or condolences, or whatever.

587
00:48:30,090 --> 00:48:30,230
The right.

588
00:48:32,370 --> 00:48:32,910
Yeah.

589
00:48:33,730 --> 00:48:37,470
I think the best thing to come out of the Delta conveyance project

590
00:48:37,470 --> 00:48:41,690
is the Delta conveyance, the Delta Construction Authority

591
00:48:41,690 --> 00:48:42,790
and the Finance Authority.

592
00:48:42,990 --> 00:48:45,470
Because whatever happens, it's a model

593
00:48:45,470 --> 00:48:51,050
that ought to remain representing those that actually pay for the project or that will

594
00:48:51,050 --> 00:48:52,170
be paying for the project.

595
00:48:52,550 --> 00:48:57,850
So I hope that whatever the fate of the current iteration of the Delta Convince project

596
00:48:57,850 --> 00:49:04,470
is at the end of the current governor's administration that this is an entity that would remain for

597
00:49:04,470 --> 00:49:05,390
whatever comes next.

598
00:49:05,950 --> 00:49:06,110
Thanks.

599
00:49:07,330 --> 00:49:08,190
Thank you, Chair.

600
00:49:08,190 --> 00:49:18,230
All right. Next up, report on development in post-2026 guidelines. Mr. Hiss again. Oh,

601
00:49:18,330 --> 00:49:23,170
John, this one, I'm sorry. I knew it was Colorado River Board meeting. My bad. Doing it again.

602
00:49:23,510 --> 00:49:27,710
All right. Director Kamacho, please give us the update on the Colorado River Board meeting.

603
00:49:30,070 --> 00:49:31,770
Yeah, I think I was. I was.

604
00:49:32,590 --> 00:49:34,890
Oh, it's okay. Thanks. So, Director Cordero.

605
00:49:34,890 --> 00:49:36,630
Thank you very much.

606
00:49:37,270 --> 00:49:39,850
We had our meeting on August 12th in Claremont.

607
00:49:40,550 --> 00:49:41,990
It was not a lengthy meeting.

608
00:49:41,990 --> 00:49:44,250
There were two items that were discussed at that meeting.

609
00:49:45,270 --> 00:49:47,370
One was the California water plan.

610
00:49:47,790 --> 00:49:50,930
And the second was the Glen Canyon Dam and a provision that's been added.

611
00:49:51,150 --> 00:49:52,770
It causes a little bit of concern.

612
00:49:54,330 --> 00:49:59,910
Nancy Vogel was there from the Department of Water Resources and she was representing DWR.

613
00:50:00,080 --> 00:50:29,620
And gave us a presentation explaining that the state of California will now be moving on their process to update the Department of Water Resources California Water Plan. State law requires that this be done every five years, which is the year now. And that last year, the legislature added a new requirement that requires DWR to develop strategies to address anticipated losses in the statewide supplies of 10%.

614
00:50:29,620 --> 00:50:33,280
So this is a new provision, which is about up to 9 million acre feet.

615
00:50:33,720 --> 00:50:38,100
And this is due obviously to the changing climate conditions in our state.

616
00:50:39,360 --> 00:50:45,800
DWR's 2028 update will specifically address conditions in the South Coast region that we represent.

617
00:50:46,340 --> 00:50:54,320
She also encouraged the board, the Colorado River Board and its member agencies to become engaged in the water plan process.

618
00:50:54,320 --> 00:50:56,380
And I understand that we are already doing that.

619
00:50:56,860 --> 00:50:56,960
Correct?

620
00:50:58,320 --> 00:51:09,080
The second item was Glen Canyon Dam and our Chair, J.V. Hamby, engaged our board in a discussion of the final EIS for post-2026 guidelines.

621
00:51:10,220 --> 00:51:24,160
There was expressed concerns about a provision that was added to avoid using Glen Canyon Dam bypass tunnels by reducing releases from Lake Powell to as low as 5 million acre feet a year.

622
00:51:24,720 --> 00:51:29,620
If this goes through, these provisions would keep water stored in Powell, that could otherwise

623
00:51:29,620 --> 00:51:32,520
be released for the lower basin and Mexico.

624
00:51:33,900 --> 00:51:39,120
Our Executive Director, Jessica Newworth, noted that this appears to be an internal policy.

625
00:51:39,240 --> 00:51:44,540
It's not a requirement by the federal legal obligation, but it is a policy that they've adopted.

626
00:51:45,120 --> 00:51:51,100
And she's asked that we ask that the Board of the Colorado River Board engage in a discussion

627
00:51:51,100 --> 00:52:00,580
to look at adopting a clear position that addresses this issue and directs our staff to prepare appropriate documents for our board's consideration.

628
00:52:01,240 --> 00:52:03,300
And that concludes my report. Thank you.

629
00:52:05,020 --> 00:52:08,360
Thank you so much, Director Cordero. Any questions for her?

630
00:52:10,000 --> 00:52:12,060
I know we'll be talking a lot about Colorado in a minute.

631
00:52:13,040 --> 00:52:15,480
Okay. I'm not seeing anybody. All right. Thank you.

632
00:52:15,480 --> 00:52:15,560
Thank you.

633
00:52:16,140 --> 00:52:16,760
All right.

634
00:52:16,920 --> 00:52:21,780
So now, report on development in post-26 guidelines on Mr. Haysingham.

635
00:52:22,260 --> 00:52:22,880
Thank you.

636
00:52:23,000 --> 00:52:29,360
Before we get to that report, ten years ago, the lead council for Colorado River items

637
00:52:29,360 --> 00:52:33,740
at Metropolitan Retired after a storied career.

638
00:52:34,280 --> 00:52:41,660
He came back to Metville a few years ago to help us out on the MSCP Colorado River items

639
00:52:41,660 --> 00:52:49,560
in general, the legal department, and probably most importantly, director Cordero with her role

640
00:52:49,560 --> 00:52:57,120
in the Colorado River Board. But today he decided he's retiring again, and this is his last board

641
00:52:57,120 --> 00:53:07,580
meeting, so I'd like to recognize Joe Vanderhorst for thank you for your storied career decades, decades of

642
00:53:07,580 --> 00:53:13,100
work and your legacy will be left behind and best of luck in your future endeavors.

643
00:53:16,610 --> 00:53:22,810
Over the weekend, the last week we've had some key documents come out on Friday, both

644
00:53:22,810 --> 00:53:30,770
the two-year operating guidelines and the record of decision and we have our Colorado River

645
00:53:30,770 --> 00:53:35,190
Policy Manager who quickly reviewed those documents and is here to talk about them today.

646
00:53:35,190 --> 00:53:36,190
Thank you.

647
00:53:40,080 --> 00:53:44,400
Good morning, Mr. Chairman and members of the committee, as Bill noted on Friday, the

648
00:53:44,400 --> 00:53:46,920
Interior Department issued

649
00:53:52,230 --> 00:53:57,770
the final agency actions and the post-2026 Record of Decision,

650
00:53:58,390 --> 00:54:01,910
the operating guidelines for 2027 and 2028.

651
00:54:02,590 --> 00:54:08,050
The road does not prescribe an operating regime for the next decade.

652
00:54:08,050 --> 00:54:12,130
It creates a framework for shorter term decisions.

653
00:54:12,130 --> 00:54:17,590
The two-year guidelines are the first of those decisions and they contain the rules that

654
00:54:17,590 --> 00:54:22,990
will actually govern like Pell and Lake Mead operations and I will focus on the interior

655
00:54:22,990 --> 00:54:28,630
department, what they've decided and what those decisions mean for the lower basin and

656
00:54:28,630 --> 00:54:29,790
for much pollutant supply.

657
00:54:33,170 --> 00:54:38,390
The decisions arrive under the worst system conditions in modern operating record.

658
00:54:38,390 --> 00:54:45,730
The Basin has experienced 26 years drought, combined storage, and pal in need is at the lowest

659
00:54:45,730 --> 00:54:50,390
since pal's initial filling, and this winter produced a record low snowpack.

660
00:54:50,970 --> 00:54:58,590
Since 2021, reclamation has already taken extraordinary actions, including reduced releases

661
00:54:58,590 --> 00:54:59,730
This is from Glen Canyon Dam.

662
00:55:00,000 --> 00:55:14,860
Additional releases from upstream reservoirs to preserve basic operating capability. This is not a planning exercise for the just distant risk. The new rules are beginning with both reservoirs already under substantial stress.

663
00:55:17,790 --> 00:55:30,690
The existing framework also reaches the end of the, pardon me, the existing framework also reaches the end of its term this year, the 2007 interim guidelines, the drought contingency plan,

664
00:55:30,690 --> 00:55:37,110
and the key by national agreements have supplied much of the operating structure that we have relied on.

665
00:55:37,670 --> 00:55:48,290
New reservoir operations in Powell begin October 1 and interior therefore had to act even though the seven states did not reach consensus on a long term alternative.

666
00:55:54,550 --> 00:55:55,730
This timeline is familiar.

667
00:55:56,010 --> 00:56:05,670
The formal NEPA process began in 2023, followed by the draft EIS and the final EIS in July and Friday the record of decision.

668
00:56:05,670 --> 00:56:11,310
The significant point is where the process ended, interior adopted the decision framework

669
00:56:11,310 --> 00:56:16,190
after the states were unable to agree on a base and wide operating proposal.

670
00:56:17,490 --> 00:56:23,550
The record of decision establishes four principles for each of the operating guidelines that

671
00:56:23,550 --> 00:56:25,750
will be adopted within the 10-year framework.

672
00:56:26,410 --> 00:56:29,430
Operations are to respond to actual hydrology.

673
00:56:29,970 --> 00:56:33,930
Protection of critical infrastructure at the dams comes first.

674
00:56:33,930 --> 00:56:40,030
The guidelines are intended to implement the 1970 long-range operating criteria while

675
00:56:40,030 --> 00:56:43,630
allowing temporary action and extraordinary circumstances.

676
00:56:44,150 --> 00:56:48,630
An interior will give priority to consensus recommendations when they emerge.

677
00:56:49,290 --> 00:56:55,170
The last point preserves a path for the states to reach consensus agreement that may be adopted

678
00:56:55,170 --> 00:57:00,650
if the recommendation is consistent with applicable law and the framework.

679
00:57:00,650 --> 00:57:05,990
In practical terms, the record of decision settles the architecture, but it deliberately

680
00:57:05,990 --> 00:57:10,730
leaves many consequential operating choices to each two-year decision.

681
00:57:14,050 --> 00:57:17,010
These elevations explain much of the operational design.

682
00:57:17,570 --> 00:57:26,930
A Powell, the guidelines seek to maintain elevation 3,510 as the working target with 3,500 feet

683
00:57:26,930 --> 00:57:29,630
as the critical reservation threshold.

684
00:57:29,630 --> 00:57:34,650
below 3490 releases can only pass through the river outlet works.

685
00:57:35,230 --> 00:57:39,870
At Mead 950 is critical infrastructure elevation from metropolitan.

686
00:57:40,650 --> 00:57:45,710
The important band is when Mead is between 1025 and 1000 feet.

687
00:57:46,450 --> 00:57:51,710
That is where ICS delivery will become possible, but it is subject to consultation

688
00:57:51,710 --> 00:57:57,730
and may be reduced or denied if delivery would cause Mead to fall below elevation 1000 feet.

689
00:57:57,730 --> 00:58:04,510
No ICS may be delivered in a year when meets January 1 elevation is below 1000 feet.

690
00:58:07,220 --> 00:58:10,960
The record of decision sets out the outer limits for future guidelines.

691
00:58:11,680 --> 00:58:16,180
The lower base and shortages may be as high as 3 million acre feet.

692
00:58:16,840 --> 00:58:21,480
Power releases will range from between 5 and 12 million acre feet.

693
00:58:22,040 --> 00:58:28,280
The framework allows storage of up to 3 million acre feet of conserve water in Powell and 8 million

694
00:58:28,280 --> 00:58:32,620
acre feet at Lake Mead, as well as limited surplus and voluntary

695
00:58:32,620 --> 00:58:38,660
upper basin contributions. These sideboards, not automatic operating rules,

696
00:58:39,200 --> 00:58:44,680
and not by themselves entitlement to store or recover water. Each future set of

697
00:58:44,680 --> 00:58:49,660
guidelines must select specific operations within them and comply with the

698
00:58:49,660 --> 00:58:53,540
applicable law. For metropolitan, that distinction is important.

699
00:58:53,540 --> 00:58:59,920
A large-mead storage sideboard creates room for water management programs, but the terms

700
00:58:59,920 --> 00:59:04,940
governing creation, accounting and delivery, still haven't yet to be made concrete.

701
00:59:08,500 --> 00:59:13,020
The framework then repeats this decision and process roughly every two years.

702
00:59:13,520 --> 00:59:16,860
During the first year, interior implements the current guidelines.

703
00:59:17,520 --> 00:59:22,660
During the second, it reviews the performance, develops the next set, and provides a May 1

704
00:59:22,660 --> 00:59:24,480
deadline for consensus recommendations.

705
00:59:24,480 --> 00:59:29,480
If the Basin reaches agreement, interior gives a priority consideration.

706
00:59:30,060 --> 00:59:36,560
If not, the secretary selects the next operations within the record of decisions, principles,

707
00:59:36,900 --> 00:59:37,440
and sideboards.

708
00:59:39,570 --> 00:59:43,370
The first operating period covers 2027 and 2028.

709
00:59:46,370 --> 00:59:49,670
Lake Powell operations are divided into three elevation ranges.

710
00:59:50,290 --> 00:59:56,970
August study for Water Year 2027 is in the low elevation infrastructure protection range.

711
00:59:56,970 --> 00:59:59,710
Reclamation begins with an expected

712
01:00:10,120 --> 01:00:29,980
The final annual release is then determined April, and the guidelines contemplate coordinator releases from the Upper Initial Units, Blaming Gorge, Astronal and Navajo, under separate Upper Division States agreement that may be answered with the U.S. If that agreement is not reached, the secretary will not be able to answer.

713
01:00:29,980 --> 01:00:33,500
will operate those reservoirs consistent with existing authority.

714
01:00:34,320 --> 01:00:39,280
The key change is that power releases are now managed directly around infrastructure

715
01:00:39,280 --> 01:00:45,940
protection elevation rather than the 8.23 million acre foot release objective alone.

716
01:00:46,820 --> 01:00:52,580
The ordinary operating ranges can reduce the power release to 6 million acre feet.

717
01:00:52,580 --> 01:00:59,140
The broader framework contemplates releases as low as 5 million acre fee in extraordinary

718
01:00:59,140 --> 01:00:59,900
circumstances.

719
01:01:00,500 --> 01:01:07,040
If a 24-month study projects power below elevation, 3500 feet, through the following spring,

720
01:01:07,320 --> 01:01:13,080
the secretary must promptly consult with the state's tribes and effective parties on additional

721
01:01:13,080 --> 01:01:13,560
actions.

722
01:01:14,200 --> 01:01:19,080
Those measures are temporary, they do not mend the framework or establish a precedent.

723
01:01:19,080 --> 01:01:19,840
At

724
01:01:22,460 --> 01:01:30,100
Lake Mead interior has already discerned the shortage condition exists for 27 and 28.

725
01:01:30,520 --> 01:01:36,440
The amount available for consumptive use in the lower division states is 6.25 million

726
01:01:36,440 --> 01:01:43,680
acre feet, 1.25 million below the normal 7.5 million acre foot lower basin allocation.

727
01:01:43,680 --> 01:01:51,680
If the lower basin implementing agreement is executed, Arizona receives 2.04 million acre

728
01:01:51,680 --> 01:01:58,440
feet, California receives 3.96 million acres, and Nevada 250,000 acre feet.

729
01:01:59,060 --> 01:02:07,120
Those reductions of 760,000 acre feet, 440,000 acre feet, and 50,000 acre feet, respectively,

730
01:02:07,320 --> 01:02:11,660
for the three lower deficient states, if agreement is successfully reached.

731
01:02:11,660 --> 01:02:18,860
The $3.96 million acre foot California apportionment is therefore tied to an implementing agreement.

732
01:02:19,160 --> 01:02:24,340
If agreement is not fully executed, the total shortage remains, but the Secretary

733
01:02:24,340 --> 01:02:27,840
determines its apportionment under applicable law.

734
01:02:28,360 --> 01:02:34,840
The guidelines also trigger consultation if meat is projected to be below 1,010 feet in

735
01:02:34,840 --> 01:02:35,660
the next 12 months.

736
01:02:35,660 --> 01:02:36,620
The

737
01:02:41,170 --> 01:02:50,020
guidelines also require 700,000 acre feet of additional storage additional system

738
01:02:50,020 --> 01:02:56,880
conservation during 2026 through 2028, beyond the 1.25 million acre feet of annual shortage

739
01:02:56,880 --> 01:02:57,420
reductions.

740
01:02:57,940 --> 01:03:02,980
The additional context comes from the lower division states, May 1 proposal, the states

741
01:03:02,980 --> 01:03:09,420
described 700,000 acre feet as the minimum cumulative contribution and set a target of at least

742
01:03:09,420 --> 01:03:15,440
one million acre feet if possible. With appropriate funding, they estimated 300,000 acre feet from

743
01:03:15,440 --> 01:03:22,180
California, Arizona, and 100,000 acre feet from Nevada. Potential sources include contribution

744
01:03:22,180 --> 01:03:27,620
from existing conservation activities beyond those needed for annual reductions, contributions

745
01:03:27,620 --> 01:03:33,400
of by-national ICS and other stored water, and the new lower-based and conservation program.

746
01:03:33,400 --> 01:03:38,940
The commitment was expressly contingent on adequate funding and federal cost share.

747
01:03:43,500 --> 01:03:50,140
The guidelines continue to distinct protections for ICS water, already stored in Lake Mead

748
01:03:50,140 --> 01:03:55,120
remains available for delivery, subject to the lower basin agreement, contractors may

749
01:03:55,120 --> 01:04:02,620
also create new ICS through the end of 2028 with eligible ICS to be delivered through 2028.

750
01:04:02,620 --> 01:04:18,440
Without the agreement, a lower implementation agreement, the Secretary will deliver ICS created through 2036 under existing rules but no new ICS may be created after December 31, 2026.

751
01:04:22,110 --> 01:04:32,490
The numerical limits for ICS are listed above. California contractors may create up to 400,000 acre feet of extraordinary conservation ICS annually

752
01:04:32,490 --> 01:04:36,870
and accumulate up to 2 million acre feet total and receive

753
01:04:36,870 --> 01:04:42,590
a get delivery of 400,000 acre feet across all three states total ICS

754
01:04:42,590 --> 01:04:49,970
deliveries from January 2026 through December 2028 may not exceed 800,000 acre feet.

755
01:04:50,690 --> 01:04:57,570
At one a one time 10% assessment for evaporation generally applies when ICS is

756
01:04:57,570 --> 01:04:59,310
created that's for new ICS.

757
01:05:00,000 --> 01:05:07,640
With specified exceptions and remaining balances are reduced by 3% annually for evaporation. Between

758
01:05:07,640 --> 01:05:14,680
elevations, 1,025 and 1,000 feet, delivery requests may require consultation. The secretary may

759
01:05:14,680 --> 01:05:21,620
reduce or deny a request if it would cause me to fall below 1,000 feet. And below 1,000 feet,

760
01:05:21,740 --> 01:05:24,900
on January 1, no ICS may be delivered in that year.

761
01:05:28,460 --> 01:05:30,940
The guidelines also established a federally

762
01:05:30,940 --> 01:05:39,080
manage water resources pool of up to 450,000 acre feet of federally controlled ICS in

763
01:05:39,080 --> 01:05:45,920
Lake Meade for 2027 and 2028. Its uses are ordered. First, it meets federal

764
01:05:45,920 --> 01:05:51,320
firming or other delivery obligations under congressional authorised in the

765
01:05:51,320 --> 01:05:55,900
water rights settlements. After those obligations are met, it may offset up to

766
01:05:55,900 --> 01:06:03,780
25% of qualifying tribal shortages, it deliveries require federal agreements and counts against

767
01:06:03,780 --> 01:06:06,200
the applicable state limits in which they occur.

768
01:06:10,020 --> 01:06:13,340
Mexico remains on a separate legal and diplomatic track.

769
01:06:13,760 --> 01:06:17,740
Deliveries are governed by the 1944 treaty and implementing minutes.

770
01:06:18,400 --> 01:06:23,340
Any reductions are determined through the International Boundary and Water Commission and are

771
01:06:23,340 --> 01:06:30,500
separate from the 6.25 million acre feet of lower basin portion. Interior has said that

772
01:06:30,500 --> 01:06:33,800
a successor by national process is nearing completion.

773
01:06:37,200 --> 01:06:39,240
The rod also contemplates the federal

774
01:06:39,240 --> 01:06:44,900
environmental compliance record and incorporates the new biological opinion continued operation

775
01:06:44,900 --> 01:06:51,920
of the lower Colorado River Multi-Conservation Program, Glen Canyon Dam Adaptive Management Program,

776
01:06:51,920 --> 01:06:57,880
and historic preservation commitments, those requirements continue alongside the new reservoir operations.

777
01:07:00,950 --> 01:07:10,990
The bottom line is that interior has replaced one long lift set of guidelines with a 10 year decision framework and a sequence of shorter operating decisions.

778
01:07:11,410 --> 01:07:17,850
For 2027 and 2028, power releases will be managed around infrastructure protection elevations.

779
01:07:17,850 --> 01:07:33,910
The lower basin will take 1.25 million acre feet of shortage annually and the guidelines add 700 acre feet of system conservation while extending important tools for ICS if necessary agreements are completed.

780
01:07:33,910 --> 01:07:36,010
that much metropolitan staff will focus

781
01:07:36,010 --> 01:07:38,050
on the lower basin implementation agreement

782
01:07:38,050 --> 01:07:40,050
and California arrangements needed

783
01:07:40,050 --> 01:07:42,850
to implement the 440,000 acre foot reduction

784
01:07:43,250 --> 01:07:45,970
and the protections required for liable access

785
01:07:45,970 --> 01:07:46,810
of store water.

786
01:07:47,290 --> 01:07:50,870
We will also evaluate the August operating determinations

787
01:07:50,870 --> 01:07:54,350
and the parallel agreements needed for upstream actions.

788
01:07:55,070 --> 01:07:56,530
The federal decisions are final,

789
01:07:56,810 --> 01:07:58,970
the work required to implement them is not.

790
01:07:59,670 --> 01:08:01,550
And I will turn it over to Laura.

791
01:08:07,890 --> 01:08:08,430
Thank you, Shanti.

792
01:08:09,250 --> 01:08:14,410
So the new guidelines that Shanty has described have been incorporated into the August 24

793
01:08:14,410 --> 01:08:15,290
month study forecasts.

794
01:08:17,680 --> 01:08:23,780
The Lake Powell operating tier, as she mentioned, is decided based on the forecast of October

795
01:08:23,780 --> 01:08:26,860
1 elevation in the most probable 24 month study.

796
01:08:27,020 --> 01:08:34,020
Lake Powell is forecasted to be at elevation 3515.8 feet, putting Powell in that low elevation

797
01:08:34,020 --> 01:08:39,100
infrastructure protection range tier where the release is set to be between 7 and 6 million

798
01:08:39,100 --> 01:08:40,580
and acre feet next water year.

799
01:08:41,060 --> 01:08:43,700
Releases will be adjusted to maintain elevation

800
01:08:43,700 --> 01:08:46,440
of at least 35, 10 at like Powell.

801
01:08:47,820 --> 01:08:50,240
So with that, we can see with these new rules,

802
01:08:50,340 --> 01:08:53,400
we can see what the 24-month study says about the future.

803
01:08:55,870 --> 01:08:57,910
So here's a figure that USBR released

804
01:08:58,210 --> 01:09:00,350
that shows the full range of results

805
01:09:00,350 --> 01:09:02,150
from the August 24-month study.

806
01:09:02,290 --> 01:09:03,770
It includes a new minimum probable,

807
01:09:04,110 --> 01:09:05,150
a new maximum probable,

808
01:09:05,470 --> 01:09:07,290
and new most probable conditions.

809
01:09:07,290 --> 01:09:14,630
In this case, most probable conditions mean a water-year inflow to Lake Powell, that

810
01:09:14,630 --> 01:09:19,370
is 75% of the 30-year average, reflective of the dry, antecedent conditions.

811
01:09:19,950 --> 01:09:26,250
Minimum probable hydrology would be, if next year, is similar to this year in overall

812
01:09:26,250 --> 01:09:27,550
Lake Powell inflows.

813
01:09:29,030 --> 01:09:33,950
Now, something that is different about this month's study is that we actually have two most probable

814
01:09:33,950 --> 01:09:34,450
studies.

815
01:09:34,450 --> 01:09:47,890
1 assumes a 6 million acre feet release from Lake Powell, and 1 assumes a 7 million acre feet release from Lake Powell, representing the full range of possible release schedules under that new low elevation infrastructure protection range.

816
01:09:48,870 --> 01:09:59,930
And what we can see is that even under the most probable conditions, either release schedule, Lake Powell is expected to stay between elevation 35, 10 and 35, 40 over the next.

817
01:10:00,000 --> 01:10:24,880
Next, water year. While this tier is designed to adjust releases to make power to maintain power, excuse me, above elevation 3510, that provides a 20-foot buffer to the critical elevation of 3490, which is Lake Powell's minimum power pool level. If next year is just as dry as this one, the forecast shows that we would dip below that level around the end of next water year.

818
01:10:27,220 --> 01:10:31,480
With Lake Powell releases between 6 and 7 million acre feet, Lake need is

819
01:10:31,480 --> 01:10:33,560
is forecasted to decline significantly.

820
01:10:34,100 --> 01:10:35,860
Sometime over the fall or winter,

821
01:10:36,360 --> 01:10:41,100
Lake need is forecasted to decline below elevation 1035,

822
01:10:41,780 --> 01:10:44,280
and that is the elevation at which power capacity

823
01:10:44,280 --> 01:10:47,420
at Hoover Dam is expected to be reduced.

824
01:10:48,200 --> 01:10:51,300
The next water year, Lake need is forecasted

825
01:10:51,300 --> 01:10:54,440
to fall below elevation 1025 under either a six

826
01:10:54,440 --> 01:10:55,680
or seven million acre feet.

827
01:10:56,280 --> 01:10:59,240
This is the elevation at which ICS access

828
01:10:59,240 --> 01:11:05,880
would be restricted under the current 2007 guidelines, DCP framework. However, under the

829
01:11:05,880 --> 01:11:13,120
new guidelines, we have access below 1025 down to elevation 1000 as Shanti described. That

830
01:11:13,120 --> 01:11:18,000
is supposed to be shown with new in that gray area, but it looks like somewhere in formatting

831
01:11:18,000 --> 01:11:23,700
and thought shifted, so that gray box should just be between 1025 and elevation 1000.

832
01:11:24,580 --> 01:11:29,840
Now, with a 6 million acre feet lake need is forecast to fall below 10-10 in the summer

833
01:11:29,840 --> 01:11:37,060
of next year, which would be a trigger for reconsultation for potential additional actions.

834
01:11:37,960 --> 01:11:41,880
These results, while not unexpected, are very sobering.

835
01:11:42,340 --> 01:11:47,940
There are some modeling assumptions that I should clarify because the model results are

836
01:11:47,940 --> 01:11:49,200
only as good as your assumptions.

837
01:11:49,200 --> 01:11:56,980
And so there are one of USBR's approaches to making those modeling assumptions is to

838
01:11:56,980 --> 01:12:00,700
only incorporate things that are known, contracted, signed.

839
01:12:01,320 --> 01:12:07,400
So Sean team mentioned the 700,000 acre feet of additional conservation that is required

840
01:12:07,400 --> 01:12:11,180
in the new guidelines, not all of those contracts have been executed.

841
01:12:11,460 --> 01:12:14,840
So this only includes those contracts that have been executed.

842
01:12:14,840 --> 01:12:20,960
We know that includes IID's new skia, that likely includes metropolitan's new skia at the

843
01:12:20,960 --> 01:12:26,680
board approved last month, but we don't know exactly how much of that 700 is included in these

844
01:12:26,680 --> 01:12:34,160
results. Additionally, there aren't any intra-California agreements for sharing that 440 reduction that

845
01:12:34,160 --> 01:12:41,940
Shonti mentioned, and so this study does not include any new California conservation actions to

846
01:12:41,940 --> 01:12:51,540
achieve those reductions. To make the modeling work, the assumption is that if

847
01:12:51,540 --> 01:12:56,900
everybody's demands in that most probable condition don't result in a

848
01:12:56,900 --> 01:13:01,340
California reduction of 440,000 acre feet, that difference would just be made up

849
01:13:01,340 --> 01:13:04,840
by generic California ICS with no attribution between party.

850
01:13:07,040 --> 01:13:08,580
So while we know more

851
01:13:08,580 --> 01:13:12,300
now than we did, there are still some unknowns moving forward that will have

852
01:13:12,300 --> 01:13:19,060
impacts on the forecast and where exactly we end up, but this is a new look with the rules.

853
01:13:20,500 --> 01:13:24,900
So that concludes my presentation. I think we can take any questions if there are any.

854
01:13:29,210 --> 01:13:33,170
Thank you for that. I assume there will be a bunch of director's cycle.

855
01:13:37,640 --> 01:13:39,700
Thank you, Mr. Chairman. Oh, I'm sorry, I missed you.

856
01:13:39,700 --> 01:13:52,480
It looks to me like there is a likelihood that we would be able to access maybe 400,000

857
01:13:52,480 --> 01:14:01,940
acre feet of ICS in 2027 and 2028 is an unknown, did I read that correctly?

858
01:14:04,300 --> 01:14:16,940
Looking at this and the timeline, it does look like in 2028, like need would be in the elevation where we'd be between 1,000 and 1025.

859
01:14:18,440 --> 01:14:28,060
And so access to ICS would be potentially available but subject to consultation with Department of the Interior and available as long as it doesn't cause.

860
01:14:30,480 --> 01:14:34,740
So it's not as certain, but it's still a possibility.

861
01:14:34,880 --> 01:14:38,620
So 2027 is likely 2028 is kind of shaky.

862
01:14:39,800 --> 01:14:44,940
I would say 2027, we have access and then 2028 is shaky.

863
01:14:45,460 --> 01:14:45,660
Okay.

864
01:14:46,640 --> 01:14:49,780
Thank you, that's all I wanted to confirm, Mr. Chairman.

865
01:14:50,160 --> 01:14:50,440
Thank you.

866
01:14:50,440 --> 01:14:51,500
Investors settling.

867
01:14:54,020 --> 01:14:59,120
Two questions. One, I'm a little sure to understand that the upper initial units is

868
01:15:00,000 --> 01:15:12,140
Is there under the, um, rod and the operating guidelines can the U.S., you know, literally decide

869
01:15:12,140 --> 01:15:16,820
to make releases from the initial units and under one conditions?

870
01:15:19,140 --> 01:15:26,800
Yes, Vice Chair Satellite. The interior secretary retains authority to operate those reservoirs

871
01:15:26,800 --> 01:15:33,720
consistent with their existing records of decision, so those are the only limitations that

872
01:15:33,720 --> 01:15:41,180
there are on them. However, the interior department is really trying to reach a agreement

873
01:15:41,180 --> 01:15:47,420
with the upper division states on the process for making those additional releases, but

874
01:15:47,420 --> 01:15:54,320
they were very clear to retain authority to operate them under, they weren't giving up

875
01:15:54,320 --> 01:15:57,120
of any authority in the record of decision

876
01:15:57,120 --> 01:15:58,780
and they're not giving up any authority

877
01:15:59,440 --> 01:16:01,780
in the agreement with the unpartificents.

878
01:16:01,920 --> 01:16:03,040
Okay, so they have the authority,

879
01:16:03,220 --> 01:16:04,540
but they haven't said how they're gonna use it.

880
01:16:04,640 --> 01:16:04,900
Exactly.

881
01:16:05,220 --> 01:16:05,860
Okay, got that.

882
01:16:06,140 --> 01:16:06,600
Thank you.

883
01:16:07,020 --> 01:16:08,720
And my second question was really,

884
01:16:08,940 --> 01:16:11,400
and maybe, or appropriate for the next session

885
01:16:11,400 --> 01:16:15,400
to the portal, just a logistical question about litigation.

886
01:16:16,080 --> 01:16:18,420
There are, now that the rod is,

887
01:16:18,880 --> 01:16:22,500
and there could, somebody could sue on,

888
01:16:22,500 --> 01:16:29,780
And the FETIS, the Rod, and the operating guidelines are those would all be kind of one set

889
01:16:29,780 --> 01:16:31,320
or could they be challenged?

890
01:16:31,760 --> 01:16:38,860
So there are all final agency actions at this point and so they could all be challenged,

891
01:16:39,240 --> 01:16:48,360
you know, and a entity could challenge one or more of those elements of the final agency

892
01:16:48,360 --> 01:16:48,840
action.

893
01:16:49,240 --> 01:16:49,460
Okay.

894
01:16:49,680 --> 01:16:49,940
Thank you.

895
01:16:49,940 --> 01:17:00,520
All right, I had a couple of Director Gold we have Director Miller's hand raised on some okay. All right, Dr. Miller.

896
01:17:01,760 --> 01:17:02,840
Thanks, sure.

897
01:17:04,400 --> 01:17:08,860
Several questions for Laura and Doddy and Bill.

898
01:17:09,720 --> 01:17:14,560
How does the ICS water that we have banked?

899
01:17:14,560 --> 01:17:24,620
How would that work with us having cuts if we went as high as 440 could we use ICS bank water as an offset to those cuts?

900
01:17:26,180 --> 01:17:37,840
Yes, Director Miller. We can use ICS as to offset the bank water as long as the need is in the tier where we're allowed to access it.

901
01:17:37,840 --> 01:17:51,980
which as Laura mentioned, it's clear that in 2027 we will, it is then in the next year, it's based on forecast is looking like it would be in that consultation tier.

902
01:17:52,580 --> 01:18:02,400
But there is a cap on the overall lower basin use of ICS during 2627 and 28 of 800,000 acre feet.

903
01:18:02,400 --> 01:18:10,900
Okay. Thanks. A while back we talked about met selling or getting reimbursed for 200,000

904
01:18:10,900 --> 01:18:14,720
acre foot of cut through the IRA money. Is that still in play?

905
01:18:16,340 --> 01:18:22,960
Yes. That contract has been signed and our diversion schedule indicates that we will

906
01:18:22,960 --> 01:18:25,740
be leaving water in Lake Mead pursuant to that agreement.

907
01:18:26,400 --> 01:18:34,980
and then that kept an update offset some of our 700 of the 700,000 that we're all taking that would offset our

908
01:18:34,980 --> 01:18:44,560
portion of 300,000. Yes, that's our understanding. Okay, and now for Bill, I understand you met with IID.

909
01:18:44,820 --> 01:18:52,040
Was there any headway made with IID? We're going to be discussing that in closed session. If you could hold that

910
01:18:52,040 --> 01:18:55,080
question. Okay thank you that's all I have.

911
01:18:57,320 --> 01:19:01,620
Thank you director Miller um a couple of questions on

912
01:19:01,620 --> 01:19:11,100
in regards to slides 23 and 24. So we spent most of the time in the presentation talking about

913
01:19:11,100 --> 01:19:19,280
the most probable values at 6 and 7 and it led me obviously you know you know me a glass is always

914
01:19:21,860 --> 01:19:29,220
empty. And so I look at the probable minimums because of what's happened in the last few years.

915
01:19:30,020 --> 01:19:34,580
And so the first question I have is, you know, sort of looking back in the last two years,

916
01:19:35,040 --> 01:19:39,560
and looking at the traces that have occurred in the 24 month projections,

917
01:19:40,220 --> 01:19:47,600
how much to the last two years really follow the most probable minimum and what is the considered

918
01:19:47,600 --> 01:19:49,420
likelihood of that occurring.

919
01:19:51,820 --> 01:19:54,260
It's an excellent question and to fully answer it

920
01:19:54,260 --> 01:19:57,400
the way I would like to I'd have to go back and actually look at the data

921
01:19:57,400 --> 01:19:59,720
specifically related to those years.

922
01:20:00,270 --> 01:20:29,970
The most probable inflow for next year is showing, is it making an assumption that inflow would be 75% of the 30-year average. So that is including the period of this 26-year drought that we have are experiencing. So it's 75% of that reflective of the dry conditions that we have. And the minimum probable is reflective of hydrology next year.

923
01:20:29,970 --> 01:20:31,210
that would be similar to this year.

924
01:20:32,050 --> 01:20:33,730
So that's the worst snow pack

925
01:20:33,730 --> 01:20:37,810
and second to third worst runoff conditions.

926
01:20:38,690 --> 01:20:40,250
Right, but the last six years,

927
01:20:40,490 --> 01:20:43,250
I think the average has been about 10.2 million

928
01:20:43,250 --> 01:20:45,270
acre feet per year in flow as opposed

929
01:20:45,270 --> 01:20:47,790
to the 26 year average of about 12.6.

930
01:20:48,710 --> 01:20:51,210
And so it makes you realize what a big difference

931
01:20:51,210 --> 01:20:56,190
your assumptions are in this scenario discussion

932
01:20:56,190 --> 01:20:58,210
and to that in that regard just to share

933
01:20:58,210 --> 01:21:04,950
with, you know, hopefully everybody's looking at the figures the same way I am, is that

934
01:21:04,950 --> 01:21:11,790
need, looking at the probable minimum, which is, it's not a crazy thing. We've just

935
01:21:11,790 --> 01:21:20,190
literally experienced this the last six years. And so, in that regard, it projects February

936
01:21:20,190 --> 01:21:28,930
or a 28 could be below 1000 feet of like level at Lake Mead, in which case all bets are

937
01:21:28,930 --> 01:21:29,490
off, right?

938
01:21:29,830 --> 01:21:35,270
And so I just wanted to make sure people look at that and then may have next year it

939
01:21:35,270 --> 01:21:36,990
could be below 10-10.

940
01:21:38,330 --> 01:21:44,070
And so just looking at what's possible, now another factor that we're not talking about

941
01:21:44,070 --> 01:21:49,810
here is, okay, so we get our ICS out of there, or at least get paid for it, which is obviously

942
01:21:49,810 --> 01:21:54,450
My preference is, you know, sell a much larger portion than the 200,000 acre fee.

943
01:21:54,710 --> 01:21:57,430
We still have 1.6 million acre fee.

944
01:21:58,190 --> 01:22:04,050
And so on, I personally think selling up to a million acre fee in the next few years

945
01:22:04,050 --> 01:22:04,730
makes sense.

946
01:22:05,410 --> 01:22:12,470
I bring that up because if there are withdrawals of ICS in a major way, then I hope everybody

947
01:22:12,470 --> 01:22:17,470
understands that the curves that we're looking at change substantially on, they don't

948
01:22:17,470 --> 01:22:18,310
stay the same.

949
01:22:18,310 --> 01:22:23,910
It means the lake levels will drop dramatically and so from the standpoint of what gets triggered

950
01:22:23,910 --> 01:22:29,310
in decision making, I just want to make sure everybody on our board understands really

951
01:22:29,970 --> 01:22:36,830
the high-wire act that we now are in and really trying to balance this out and so on.

952
01:22:37,550 --> 01:22:42,210
Anyways, I hate to be the depressing person all the time but that's kind of, I think, really

953
01:22:42,210 --> 01:22:43,970
important for us to all understand.

954
01:22:44,430 --> 01:22:45,170
Do you want to comment on that?

955
01:22:45,170 --> 01:22:50,990
Yeah, just one quick clarification because you're absolutely right that the lake levels

956
01:22:50,990 --> 01:22:54,710
are going to be lower if you access ICS in comparison to if you don't.

957
01:22:55,210 --> 01:23:03,750
But these assumptions actually do include use of stored water to meet California reductions.

958
01:23:04,010 --> 01:23:07,930
And that's what I was attempting to get out when I was describing the caveats.

959
01:23:07,930 --> 01:23:17,050
And so since there aren't intra-California agreements for the 440, US Bureau doesn't model

960
01:23:17,050 --> 01:23:18,130
agreements that don't exist.

961
01:23:18,850 --> 01:23:25,790
And so to deal with that, I will double check it, but I believe that that ends up assuming

962
01:23:25,790 --> 01:23:31,410
that in 2027, California's a whole access is about 300,000 acre feet of ICS.

963
01:23:31,410 --> 01:23:36,790
So, this does include some of those withdrawals that you're referencing.

964
01:23:37,950 --> 01:23:38,810
Okay, good to know.

965
01:23:39,690 --> 01:23:40,770
All right.

966
01:23:42,290 --> 01:23:44,930
Well, I guess with that, anything else on this item?

967
01:23:46,410 --> 01:23:48,530
All right, we'll go to closed session.

968
01:23:50,490 --> 01:23:55,170
So, for the next time is the update on the Colorado River Negotiation,

969
01:23:55,570 --> 01:23:58,650
some protection of metropolitan's Colorado River water rights.

970
01:24:00,230 --> 01:24:01,510
So, here we go.

971
01:24:01,890 --> 01:24:05,770
I have been advised by the General Manager and the General Counsel that Item 3F requires

972
01:24:05,770 --> 01:24:07,110
discussion and closed session.

973
01:24:07,570 --> 01:24:11,630
Those staff who are not authorized to be in closed session will need to drop off the

974
01:24:11,630 --> 01:24:13,050
teleconference or leave the room.

975
01:24:13,870 --> 01:24:18,070
Unauthorized persons still on the teleconference when the meeting is closed will be placed into

976
01:24:18,070 --> 01:24:19,490
the Zoom virtual waiting room.

977
01:24:20,550 --> 01:24:26,390
Item 3F is an update on Colorado River Negotiations and Protection of Metropolitan's Colorado River

978
01:24:26,390 --> 01:24:26,930
Water Rights.

979
01:24:26,930 --> 01:24:36,830
This is a conference with legal counsel for anticipated litigation, deciding whether to initiate litigation, an unknown number of potential cases.

980
01:24:37,730 --> 01:24:44,370
This item will be heard in close session, pursuant to government code section 54956.94.

981
02:27:25,490 --> 02:27:26,710
Recording in progress.

982
02:27:30,310 --> 02:27:32,210
Media team, are we back on livestream?

983
02:27:35,370 --> 02:28:00,390
All right, thank you. That concludes our consideration of item 3F. In closed session, the committee discussed and conferred with its legal counsel regarding item 3F. No action was taken in closed session. So next item, which will be really quick on. We always have to be management announcements and highlights, Bay Delta resources activities.

984
02:28:01,170 --> 02:28:02,150
Mr. Vennarski.

985
02:28:02,470 --> 02:28:03,250
Yeah, thank you, Chair Gold.

986
02:28:03,930 --> 02:28:08,690
So I just wanted to make sure that the subcommittee was aware that last Wednesday on August 19th,

987
02:28:08,690 --> 02:28:13,390
the State Water Resources Control Board released the revised final draft of the Bay Delta

988
02:28:13,390 --> 02:28:18,770
Water Quality Control Plan, and it's now out for a 30-day public review period with comments

989
02:28:18,770 --> 02:28:20,490
due on September 18th.

990
02:28:21,430 --> 02:28:26,810
It's Metropolitan's expectation that the essence and the intent of the Healthy Rivers and Landscapes

991
02:28:26,810 --> 02:28:32,790
program, formerly known as the voluntary agreements, will be included in the plan, allowing

992
02:28:32,790 --> 02:28:37,950
in this healthy rivers and landscapes, if it's included, as we expect it to be, will

993
02:28:37,950 --> 02:28:42,670
allow participating water users to meet the plan objectives through a combination of flow

994
02:28:42,670 --> 02:28:48,370
and habitat measures, rather than just being required to release a portion of unimpaired

995
02:28:48,370 --> 02:28:48,750
flows.

996
02:28:49,470 --> 02:28:54,850
Now, over the next several weeks, you may be hearing comments about the condition of the

997
02:28:54,850 --> 02:29:06,770
And whether people are happy with it or not happy with it, rest assured that Metropolitan Staff is reviewing the plan and will be coming back to you as quickly as we can to give you our assessment of that.

998
02:29:06,930 --> 02:29:14,250
And so we'd like you to kind of wait and not cast judgment on the draft until you hear from Metropolitan Staff.

999
02:29:14,490 --> 02:29:23,950
We already know that there's there's scuttle but out there both pros and cons but just just hold on to that and will give you some updates in the upcoming months as we as we go forward.

1000
02:29:23,950 --> 02:29:37,610
So thank you. That's it. Sorry, quick question on it. So in light of the fact that the comment period is the 18th, yes, that's September and I think we'll have a one water meeting before then.

1001
02:29:38,350 --> 02:29:45,770
Will you be able to at least give us an overview of what those comments may be at that on one water meeting since that's the one that seems to make it awesome.

1002
02:29:46,250 --> 02:29:50,850
Yeah, it's always good to at least hear about it before they're finalized and submitted.

1003
02:29:51,370 --> 02:29:53,630
so we can actually have an influence there. Thank you.

1004
02:29:54,670 --> 02:29:57,730
All right. Anybody else? All right. Thank you.

1005
02:29:58,570 --> 02:29:59,970
So do we have any requests for

1006
02:30:00,000 --> 02:30:01,320
Further follow-up or future items?

1007
02:30:04,350 --> 02:30:28,770
Yes? Messaging. Okay, so a request for a discussion in our next meeting on Colorado that we have some amount of time for messaging. Is there any disagreement with that? Is everyone okay with that? All right, everyone seems cool. Good. So that's all there. Anything else? I'm so used to not doing that. It's just a bizarre.

1008
02:30:29,990 --> 02:30:35,970
Okay, all right, so there being no for their business, we are done.

1009
02:30:36,190 --> 02:30:36,730
Thank you everybody.