CVP FRIANT DIVISION

San Joaquin River SettlementCVP FRIANT DIVISION

San Joaquin River Settlement

FriantFriantDamDamFriantFriantDamDam

SacramentoSacramentoSan Joaquin DeltaSan Joaquin DeltaSacramentoSacramentoSan Joaquin DeltaSan Joaquin Delta

Merced RiverMerced RiverMerced RiverMerced River

San Joaquin RiverSettlement:

Status Report

Ronald D. JacobsmaConsulting General ManagerFriant Water Users Authority

March 11, 2008

Friant Division Service Area and Contractors Friant Division Service Area and Contractors

Alpaugh I.D.

Arvin-Edison W.S.D.

Atwell Island W.D.

Chowchilla W.D.

Delano-Earlimart I.D.

Exeter I.D.

Fresno I.D.

Garfield W.D.

Hills Valley I.D.

International W.D.

Ivanhoe I.D.

Kern-Tulare W.D.

Lewis Creek W.D.

Lindmore I.D.

Lindsay-Strathmore I.D.

Lower Tule River I.D.

Madera I.D.

Orange Cove I.D.

Pixley I.D.

Porterville I.D.

Rag Gulch W.D.

Saucelito I.D.

Shafter-Wasco I.D.

Southern San Joaquin M.U.D.

Stone Corral I.D.

Tea Pot Dome W.D.

Terra Bella I.D.

Tulare I.D.

City of Fresno

City of Orange Cove

City of Lindsay

Fresno Co. WWD #18

Madera County

M&I ContractorsM&I ContractorsM&I ContractorsM&I Contractors

Ag Water ContractorsAg Water ContractorsAg Water ContractorsAg Water Contractors

Service AreaService AreaService AreaService AreaMerced CoMadera CoFresno CoTulare CoKern Co

MercedMercedMercedMerced

BakersfieldBakersfieldBakersfieldBakersfield

VisaliaVisaliaVisaliaVisalia

Madera CanalMadera CanalMadera CanalMadera Canal

Millerton LakeMillerton LakeMillerton LakeMillerton Lake

Friant Kern CanalFriant Kern CanalFriant Kern CanalFriant Kern Canal

FresnoFresnoFresnoFresno

SJR Channel Improvements

• Litigation Background– Federal Judge determined that USBR was not operating

Friant Dam (CVP) consistent with State Law (F&G code 5937) during “liability” phase of court proceedings, meaning water needed to be released to support historical (Salmon) fishery

– “Remedy” phase of court proceedings was scheduled for February of 2006

– Senator Feinstein and Congressman Radanovich prompted parties to undertake another attempt at Settlement

– Settlement Agreement reached In Summer of 2006

• Settlement Provides:– End of protracted litigation - Resolution of all legal

claims– Funding and Plan for San Joaquin River Improvements– Water Supply Certainty for 20 years or more– Opportunity to recover water and/or develop water

supplies– No additional financial exposure– Cooperation from federal, state and local governments

and plaintiffs provides greatest chance of success for future

– No material third party impacts

San Joaquin RiverEqual Primary Goals of Settlement

Restoration Goal

Water Management Goal

Settlement Goals• Restoration Goal

Specified water deliveries for fishery releases based on hydrology (results in 15% average annual water supply impact for Long Term Contractors; overall water supply reduction of 19% in Friant Division (145kaf – 240kaf) )

River improvements to support naturally reproducing self-sustaining anadromous fishery

• Water Management Goal Water Recovery Account Plan-$10/a.f. in wet

conditions Plan to get back water (recirculation, recapture and

reuse) to reduce or avoid water supply impacts Utilize Transfers/Exchanges/groundwater programs

Why Water Management Goal Is

Critical• Approximately 15,000 mostly small family

farms on nearly one million acres of the most productive farmland in the world have relied on Friant Water supplies for the last half century

• Farmers, Farmworkers, Support Industries, and Communities are dependent upon Friant water Supplies for their livelihood

Friant LT Irrigation water contractor impacts

SETTLEMENTWithout buffer flows and

NO recovery of water supplies. THIS IS IMPACT TO BE

MITIGATED BY WATER MANAGEMENT GOAL.

ANTICIPATED JUDGMENT

Reduction in Water Deliveries

145,000 acre-feet 360,000 acre-feet

Current Riparian Releases 117,000 acre-feet 117,000 acre-feet

Additional Releases for Fisheries

320,000 acre-feet 632,000 acre-feet

Remaining Flood Releases 140,000 acre-feet 74,000 acre-feet

Farm land out of production 51,300 acres 116,000 acres

Lost Crop Production$159.3 million direct$264.9 million total

$372.5 million direct$621.0 million total

Income Impact$36.6 million direct$80.7 million total

$93.1 million direct$200.9 million total

Employment Impact(jobs lost)

1,360 direct3,070 total

3,490 direct7,660 total

Potential Consequences of Failure to Meet Water Management Goal

G.W. Basin G.W. Basin G.W. Basin

G.W. Basin

Water Management GoalWater Recovery

Opportunities

Purpose:

To reduce or avoid adverse water supply impacts to all of the Friant Division long-term contractors that may result from the Interim Flows and Restoration Flows provided for in the Settlement.

Where We Are Today

• SJR legislation, now embodied in HR 4074 as Title I (formerly HR 24) has passed House Natural Resources Committee

• Legislation on hold pending resolution of Congressional PAYGO budget rules for non-discretionary spending and further delineation and clarification of the implementation of the water management goal