WSWB Conjunct ive Use P ro jectW S I P A p p l i c a n t P r e s e n t a t i o n

Mark BeuhlerGeneral Manager

Willow Springs Water Bank (WSWB)(Formerly the Antelope Valley Water Bank)

12/13/20171

THE PROJECT: OVERVIEW SUMMARY

Located in the Antelope Valley, WSWB benefits from the Valley’s water storage geology and proximity to the California AqueductImage: Legislative Analyst’s Office

WSWB

Water Bank: State Water Project:

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• Project Type Conjunctive Use

• Reoperations San Luis, Oroville Reservoirs

• Storage Diversifies State Portfolio

• Public Benefits Fisheries, Emergency Response

• Volume 0.5 MAF, expands to 1.0 MAF

• Put / Take 280,000 AFY / 225,000 AFY

• Annual Yield 34.0 TAF, grows to 39.2 TAF

• Funds Request $306 M

• Benefit Ratios High PBR of 2.6, overall B:C of 2.3

• Early online A decade before larger projects

• Unique Aspects Energy, Public/Private Partnership

THE PROJECT: LOCATION

• Located south-of-Delta in the Antelope Valley near Lancaster and Palmdale

• Provides storage near 3 major aqueducts: California, Los Angeles #2, AVEK West Feeder.

• Permeable soils, large basin, good groundwater quality in an adjudicated basin

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THE PROJECT: FACILITIES

WSWB basins in operation• Put: Recharge pipe provides 280,000 AFY of gravity flow to percolation ponds

• Take: 225,000 AFY of extraction from 92 to 98 wells

• Reliable: Firm put and take capacity

• Expansion: Can expand bank from 0.5 to 1.0 MAF

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THE PROJECT: PARTNERS AND OPERATOR

Water Flooding onto Basin Recovery from WellWater Seeping into Ground

In discussions with other potential customers for Non-Program contracts; need agreements with State and federal agencies for Administering Agency contracts

• Joint Powers Authority (JPA) created in 2007 “Southern California Water Bank Authority”

• Bank recharged about 20,000 AF for customers in 2011

Management JPA partners Non-Program Customers

Investor: CalPERS Semitropic WSD San Diego CWA

Operator: AVWS/CIM Rosamond CSD Rosamond CSD

- Antelope Valley Water Storage LLC Homer LLC

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THE PROJECT: PUBLIC/PRIVATE PARTNERSHIP

• Manages pension and health benefits for California public employees

• 1.8 million members as of 30 June 2016

• CalPERS benefits entire state of California

• Full service infrastructure and real estate fund manager

• Private manager investing in California since 1994

• Bank is part of an existing 3-member Joint Powers Authority, a public agency

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• Federal: received $5.0 M ARRA grant in 2009

• Other State: received $1.2 M in CEC grants for energy studies

• WSWB leverages “private, federal or local funding” (Sec. 79707)

State & Federal

Sacramento Bee article on WSWB

THE PROJECT: PUBLIC AND NON-PUBLIC BENEFITS

WSWB captures surplus water from existing surface reservoirs and saves it for a dry day

PUBLIC

• Fisheries: pulsed Feather River flows

to protect salmon

• Emergency Response: south-of-

Delta water if the levees fail

• Flood control (non-monetized)

• Recreation (hiking, non-monetized)

• Greenhouse gas reductions (non-

monetized)

NON-PUBLIC

• Aquifer recovery

• New yield

• Water/energy bank

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THE PROJECT: A VERY “GREEN” FACILITY

Edmonston Pumping Plant is the largest user of electricity in California, can shift deliveries

Dual use solar array

• No flooding of habitat, archeological & Native American sites

• Maintain farming as a “good neighbor”

• 640 acres of solar arrays already co-located on site

• Onsite hydro power ($0.2 M CEC grant)

• Proposing a water/energy bank study to shift electric load ($1.0 M CEC grant)

• Both CEC grants were reviewed by experts and were ranked highest of all submittals

• Implements “new or innovative technology or practices” per Section 79707 of Proposition 1

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OPERATIONS: YIELD FROM STATE WATER PROJECT SOURCE

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With 2030 hydrology, 34.0 TAFY of new yield is created; for 2070 it increases to 39.2 TAFY. Yield of project increases as climate change intensifies floods.

OPERATIONS: PRE-DELIVERY CREATES NEW YIELD

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Pre-delivery from San Luis and Oroville to WSWB creates the empty space needed to capture water that otherwise spill. Diversifies the SWP storage portfolio.

San Luis Reservoir spills in a very wet year. WSWB will capture some of it.

OPERATIONS: PULSE FLOWS FOR FISHERIES

Fisheries Benefit: 14,453 fish saved,

$755 M value created

Chinook salmon fry are vulnerable

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OPERATIONS: ECONOMIC ANALYSIS

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Public Benefits Ratio of 2.6, Overall benefit/Cost Ratio of 2.3

OPERATIONS: WATER/ENERGY BANK SHIFTS ELECTRIC LOAD

Shift electric load by shifting water delivery schedule out of the summer Increase electric load during periods of curtailment (spring & winter) Reduces Greenhouse Gases via increased renewables penetration

Edmonston is the largest major pumping lift in the world. It is the largest single load in California.

TIMELINE: WSWB DESIGN/BUILD SCHEDULE

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WILLOW SPRINGS WATER BANKRECHARGE AND RECOVERY TRANSFER FACILITIES

ID Task Name 2018 2019

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

1 Administration

2 Planning

3 Construction

01/01/2018 12/31/2019

01/01/2018 02/01/2019

12/31/201907/02/2018

Goal: use design/build to get the 280,000 acre-feet per year recharge capacity online as fast as possible to catch the next wet period

TIMELINE: MILESTONES

Simple pipe, pond, and well construction enables rapid online date and reduces chances of delays and overruns.

• Ready to build: CEQA done, JPA in place, property already acquired

• Necessary construction and other permits are well defined

• Begin construction in mid-2018

• Public/private partnership enables rapid design/build

• Partial operations already begun, full operations in 2020

• Realize recharge benefits immediately in 2020

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TIMELINE: RISK INSURANCE

Oroville Spillway Failure

• Diversifies the state’s storage portfolio

• Online early in case next 10 years are wet - 89% chance of spills

• Online early in case the Delta levees fail

• No risk of dam safety

• Less overrun risk due to simple construction

• No toxic blue-green algae

• Reduces GHG creation from surface reservoirs

Risk Insurance• What if 2020 to 2030 is wet?• What if the Delta levees fail?• What if there is another Oroville?• What if there are cost overruns?

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TAKE AWAY MESSAGES

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• Use of existing SWP reservoirs to diversify storage portfolio

• Use of existing SWP pump infrastructure for water/energy bank

• Project yield gets better as climate change gets worse

• Public/private partnership facilitates early online date

• Addresses “most critical statewide needs and priorities” including energy and GHG creation

Delta smelt dictate operations of the Delta

CONTACT

Mark Beuhler

Willow Springs Water Bank323.860.4829 direct phone

Mbeuhler@wswaterbank.com

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WSWB Signage (Sec. 79707)

WSWB is 5 miles north of Antelope Valley Poppy Reserve