In-Delta Storage

1. Outline In-Delta Storage • Process Overview • Program Benefits • Project Costs • Issues • Proposed Work Plan for FY 2003 • Proposed Next Steps (Staff Recommendation) • Questions for BDPAC Water Supply Subcommittee to Consider

2. In-Delta Storage

3. In-Delta StorageDelta Wetlands Bacon and Webb Tract (Storage) Holland and Bouldin (Habitat)

4. In-Delta Storage • Benefits • CVP/SWP Operational flexibility and reliability • Increased reliability of South of Delta exports • Additional system storage for short term operational challenges • Improve flow releases and export timing to benefit Delta fisheries and improve water quality for fish in the Delta • Storage space for EWA • Storage and water marketing for sale, exchange, lease or transfer of water from one user to another

5. In-Delta Storage Costs • Range of Project cost estimates developed based on the following uncertainties: • Variations in engineering design reflecting risk and level of protection • Environmental mitigation • Cost variations based on site conditions and construction methods • Changes in hydrology due to climate change

6. In-Delta Storage Costs (Cont.) Cost Capital Cost Annual O&M* Unit Cost Range ($ million) ($ million) ($/AF) Lower 662 8 430 Range Upper 1,100 8 650 Range * Climate change may result in 10 to 15% increase in overall cost spread over 50 year life of the project and will be reflected as additional annual O&M cost.

7. In-Delta Storage Issues • Engineering design and cost issues • Accepted risk and level of protection • Slough/river side slope stability • Borrow areas and construction methods • Fish screens and appurtenant structures • Unit costs

8. In-Delta Storage Issues (Cont.) Costs are dependent on Design Criteria

9. In-Delta Storage Issues (Cont.) • Operational flexibility and reliability • Impact of fisheries biological opinion Delta Smelt Criteria • Accurate estimate of water supply benefits considering WQMP, CVPIA and EWA • Water Quality Evaluations • DOC and other constituents concentrations at urban intakes • Re-operations for WQMP

10. In-Delta Storage Issues (Cont.) • Environmental mitigation • Agricultural land use issues • Environmental Mitigation requirements • Economic Feasibility • Realization of benefits in monetary terms • Economic value of the project

11. In-Delta Storage Tasks for FY 2003 Objective is to provide necessary technical information to make a decision on initiating negotiations with Delta Wetlands by July 2003

12. In-Delta Storage Tasks for FY 2003 • Project Operations • Develop daily Base and In-Delta Storage CALSIM II Model including CVPIA and EWA • Discuss fisheries Final Operations Criteria to improve operational flexibility and create fisheries and ecosystem benefits • Refine year around reservoir operations considering water quality rules, fisheries benefits/constraints, and additional supply benefits • Simulate project operations under alternative operational priorities • Perform operations with other proposed storage and conveyance projects

13. In-Delta Storage Tasks for FY 2003(Cont.) • Water Quality Evaluations • Develop integrated experimental and modeling methodology to predict organic carbon including biological productivity and ecological processes • Undertake additional modeling studies to evaluate project operations to comply with water quality requirements.

14. In-Delta Storage Tasks for FY 2003 (Cont.) • Engineering Investigations • Define and conduct field surveys, geotechnical and hydrological investigations in order to refine embankment and structure designs • Perform Risk Analysis and make recommendations for integration of the physical design with an accepted level of protection • Recommend optimum embankment design through detailed slope stability, seismic, seepage and settlement analyses • Conduct a detailed borrow investigation in the interior of the islands, to locate suitable borrow sites • Prepare hydraulic and structural design for fish screens, inlets, outlets, pumping units and appurtenant structures • Evaluate construction methods • Revise and finalize cost estimates.

15. In-Delta Storage Tasks for FY 2003 (Cont.) • Environmental Evaluations • Perform resource surveys and studies to support the subsequent EIR/EIS Process • Discuss fisheries Final Operations Criteria to improve operational flexibility and create fisheries and ecosystem benefits • Provide liaison with the Fish Facilities Review Team and engineering design work to finalize fish screens designs • Evaluate water supply and water quality benefits for Delta fisheries, wildlife and ecosystem.

16. In-Delta Storage Tasks for FY 2003 (Cont.) • Economic Analysis • Perform benefits analysis by using latest available economic models and project yield • Conduct negotiations with potential beneficiaries to determine the quantity and cost of delivered water and develop cost sharing methodologies • Determine Economic Value of the Project by conducting Land and Project Appraisals • Integrate appraisal into economic analysis, review available financing options and recommend potential strategies for project financing • Re-evaluate benefit-cost analysis based on alternative operational priorities

17. In-Delta Storage Proposed Next Steps (Staff Recommendation) • Complete CALFED Science Panel Review • Summarize public comments • Stakeholders Presentation (Public Meeting) • Finalize Work Plan FY 2003 • If State or federal funding available, implement Work Plan.

18. In-Delta Storage

19. In-Delta Storage Questions for BDPAC Water Supply Subcommittee to Consider • Are the following adequate and responsive to stakeholders concerns? • Completed technical work, stakeholders outreach and independent review process • List of outstanding issues • Proposed Draft Work Plan FY 2003 • If Funding Available, should CALFED Agencies implement the Draft Work Plan?