$17 billion Delta water tunnels project faces critical MWD vote

After 11 years of planning, a massive tunnels project touted as a solution to the state’s vulnerable water supply faces its biggest test  Tuesday.

The 38-member board of the Metropolitan Water District of Southern California — the largest supplier of treated water in the United States delivering water to agencies serving 19 million people — is scheduled to vote on the $17 billion California WaterFix.

Metropolitan’s staff has waged a campaign in favor of the project for years and is recommending its board ratify the environmental review and also pay 26 percent of the cost, amounting to $4.3 billion. MWD’s wholesale water rates charged to 26 Southern California retail water districts and cities would rise 4.5 percent annually during the 18-year construction period, but the agency says WaterFix only accounts for 1 percent of the increase, with inflation accounting for the rest.

Gov. Jerry Brown and the state Department of Water Resources say the project will make water supplies more reliable, stabilize water flow and protect endangered fish species. The project would include installing three intakes north of the Sacramento-San Joaquin Delta and building two, 35-mile concrete diversion tunnels that would move water more efficiently into the State Water Project for cities and the federal Central Valley Project used by farmers. …

Read the full article from the Press-Enterprise

Jerry Brown’s Delta tunnels would triple water rates

Delta TunnelsGov. Jerry Brown’s $17 billion California Delta WaterFix tunnels are in trouble over a threat to triple water costs and a federal probe of $84.8 million in illegal payments.

The board of the Fresno-based Westlands Water District, America’s largest water supplier, voted 7 to 1 on September 19 to pull out their $4.5 billion, 26 percent participation in the $17 billion WaterFix, which planned to build two 40-foot wide tunnels stretching for 35 miles to protect fish and divert water from the Sacramento River to the California aqueducts that service the San Joaquin Valley farmers and Southern California cities.

The move followed a July 17 presentation by Goldman Sachs to the Westlands Water District titled, “California WaterFix Financing Strategies.” Goldman apparently estimated that to finance the project, the average cost of water exports from the Delta could rise by $260 per acre foot by 2033. That is two to three times the price paid to the Bureau of Reclamation this year.

The U.S. Department of Interior Inspector General also issued an audit that found that during the Obama administration, federal Bureau of Reclamation financial assistance agreements with the State of California’s Bay Delta Conservation Plan (BDCP) did not “fully disclose to Congress and other stakeholders the $84.8 million cost of its participation in the BDCP efforts, including its subsidizing of the Federal Central Valley Project (CVP) water contractors’ share of BDCP costs.”

The Inspector General also found the Bureau of Reclamation was never reimbursed for $50 million of advanced payments and improperly paid $34.8 million of the contractors’ costs through June 30, 2016. The IG stated that the Bureau of Reclamation submitted “inaccurate annual Calfed Bay-Delta certified financial reports” and “the actions it took to fund BDCP planning costs were neither transparent nor consistent with the ‘beneficiaries pay’ principle underlying Reclamation Law.”

The IG referred the matter to the “Assistant Secretary for Policy, Management and Budget for resolution,” a step that may lead to a U.S. Justice Department civil or criminal referral.

The Associated Press obtained documents on September 18 that reveal that the legal language governing California’s biggest water project in half a century has been tweaked so that the tunnels are now just an “update,” rather than a new project. That way every one of the 29 water districts that receive water from the existing California State Water Project will be jointly responsible to pay for the tunnels.

A Harris Farms’ Executive Vice President and Westlands board member told AP that there is no guarantee that the project will consistently increase future water supplies and that “obligating hundreds of family farms” to pay for the tunnels doesn’t make economic sense.

The Los Angeles Metropolitan Water District will vote on continuing as a $4 billion WaterFix investor, and the Santa Clara Valley Water District will also vote on its $2 billion participation. It is estimated that the project will cost residential water users about $3 to $4 a month. But that assumes an on-time completion, and that the project performs as advertised.

This article was originally published by Brietbart.com/california