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WE URGE YOUR SUPPORT OF SENATE BILL 839
We are writing to voice our support for SB 839, groundbreaking legislation creating a Water Supply Development Account to provide loan and grant funding for a variety of water supply and management projects. We are a diverse group of water users, conservation groups, municipalities, and water stakeholders with a common goal: to advocate for common sense water policies that move Oregon’s economy, communities, and environment toward a secure water future. Now is the time to capitalize on the momentum of Oregon’s Integrated Water Resources Strategy (IWRS), adopted in 2012, by creating a funding source for instream and out-‐of-‐stream water supply projects in Oregon that can create jobs to help grow our economy, keep our cities healthy, strengthen vital agricultural production, and protect and enhance our environmental assets. SB 839 represents the culmination of an intensive, collaborative stakeholder process to create a viable funding program for water supply development projects that provide multiple public benefits (environmental, economic, and social/cultural). Funding Program for Water Supply Development Projects At its core, SB 839 creates a process for awarding both loans and grants to undertake water supply development projects. SB 839 allows for applicants to propose a host of different project types including new or expanded above ground storage, water conservation, infrastructure and efficiency improvement, reuse, stream flow protection, and more. A diverse mix of project types are needed to meet Oregon’s current and future water needs. SB 839 fills a vital niche by providing a viable and competitive funding source for these types of projects. Scoring and Ranking Projects Based on Public Benefits SB 839 proposes developing a project scoring and ranking system to aid the Water Resources Department (WRD) in making funding decisions. This system will be based on the degree to which proposed projects provide three categories of public benefits: economic, social or cultural, and environmental. To be eligible for funding, projects must provide benefits in all three categories. If Oregon is going to invest significant public funds in a water supply project, that project should be calibrated to provide a range of public benefits in return. The actual scoring and ranking criteria will be developed in rulemaking along with other program details discussed below. Instream Requirement Applicable Only to Grants for New or Expanded Above-‐Ground Storage For grants to build new or expanded above-‐ground storage, SB 839 requires that the project dedicate 25% of newly developed water instream. This requirement does not apply to all other project types, though it is an optional way to satisfy the environmental benefit requirement for those project types (see attached flow chart). We believe this is a workable requirement that does not unduly burden projects and will provide necessary environmental benefits to justify the granting of public dollars. Furthermore, the amended language clarifies that this requirement is not in addition to existing federal or other instream requirements.
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Seasonally Varying Flow Protections One promising strategy for meeting Oregon’s future water needs in the face of climate change and population pressures, is to increase our ability to store high winter and spring runoff flows. However, high flows play vital biological, ecological, and physical roles in shaping rivers and habitat for fish and other species. SB 839 lays out a rulemaking process for developing a methodology to set Seasonally Varying Flows (SVFs) to allow storage of high flows in a way that is compatible with the biological, ecological, and physical needs of rivers, fish, and wildlife. For a subset of projects seeking funding under the SB 839 process, WRD will be required to use this methodology to set SVFs before funding the project and before issuing any permits, licenses, or certificates involved in the project. WRD may pay the costs of establishing SVFs from the SB 839 account to relieve applicants of this burden. In the amended version of SB 839, SVF’s are meant only to apply to funded projects and not to supersede any other existing requirements and/or flow protections. Funding and Fixing Existing, Ongoing Efforts in the Willamette, Deschutes, and Umatilla Basins SB 839 also includes provisions to allow WRD to fund two important existing projects. A diverse group of water users, municipalities and conservation groups have been working with the US Army Corps of Engineers since 1996 on reallocating existing Willamette basin stored water to both instream and out-‐of-‐stream uses. The process is stalled until the state comes forward with matching funds required by the Army Corps. SB 839 would allow WRD to expend funds from the Water Supply Development Account for this purpose and leverage federal dollars committed to the effort. The second existing project is a proposal by the Deschutes Water Alliance to work with the Bureau of Reclamation to engage in a comprehensive basin planning effort. As in the Willamette example, SB 839 would allow WRD to expend funds from the Water Development Account to match expenditures by the Bureau of Reclamation for this important project. We feel it is vital to allow WRD to provide necessary cost match for the Willamette and Deschutes projects because it leverages federal dollars for Oregon that could be lost if WRD cannot provide timely funding. SB 839 also contains a negotiated fix to HB 3369’s (2009) funding of the Umatilla Basin Aquifer Recharge Project. This change will help the project’s proponents successfully complete the first project phase, including a commitment to provide significant environmental benefit. The work group and the undersigned organizations are supportive of these changes and urge your support as well. In addition to the flow chart, we have attached a list of examples of potential water supply projects that could be funded by SB 839.
Meeting our water needs will require diverse, innovative projects and strategies and SB 839 has been carefully tailored to do just that.
The future of water management in Oregon depends on taking steps now to encourage and fund collaborative water supply development projects.
We urge your support for SB 839.
Thank you.
SB 839 Water Supply Development Fund
Develop Project Application
Grants for New or Expanded Above Ground Storage
Grants & Loans for All Other Project Types
Pre Application Mtg. w/OWRD (Optional)
Final Application
Public Comment
Grant Condition: - Twenty five percent (25%) of newly developed water must be dedicated to instream use
Technical Review Team
Public benefit scoring and project ranking based on: - Environmental benefits;
- Social or cultural benefits; and - Economic benefits
Other Public Benefit scoring based on: - Social or cultural benefits; and - Economic benefits
Water Resources Commission Approval
Final Funding Award
Optional automatic environmental benefit credit: - Volunteer to dedicate twenty five percent (25%) of conserved or newly developed water instream to satisfy environmental benefit requirement
POTENTIAL WATER PROJECTS FUNDED BY SB 839 The following examples of potential water supply projects that could be funded by SB 839 are provided for
illustrative purposes and are not meant to imply that all projects are fully designed or ready to be implemented.
Deschutes Basin Deschutes Basin Study | Deschutes Water Alliance Irrigation districts, cities, Tribes, environmental groups, and the numerous other members of the Deschutes Water Alliance, along with the state and related agencies have joined together to complete a comprehensive Basin plan that will build on previous studies and investments with the goal to meet all water needs in the basin, such as: restore and protect instream flows, create more reliable supply for critical agriculture and municipal use, and continue to balance the needs of growth and the environment into the future. A sum of $750,000 is needed to match federal grant funding from the Bureau of Reclamation’s (BOR) WaterSMART Basin Study Program for a total cost of $1.5 million. This study would be conducted under the auspices of the federal BOR, which has both the resources and the expertise to complete this task. Multiple Projects | North Unit Irrigation District The North Unit Irrigation is one of the largest irrigation districts in Oregon, serving more than 58,000 acres of irrigated land in the Deschutes Basin. The District has a variety of new and ongoing water supply projects that need state funding to better leverage federal funds and district resources.
• Lateral 58-‐9 Piping Project– The North Unit Irrigation District is in process of piping 5 miles of open ditch delivery. This is a phased project with Phase I nearing completion. Phase II and III will pipe the remaining 3.5 miles. All three phases of the project combined will cost $1.3 million. $237k was spent to complete Phase I of the project, with funding assistance from the US Bureau of Reclamation (USBR), Oregon Watershed Enhancement Board (OWEB), and other funds. The district is requesting funding assistance from multiple agencies for Phase II and III, some of which require matching funds. The benefits to this project include increasing water quality, 700 acre feet (af) of conserved water benefit, minimizes or eliminates end user reliance on power supply via pressurized system, and provides an opportunity for inline hydroelectric power.
• Lateral 58-‐11 Piping Project – The district is also piping 3.5 miles of open ditch delivery on a
different lateral which is estimated to be $1.2 million to complete the project. The benefits include: 565 af conserved water annually, minimize or eliminate end user reliance on power supply via pressurized system, and provide opportunity for inline hydroelectric power. The district is requesting funding assistance from multiple agencies. 2,400 feet of 48” pipe will be installed in 2012/2013 and has received some USBR/OWEB and other funding to initiate part of the project.
• Lateral 37 Piping Project-‐ A feasibility evaluation has been completed for piping another 12 miles
of open ditch delivery. The project cost is an estimated $17 million. The conserved water benefits include: minimize or eliminate end user reliance on power supply via pressurized system and provide opportunity for inline hydroelectric power. The district is looking for large funding grants to complete the project.
• South Juniper Butte Piping and Re-‐Use Project -‐ North Unit Irrigation District is partnering with
Jefferson County Soil and Water Conservation District and are proposing to redesign and implement a water conservation and re-‐use project in the South Juniper Butte Area. The project
area is 4,700 acres of irrigated farm land with re-‐use and conservation benefits. A feasibility study is currently in progress and made possible through funding by an OWRD grant. Costs unknown.
• Bend Diversion Fish Screen Project -‐ Replace two rotary fish screens with fisheries compliant
fish screens. The project is needed to meet current screening approach velocity and screen size requirements. This project was studied in 2003 with recommendations provided by the USBR. The project cost, based on USBR estimates, is $3 million. The District is looking for applicable grant funding to pursue.
• Hydro Development Plan -‐ The district has identified 8 potential in-‐conduit hydropower
generation sites (with the exception of Haystack Reservoir) with the potential to generate nearly 13 MW of power project with an average site cost of $3.5 million (all combined it is a $30 million). A feasibility study to further define identified opportunities and potential new opportunities is currently underway. These projects will also contribute to conservation as portions of the projects will be piped. The district is looking for incentives/grants/loans to pursue feasible projects.
• Crooked River Pump Retrofit Project – The district would like to replace nine 450 HP pump
motors (40+ year old) with high efficiency motors with Variable Frequency Drives (VFD). Current energy costs alone to the district are $300k a year to pump 20k – 25k af of water. High Efficiency Motors with VFD could reduce costs and energy demands as much as 30% to 50% and maintains consistent river levels. VFD control estimate is $90k per motor. Pursuing VFD control to utility company funding is not available for public agencies. The district is currently looking for grants, incentive funding, and loans.
• Main Canal Radial Arm Gate and Telemetry Modernization Project -‐ Installation of radial arm
gates at 5 district structures linked to telemetry will modernize and improve existing canal structures to allow for the better management, use, efficiency and conservation of irrigation water by providing for real-‐time adjustments to meet changing demand conditions. The project will cost $200k per site.
• Haystack Reservoir/Main Canal Ramp Flume Project-‐ The district would like to pursue
construction of a ramp flume downstream of the Haystack Reservoir discharge. Installing a ramp flume at the base of Haystack Reservoir will modernize our system of measurement allowing water conservation of approximately 3600-‐acre feet annually. The flume will cost $150k and the SCADA cost is $30k.
• Lateral 58 Lining/Piping (Portion) – The District would like to line or pipe a portion (approx.
1200’) of Lateral 58 where significant seepage occurs. Estimated costs will be $300 – $500k depending on application. Public benefits include: public safety, conservation, and operational efficiency. The conserved water will be stored to supplement the district’s supply during dry years and/or could contribute to the basin water bank and/or in-‐stream program.
• Bend Headworks Automation Project -‐ The current float type controller system has been in use
since 1942. This system is also responsible for maintaining flows in the Deschutes River during the irrigation season. Installing SCADA with the Programmable Logic Controller will modernize their measurement and control system. Estimated cost is $50k. Applied for USBR funding.
• Water System Optimization Study – The district is pursuing a system optimization study for conversion of open ditch to piped facilities. The results of the study will provide for prioritization of piping projects within the district based on hydraulic computer modeling and data analysis identifying the projects that provide the most gain. This study will also identify optimum piping sizes and delivery locations. The estimated cost is $40k-‐$60k.
• Irrigation System Efficiency Review and Benchmarking – The district would like to do a study
that identifies potential for water conservation within the project, specific weaknesses in project operations, management, resources and hardware, and specific modernization actions that can be taken to improve project performance and efficiencies. The estimated cost is $15k performed by Cal Poly San Luis Obispo.
Grande Ronde Basin Wallowa Lake Dam Rehabilitation Wallowa Lake dam needs to be fixed in order to store its full permitted amount of water. For years the reservoir has been operating below full-‐pool for safety reasons. With an investment in rehabilitating the dam, the additional water that could be stored under the existing storage permit could be put to multiple beneficial uses including summer in-‐stream flow restoration in the Wallowa River and tributaries, and downstream, out-‐of-‐stream beneficial use for irrigation, perhaps as far away as the Umatilla Basin. Lostine River Water Conservation | Landowners, Local Restoration Groups, and the Bureau of Reclamation Landowners, local restoration groups (SWCD, Grande Ronde Model Watershed, others) and the Bureau of Reclamation have long been studying the potential for major irrigation facility upgrades for Lostine River irrigation. More than 8,000 acres are irrigated with Lostine River water. Yet the delivery systems for that irrigation are in varying states of disrepair and many are inefficient. Project partners estimate that a comprehensive re-‐design of Lostine River irrigation could result in major Instream benefits (10-‐35 CFS) while also providing irrigators with a more reliable, pressurized irrigation system. In addition to instream and irrigation benefits, project proponents also believe the project could have a significant micro-‐hydro component to provide ongoing community economic benefit.
Catherine Creek Managed Underground Storage Project SB 1069 funding was used to study the feasibility of using Aquifer Storage and Recovery (ASR) to store high winter and spring flows in Catherine Creek for late summer release to benefit listed Chinook salmon. In addition to obvious instream benefits, this project would also relieve pressure on local irrigators who face potential ESA liability if the listed Chinook are negatively impacted by their water use.
Hood River Basin Multiple Projects | Middle Fork Irrigation District
• Inlet Tower/Fish Passage – The District would like to install a new variable inlet tower on reservoir to provide better water temperature management with criteria fish screen and downstream trap and haul facilities with alternate outlet from reservoir (~ 8 million). Issues addressed by this project would be water quality, fish passage and protection with criteria screening.
• Piping Project – Also, the District would like to convert existing diversion to an approximately 6000 ft pipeline that would improve on farm water quality by removing glacial sediment, improving the ability of the district’s irrigators to deploy new efficient irrigation methods (micro and drip systems). Additionally, this would free up stored water in the lake for late season use to improve stream flow. Additionally, this project would make efficiency improvements in their hydropower operation. This project will cost approximately $2 million.
• Downstream Fish Passage Improvement – They would also like to pursue Clear branch dam
downstream improvements and fish trap facility by establishing trap and haul program. The Clear branch dam project will cost an estimated $1 million in consultation permitting. The district has completed fish passage feasibility studies, stream flow studies and has had many meeting with all the regulatory agencies for several years related to this and the other potential projects.
Fifteenmile Comprehensive Irrigation and Water Management Upgrades | Multiple Irrigators Irrigators in the Fifteenmile watershed are strong supporters and early adopters of many water and energy-‐saving management practices through existing USDA and OWEB funding sources. Continued investment in irrigation infrastructure, in-‐stream gauging, and diversion measurement, could help this watershed, which suffered a major steelhead kill during low flows in 2009, manage their ongoing exposure to ESA liability, while providing more efficient, higher productivity water management options. Klamath Basin Multi-‐Purpose Water Conservation Project | Klamath Irrigation District Klamath Irrigation District is seeking funding to pipe portions of open canal, replace an existing siphon and flume, and other improvement to aging infrastructure that is essential to delivering scarce water supplies. The benefits of this project include increased water conservation and efficiency, increased capacity for existing hydropower project, reduced pumping costs to the district and its water users, and improved conditions for ESA listed fish species. The district has used its own resources to fund a feasibility study and is seeking Bureau of Reclamation (BOR) WaterSMART grant funding to implement the identified projects and will need access to state matching funds. The total project cost is estimated to be $8-‐15 million and can be implemented in phases. Water Conservation & Efficiency Project | Enterprise Irrigation District The Enterprise Irrigation District is seeking funding to assist with ongoing efforts to improve water conservation and efficiency. The district has already invested $80,000 and received additional assistance from the BOR that resulted in successfully piping 90% of previously open canals but additional funding is needed to continue the piping. As part of the project the district is also seeking funding to update or replace an old pumping station, install a Variable Frequency Drives (VFD), and install updated meters for improved water measurement. The benefits of these efforts include increased water conservation, improved efficiency in water delivery, reduced electricity costs to the district and its water users, and other benefits to the local economy and community. Estimated total cost is ~$150,000-‐250,000. Owyhee Basin Water Quality & Water Conservation Project | Owyhee Irrigation District The Owyhee Irrigation District is undertaking several efforts to improve water quality and increase water conservation in the district. They have already been awarded a $300,000 BOR WaterSMART grant to complete phase I of a project that converted flood irrigation systems to a pressurized sprinkler system.
This project resulted in reducing and eliminating sediment and nitrates from returning to the Lower Owyhee River. In conjunction with this they also piped many of their canals, which led to further water conservation. For the second phase of this project, they plan on applying for an additional WaterSMART grant of $300,000, but need local or state funding to meet the matching funds requirement for the grant. The benefits of this project include increased availability of water supplies to support local food production, improved stream flows that benefit a variety of fish species, and variety of other environmental, economic, and social benefits to rural Eastern Oregon. Rogue Basin Oak Street Water Conservation Project | Talent Irrigation District As per the recently published Biological Opinion, the BOR is required to improve fish passage on Ashland Creek at the District’s Ashland Creek Diversion. The preferred design alternative is to remove the diversion dam and allow the creek to follow its natural channel to Bear Creek. The total dam removal is contingent on the District’s ability to replace the water that has historically been diverted through the diversion by water conservation through piping 4,700’ of the upper reach of the Talent Canal, called the Oak Street Water Conservation Project (OSWCP). It is estimated that the OSWCP will cost nearly $2 million. The District has already applied for $763,750 in funding through the BOR’s WaterSMART: Water and Energy Efficiency Grant and is looking for additional funding partners. Without additional funding sources, the District would be unable to proceed with the OSWCP, and Reclamation would need to pursue a much less desirable alternative for the Ashland Creek fish passage. These two components combined will restore and enhance the natural flow in the lower 3,000’ of Ashland Creek while at the same time increase the efficiency of the District’s delivery infrastructure. These are major goals of the Water for Irrigation Stream and Economy (WISE) Project, an Oregon Solutions Project, and the reason why the OSWCP is being promoted as a WISE demonstration project. Umatilla Basin Lateral Piping Project | Hermiston Irrigation District The Hermiston Irrigation District (HID) has used BOR and OWEB grants to pipe their existing open canal laterals over the last several years. Their projects consist of replacing the open canals with PVC pipelines, and requiring anyone flood irrigating to convert to a water efficient irrigation system such as sprinkler or drip irrigation. They use the grant funds to pay for the new pipe and materials while meeting the grant matching fund requirements with an in-‐kind match using the districts own labor and equipment to build the project. Being able to use an in-‐kind match is what makes these projects economically feasible for the district. The district would be interested in using other grant opportunities in the future, the projects that we do typically range between $150,000 to $200,000 depending on the size of the project, and the cost of materials. Willamette Basin Willamette Basin Reallocation Study | Oregon Water Resources Department & Army Corps of Engineers There are thirteen federal storage projects in the Upper and Middle Willamette Basin that collectively store 1.64 million acre-‐feet of water. The Army Corps of Engineers, who operates and manages these reservoirs, is required to reallocate some of the stored water to meet Endangered Species Act (ESA) instream flow obligations for listed fish species. The Willamette Basin Reallocation study will determine the appropriate amount of stored water to meet future and current fisheries, municipal, agricultural, and recreational needs. The study will take four years and an estimated $2 million to complete. The study requires that the State (WRD) provide 50% in matching funds to participate, which is approximately $1 million over the next 4 years. Additionally, improving access to built storage, including
access to federally managed water supplies, to serve a range of beneficial uses, is a recommended action of the Integrated Water Resources Strategy (Recommended Action 10B). Fish Screens/Passage Restoration | Santiam Water Control District Santiam Water Control District would like to upgrade their existing fish screens to meet more stringent criteria and also needs funding to study options for improving fish passage in the Santiam River while ensuring reliable water supply for the district’s water users. These options include rebuilding an existing diversion dam to be more efficient and fish friendly, as well as streambed restoration and other mitigation components. The district, and more importantly the water users who pay for water delivery, does not have the resources to fund these items on their own and needs access to additional funding sources to apply for and match limited federal funds. The benefits of the project would include improved fish passage and increased water efficiency and certainty for the farmers and other water users that depend on reliable water supplies.