WATER STOR AGE INVESTMENT PROGR AM

A U G U S T 2 0 1 7

P R O P O S I T I O N 1

F U N D I N G A P P L I C A T I O N

E X E C U T I V E S U M M A R Y

Proposition 1 Water Storage Investment Program Funding ApplicationLos Vaqueros Reservoir Expansion Project

3-2.1 August 2017

Executive SummaryLos Vaqueros Reservoir is an off-stream reservoir in Contra Costa County that provides water qual-ity, drought emergency supply, and non-drought emergency supply benefits to the customers of the Contra Costa Water District, as well as providing Delta fishery benefits. The Los Vaqueros Reservoir Expansion Project (LVE Project) would enlarge the existing reservoir from 160 thousand acre-feet to 275 thousand acre-feet, making it a regional facility that would provide public benefits including eco-system benefits to south-of-Delta wildlife refuges, drought and non-drought emergency water supply benefits for a large number of local agency partners, and recreation benefits, while also providing non-public benefits to regional water supply agencies, integration with state water systems to increase flexibility and efficiency of operations, and enhanced opportunities for sustainable groundwater and re-cycled water management.

The LVE Project provides a unique opportunity for increasing ecosystem benefits while improving regional coordination and operations of the state water system. CCWD has extensive recent experi-ence in successfully completing Delta infrastructure projects, and the existing Los Vaqueros system has a proven track record of delivering the types of public benefits described in this application. During the recent drought emergency, CCWD undertook pilot partnership projects with local agencies that successfully provided much-needed water from Los Vaqueros Reservoir storage to replace a portion of the agencies’ usual supplies that were not available to them in the drought. The successful completion of the pilot partnerships demonstrated CCWD’s ability

to secure regulatory approvals and navigate insti-tutional challenges, and tested the use of existing infrastructure to deliver drought emergency supply to local agency partners. Lessons learned from these pilot projects informed the development of the proposed operations of the LVE Project, to ensure that the projected benefits can be achieved. CCWD has solicited feedback from the stakeholder commu-nity and potential partners, which helped refine LVE Project operations to provide meaningful benefits without impacting other users of water. The opera-tional flexibility of the LVE Project, the cooperative regional partnership required to operate the LVE Project, and CCWD’s experience building and oper-ating the current Los Vaqueros system all contribute to the likely success of the project in providing the benefits described in this application.

3-2.1 Project Facilities and OperationsThe LVE Project is one of five surface water storage projects identified for further investigation under the comprehensive federal/state cooperative program known as the CALFED Bay-Delta Program (CAL-FED), which was designed to improve the quality and reliability of California’s water supplies while restoring the San Francisco Bay/Sacramento-San Joaquin Delta Estuary (Bay-Delta).

The two primary objectives of the Los Vaqueros Reservoir Expansion Project are (1) to develop water supplies for environmental water management and (2) to increase water supply reliability for Bay Area water providers. A secondary objective is to improve the quality of water deliveries to municipal and industrial customers in the San Francisco Bay Area without impairing the project’s ability to meet the environmental and water supply reliability objectives.

Middle River Intake and Pump Station on Victoria Canal

3-2.2

Located in southeastern Contra Costa County, Los Vaqueros Reservoir is an off-stream reservoir located in southeastern Contra Costa County that is owned and operated by the Contra Costa Water District (CCWD). It was originally constructed with a capacity of 100 thousand acre-feet (TAF) in 1997 and was expanded to 160 TAF in 2012. CCWD operates Los Vaqueros Reservoir as an integrated system with: the Contra Costa Canal and Rock Slough Intake, which were completed as part of the Central Valley Project (CVP) in 1948; the Old River Intake and Pump Station, which CCWD built as part of the original Los Vaqueros Reservoir Project; and the Middle River Intake and Pump Station at Victoria Canal, which CCWD built in 2009. These facilities are operated to balance delivered water quality, water supply for droughts and emergencies, and cost considerations. CCWD also owns Los Vaque-ros Watershed, which encompasses approximately 20,000 acres surrounding Los Vaqueros Reservoir. Los Vaqueros Watershed lands are managed for water quality, conservation and recovery of special-status species and their habitats, protection of cultural resources, and recreation.

The LVE Project described in this application is the second phase of the Los Vaqueros Reservoir Expansion Project and would expand Los Vaqueros Reservoir from 160 TAF to 275 TAF storage capac-ity, upgrade existing conveyance facilities, construct new conveyance, and re-operate existing facilities, to achieve the intended objectives. The two primary objectives are (1) to develop water supplies for en-vironmental water management and (2) to increase water supply reliability for Bay Area water providers. A secondary objective is to improve the quality of water deliveries to municipal and industrial custom-ers in the San Francisco Bay Area without impairing the project’s ability to meet the environmental and water supply reliability objectives.The LVE Project would divert water from the Sacramento-San Joaquin Delta at CCWD’s Rock Slough, Old River, and Middle River Intakes, and at the Freeport Intake on the Sacramento River. The LVE Project would deliver water to agencies within CCWD’s service area, the Bay Area, the Delta, neighboring regions, and the south-of-Delta wildlife refuges. Figure 3-2.1 shows a map of the project facilities and key features of the project.

Figure 3-2.1 Key Features of the LVE Project

BETHANY RESERVOIR

SOUTH BAY AQUEDUCT

CALIFORNIA AQUEDUCT

CLIFTON COURT

FOREBAY

TRANSFER-BETHANY PIPELINE

EXPANDED LOS VAQUEROS

RESERVOIR

LOS VAQUEROS PIPELINE

CONTRA COSTA CANAL

MOKELUMNE AQUEDUCT

Brentwood

OAKLAND

Livermore

LOS VAQUEROS RESERVOIRHigh-quality water is stored in the reservoir during the wet season/wetter years, to be delivered when needed for water supply or water quality blending.

FREEPORT INTAKECurrently unused capacity at this screened intake provides additional operational flexibility to divert low salinity water from the Sacramento River.

WILDLIFE REFUGES State, federal, and local refuges in the Central Valley receive water to support vital wetlands habitat for migratory and resident waterfowl and other wildlife.

RELIABLE DRINKING WATERClear, safe drinking water is delivered to partners throughout the Bay Area, increasing supply reliability during droughts and other emergencies.

TRANSFER FACILITY

Proposition 1 Water Storage Investment Program Funding ApplicationLos Vaqueros Reservoir Expansion Project

3-2.3 August 2017

3-2.1.1 Local Agency Potential PartnersThe potential partners in the LVE Project include 10 local water agencies (Local Agency Partners) and the fourteen south-of-Delta wildlife refuge units (Refuges) in the San Joaquin Valley named in the Central Valley Project Improvement Act (CVPIA) that are managed by the U.S. Fish and Wildlife Ser-vice (USFWS), California Department of Fish and Wildlife (CDFW), and the landowners of privately owned and managed wetlands in the Grassland Re-source Conservation District (GRCD). The 10 Local Agency Partners are Alameda County Water District (ACWD), Bay Area Water Supply and Conserva-tion Agency (BAWSCA), Byron-Bethany Irrigation District (BBID), City of Brentwood (Brentwood), East Bay Municipal Utility District (EBMUD), East Contra Costa Irrigation District (ECCID), Santa Clara Val-ley Water District (SCVWD), San Francisco Public Utilities Commission (SFPUC), San Luis & Delta-Mendota Water Authority (SLDMWA), and Alameda County Flood Control and Conservation District, Zone 7 (Zone 7 Water Agency, or Zone 7). All of the Local Agency Partners are signatories to the Los Vaqueros Memorandum of Understanding (LV MOU) and are contributing funding towards project planning. Table 3-2.1 shows a summary of the Lo-cal Agency Partners and Figure 3-2.2 shows a map of the potential partners and the area potentially served by the LVE Project.

Table 3-2.1 Summary of Local Agency Partners

Potential Partner PopulationAgriculture and Grazing (acres)

Signed LV MOU

Funding Project Planning

Alameda County Water District 349,000 - P P

Bay Area Water Supply Conservation Agency 1,700,000 1,600 P P

Byron-Bethany Irrigation District 20,000 30,000 P P

Contra Costa Water District 500,000 400 P P

City of Brentwood 60,000 - P P

East Bay Municipal Utility District 1,400,000 - P P

East Contra Costa Irrigation District 90,000 21,000 P P

Santa Clara Valley Water District 2,000,000 270,000 P P

San Francisco Public Utilities Commission 2,600,000 1,600 P P

San Luis & Delta-Mendota Water Authority 2,200,000 2,100,000 P P

Zone 7 Water Agency 240,000 4,000 P P

“In 2014 we experienced a severe shortage in water supplies from the State Water Project.  The transfer of 5,000 acre-feet from Los Vaqueros through the regional partnership developed between ACWD and CCWD truly made a significant difference in our community’s water supply. This pilot project demonstrated the benefits of local storage close to home.”

Bob Shaver, General Manager Alameda County Water District

Duck Family at Wildlife Refuge

This page intentionally left blank.

3-2.4

Figure 3-2.2 Map of Potential Partners and Areas Potentially Served by LVE Project

#*

#*

#*

#*

#*#*

#*

#*

#*

Freeport

Oakland

San Francisco

Concord

CCWD-EBMUDIntertie

JonesPumping PlantBethany

Reservoir

O'Neill Forebay

San Luis Reservoir

Transfer-Bethany Pipeline

BanksPumping Plant

Mallard Slough Intake

Contra Costa Canal

Rock Slough Intake

Old River Intake

Middle River Intake

Los VaquerosReservoir

Transfer Facility

Merced National Wildlife Refuge

North Grasslands Wildlife Area - China Island Unit - Salt Slough Unit

Grassland Resource Conservation District

Mendota Wildlife Area

Volta Wildlife Area

VoltaWildlife

Area

San Luis National Wildlife Refuge Complex - San Luis Unit

- West Bear Creek Unit - East Bear Creek Unit

- Kesterson Unit - Freitas Unit

San Jose

Freeport Intake

MokelumneAqueduct

11

Pardee Reservoir

Pixley NationalWildlife Refuge

Kern National Wildlife Refuge

1

12

2

13

9

4

14

7

15

16

17

18

5

19

20

1021

22

23

2425

26

27

28

29

30

31

32

735

33

36

37

8

3

6

34

#* Wildlife Refuges

Transfer-Bethany Pipeline

EBMUD Conveyance

South Bay Aqueduct

California Aqueduct

Delta-Mendota Canal

Folsom South Canal

CCWD Conveyance

RegionalExchange_11x17_20170731c.mxd

0̄ 10 205Miles

1 ACWD2 BAWSCA3 BRENTWOOD4 CCWD5 EBMUD6 ECCID7 SFPUC8 ZONE 7

San Luis & Delta-Mendota Water Authority9 BYRON BETHANY I.D.

10 GRASSLAND W.D. 24 MERCY SPRINGS W.D.11 SANTA CLARA VALLEY W.D. 25 ORO LOMA W.D.12 BANTA-CARBONA I.D. 26 PACHECO W.D.13 BROADVIEW W.D. 27 PANOCHE W.D.14 CENTRAL CALIFORNIA I.D. 28 PATTERSON I.D.15 CITY OF TRACY 29 PLEASANT VALLEY W.D.16 COLUMBIA CANAL CO. 30 RECLAMATION DISTRICT 160617 DEL PUERTO W.D. 31 SAN BENITO CO. W.D.18 EAGLE FIELD W.D. 32 SAN LUIS W.D.19 FIREBAUGH CANAL W.D. 33 TURNER ISLAND W.D.20 FRESNO SLOUGH W.D. 34 TRANQUILLITY I.D.21 HENRY MILLER RECLAMATION DIST. 2131 35 WEST SIDE I.D.22 JAMES I.D. 36 WEST STANISLAUS I.D.23 LAGUNA W.D. 37 WESTLANDS W.D.

NOTE: Local Agency Partners are indicated in RED

This page intentionally left blank.

Proposition 1 Water Storage Investment Program Funding ApplicationLos Vaqueros Reservoir Expansion Project

3-2.5 August 2017

3-2.1.2 South of Delta Wildlife RefugesSection 3406(d) of the 1992 federal Central Val-ley Project Improvement Act (CVPIA) requires the United States Bureau of Reclamation (Reclamation) to provide firm water supplies of suitable quality to maintain and improve wetland habitat areas in the Central Valley of California. The 14 south-of-Delta wildlife refuge units (Refuges) in the San Joaquin Valley named in the CVPIA are managed by the USFWS, CDFW, and the landowners of privately owned/managed wetlands in the Grassland Re-source Conservation District (GRCD). The Refuge Water Supply Program, created to implement the CVPIA, is managed jointly by Rec-lamation and USFWS and is responsible for the acquisition of refuge water supplies of suitable quality, the construction of conveyance systems to deliver those water supplies, and the conveyance of the refuge water itself. The CVPIA specifies that the Refuge Water Supply Program is responsible for all costs associated with implementation of CVPIA Sec-tion 3406(d), except for a 25% State of California cost share of those costs associated with providing water supplies under CVPIA Section 3406(d)(2).

The CVPIA specifies two types of water, Level 2 and Incremental Level 4, for delivery to the Refuges. In general, Level 2 supply is the annual water supply received by the Refuges from Central Valley Proj-ect supplies. Incremental Level 4 supply is defined as the increment over Level 2 supply needed to provide the full quantity of water required for optimal wetlands habitat development to support migratory birds, resident birds, and wildlife in the Refuges, which is to be acquired from willing sellers or by other voluntary measures, including from CVP supplies. Full Level 2 supplies have typically been made available annually to those Refuges with suf-ficient conveyance capacity, but the full amount of Incremental Level 4 water has rarely been delivered because of supply and conveyance limitations, as well as funding limitations. The LVE Project would provide a significant portion of the needed Incremental Level 4 supplies set forth in the CVPIA to the Refuge Water Supply Program. Incremental Level 4 water would be conveyed through the proposed Transfer-Bethany Pipeline to the California Aqueduct and then to San Luis Reser-voir to be delivered to the various Refuges.

3-2.2 Integration with State Water SystemsIn 2014, the Bay Area’s largest public water agen-cies embarked on the Bay Area Regional Reliability (BARR) Partnership and agreed to work together to-ward regional solutions to improve the water supply reliability for the more than 6 million residents and thousands of businesses and industries in the area. The objective of the Bay Area Regional Reliability (BARR) Partnership is to enable Bay Area agencies to work cooperatively to address regional water sup-ply reliability concerns and drought preparedness on a mutually beneficial basis. Together ACWD, BAWSCA, CCWD, EBMUD, Marin Municipal Water District (MMWD), SFPUC, SCVWD, and Zone 7, secured a grant from Rec-lamation to develop a BARR Drought Contingency Plan. The BARR Drought Contingency Plan evalu-ates short-term response actions to drought and other emergencies as well as more permanent miti-gation actions, including such projects as intercon-nections, new supply sources, water transfers and exchanges, and other projects to advance a joint approach to regional reliability. The LVE Project and associated facilities were evaluated together with other potential future projects in the BARR Drought Contingency Plan to determine how the region may benefit and become more resilient to drought and emergencies.

“California has lost 95% of its wetlands. Wetlands recharge groundwater, filter contaminants and provide critical habitat for wildlife. California’s last remaining wetlands are found on wildlife refuges in the Central Valley and are critical to the health of the millions of migratory birds using the Pacific Flyway. Despite federal law mandating reliable water supplies to these wildlife refuges, this has only occurred twice in extremely wet years. Adequate Incremental level 4 water supplies for refuges needs to be delivered when the habitat needs it in order to maintain this critical public trust.” Ric Ortega, General Manager Director of Policy & Governmental Affairs, Grassland Water & Resource Conservation Districts

3-2.6

Los Vaqueros Reservoir Expansion is also identi-fied as a potential Resource Management Strategy and climate change adaptation measure in the 2013 San Francisco Bay Area Integrated Regional Water Management Plan.

3-2.2.1 Integration with Existing FacilitiesThe geographic location and the proposed opera-tions of the LVE Project make it ideal for integrating with the operations of Local Agency Partners, other regional water supply projects, and with the Delta operations of the State Water Project (SWP) and CVP to provide benefits and increase the flexibility of state-wide water operations. Figure 3-2.3 shows a schematic of LVE Project facilities and operations. The LVE Project would provide an additional way to store available CVP and SWP supply for Local Agency Partners and Refuges during wetter times for use at a later time. The LVE Project would also provide greater flexibility to convey water to Local Agency Partners and Refuges during times when CVP and SWP Delta export facilities are con-strained. This increased operational flexibility would be particularly useful for delivering supplies during a drought. The LVE Project would also be integrated with the Freeport Intake operations. CCWD, EBMUD, Sacramento County Water Agency (SCWA), and the Freeport Regional Water Authority have an existing agreement that allows for CCWD to divert water at the Freeport Regional Water Intake Facility and con-vey this water through EBMUD facilities and Recla-mation’s Folsom South Canal for delivery through

Figure 3-2.3 Schematic of LVE Project Facilities and Operations

CONTRA COSTA CANAL

DELTA

MOKELUMNE AQUEDUCT

LOS VAQUEROS PIPELINE

BETHANY RESERVOIR

LOS VAQUEROS RESERVOIR

CALIFORNIA AQUEDUCT

SOUTH BAY AQUEDUCT

TRANSFER FACILITY

TRANSFER-BETHANY PIPELINE

TRANSFER-BETHANY

PIPELINE

“EBMUD invested in the Freeport Regional Water Project that includes a fully screened intake on the Sacramento River. By utilizing Freeport capacity in wet and normal years it is possible to deliver water through our existing intertie with CCWD and operate in conjunction with Los Vaqueros to improve regional water supply reliability. Our Board’s Principles for Use of Freeport and for Potential Use of Los Vaqueros Facilities will provide the policy guidance we need to evaluate this type of innovative partnership.”   Alex Coate, General Manager East Bay Municipal Utility District

Proposition 1 Water Storage Investment Program Funding ApplicationLos Vaqueros Reservoir Expansion Project

3-2.7 August 2017

the EBMUD-CCWD Intertie. The use of the Freeport Intake would be expanded to allow CCWD, Local Agency Partners, and the Refuge Water Supply Program to receive water diverted from the Freeport Intake through the EBMUD-CCWD Intertie without reducing existing benefits to EBMUD or SCWA. This water could be delivered directly to Local Agency Partners or Refuges, stored in Los Vaqueros Reser-voir for later use, or delivered to CCWD in exchange for water previously stored in Los Vaqueros Reser-voir by other Local Agencies Partners.The LVE Project operations would also be integrated with the operation of SCVWD’s Silicon Valley Ad-vanced Water Purification Center, which is being ex-panded to produce water for groundwater recharge and/or direct potable reuse. The membrane technol-ogy employed at the Advanced Water Purification Center produces purified water continuously, even during wet times when local groundwater storage is at capacity and/or SWP and CVP allocations are sufficient to meet SCVWD’s treated water demands. When SCVWD has excess supplies and limited local storage, water from the Advanced Water Purification Center would be used to meet customer demands, and excess CVP and/or SWP supplies would be stored in Los Vaqueros Reservoir. The stored water would then be used by SCVWD during a drought or would be made available for use by the other Local Agency Partners and the Refuges.

3-2 2.2 Integration with Future Planned FacilitiesThe LVE Project could be integrated with future planned water projects to improve operation of the state water system. The Association of California Water Agencies commissioned a modeling study to evaluate the benefits of integrating the opera-tion of new storage projects with the existing CVP and SWP operations1. The new storage facilities evaluated included the LVE Project, Sites Reservoir, Centennial Reservoir, American River Conjunctive Use, San Luis Reservoir Enlargement, Temperance Flat Reservoir, Tulare Lake Storage and Floodwater Protection Project, and Groundwater Storage in the Kern Fan Area. When all of the proposed storage projects were modeled together and integrated with the CVP and SWP, the average carryover storage in existing upstream reservoirs (Trinity, Shasta, Oroville, and Folsom) would increase by 250 TAF and by more than 550 TAF in critical years. Such increased stor-

1 Source: https://www.acwa.com/wp-content/uploads/2017/06/2017-06-05-ACWA-Integrated-Storage-Final-Report.pdf

age levels in existing storage facilities would pro-vide multiple benefits to fishery habitat, recreation, water supply reliability, hydropower, groundwater sustainability, and more. Water stored in wetter years would be carried over to improve dry year water availability, while providing additional benefits of increased carryover storage to fisheries and other resource areas. Conjunctive water management would improve, particularly in the San Joaquin and Tulare basins.

3-2.3 Contribution to Sustainable Groundwater ManagementGRCD, SCVWD, ACWD, and Zone 7 have indicated that participating in the LVE Project would improve their local conjunctive water management and would contribute towards sustainable groundwater management in the region. Deliveries from the LVE Project could be used in lieu of groundwater pump-ing, could provide storage for surface water when groundwater storage is high, or could enhance groundwater recharge after a major drought when groundwater basins are in need of replenishment.

3-2.4 Project ExpansionThe original 100 TAF Los Vaqueros Reservoir was built in 1997 and expanded to 160 TAF in 2012. The current proposed expansion to 275 TAF is expected to be the final phase of reservoir construction.

3-2.5 LVE Project BenefitsThe LVE Project would provide public benefits as defined in Water Code Section 79753(a), including ecosystem improvements, emergency response, and recreation. The LVE Project would also provide non-public benefits including municipal and industri-al water supply reliability, agricultural supply reliabil-ity, and water quality benefits.

3-2.5.1 Ecosystem ImprovementsThe primary ecosystem improvement benefit of the LVE Project would be increased Incremental Level 4 water deliveries to south-of-Delta Central Valley wildlife refuges (Refuges). The Refuges are the few remaining sizable wetland habitats in the Central Valley that provide habitat and food for migratory birds of the Pacific Flyway and resident bird species, as well as many terrestrial wildlife species. The Refuges typically receive the minimum supplies required to sustain wildlife, but they have

3-2.8

not typically been served the additional quantity of water (Incremental Level 4) required for optimal wetlands habitat development to support migratory birds, resident birds, and wildlife in the Refuges. The LVE Project would provide an ecosystem benefit by delivering Incremental Level 4 water to the south-of-Delta Refuges; an average of 46 TAF/year is delivered in the 2030 scenario and 42 TAF/year is delivered in the 2070 scenario. Additional ecosystem benefits for salmonids would be achieved by implementing physical improve-ments at the Rock Slough Fish Screen Facility and expanding an aquatic weed management program in Rock Slough, where salmonids are found from October through May of most years. The 2017 NMFS Rock Slough Biological Opinion has deter-mined that the proposed changes to the fish screen would reduce entrapment of juvenile salmonids. Diversions at the Rock Slough Intake are a critical component of the LVE Project; reducing entrap-ment at the fish screen and improving the habitat in Rock Slough will improve the ecosystem locally and ensure the project can deliver benefits to others. It is estimated that up to 33 fall-run chinook, two spring-run chinook, and six steelhead may benefit annually.

3-2.5.2 Emergency ResponseThe LVE Project would provide emergency re-sponse benefits for both non-drought and drought emergencies. During a non-drought emergency, such as a flood or earthquake that reduces or interrupts Delta water supply, or when conveyance of water supply through the Delta is interrupted or reduced by Delta levee failures, or when Delta water quality is degraded so that it is unfit for human consumption by toxic spills or extreme seawater intrusion, the LVE Project would deliver high quality water to Local Agency Partners. In such cases, the additional water storage available in Los Vaqueros Reservoir, the physical interconnections among the Local Agency Partners, and the operational inte-

gration provided by the LVE Project would help to mitigate the impacts of the emergency. During de-clared drought emergencies, the LVE Project would provide an emergency response benefit by deliver-ing water supplies to Local Agency Partners when their usual sources of supply are unavailable. The LVE Project would provide emergency re-sponse benefits by increasing the amount of water stored in Los Vaqueros Reservoir that could be used in response to an emergency by 160 TAF for the 2030 conditions and 156 TAF for the 2070 conditions. These volumes represent the long-term average storage that could be made available in the event of an emergency. Based on guidance provided in the Technical Reference Document, the non-drought emergency benefits were realized and monetized twice in the 100-year life of the project. The LVE Project would also provide an emergency response benefit during drought emergencies by de-livering water supplies of 36 TAF/year for the 2030 scenario and 42 TAF/year for the 2070 scenario to Local Agency Partners.

3-2.5.3 RecreationThe LVE Project would enhance recreation facilities and opportunities in Los Vaqueros Watershed. A new Marina Complex would replace the existing Ma-rina Complex upslope of the existing facilities at the southern end of Los Vaqueros Reservoir and would include expanded facilities for fishing, concessions, and education. The existing Los Vaqueros Interpre-tive Center would be remodeled to be more energy efficient and enlarged within the existing developed location just north of the dam adjacent to Kellogg Creek. The existing old barn near the Los Vaqueros Watershed Office would upgraded, and interpretive features to complement the existing outdoor educa-tion program would be added. A new 0.5-mile ADA accessible interpretive trail would be built in the vicin-ity of wetlands in the Los Vaqueros Watershed.

Recreational fishing at Los Vaqueros Reservoir

Fish screen at Rock Slough Intake

Proposition 1 Water Storage Investment Program Funding ApplicationLos Vaqueros Reservoir Expansion Project

3-2.9 August 2017

3-2.5.4 Non-Public BenefitsWater Supply ReliabilityThe LVE Project would provide a water supply reli-ability benefit by providing new means of storing and conveying existing water supplies for some Lo-cal Agency Partners and by providing new sources of water to some Local Agency Partners. Supple-mental water supplies would be delivered to Local Agency Partners outside of the drought emergency periods depending on the specified needs of each individual agency. Deliveries to ACWD, EBMUD, and SCVWD outside of the drought emergency periods would help those agencies recover from droughts and are considered part of their drought management. Other agencies such as SFPUC and Zone 7 have indicated a need for reliable every-year water supplies. The LVE Project would provide a water supply reliability benefit by delivering 31 TAF/year on average to Local Agency Partners outside times of drought emergency for the 2030 scenario and 29 TAF/year for the 2070 scenario.

Water QualityThe LVE Project would improve water quality by reducing the salinity of water delivered to customers and ultimately the quality of water that is discharged to the Delta as treated wastewater. Brentwood relies on diversions from the Delta and local groundwa-ter for water supply and has identified a need for a source of water quality blending water, in order to continue to meet its National Pollutant Discharge Elimination System (NPDES) permit requirements for salinity in its treated wastewater effluent. Water from the LVE Project would replace a portion of their more saline water supplies and would reduce the total salinity in the water delivered and ultimately discharged. The LVE Project would improve water quality by reducing the salinity of water delivered to the City of Brentwood by up to 28 mg/L chlorides in the 2030 scenario and 26 mg/L chlorides in the 2070 scenario.In some years, supplies from San Luis Reservoir are constrained due to algae blooms that occur at the same elevation as SCVWD’s intakes at San Luis Reservoir (“low point”) and impede the ability treat the water and/or use the water for groundwater recharge. The LVE Project would offer agencies that rely on San Luis Reservoir an alternative point of diversion and another conveyance route that would help agencies manage the San Luis Reservoir low point issue. The LVE Project would improve the flexibility of water management, and water quality delivered to SCVWD during low point conditions would improve.

“Central Valley Project deliveries to our District have become increasingly unreliable.  The idea of being able to store water in Los Vaqueros and then, with the planned additional infrastructure, to move the water directly to our customers without going through the state or federal export pumps is very attractive to us.  The project would provide additional operational flexibility for Central Valley Project contractors located south of the Delta.” Lon Martin, General Manager San Luis Water District Member Agency of San Luis & Delta-Mendota Water Authority

Agricultural The LVE Project would help to ensure water supply reliability for both in-Delta and south-of-Delta CVP agricultural water agencies. BBID serves agricul-tural needs as well as the needs of municipal and industrial customers, and would use water stored in Los Vaqueros Reservoir to help to meet minimum delivery requirements in dry years when their usual sources of supply are unavailable. ECCID has identified a need for water from the LVE Project to ensure that water delivered to their customers would not exceed their salinity threshold for maintaining optimal agricultural conditions. The LVE Project would serve BBID and ECCID an average of 1 TAF/year and 0.2 TAF/year respectively. SLDMWA would receive approximately 1 TAF/year that would be made available through coordinating the opera-tions of the LVE Project with the CVP and SWP export facilities in the south Delta. SLDMWA has also indicated an interest in using the LVE Project to store and convey water transfers from willing sellers north of the Delta. Based on modeling of the unused capacity of the LVE facilities and an assumption that 20% of the unused capacity would be used to trans-fer water, it is estimated that at least 8 TAF/year on average could be transferred to SLDMWA through the LVE Project. The LVE Project would provide an agricultural water supply reliability benefit of ap-proximately 10 TAF/year in total.

3-2.10

Table 3-2.2 shows a summary of the magnitude benefits of the LVE Project. Section 6-4 of the appli-cation contains additional information on the quanti-fication of net physical benefits.

Physical Benefit (year 2030) Physical Benefit (year 2070)Ecosystem Improvement Benefit: Refuge Supply (Public) 46 TAF/yr 42 TAF/yrEmergency Response: Non- Drought Emergency (Public ) 160 TAF 156 TAFEmergency Response: Drought Emergency (Public) 361 TAF/yr 423 TAF/yr

Ecosystem Improvement Benefit: Delta Salmonid Survival (Public)

Rock Slough Fish Screen cleaning improvements will reduce the risk of entrapment. Fall-run chinook, spring-run chinook, and steelhead are expected to benefit.

Recreation – Public Benefit New marina, expanded interpretive center, upgraded interpre-tive facilities, new trail

M&I Water Supply Reliability 312 TAF/yr 294 TAF/yrAgricultural Supply 10 TAF/yr 10 TAF/yrM&I Water Quality Improvement Up to 28 mg/L Cl- Up to 26 mg/L Cl-Notes: (1) Deliveries shown for emergency drought periods (14 out of 82 years). Long-term average is 6 TAF/yr. (2) Deliveries shown for all years outside of drought emergencies (68 out of 82 years). Long-term average is 25 TAF/yr. (3) Deliveries shown for emergency drought periods (14 out of 82 years). Long-term average is 7 TAF/yr. (4) Deliveries shown for all years outside of drought emergencies (68 out of 82 years). Long-term average is 24 TAF/yr.

Table 3-2.2 Magnitude of the Physical Benefits of the LVE Project

Osprey at Los Vaqueros Watershed

Waterfowl and shorebirds that rely on south-of-Delta refuges help support robust populations of resident and migratory birds in the Delta and its tributaries. Central Valley wetlands produce an average of 566 pounds of plant seeds per acre, but with adequate water a refuge can produce much more food for wildlife. Incremental Level 4 water is used to irrigate and grow moist-soil plants like watergrass and swamp timothy. Irrigation doubles the production of plant seeds that birds rely on for food. Two acre-feet of water are needed to irrigate one acre of wetland habitat. CVJV (2006)1, Naylor et al. (2002)2, Cal. Dept. of Fish and Game (1995)3, Ortega (2017)4.

1Central Valley Joint Venture. 2006 Implementation Plan, 2006.

2Naylor, L. W., Eadie, J. M., Smith, W.D., and Eicholz, M. Evaluating the Effect of Management of Moist-Soil Seed Production in Central Valley Wetlands, 2002.

3California Department of Fish and Game, California Waterfowl Association. A Guide to Wetland Habitat Management in the Central Valley, 1995.

4Ortega, Ric. Personal Communication, August 9, 2017.

Proposition 1 Water Storage Investment Program Funding ApplicationLos Vaqueros Reservoir Expansion Project

3-2.11 August 2017

3-2.6 Economic Value of LVE Project BenefitsMost of the LVE Project benefits were monetized using an alternative cost methodology consistent with the guidance provided in the Water Storage In-vestment Program Technical Reference Document. For several benefits, such as salmonid protection and M&I water quality benefits, the avoided cost was used. To estimate the value of the recreation, a visitor-day model was used. Table 3-2.3 shows a summary of the methods used to value the benefits of the LVE Project and the net present value of the benefits.

Table 3-2.3 Valuation Methods and Net Present Value of LVE Project Benefits

Benefit Category Valuation MethodNet Present Value (Millions of Dollars)

Ecosystem Improvement Benefit: Refuge Supply (Public)

Alternative cost of purchasing transfer water for the San Joaquin Valley refuges across all water year types. $1,004

Emergency Response: Non- Drought Emergency (Public )

Willingness to pay to avoid water shortages in the Bay Area. $246

Emergency Response: Drought Emergency (Public)

Alternative cost of purchasing transfer water to the Bay Area during “critical” water year type. $241

Ecosystem Improvement Benefit: Delta Salmonid Survival (Public) Avoided cost of entrapping salmon and steelhead. $29Recreation – (Public) Modeled value based on visitation days. $34

M&I Water Supply Alternative cost of purchasing transfer water to the Bay Area during wet through dry water year types. $875

Agricultural Supply

Alternative cost of purchasing and delivering transfer water to south of Delta Agriculture (CVP contractors) in all water year types. $255

Water Quality Improvement

Avoided cost of treatment upgrades for City of Brentwood and avoided cost of releasing water from Los Vaqueros Reservoir for CCWD. $34

Total $2,719

The value of the costs and benefits were applied over the 100 year life of the LVE Project, beginning in 2022 and ending in 2122. The value of the costs and benefits are expressed in constant 2015 dollars for each year of the planning horizon by assuming a 3.5% discount rate consistent with the CWC require-ments. The net present value of the public benefits pro-vided by the LVE Project is $1,554M for ecosystem improvements, emergency response, and recreation benefits; the net present value of the non-public

benefits is $1,164M for M&I water supply, agricul-tural water supply, and water quality benefits. The total net present value of all LVE Project benefits is $2,719M. Figure 3-2.4 shows the magnitude and percentage of the LVE Project benefits.

Figure 3-2.4 Net Present Value of Public and Non-Public Benefits (Millions of Dollars)

Total Non-Public Benefits

$1,164 , 43%

Ecosystem$1,033 , 38%

Recreation$34 , 1%

Emergency Response

$487 , 18%

Column1

Total Non-Public Benefits Ecosystem Recreation Emergency Response

3-2.12

Table 3-2.5 Cost Benefit Analysis for the LVE Project

3-2.8 Cost Effectiveness & Public Benefit Ratio Proposition 1 requires that the California Water Commission fund public benefits associated with water storage projects that improve the operation of the state water system, are cost effective, and provide a net improvement in ecosystem and water quality conditions. The cost effectiveness of the LVE Project can be evaluated by the benefit cost ratio of the total project, and the return for public invest-ment can be evaluated by the public benefit ratio as defined in the regulations. The net present value of the capital cost for the LVE Project is $795M and the net present value of the total project cost is $1,327M. The net present value of the LVE Project benefits is $2,719M. The ratio of the net present value of total benefits to total costs is 2.05; the LVE Project is cost effective as the ben-efits exceed the costs. The present value of the public benefits of the LVE Project is $1,554M. The public benefit ratio, or the ratio of the present value of the public benefit to the requested state share of the capital costs, is 3.58; the LVE Project is cost effective for achieving the intended public benefits.

Table 3-2.4 Net Present Value of LVE Project Costs (Millions of Dollars)

3-2.7 Cost of LVE ProjectThe net present value of the capital cost for the LVE Project, as defined in the regulations, is estimated to be $795M. Additional costs for the LVE Project include interest during construction, replacement costs, future monitoring costs, operation and mainte-nance of new facilities, and energy costs for pump-ing. The total net present value of the cost of the LVE Project is estimated to be $1,327M. Table 3-2.4 contains a summary of the project cost elements.

Capital costs as defined in Program regulations $795

Interest during construction $119

Replacement costs $170

Future monitoring costs $5

Operations, maintenance costs $30

Energy for pumping $209

Present Value of Total Project Costs $1,327

The LVE Project is seeking $397.5M in capital costs from the Water Storage Investment Program, 50 percent of the total $795M LVE Project capital costs. Because delivering the public benefits requires use of existing facilities, the LVE Project is also seeking additional funding for the capital costs associated with the re-operation of CCWD’s existing facilities that provide the public benefits. CCWD’s existing facilities that would be re-operated to provide public benefits include: a portion of the 160-TAF dam raise, the Los Vaqueros Pipeline, the Transfer-Los Vaqueros Pipeline, the Old River Intake, the Old River pipeline, a portion of the Middle River Intake, and the existing Transfer Facility. The total capital cost of re-operating CCWD’s existing facilities to provide the public benefits is estimated to be $73M; the LVE Project seeks 50% of this for an additional $36.5M, bringing the requested state cost share to $434M. The 3.58 public benefit ratio of the LVE Project is based upon this total request from the program, making the LVE Project cost effective for providing public benefits. Table 3-2.5 shows a sum-mary of the cost benefit analysis for the LVE Project.

Present Value of Total Project Costs $1,327

Present Value of Total Project Benefits $2,709Ratio of Present Value of Total Benefits to the Total Project Costs 2.05

Present Value of Public Benefits $1,554

Total Capital Costs $795

Percent of new capital cost requested 50%

Subtotal $397.5Capital cost of re-operating existing facilities to provide ecosystem benefits $73

Percent of capital cost of re-operating existing facilities requested 50%

Subtotal $36.5

Total Requested Program Cost Share $434Public Benefit Ratio: Ratio of Present

Value of Public Benefits to the Total Requested Program Cost Share

3.58

Proposition 1 Water Storage Investment Program Funding ApplicationLos Vaqueros Reservoir Expansion Project

3-2.13 August 2017

Bobcats at Los Vaqueros Watershed

1United States Fish and Wildlife Service, Revised Draft Recovery Plan for the Giant Garter Snake (Thamnophis gigas), 2015. 2Hanson, E.C., E-mail to Ricardo Ortega re: GGS impacts through the drought, 2017.

Duck at Central Valley Wildlife Refuge

“The proposed Los Vaqueros Expansion Project would provide a significant enhancement of CVPIA Incremental Level 4 deliveries, averaging 46,000 acre-feet annually. This water, typically used for the seasonal irrigation of wetland plants and to support water-bird habitat during the winter, is especially critical south of the Delta, where water supplies are scarce. I believe the refuge water supply benefits from the proposed expansion could make a tremendous difference for critical wetland habitats, and I support the CWC funding those benefits.” George Miller Member of Congress, Retired Lead Author of the Central Valley Project Improvement Act (CVPIA)

Environmental Organizations that Signed Letters of Support for Funding Wildlife Refuge Benefits Proposed in the LVE Project Funding Application Audubon California California Waterfowl Association Defenders of Wildlife Planning and Conservation League Point Blue Conservation Science Restore Hetch Hetchy The Nature Conservancy For complete list of parties that have issued support letters to date see www.ccwater.com/lvstudies

For more information on the Funding Application and the Draft Supplement to the Final EIS/EIR Call: Marguerite Patil, CCWD (925) 688-8018 Website: www.ccwater.com/lvstudies

3-2.14

Merced Wildlife Refuge

Students at the Los Vaqueros Interpretive Center

Birds aren’t the only species whose reproduction in south-of-Delta refuges affects wildlife populations in the Delta. The giant garter snake (Thamnophis gigas) makes its home in Central Valley wetlands and is listed as a threatened species. The draft federal recovery plan for the snake emphasizes protection, enhancement, and physical connections among remaining populations in the Delta, San Joaquin Valley, and other tributaries. The Grasslands Ecological Area (GEA) contains half of the genetic diversity of the giant garter snake in the western San Joaquin Valley. A lack of water supply in recent years reduced snake populations in the GEA, and threatened their likelihood of survival. Water provided by this project will increase habitat for the giant garter snake and aid their future recovery in the Delta and its tributaries. USFWS (2015)1, Hansen (2017)2.

1United States Fish and Wildlife Service, Revised Draft Recovery Plan for the Giant Garter Snake (Thamnophis gigas), 2015. 2Hanson, E.C., E-mail to Ricardo Ortega re: GGS impacts through the drought, 2017.

Refuges contain managed wetlands that serve as nature’s filter for water that makes its way to the Delta. This project will provide irrigations to grow wetland plants, which in turn will improve water quality by trapping sediment, nutrients (from fertilizers), and other pollutants. Refuges also help regulate floodwater that would otherwise threaten Delta infrastructure. Last winter the south-of-Delta Refuges diverted, held, and beneficially used thousands of acre-feet of floodwater from the San Joaquin River and its tributaries during upstream flood releases. EPA (2006)1, Ortega (2017)2.

1U.S. Environmental Protection Agency, Economic Benefits of Wetlands, 2006. 2Ric Ortega, Personal Communication, August 9, 2017.

Proposition 1 Water Storage Investment Program Funding ApplicationLos Vaqueros Reservoir Expansion Project

3-2.15

Public Draft

Federal

Feasibility

Report

Final Supplement

to

Final

EIS/EIR

& Final

Federal

Feasibility

Report

Preliminary CWC

eligibility

and

funding

decision

Execute local

agency

funding

agreement

to

complete

planning

Select design

engineer ︵s ︶

Amend local

agency

funding

agreement

to

complete

design

Design & Construction

Docs:

TB

Pipeline/Transfer

Stn/Neroly

PS

Design & Construction

Docs:

275

TAF

Dam/Delta-Transfer

Pipeline

Secure permits

Authorize execution

of

implementation/monitoring

agreements

& permits

JPA and

CWC

execute

implementation

agreement

Authorize construction

contract

for

Transfer-Bethany

Pipeline

Contractor Notice

to

Proceed:

Bid

Package

1

Construct Transfer-Bethany

Pipeline

Construct Transfer

Facility

Upgrades

Construct Neroly

Pump

Station

Authorize construction

contract

for

275

TAF

Dam

Contractor Notice

to

Proceed:

Bid

Package

2

Reservoir drawdown

Construct 275

TAF

Dam

Raise

Construct Delta-Transfer

Pipeline

Construct Recreation

Facilities

01/18

11/18

06/18

08/18

12/18

01/19

06/19

04/20

06/20

01/21

06/21

02/22

6/23

02/24

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Figure 3-2.4 LVE Project Major Milestone Schedule

Joint Powers Authority (JPA) Formation

Figure 3-2.5 LVE Project Major Milestone Schedule3-2.9 ScheduleIf the LVE Project is selected by the California Water Commission for funding, construction of the major LVE facilities is expected to begin in 2022, starting with the Transfer-Bethany Pipeline, Transfer Facility upgrades, and the Neroly High-Lift Pump station. Construction of these facilities is expected to occur simultaneously over a period of 2 years. Once the construction of the Transfer-Bethany Pipeline and other facilities is completed, it will be possible to deliver benefits to most of the Local Agency Part-ners and Refuges. The reservoir drawdown required for dam construction would occur after the Transfer-Bethany Pipeline is completed and would take approximately six months. The dam raise may begin as early as 2024 and would take approximately 3 years to complete. During construction, CCWD’s operations would be atypical, and deliveries to partners would vary depending on conditions. After the dam raise is completed, operations would also be atypical while Los Vaqueros Reservoir is refilled. The refill of Los Vaqueros Reservoir is estimated to be complete by 2029, after which time the full quan-tity of benefits modeled would be available. Figure 3-2.5 shows the schedule for the major milestones.