UPDATE: The hearing was once again postponed …
The Joint Legislative Budget Committee will hold a hearing on the State Water Project Contract Extension tomorrow (Thursday) morning at 8am. Water Code Section 147.5 requires an informational hearing with the legislature at least 60 days prior to final approval of any contract extension. With the final recess for the legislature coming on Friday, the next opportunity for the required hearing would be in January, 2019.
The process has been underway since 2013, with the Department of Water Resources holding 23 negotiation sessions over a one year period that resulted in a set of Agreements In Principle for the contract extension which was signed by 25 of the 29 contractors. The Agreements in Principle provides for the extension of the expiration dates on all contracts to December 31, 2085; makes changes to billing procedures, reserves and other financial changes; and establishes a finance committee of both DWR staff and contractors. An Environmental Impact Report was then prepared from the Agreements In Principle and released on August 17, 2016. The draft EIR determined that the extension amendment to the contracts would not result in any physical environmental impacts since it addresses only the financial provisions of the contract.
The Planning and Conservation League, the Sierra Club, Restore the Delta, California Sportfishing Protection Alliance and other interest groups following the negotiations have submitted a letter, alleging among other things, that the AIP does not mention new proposed amendment changes that would enlarge the water selling market and are likely designed to fund Kern County and other agricultural users’ participation in Cal Water Fix; they allege these changes could cause substantial impacts from transfers, exchanges and sales of water both to the environment and downstream users. An updated environmental impact analysis is legally required for the substantive changes contemplated under the present contract amendment negotiations, they say. (Read the full text of letter by clicking here).
FOR MORE INFORMATION …
- Click here for the agenda and background paper.
- Director Nemeth’s letter, the Proposed Contract Extension Amendment and the other related documents are posted on DWR’s Contract Extension website.
- Click here for Restore the Delta’s press release from earlier today.
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