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CVP IMPROVEMENT ACT
IMPLEMENTATION

Revised March 1999

Westlands' Position Statement

The Central Valley Project Improvement Act (CVPIA) is an ambiguous federal law that has resulted in major changes in the federal CVP water delivery system to the detriment of agricultural water users on the west side of the San Joaquin Valley. Since its implementation, Westlands has joined with other federal water contractors to support a more balanced approach to water supply operations and environmental protection in the CVPIA through the administrative and legislative arenas.

Westlands also is involved in the CALFED Bay-Delta Program's effort to develop a long-term solution to problems in the Sacramento-San Joaquin Delta estuary. How does the CVPIA fit into this effort? There are many common areas to the two processes that should be recognized.

Issue Summary

The CVPIA, signed into law in 1992, called for major changes in the operation of the CVP water delivery system and resulted in the annual reallocation of over one million acre-feet of water from human use to environmental purposes. The CVPIA established an annual environmental restoration fund ($30-$60 million) funded primarily by CVP water and power customers.

Although the CVPIA became law in 1992, the final rules and regulations for implementing the Act have not yet been released. The draft Programmatic Environmental Impact Statement on the Act was finally released in November, 1997, and is currently under public review. Yet, even without the rules and regulations, provisions in the Act are being implemented by the Department of the Interior. Clear direction for this ambiguous, far-reaching law is needed for those agencies that must administer the law and for those water districts that must abide by it.

For the last six years, CVP water users have been paying into an environmental restoration fund established by the CVPIA. This fund--at over $165-million-- is to be used for environmental improvements in the Sacramento-San Joaquin Delta ecosystem. To date, the only significant "hardware fix" has been a $70-million temperature control device at Shasta Reservoir. Water users are paying for fixes yet few, if any, have been done.

Westlands' Impacts

As a federal water contractor in Fresno and Kings counties, Westlands has been adversely impacted by the CVPIA provisions, including CVP water supply reductions of up to 50 percent. We also experience ongoing operational and financial uncertainties. The reduction in water supply over time will lead to extensive fallowing of productive farmland, resulting in lost jobs and reduced economic activity in the San Joaquin Valley. The long-term outlook for reduced water deliveries under the CVPIA has led to a sharp decline in farmland values and assessed valuation that will result in decreased tax revenues for Fresno and Kings counties.

Current Status

In the 104th Congress, the Central Valley Project Reform Act (H.R. 1906) was introduced by a bipartisan group of California representatives, including Reps. Cal Dooley, George Radanovich, Gary Condit, Vic Fazio, Wally Herger, Richard Pombo and Bill Thomas. The legislation was approved by the Water and Power Subcommittee of the House Resources Committee, but never made it to the House floor. No action was taken in the Senate.

Efforts to administratively address some concerns with the CVPIA through the "Garamendi process" have fallen short. This effort was slow and laborious, with few results, if any.

Last year, the House Resources Committee held oversight hearings on CVPIA implementation by the Department of the Interior. Additional oversight hearings by Congress are expected in 1999.

Talking Points for Westlands' Position

Westlands urges oversight hearings on the CVPIA implementation process. There are many questions on the CVPIA and few answers. What is the CVPIA's role in the CALFED Bay-Delta Program's search for long-term fixes to Delta water quality and supply reliability problems? What true benefits have come from restoration fund expenditures? Has the CVPIA produced any fishery benefits? Where has the 800,000 acre-feet earmarked for environmental purposes been used? How will the disproportionate impacts on the CVP community be addressed?

Westlands supports efforts to address these questions, as well as addressing the following issues of specific interest to District farmers:

  • Provide for successive renewal of a 25-year contract after necessary environmental review with a right to interim renewal until approval of a long-term 25-year contract;

  • Remove the 67-33 percent split in the Restoration Fund for environmental improvements, and direct the Secretary of the Interior to use funds for projects that will help achieve water quality standards in the Bay-Delta estuary;

  • Bring the goal of doubling anadromous fish populations-- primarily salmon--in line with the state's established goal;

  • Allow the 800,000 acre-feet earmarked for environmental purposes to be credited to meeting the requirements of the Bay-Delta Water Quality Control Plan pursuant to the Bay-Delta Accord of Dec. 15, 1994; and

  • Provide more reasonable use of Trinity River waters, including consideration of economic impacts from increasing Trinity flows while providing alternative sources of water to replace a loss of CVP water from any increased flows.

  • Eliminate the implementation of the binding agreement restoration fund collection.