BOARD00445

• Board Meeting Date: 5/19/2003
• Description: WSP Section - Colorado River Issues - California QSA
• Board Meetings - Doc Type: Memo

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Agenda Item 25 - California QSA
May 19.20,2003 Board Meeting
Page3of5

o State grants $200 million in Proposition 50 funds to MWD & SDCW A for eligible non-
QSA water management practices, state legislation introduced for fully protected species
and appropriation of Proposition 50 funds.
o $ I 50 million in loan guarantees to cover IID\Grower stranded costs if early termination,
may also be used to cover unexpected environmental costs above $243 million.
o $43 million in local funds still available,
o $50 million in State Proposition 50 funds for activities unrelated to QSA commitments &
for Salton Sea restoration.
· Agencies to produce HCP\NCCP by end of2005, plan to seek coverage for up to 93 species,
o Likelihood of unexpected environmental costs causing termination substantially reduced.
o Estimated environmental costs are $ I 74 million over 45 years,
· Grower sign-ups for at least 130 TAF ofthe 300 TAF IID conservation commitments by July
2003.
· Settlement and dismissal ofIID v, US concurrent with QSA effective date (Hearing currently set
for March 18, 2003 in US. District Court in San Diego).
· Reinstatement ofISG and Inadvertent Overrun Program concurrent with QSA effective date,
· Resolution of2001 and 2002 overruns concurrent with QSA effective date,
· Environmental & Regulatory Compliance
o EIRs approved for QSA, IID\SDCW A transfer, CV water management plan, &
PVID\MWD Program (CEQA challenges filed against SWRCB relating to transfer EIR),
o EIS for SIA and EIS for IID\SDCW A transfer (including Section 7 consultation) RODs
pending.
o State "take" permit to follow legislation,
o HCP\NCCP development.
o All-American & Coachella Canal lining project EIR\Ss approved & RODs signed,
o SWRCB order - required mitigation measures, including I 5-year no material increase in
projected Salton Sea salinity ($50 million of the $200 million from local agencies JPA to
offset Salton Sea salinity impacts),
· Next step is to develop a process to move to closure with DOl, QSA is contingent on DOl
reversing the cuts made January 1, 2003.

Basin States Review:

On April 16, 2003 the States held a technical review to determine whether or not the revised QSA
was consistent with the earlier QSA and the December 2000 FEIS. The changes to the IID\SDCW A
water delivery schedule resulted in corresponding changes to the model runs. The model runs
indicated that the California Ag uses appear to fail to meet the ISG target limitation in 2009 and
2012, although the goal for 2017 and beyond appears to be achieved, The likely reason is that the
dry year contracts with PVID, which will provide approximately 100,000 AF on average, were not
included, These agreements are now done and the Southern Nevada Water Authority is making new
model runs, which should show that the ISG targets are achieved and that there is no technical
difference between the previous QSA and the 2003 QSA

In addition, staff has been reviewing the QSA and some of the major agreements and would note the
following:

Flood Protection. Water Project Planning and Financing. Stream and Lake Protection
Water Supply Protection. Conservation Planning