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<br />002~d <br /> <br />. <br /> <br />. <br /> <br />reclamation aiternatives; and (8) Releases the liability of the ImperialIrrigation District for effects to <br />the Salton Sea or bordering areas related to implementation of water conservation measures related to <br />the QSA. <br /> <br />On April 29, 2003, DWR Director Tom Hannigan sent a letter to California Senator Mike <br />Machado requesting his support of SB 117. Director Hannigan identified the critical reasons for <br />ensuring passage ofSB 117, including facilitation of the QSA process, providing the $200 million for <br />QSA implementation. This appropriation of$200 million substantially reduces the early termination <br />of the QSA. Mr. Hannigan's letter also emphasized that the $50 million in funding through passage <br />of SB 317 for Salton Sea-related environmental restoration activities remains available as does $43 <br />million being provided by the local water agencies for environmental mitigation at the Salton Sea. A <br />copy of Director Hannigan's letter to Senator Machado is included in the Board folder. <br /> <br />State Senate Commiltee Hearing on QSA, April 29. 2003 <br /> <br />On April 29, 2003, a hearing was held in Sacramento, California on the proposed Quantification <br />Settlement Agreement. At the hearing, Resources Secretary Nichols and DWR Director Hannigan <br />provided an overview of the QSA. General Managers from several Colorado River agencies also <br />provided testimony, including Messrs. Gastelum, Silva, Robbins, and Ms. Stapleton. The Agencies <br />provided a perspective of the effect of the QSA on southern California water agencies. <br /> <br />Secretary Nichols' testimony emphasized the progress being made in the QSA process, and the <br />need to finalize the deal in a timely fashion. Secretary Nichols highlighted the benefits ofthe new QSA <br />package and the reduction of risk of early termination. This risk reduction was achieved through the <br />proposed appropriation of $200 million of Proposition 50 funds to support QSA implementation and <br />an additional $150 million loan guarantee from the California Infrastructure and Economic <br />Development Bank to cover lID's and individual grower's stranded costs. Additionally, MWD and San <br />Diego County Water Authority will provide matching funds to be used for Salton Sea environmental <br />mitigation and restoration activities. The matching funds, plus local agency contributions would <br />provide a total of $243 million for these environmental restoration and mitigation activities. <br /> <br />Secretary Nichols' testimony closed with an acknowledgment of the progress being made by <br />all of the QSA participants, particularly the "peace treaty" aspect of the QSA. Through execution of <br />the QSA. the Agencies have agreed to set aside the legal differences and disputes associated with the <br />priority and use of mainstream Colorado River water. Secretary Nichols suggested that real progress <br />can be made in resolving these very complex and difficult issues when the stakeholders commit to work <br />together to achieve their goals. Included in the Board folder is a copy of Secretary Nichols' testimony. <br /> <br />Also included in in the Board folder are copies of several very interesting and informative <br />handouts that were distributed at the hearing. These informational materials provide a detailed <br />overview of the Law of the River, the QSA, financial terms of the QSA, conditions precedent, <br />relationship of the QSA to other Colorado River issues or programs, California's Colorado River <br />Priority Schedule, Colorado River Water Budgets, Local Agency funding coinmitments, and the lID <br />QSA Consumptive Use Schedule. <br /> <br />5 <br />