Feinstein Transfer Legislation Would Facilitate Sale of Westside Ag Water to Urban Development

****DRAFT******  FOR IMMEDIATE RELEASE
March 11, 2010

Contact:    Chris Acree,  Revive the San Joaquin     chris.acree@revivethesanjoaquin.org 559 226-0733

Feinstein Transfer Legislation Would Facilitate Sale of Westside Ag Water to Urban Development

Washington –  Senator Diane Feinstein has moved legislation to the Senate floor that would deregulate the transfer and sale of Central Valley Project irrigation water between South of Delta agricultural and urban contractors.    The CVP divisions affected include the West San Joaquin Division, which includes Westlands Water District, as well as the Delta Division in Alameda, Contra Costa, and San Joaquin Counties, and the San Felipe Division in Santa Clara and San Benito Counties, as well as the Friant Division on the East Side of the San Joaquin Valley.1
   
 The legislation repeals longstanding provisions of the Central Valley Project Improvement Act of 1992, requiring that water transferred between Central Valley Project Contractors be water that has actually been delivered and consumptively used on the farm.2   Combined with the mandate to develop a single programmatic review for transfer of Central Valley Project water, the legislation would open up the transfer of entire agricultural water contracts without individual review, including review of third party impacts such as groundwater depletion and job loss.  The deregulation is not needed to facilitate transfers between agricultural users or between urban users but would greatly facilitate transfers of Westside irrigation water to urban development.

 While Westside irrigation water is subject to severe restrictions during drought years, when transferred to urban users, the Bureau of Reclamation's Water Shortage Policy would convert the water to a minimum “health and safety” delivery rate, usually 60%.3   The extra drought year allocation would come at the expense of the other South of Delta agricultural contractors, who would have no opportunity to object to the transfers because there would be no individual review.

 Last year, there was a high-profile sale of State Water Project water from the West Side of the San Joaquin Valley to new development.  The seller, Sandridge Partners, was located in Dudley Ridge Water District, south of Westlands.   The seller sold his water rights to Mojave Irrigation District for $77 million, and then continued to farm his land by pumping groundwater.   The neighbors complained because of the depletion of the shared aquifer.

 The transfer legislation would open up similar transfers of Central Valley Project Water to new development.   The urban water districts who could directly buy water transferred from the West side of the San Joaquin Valley include the Santa Clara Valley Water District in the San Felipe Division, and the city of Tracy in the Delta Division.   In addition, a separate section would facilitate sales of Central Valley Project water  from Eastside San Joaquin contractors to the Kern County Water Agency in Bakersfield, and to the Kern Water Bank, where the water could potentially be exchanged and sold out of the area.

 The legislation is not needed to facilitate short term transfers of irrigation or urban “M&I” water between water districts.   In 2006, the Bureau of Reclamation created a five year Accelerated Water Transfer and Exchange Program between South of Delta contractors, which pre-approved one year transfers and exchanges between these contractors, subject to the limitations that transfers would not increase overall consumptive use, and would not lead to any land conversions. 4   A similar five year Accelerated Water Transfer and Exchange Program was also approved in 2006 for Friant Division, which serves agricultural contractors on the East side of the San Joaquin Valley.5

 While no large sales to urban development have been identified under the proposed legislation, Westlands Water District is in the process of transferring 50,000 acre feet of water to the Semitropic Water Storage District, part of the Kern Water Bank, allegedly for use in future years.6   Semitropic is mostly used by several urban contractors to store water, including Santa Clara Valley Water District, Alameda County Water District, and several Southern California Water Districts.  The Santa Clara Valley Water District was the recipient of a recent transfer of State Water Project water from Kern County for new development.
 
References:

1.   S. 1759,  “Water Transfer Facilitation Act of 2009,”  Senator Diane Feinstein.
http://www.govtrack.us/congress/bill.xpd?bill=s111-1759

2.  Central Valley Project Improvement Act of 1992,  Section 3405(a).  
See Sections (A) and (I).    http://www.usbr.gov/mp/cvpia/3405a/3405a.html

3.   Bureau of Reclamation,   Central Valley Project Water Shortage Policy,  final draft, September 11, 2001.  
http://www.usbr.gov/mp/cvpia/3404c/mi_shortage/docs/develop_policy/mi_policy_dft_09-11-01.pdf

4.  Bureau of Reclamation,  Accelerated Water Transfers and Exchanges,  South of Delta Contractors, Water Year 2006-2010. 
http://www.usbr.gov/mp/nepa/nepa_projdetails.cfm?Project_ID=2368

5.  Bureau of Reclamation,  Accelerated Water Transfers and Exchanges, Friant Division Contractors, Water Year 2006-2010.  http://www.usbr.gov/mp/nepa/nepa_projdetails.cfm?Project_ID=2313

6.  Bureau of Reclamation, Storage and Return of Westlands Water District’s Central Valley Project Water in Semitropic Water Storage District
 http://www.usbr.gov/mp/nepa/documentShow.cfm?Doc_ID=4926