Last week, the Department of Water Resources (DWR) released a benefit-cost analysis for the Delta Conveyance Project, a plan to modernize the State Water Project (SWP)’s conveyance infrastructure in the Sacramento-San Joaquin River Delta (Delta). The DCP would add new intake facilities in the North Delta to divert water from the Sacramento River and a tunnel to convey water to the South Delta for export to the SWP’s urban and agricultural customers. The DCP would increase SWP deliveries by approximately 17%, or 403 TAF/yr, largely offsetting the anticipated reduction in water deliveries due to climate change.
For every $1 spent, $2.20 in benefits would be generated. The report also shows the very real cost of doing nothing, posing significant future challenges to supplying water to California communities.
“Twenty-seven million people rely on these surface water supplies that support a $2.3 trillion economy in California.” said Karla Nemeth, Director of the California Department of Water Resources. “There is a very real cost to do nothing. It is vastly more efficient and economical to avoid declining supplies. Water shortages, mandatory restrictions, land fallowing and job loss all impact our state and local economies."
As climate change and regulatory constraints cause water supplies to diminish over time, the reliability of the State Water Project infrastructure is in jeopardy, putting 27 million Californians and 750,000 acres of farmland at risk. This new benefit-cost analysis provides a compelling financial rationale for the public water agencies funding the project to be able continue to provide affordable, safe, clean and reliable water supply.
Delta Conveyance Project water supplies among most economical sources
MORE WATER SUPPLY
The need for operational flexibility that the Delta Conveyance Project would grant water managers is especially notable this year. Even though it was a wet winter, fishery-related regulations significantly constrained water exports from the south Delta. If the Delta Conveyance Project had been available, an additional 909,000 acre-feet of water could have been moved from the intakes in the north Delta where it is safer for fish. The Delta Conveyance Project helps resolve these difficult conflicts in the south Delta.
$200 Million Set Aside for Local Delta Community Projects
A number that is new and noteworthy is the $200 million set-aside for the project’s Community Benefits Program. DWR committed to this program by including it in the project’s environmental impact report, and this is the first time identifying a dollar value.
“We are committed to bringing substantial and tangible benefits to the communities in the project area that will see the most impacts from construction,” said Carrie Buckman, DWR’s Environmental Program Manager for the Delta Conveyance Project.
The Community Benefits Program is a recognition that while the benefits of the project are in other parts of California, the construction effects are local. While DWR remains committed to all mitigation adopted to address local environmental impacts, the Community Benefits Program will provide a grant fund for local projects, in addition to business development set-asides for job training and local business utilization, and potential “leave-behinds” like broadband or other infrastructure.
“The Community Benefits Program is going to pick up steam,” Buckman said. “We would like to work with communities to identify their priority projects and earmark those funds.”
Later this year, a draft implementation plan will be published for community review and input. It will include details about funding criteria and program administration.
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