Publications

Investors - FEBRUARY 12, 2018

California Water Commission application process delays approval of water projects, Senator claims

by Andrea Zander

Earlier this month the California Water Commission released its initial technical reviews for 11 water storage projects seeking $5.7 billion in funding under the Proposition 1 Water Storage Investment Program (WSIP).

The reviews focused on quantifying the public benefits associated with the proposed projects, as defined in Proposition 1 and program regulations.

According to The Sacramento Bee, Water Commission leaders are prepared to spend the money, which would come from Proposition 1. In 2014, California voters approved the $7.5 billion bond Proposition 1, which included $2.7 billion for water storage projects such as new dams, reservoirs and groundwater banks. However, the commission found that the 11 projects would not all achieve the public benefits claimed in their applications, which has caused backlash from the water industry and some conservative politicians in the state, who criticized the commission for setting the bar too high, according to News Deeply.

“Last winter, we had an historically wet winter yet the bulk of that rainfall washed out to sea because California has not addressed increased major water storage capacity since 1979. This year, water officials already predict parts of the state are in a severe drought and once again we are unprepared,” said state Sen. Scott Wilk, R-Santa Clarita, in a statement. “Voters authorized $7.5 billion in bond money for water infrastructure projects in 2014. While these bonds have been sold, the money sits in the state’s coffers unspent. Not one of the proposals, including integral storage projects like Temperance Flat, have been given the green light by bureaucrats in Sacramento.”

“The Water Storage Investment Program is an important opportunity to invest in California’s water future,” said Armando Quintero, commission chair. “The Commission is committed to funding projects that are the best return on the public’s investment and that help create the additional above- and below-ground storage capacity that California vitally needs. There are many steps ahead in the process, and we look forward to the next phases.”

Commission staff is scheduling optional meetings with applicants to answer clarifying questions related to the initial technical review. The meetings will be open to the public and stakeholders. Commission staff anticipates the public benefit ratios will change based on that additional information and will release revised numbers that will go to the Commission for consideration in May.

“This program is the first of its kind in California, and in many ways the Commission staff, technical reviewers and applicants are navigating the rules and regulations together,” Quintero said. “No funding decisions have been made by the Commission, and all projects remain active and viable in the review process. The Commission has every confidence the information received in the coming weeks will help us fund eligible projects and the public benefits they provide.”

 

Applicants have until 5 p.m. Feb. 23 to provide additional supporting information and respond to issues identified in the initial review. The Commission expects to make preliminary funding decisions in July.

 

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