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SOLANO COUNTY WATER AGENCY
WATER TRANSFER AND EXCHANGE POLICY
(Adopted July 8, 2021)
This policy has been developed by the Solano County Water Agency (SCWA) Water Policy Committee and adopted by the SCWA Board of Directors at their July 8, 2021, Board meeting. This policy only applies to Solano Project water and State Water Project (SWP) water (aka NBA water). It is not intended to impinge on individual member agency’s water rights.
Introduction
SCWA is a wholesale water supply agency providing untreated water to cities and agricultural districts in Solano County from the Federal Solano Project and the North Bay Aqueduct of the State Water Project. SCWA represents local agencies involved in water and flood management. The Agency is governed by the Board of Directors composed of the five members of the Solano County Board of Supervisors, the seven mayors of the cities in Solano County, and a director from each of the three agricultural districts that provide retail agricultural water.
Member agencies include:
• City of Benicia
• City of Dixon
• City of Fairfield
• City of Rio Vista
• City of Suisun City
• City of Vacaville
• City of Vallejo
• Maine Prairie Water District
• Reclamation District 2068
• Solano County
• Solano Irrigation District
Purpose and Intent
SCWA supports sustainable water management of the agency’s State Water Project and Federal Solano Project allocations, while providing flexibility to the Agency’s members. Water purveyors in Solano County have a long history of working together in collaboration with SCWA.
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The purpose of this policy is to formalize SCWA water transfer and exchanges while protecting primary water sources. The policy is intended to address issues in the future including:
• Population growth
• Drought
• Sustainability
• Resiliency
• Recycled water
• Tail water
• Groundwater
• Regional integration
• Environmental water quality
• Fire protection
• More effective movement of water within the county and beyond • Substituting new water opportunities/sources for NBA transferable water
The overriding principles of this policy are:
• No Harm/Solano County First.
• Any transfer or exchange must be consistent with the SCWA Master Contract with DWR and the SCWA Master Contract with the Bureau of Reclamation. • Any transfers or exchanges not covered by this policy are not necessarily prohibited but will be addressed by SCWA on case-by-case basis. • Any existing contracts and on-going service obligations are grandfathered into this policy.
Definitions
• Exchange: Trading water. As an example, one entity might trade NBA water for Solano Project water. An agreed-on amount of water is returned to the seller. • Harm: In the context of "No Harm/Solano County First", "harm" shall be defined as: (1) transfer or exchange of water to an entity outside Solano County without first offering such water to SCWA members within Solano County; 2) Not notifying SCWA of any inter-county Solano Project/State Water Project transfers. • In-County Exchanges: Water exchanges between SCWA member(s) and other Solano Project members for use within the County.
• Out-of-County Exchanges: Water exchanges from individual SCWA member(s) to water agencies outside SCWA’s jurisdiction.
• Place of Use: Geographical area that Solano Project water can be transferred or exchanged within. Place of Use is limited to Solano County (except Montezuma Hills), UC Davis and a small part of Yolo County as authorized by the State Water Board.
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• Transfer: An action where water is delivered to the buyer in exchange for a mutually agreed price.
• In-County Transfers: Water transfers between SCWA member(s) and other Solano Project members for use within the County.
• Out-of-County Transfers: Water transfers from individual SCWA member(s) to water agencies outside SCWA’s jurisdiction.
• Solano Project Water: The Solano Project is a federal project that stores water in Lake Berryessa for delivery to users within the Place of Use. SCWA holds, as executors, long-term master water supply contracts with U.S. Bureau of Reclamation (USBR). Solano Project water cannot be transferred or exchanged outside its “Place of Use.”
• State Water Project (SWP) (aka NBA Water) “Table A” water. Table A water is the only supply in SCWA’s water supply portfolio that is eligible for transfers and exchanges outside of SCWA’s service area. SWP “Table A” water is the annual NBA water supply provided by SCWA‘s Long-term State Master Contract for SWP water supply which SCWA members have an allocated portion of. The SWP contract allows for transfers and exchanges to recover some capitalized and/or operational investment costs. Exchanges and transfers out-of-county can only be negotiated with another SWP Contractor for use within the SWP service area, or the collective service areas of all 29 State Water Contractors. DWR approval is required for all out-of-county transfers and exchanges. The SWP Contract transfer and exchange rules are strict and carefully applied by DWR to scrutinize all SWP transfers and exchanges.
• North Bay Aqueduct: A component of the State Water Project that serves portions of Solano and Napa counties.
• Transferrable/Exchangeable Water: Water determined by individual member agencies to be available for exchange or transfer.
Scope
Only transferrable/exchangeable water, as determined by individual SCWA member agencies, is subject to this Water Transfer and Exchange Policy.
Potential sources of water available for transfer or exchange include:
• State Water Project conveyed through the North Bay Aqueduct (Table A water) • Solano Project
Policy Consistency
This policy will be consistent with any Groundwater Sustainability Plans, Urban and Agricultural Water Management Plans, and the cities and County General Plans. The 4 | Page
policy is also linked to SCWA’s 2016-2025 Strategic Plan and will not impair any existing contracts relating to water exchanges/transfers.
Policy
SCWA member agencies negotiate water transfers and exchanges with willing sellers and will advise SCWA and other member agencies through the Solano Water Advisory Committee (SWAC) of any water needs or availability of transferrable/exchangeable water when known.
In-County Priority: Member agencies should be encouraged to seek water transfers and exchanges serving in-county needs before serving out-of-county needs. Water deemed to be available for a transfer or exchange by any SCWA member agency should first be offered to other SCWA member agencies at mutually agreeable terms. If agreement cannot be reached within the timeframe set by the offering member agency, the member may pursue other buyers.
Out-of-County Transfer and Exchanges:
If no SCWA member agencies commit to purchasing the transferrable/exchangeable water supply by the deadline set by the offering member agency, member agencies may request SCWA to offer the transferrable/exchangeable water to out-of-county State Water Project (SWP) contractors at prevailing market prices. Notifying SCWA by April 1st, or when known, will give SCWA adequate time to negotiate the transfer/exchange.
Transfer/Exchange Procedures
1. In-County Transfer and Exchange procedure includes:
a. Individual SCWA member agencies determine if they have transferrable/exchangeable water available.
b. Individual agencies with transferrable/exchangeable water negotiate mutually agreeable terms with receiving member agencies. c. SCWA must be notified of any transfers/exchanges. SCWA will determine:
(i) Verification of water rights
(ii) Conveyance capacity
(iii) Consistency with DWR and USBR Master Contracts
(iv) Environmental review (CEQA)
(v) Any other requirements that may be added in the future.
d. The SCWA Board must approve any transfers or exchanges requiring CEQA.
e. SCWA will perform all administrative and bookkeeping functions. 5 | Page
2. Out-of-County Transfer and Exchanges:
If no SCWA member agencies commit to purchasing the
transferrable/exchangeable water by the deadline set by the offering member agency, member agencies may request SCWA to offer the
transferrable/exchangeable water to out-of-county State Water Project (SWP) contractors at prevailing market prices. Notifying SCWA by April 1st, or when known, will give SCWA adequate time to negotiate the transfer/exchange.
Out-of-County transfer and exchange procedures include:
a. Timeline
(i) All out-of-county transfer and/or exchanges should be submitted to SCWA ideally by April 1st of any given year, or when known. (ii) The offering member agency will respond to a request to purchase and/or SCWA will seek buyers and SCWA will negotiate the terms of the transfer and/or exchange in consultation with the member agency offering the transferrable/exchangeable water. The terms will minimize the risk to the selling agency and SCWA.
b. Terms for multi-year transfers must include a provision for the SCWA member agency to confirm availability and the ability to deliver water on an annual basis. This allows for suspending the contract to meet local needs or prioritize transfers or exchanges to SCWA members for any single year.
c. SCWA will determine:
(i) Verification of water rights
(ii) Compliance with the DWR Master Contract
(iii) Compliance with the Bay-Delta Water Quality Control Plan (iv) Consistent with HCP/NCCP
(v) Meets CEQA
(vi) Does not create a water quality problem for another SCWA member agency.
d. SCWA will obtain DWR approval.
e. SCWA will seek SCWA Board approval. If the timing requires quicker action than monthly Board meetings, the General Manager will recommend a Special Meeting.
f. SCWA will facilitate the transfers through DWR.
COSTS
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Any State or third-party charges or fees related to transfers and exchanges within the County or to water contractors outside the County shall be payable by the receiving agency. SCWA staff time to assist with the transfer or exchange shall not be charged to the transferring agency.
Responsibilities
1. Responsibility of SCWA General Manager: Discretion is delegated to the General Manager by the SCWA Board to:
a. Notify SWAC members when transferrable/exchangeable water is available.
b. Follow all transfer and exchange policies and procedures.
2. Responsibility of SCWA Water Policy Committee: The Water Policy Committee shall:
a. Annually review this policy to determine if it effectively meets the needs of member agencies. The Committee may propose amendments to this policy, for consideration by the full Board, to address inefficiencies and changing conditions. The Committee will coordinate with the SWAC before proposed changes are brought before the full Board.
b. The Water Policy Committee should have diverse representation of Municipal and Industrial (M&I), ag, and County interests.
Protection of SCWA and member agencies
All transfer and exchange agreements shall include appropriate “hold harmless” language to protect SCWA, member agencies, their officers, and staff from non- performance and/or negligence by the entity receiving the transferred or exchanged water.
Effective Term of Policy
The terms and provisions of this policy shall remain in full force and effect until amended by the SCWA Water Policy Committee and approved by the SCWA Board.
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Glossary:
Acre-foot One acre-foot equals about 326,000 gallons, or enough water to cover an acre of land (about the size of a football field) one foot deep. An average California household uses between one-half and one acre-foot of water per year for indoor and outdoor use.
CEQA California Environmental Quality Act - a California statute passed in 1970, shortly after the United States federal government passed the National Environmental Policy Act (NEPA), to institute a statewide policy of environmental protection. CEQA does not directly regulate land uses, but instead requires state and local agencies within California to follow a protocol of analysis and public disclosure of environmental impacts of proposed projects and, in a departure from NEPA, adopt all feasible measures to mitigate those impacts. CEQA makes environmental protection a mandatory part of every California state and local (public) agency's decision- making process.
DWR California Department of Water Resources
HCP/NCCP A Habitat Conservation Plan (HCP) is a document that meets federal Endangered Species Act (ESA) requirements and enables local agencies to allow projects and activities to occur in endangered species’ habitats. In exchange, those projects and activities must incorporate HCP-prescribed measures to avoid, minimize, or compensate for adverse effects on natural
communities and endangered species. A Natural Community Conservation Plan (NCCP) is the State counterpart to the federal HCP.
Master Contracts SCWA holds a two long-term water supply contracts. They include:
• Federal contract with the Bureau of Reclamation for Solano Project water. Includes Ag and M&I deliveries.
• State contract with DWR for State Water Project water.
Includes M&I deliveries only.
NBA North Bay Aqueduct. The NBA is part of the State Water Project (SWP). The NBA is an underground pipeline that conveys SWP water to Solano and Napa counties. SCWA has service contracts for NBA water with Vacaville, Fairfield, Suisun City, Vallejo, and 8 | Page
Benicia. The Cities of Dixon and Rio Vista have the potential to execute future contracts for NBA water.
Solano Project The Solano Project (SP) is a federal project of the Bureau of Reclamation that stores water in Lake Berryessa for delivery to users throughout the region.
Exchangeable/ Water determined by individual SCWA member agencies to be Transferrable available for exchange or transfer. Potential sources of Water exchangeable/transferable water include:
• State Water Project conveyed through the North Bay
Aqueduct
• Solano Project: Solano Project water cannot be sent outside of SCWA’s Place of Use. Place of Use includes Solano
County except Montezuma Hills, UC Davis, and a small part of Yolo County.
SWP State Water Project. The SWP, operated by the State of California, Department of Water Resources, is a water storage and delivery system of reservoirs, aqueducts, power plants and pumping plants extending more than 700 miles —two-thirds the length of California.
The SWP provides water to Solano County through the North Bay Aqueduct.
Table A Water Table-A” water is the SWP water provided to SCWA under the DWR Master Contract. SCWA has a maximum annual allocation of Table-A water of 47,756 Acre-feet per year.
The actual annual
allocation of Table-A water from DWR can vary from 0% up to 100% of the maximum Table-A, depending hydrology and factors such as reservoir storage.
Bay-Delta Water A policy document adopted by the State Water Resources Control Quality Control Board that establishes water quality control measures and flow Plan requirements needed to provide reasonable protection of beneficial uses in the San Francisco Bay/Sacramento-San Joaquin Delta estuary.
Water Exchanges Water Exchanges include:
• Water exchanged between willing sellers and willing buyers within Solano County.
• Water exchanged between willing SCWA member agencies
and willing buyers outside of Solano County.
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Water Transfers Water Transfers include:
• Water sold between willing sellers and willing buyers within Solano County.
• Water sold between willing SCWA member agencies and
willing buyers outside of Solano County.
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North Bay Aqueduct
The North Bay Aqueduct (NBA) is part of the State Water Project and provides 40% of the municipal water supply to over 400,000 people in cities in Solano and Napa Counties. The NBA consists of a pump station in the Cache Slough area in the Delta and a 28-mile underground pipeline that delivers water to city water treatment plants, intermediate pump stations and ancillary facilities.
The NBA State Water Project provides about 50% of the municipal and industrial water use in Solano County and about 40% of the municipal and industrial water use in Napa County. This water supply to Napa and Solano Counties is a critical resource and is expected to provide future water for planned growth in both counties. The following cities either currently use (or can use in the future) NBA water: Benicia, Dixon, Fairfield, Suisun City, Vacaville, Vallejo, Rio Vista, American Canyon, Napa, and Calistoga.
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Solano Project
The Solano Project is a federal project of the Bureau of Reclamation that stores water in Lake Berryessa for delivery to users throughout the region and is sized to meet only the projected water needs of Solano County. Congressional authorization was granted for the construction of the Solano Project and the first water was delivered in 1959. The total construction cost for the Solano Project was $38 million. For a more detailed history of the Solano Project, see the book by the Solano Irrigation District entitled "The Solano Water Story: A History of the Solano Irrigation District and the Solano Project."
Monticello Dam was constructed from 1953 to 1957 and has a height of 304 feet and a crest length of 1023 feet. The dam is able to hold a capacity of 1.602 million acre-feet of water.