1. In-Delta Storage Process OverviewProcess Overview Program BenefitsProgram Benefits Project CostsProject Costs IssuesIssues Proposed Work Plan for FY 2003Proposed Work Plan for FY 2003 Proposed Next Steps (Staff Recommendation)Proposed Next Steps (Staff Recommendation) Questions for BDPAC Water Supply Subcommittee to ConsiderQuestions for BDPAC Water Supply Subcommittee to Consider OutlineOutline

2. In-Delta Storage

3. In-Delta Storage Delta Wetlands Bacon and Webb Tract (Storage) Holland and Bouldin (Habitat)

4. In-Delta Storage Benefits CVP/SWP Operational flexibility and reliability – Increased reliability of South of Delta exports – Additional system storage for short term operational challenges Improve flow releases and export timing to benefit Delta fisheries and improve water quality for fish in the Delta Storage space for EWA Storage and water marketing for sale, exchange, lease or transfer of water from one user to another Benefits CVP/SWP Operational flexibility and reliability – Increased reliability of South of Delta exports – Additional system storage for short term operational challenges Improve flow releases and export timing to benefit Delta fisheries and improve water quality for fish in the Delta Storage space for EWA Storage and water marketing for sale, exchange, lease or transfer of water from one user to another

5. Costs Range of Project cost estimates developed based on the following uncertainties: –Variations in engineering design reflecting risk and level of protection –Environmental mitigation –Cost variations based on site conditions and construction methods –Changes in hydrology due to climate change Costs Range of Project cost estimates developed based on the following uncertainties: –Variations in engineering design reflecting risk and level of protection –Environmental mitigation –Cost variations based on site conditions and construction methods –Changes in hydrology due to climate change In-Delta Storage

6. Costs (Cont.) In-Delta Storage Cost Range Capital Cost ($ million) Annual O&M* ($ million) Unit Cost ($/AF) Lower Range 6628430 Upper Range 1,1008650 * Climate change may result in 10 to 15% increase in overall cost spread over 50 year life of the project and will be reflected as additional annual O&M cost.

7. Issues Engineering design and cost issues –Accepted risk and level of protection –Slough/river side slope stability –Borrow areas and construction methods – Fish screens and appurtenant structures – Unit costs Issues Engineering design and cost issues –Accepted risk and level of protection –Slough/river side slope stability –Borrow areas and construction methods – Fish screens and appurtenant structures – Unit costs In-Delta Storage

8. Issues (Cont.) Costs are dependent on Design Criteria Issues (Cont.) Costs are dependent on Design Criteria In-Delta Storage

9. Issues (Cont.) Operational flexibility and reliability –Impact of fisheries biological opinion Delta Smelt Criteria –Accurate estimate of water supply benefits considering WQMP, CVPIA and EWA Water Quality Evaluations –DOC and other constituents concentrations at urban intakes –Re-operations for WQMP Issues (Cont.) Operational flexibility and reliability –Impact of fisheries biological opinion Delta Smelt Criteria –Accurate estimate of water supply benefits considering WQMP, CVPIA and EWA Water Quality Evaluations –DOC and other constituents concentrations at urban intakes –Re-operations for WQMP In-Delta Storage

10. Issues (Cont.) Environmental mitigation – Agricultural land use issues – Environmental Mitigation requirements Issues (Cont.) Environmental mitigation – Agricultural land use issues – Environmental Mitigation requirements In-Delta Storage Economic Feasibility – Realization of benefits in monetary terms – Economic value of the project

11. Tasks for FY 2003 Objective is to provide necessary technical information to make a decision on initiating negotiations with Delta Wetlands by July 2003 Tasks for FY 2003 Objective is to provide necessary technical information to make a decision on initiating negotiations with Delta Wetlands by July 2003 In-Delta Storage

12. Tasks for FY 2003 Project Operations –Develop daily Base and In-Delta Storage CALSIM II Model including CVPIA and EWA –Discuss fisheries Final Operations Criteria to improve operational flexibility and create fisheries and ecosystem benefits –Refine year around reservoir operations considering water quality rules, fisheries benefits/constraints, and additional supply benefits –Simulate project operations under alternative operational priorities –Perform operations with other proposed storage and conveyance projects Tasks for FY 2003 Project Operations –Develop daily Base and In-Delta Storage CALSIM II Model including CVPIA and EWA –Discuss fisheries Final Operations Criteria to improve operational flexibility and create fisheries and ecosystem benefits –Refine year around reservoir operations considering water quality rules, fisheries benefits/constraints, and additional supply benefits –Simulate project operations under alternative operational priorities –Perform operations with other proposed storage and conveyance projects In-Delta Storage

13. Water Quality Evaluations –Develop integrated experimental and modeling methodology to predict organic carbon including biological productivity and ecological processes –Undertake additional modeling studies to evaluate project operations to comply with water quality requirements. In-Delta Storage Tasks for FY 2003 (Cont.)

14. Engineering Investigations –Define and conduct field surveys, geotechnical and hydrological investigations in order to refine embankment and structure designs –Perform Risk Analysis and make recommendations for integration of the physical design with an accepted level of protection –Recommend optimum embankment design through detailed slope stability, seismic, seepage and settlement analyses –Conduct a detailed borrow investigation in the interior of the islands, to locate suitable borrow sites –Prepare hydraulic and structural design for fish screens, inlets, outlets, pumping units and appurtenant structures –Evaluate construction methods –Revise and finalize cost estimates. Engineering Investigations –Define and conduct field surveys, geotechnical and hydrological investigations in order to refine embankment and structure designs –Perform Risk Analysis and make recommendations for integration of the physical design with an accepted level of protection –Recommend optimum embankment design through detailed slope stability, seismic, seepage and settlement analyses –Conduct a detailed borrow investigation in the interior of the islands, to locate suitable borrow sites –Prepare hydraulic and structural design for fish screens, inlets, outlets, pumping units and appurtenant structures –Evaluate construction methods –Revise and finalize cost estimates. In-Delta Storage Tasks for FY 2003 (Cont.)

15. Environmental Evaluations –Perform resource surveys and studies to support the subsequent EIR/EIS Process –Discuss fisheries Final Operations Criteria to improve operational flexibility and create fisheries and ecosystem benefits –Provide liaison with the Fish Facilities Review Team and engineering design work to finalize fish screens designs –Evaluate water supply and water quality benefits for Delta fisheries, wildlife and ecosystem. Environmental Evaluations –Perform resource surveys and studies to support the subsequent EIR/EIS Process –Discuss fisheries Final Operations Criteria to improve operational flexibility and create fisheries and ecosystem benefits –Provide liaison with the Fish Facilities Review Team and engineering design work to finalize fish screens designs –Evaluate water supply and water quality benefits for Delta fisheries, wildlife and ecosystem. In-Delta Storage Tasks for FY 2003 (Cont.)

16. Economic Analysis –Perform benefits analysis by using latest available economic models and project yield –Conduct negotiations with potential beneficiaries to determine the quantity and cost of delivered water and develop cost sharing methodologies –Determine Economic Value of the Project by conducting Land and Project Appraisals –Integrate appraisal into economic analysis, review available financing options and recommend potential strategies for project financing –Re-evaluate benefit-cost analysis based on alternative operational priorities Tasks for FY 2003 (Cont.) In-Delta Storage

17. Proposed Next Steps (Staff Recommendation) Complete CALFED Science Panel Review Summarize public comments Stakeholders Presentation (Public Meeting) Finalize Work Plan FY 2003 If State or federal funding available, implement Work Plan. Proposed Next Steps (Staff Recommendation) Complete CALFED Science Panel Review Summarize public comments Stakeholders Presentation (Public Meeting) Finalize Work Plan FY 2003 If State or federal funding available, implement Work Plan. In-Delta Storage

19. Questions for BDPAC Water Supply Subcommittee to Consider Are the following adequate and responsive to stakeholders concerns? –Completed technical work, stakeholders outreach and independent review process –List of outstanding issues –Proposed Draft Work Plan FY 2003 If Funding Available, should CALFED Agencies implement the Draft Work Plan? Questions for BDPAC Water Supply Subcommittee to Consider Are the following adequate and responsive to stakeholders concerns? –Completed technical work, stakeholders outreach and independent review process –List of outstanding issues –Proposed Draft Work Plan FY 2003 If Funding Available, should CALFED Agencies implement the Draft Work Plan? In-Delta Storage