Reclamation completes first group of congressionally-mandated Central Valley Project contract conversions

Media Contact: Shane Hunt, 916-978-5100, mppublicaffairs@usbr.gov

For Release: February 28, 2020

Regional Director Ernest Conant at Folsom Dam WIIN Act signing ceremony (Reclamation photo by Fernando Ponce)
Regional Director Ernest Conant at Folsom Dam WIIN Act signing ceremony (Reclamation photo by Fernando Ponce)
SACRAMENTO, Calif. – The Bureau of Reclamation executed congressionally-mandated contract conversions today with Central Valley Project contractors pursuant to the Water Infrastructure Improvements for the Nation (WIIN) Act. These contracts provide water to families, farms and communities in the respective California contractors’ service areas. Today’s contract conversions are the first group of more than 75 repayment contract conversions requested by CVP contractors.

“Completing these contracts is a big win-win for our contractors and the American public,” said Ernest Conant, California-Great Basin’s regional director. “The federal government will receive early payment of over $200 million, which Congress directed should be used for much-needed storage projects.”

These completed contract conversions include the East Bay Municipal Utility District, City of Folsom, Placer County Water Agency, City of Roseville, Sacramento County Water Agency, Sacramento Municipal Utility District, San Juan Water District, and Westlands Water District. Each WIIN Act-mandated conversion contract is negotiated and completed by Reclamation’s regional career professionals.

Section 4011 of the WIIN Act directs Reclamation to convert water service contracts to repayment contracts upon a contractor’s request and authorizes prepayment of outstanding CVP construction costs. Under Section 4011, full repayment is due within three years of the contract conversion. Both the prepayment and accelerated repayment of the contracts will result in the federal government being repaid well in advance of the original repayment deadline. As directed under the WIIN Act, those repayment dollars will be used to fund additional water storage projects. Increasing storage capacity will allow Reclamation’s projects to capture additional water in wet years to help meet the water needs for all project purposes in dry years.

The CVP-wide contract negotiations began in May 2019 after these and more than 75 other contractors requested conversion. Converted contracts modify only repayment provisions of existing contracts, include Reclamation’s current standard articles and continue so long as the contractors make all required payments, including operation and maintenance costs and future capital expenses.

Reclamation hosted public negotiation sessions for each contract and draft conversion contracts were published for at least a 60-day comment period.

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