Reclamation completes additional Central Valley Project contract conversions

Contracts finalized for 11 additional CVP contractors

Media Contact: Mary Lee Knecht, 916-978-5100, mknecht@usbr.gov

For Release: February 01, 2021

SACRAMENTO, Calif. – The Bureau of Reclamation executed another set of congressionally mandated contract conversions with Central Valley Project contractors, which provides water to families, farms, and communities in their respective areas. These contracts are in agreement with the Water Infrastructure Improvements for the Nation Act.

These completed contract conversions include City of Avenal, City of Coalinga, City of Huron, Clear Creek Water District, Contra Costa Water District, County of Colusa, El Dorado Irrigation District, Pacheco Water District, Panoche Water District, San Benito County Water District, and San Luis Water District. Each WIIN Act-mandated conversion contract is negotiated and completed by Reclamation’s regional career professionals.

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. 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. These dollars will be placed in an account to fund much-needed storage projects. Increasing storage capacity will allow Reclamation’s projects to capture additional water in wet years to help meet the water needs for project purposes in dry years.

The contract negotiations began in May 2019 after these and more than 90 other contractors requested conversions. Converted contracts modify only repayment provisions of existing contracts, include Reclamation’s current standard articles, and continue if 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.

View additional WIIN Act information at https://www.usbr.gov/mp/wiin-act/.

# # #

The Bureau of Reclamation is a federal agency under the U.S. Department of the Interior and is the nation's largest wholesale water supplier and second largest producer of hydroelectric power. Our facilities also provide substantial flood control, recreation opportunities, and environmental benefits. Visit our website at https://www.usbr.gov and follow us on Twitter @USBR; Facebook @bureau.of.reclamation; LinkedIn @Bureau of Reclamation; Instagram @bureau_of_reclamation; and YouTube @reclamation.