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HomeMy WebLinkAbout _ 9.11(g)--SRSC Drought Protection Program and Reso CITY OF REDDING REPORT TO THE CITY COUNCIL Recommendation Authorize the following actions relative to the Sacramento River Settlement Contractors (SRSC) Corporation Drought Protection Program Agreement (Agreement): (1) Adopt Resolution authorizing the City of Redding to adopt responsible agency finding and statement of overriding considerations under the California Environmental Quality Act (CEQA) for the Agreement and authorize the City of Redding to enter the Agreement; (2) Authorize the City Manager, or designee, to execute the Agreement with the SRSC and receive $2,388,010 in funds; (3) Authorize the City Manager, or designee, to execute the Indemnity Agreement with Glenn-Colusa Irrigation District; and (4) Find that the action is exempt from review under CEQA Guidelines, per Section 15061 – Common Sense Exemption. Fiscal Impact If the City of Redding (City) executes the proposed Corporation Drought Protection Program (DPP) Agreement (Agreement), the City’s Water Utility will receive approximately $2.24 million, plus any subsequent funds accrued from interest or remaining DPP funds. These funds will be allocated to drought-resiliency projects to address potential surface water loss and improve the resilience of the City’s water system and long-term water delivery capabilities. Alternative Action The City Council may choose to decline the execution of this agreement and provide alternative direction to staff. Background/Analysis MEETING DATE: July 15, 2025 ITEM NO. 9.11(g) FROM: ***APPROVED BY*** mwebb@cityofredding.org btippin@cityofredding.org SUBJECT: 9.11(g)--Consider Resolution and enter into the Sacramento River Settlement Contractors Drought Protection Program. Michael Webb, Public Works Director Report to Redding City Council July 8, 2025 Re: 9.11(g)--SRSC Drought Protection Program and Reso Page 2 In January 2025, after several years of negotiating with the United States Bureau of Reclamation (Reclamation), the Sacramento River Settlement Contractor (SRSC), of which the City’s Water Utility is a member, executed the 20-year DPP Agreement with Reclamation. The DPP is a water reduction and infrastructure improvement agreement that implements a voluntary water conservation and water acquisition program over the next two decades in response to drought conditions at Shasta Lake. Among other items, the SRSC agreed to further reduce allocations by an additional 25 percent of contract totals under specified severe drought conditions in exchange for compensation. Previously the maximum contract reduction was 25 percent in “Shasta Critical” drought years, and, under the DPP the new maximum contract reduction will be 50 percent in “Shasta Critical” drought years. Shasta Critical occurs when Shasta Lake levels are low, limiting the amount of water supply for use downstream. A majority (over 50 percent) of the compensation must be used for water supply reliability projects, and other contractual and operational commitments. The DPP is needed to avoid repeating the devastating effects of 2022 when the Settlement Contractors received an 18 percent water supply from Reclamation. This resulted in 370,000 acres of farm land fallowed in the Sacramento Valley and little water for communities, fish and wildlife. The DPP provides improved certainty for water deliveries for all these purposes in future droughts, as well as funding for improving water supply infrastructure to help water management in all year types. Settlement Contractors that do not execute the DPP will not be eligible for funding opportunities under the DPP and may be subject to greater water supply reductions and impacts. Staff strongly believes the DPP to be the most effective and least impactful path forward through the updated Long-Term Operations of the Central Valley Project. Consequently, the City must execute the proposed agreement with the SRSC in order to obtain the DPP funding. Funding amounts are based on the proportionate share of each agency’s water allocation from its SRSC Contracts. The agreements have been approved as to form by the City Attorney. Environmental Review California Environmental Quality Act (CEQA) compliance was a prerequisite to successful completion of the DPP Agreement and the SRSC signatories’ receipt of benefits thereunder, and Glen Colusa Irrigation District served as lead agency provided a benefit to all SRSC signatories to the DPP Agreement. Staff has determined that the action is exempt from review under the CEQA Guidelines, per Section 15061 – Common Sense Exemption. CEQA applies only to projects which have the potential for causing a significant effect on the environment. Execution of the agreement would not provide approval for any project or environmental disturbance activity. The agreement would only allow the transfer of DPP funding to the City’s Water Utility. The action has been reviewed and it can be seen with certainty that there is no possibility that the action may have a significant effect on the environment; therefore, the activity is not subject to further review under CEQA. Any future project funded by this action will undergo a stand-alone environmental review. Council Priorities/City Manager Goals Report to Redding City Council July 8, 2025 Re: 9.11(g)--SRSC Drought Protection Program and Reso Page 3 • Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.” Attachments ^Resolution ^DPP Memo and Indemnity Agreement ^Mitigation Monitoring & Reporting Program Executed DPPA USBR_SRSC DPP Outline DPP FAQ RESOLUTION NO. 2025- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING (1) ADOPTING RESPONSIBLE AGENCY FINDINGS AND STATEMENT OF OVERRIDING CONSIDERATIONS UNDER CEQA FOR THE DROUGHT PROTECTION AGREEMENT; (2) APPROVING AND AUTHORIZING THE CITY OF REDDING TO ENTER THE DROUGHT PROTECTION AGREEMENT WHEREAS, the Drought Protection Program Agreement (“proposed project” or “Agreement”) is an agreement between the Sacramento River Settlement Contractors Nonprofit Mutual Benefit Corporation, individual Sacramento River Settlement Contractors (SRSC), and the U.S. Bureau of Reclamation (Reclamation) to forego a larger percentage of their contracted supply in specified drought years. In addition, the SRSC would receive funding from Reclamation to engage in drought-resiliency projects to address potential water loss and improve the resilience of the SRSC’s water system and long-term water delivery capabilities; and WHEREAS, the Glenn-Colusa Irrigation District (GCID), as the lead agency under the California Environmental Quality Act (CEQA) prepared an Environmental Impact Report (EIR) for the Project; and WHEREAS, on December 30, 2024, GCID certified the final EIR for the Project, adopted findings of fact and a statement of overriding considerations for approval of the Project, and approved the Project; and WHEREAS, the City of Redding (City) holds a Sacramento River Settlement Contract and has proposed to approve and enter the Agreement and is therefore a responsible agency under CEQA with discretionary approval authority over its obligations under the Agreement; and WHEREAS, the City, as a responsible agency, must take feasible measures to avoid or mitigate the direct or indirect environmental effects of those parts of the project which it decides to carry out, finance, or approve (CEQA Guidelines, Section 15096(g)(1)); and WHEREAS, the City, as a responsible agency, must also make findings and adopt overriding considerations for environmental impacts that will result from the parts of the project that it approves (CEQA Guidelines, Section 15096(h)). NOW, THEREFORE, BE IT RESOLVED THAT: 1. The recitals stated above are true, correct, and are adopted herein. 2. T he City Council approves the Drought Protection Water Program Agreement between the Sacramento River Settlement Contractors Nonprofit Mutual Benefit Corporation, individual Sacramento River Settlement Contractors, and the U.S. Bureau of Reclamation. 3. The City Manager or his designee is authorized to enter into the Drought Protection Program Agreement and any related documents on behalf of the City. 4. The City, as a responsible agency under CEQA, has reviewed and considered the EIR and has reached its own independent decision to approve the Drought Protection Water Program Agreement. 5. The City adopts all mitigation measures identified in the EIR with respect to its obligations under the Agreement. 6. The City finds that there are no additional feasible alternatives or feasible mitigation measures within its powers that would substantially lessen or avoid any significant effect the project would have on the environment. 7. The City adopts the Responsible Agency Findings of Fact and Statement of Overriding Considerations for the Drought Protection Program Agreement, and the Mitigation Monitoring and Reporting Program. I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Redding on the 15th day of July, 2025 , and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: __________________________________ JACK MUNNS, Mayor ATTEST: FORM APPROVED: _____________________________ __________________________________ SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney MEMO To: SRSC Contractor From: Thaddeus Bettner Date: February 6, 2025 Subject: DPP Participating Contractor Instructions Reference is made to that certain Agreement Between the United States Bureau of Reclamation, the Sacramento River Settlement Contractors (SRSC), a California Nonprofit Mutual Benefit Corporation, and Individual Sacramento River Settlement Contractors for the Establishment of a Drought Protection Program (“DPP Agreement”), dated January 10, 2025 (Contract No. 25-WC-20-6345). The DPP Agreement is linked here (Signed DPPA USBR_SRSC.pdf). In furtherance of the SRSC’s coordination role under the DPP, the SRSC re quires that any Sacramento River Settlement Contractor (Contractor) that signs the DPP Agreement provides the information described in this memo. All information should be completed before returning to the SRSC. Please check each box when completed. Contractor Information ☐Contractor Name: ☐Contractor Signatory (Print): ☐ Contact Information o Name (if different than Contractor Name): o Phone number: _ o Email address: _ o Member of the SRSC: YES / NO (circle one) ☐ Contract #: ☐ Total Contract Amount (AF):_ ☐ Exhibit “A” Payment Amount**: (**Note Per SRSC Resolution 2025-02, any accrued interest will be paid to Contractor after a final reconciliation on or about July 31, 2025. Exhibit A may be amended by the SRSC in accordance with the DPP Agreement.) www.sacvalleywater.org tbettner@waterecology.net Payment Information – Please see attached form letter for providing banking information. ☐ Completed Banking Instructions Form AND ☐ A valid and signed IRS Form W-9 is attached Infrastructure Information Per the DPP Agreement, the majority of the funding provided for the program must be spent on “drought resiliency projects” (defined on page 6, starting with line 120 of the DPP Agreement). The majority requirement may be accounted for by all participants collectively and/or by each contractor individually. The SRSC is gathering information from all participating contractors and will develop a database to track the meeting of this requirement. Therefore, please provide the following information and additional follow-up will occur as needed. ☐ Did you complete any infrastructure improvements since August 16, 2022 that would be considered “drought resiliency projects”? ☐ YES ☐ NO (check one) o If YES, briefly describe: _______________________________________________________________________ _______________________________________________________________________ o If YES, do you have records/documentation of cost? ☐ YES ☐ NO (check one) ☐ Do you have any plans for future infrastructure improvements that would be considered “drought resiliency projects”? ☐ YES ☐ NO (check one) o If YES, briefly describe: _______________________________________________________________________ _______________________________________________________________________ ☐ Do you have near term plans for infrastructure improvements in 2025-26? ☐ YES ☐ NO (check one) o If YES, briefly describe: _______________________________________________________________________ _______________________________________________________________________ www.sacvalleywater.org tbettner@waterecology.net Environmental Compliance Future projects undertaken pursuant to this DPP Agreement and the funding provided must comply with all applicable state and federal requirements. The SRSC may assist each contractor with compliance, but each contractor assumes its own responsibility. Contractor acknowledges and agrees to the following: ☐Contractor has reviewed and understands the attached Mitigation Measures Summary (check box) ☐Contractor has reviewed and understands requirements contained in the Environmental Impact Report (EIR) (link here SRSC-Final-EIR.pdf) adopted by Glenn-Colusa Irrigation District (GCID), the Bureau of Reclamation Finding of No Significant Impact (FONSI) (link here Finding of No Significant Impact.pdf.pdf), and the Fish and Wildlife Service Biological Opinion (link here FWS DPPA BiOp.pdf ) (check box) ☐Contractor has reviewed the attached request from GCID regarding indemnification agreements and has responded to GCID. (check box) After receipt of this information, the SRSC will prepare a signature page pursuant to the Contractor and signatory and arrange for signature with Contractor. The Agreement must be signed by Contractor before funds can be distributed. The undersigned warrants and represents that it has executed the DPP Agreement on behalf of the Contractor and that the information provided herein is true and correct. City of Redding By: _______________________________________________ Name: ____________________________________________ Its: _________________________________________ Please email complete package of information to tbettner@waterecology.net and williams@mbkengineers.com. Banking Instructions Form Sacramento River Settlement Contractors A nonprofit mutual benefit corporation c/o Thaddeus L Bettner, P.E. Executive Director PO Box 150 Willows, CA 95988 Email: tbettner@waterecology.net; williams@mbkengineers.com RE: DPP Participating Contractor Payment Instructions Dear Mr. Bettner, Reference is made to that certain Agreement Between the United States Bureau of Reclamation, the Sacramento River Settlement Contractors, a California Nonprofit Mutual Benefit Corporation, and Individual Sacramento River Settlement Contractors for the Establishment of a Drought Protection Program (“DPP Agreement”), dated January 10, 2025 (Contract No. 25-WC-20-6345). The undersigned Sacramento River Settlement Contractor (“Contractor”) will execute and deliver a counterpart copy of the DPP Agreement to the Sacramento River Settlement Contractors, a California nonprofit mutual benefit corporation (“Corporation”) together with submission of these instructions. Pursuant to Article 11(c), Contractor hereby elects to receive any payments pursuant to the DPP Agreement via: •Wire Transfer - Contractor must attach wire transfer instructions from the receiving financial institution •Automated Clearing House (ACH or direct deposit) – Contractor must attach ACH instructions from the receiving financial institution or a copy of a cancelled check •Paper check received via USPS – will be addressed per the attached W-9 The Contractor acknowledges and agrees that a signed Internal Revenue Service (“IRS”) Form W-9 is required for the Corporation to disburse funds from the DPP Agreement to the Contractor, and as such, the Contractor has enclosed a valid and signed IRS Form W-9. Banking Instructions Form The Contractor swears, under the penalty of perjury, that the enclosed banking and wire instructions and IRS Form W-9 are true and correct. The Contractor agrees that the Corporation may, in its sole discretion, independently verify the accuracy and validity of the Contractor’s identity and banking and wire instructions. The Contractor further agrees that receipt of payment from the Corporation in the amount provided for in the DPP Agreement through the means above satisfies the Corporation’s obligations to the Contractor in the DPP Agreement, however, in addition, the Contractor will receive an additional payment for any accrued interest from the date the Corporation received payment from Reclamation to the date that funds are distributed to Contractor. Said interest payment shall occur on or after July 31, 2025 following a final reconciliation by the Corporation. These instructions are also attached to the February 6, 2025, SRSC DPP Participating Contractor Instructions Memorandum. This DPP Participating Contractor Banking Instruction is executed by the undersigned as of the date set forth above. City of Redding By: __________________________________________ Name: _______________________________________ Its: ___________________________________ Mitigation Measures Summary: Sacramento River Settlement Contractors Drought Protection Program Agreement Introduction Each Sacramento River Settlement Contractor (Contractor) is responsible for following the Mitigation Monitoring and Reporting Program (MMRP) as part of the Drought Protection Program Agreement. These measures help reduce environmental impacts and ensure compliance with state and federal laws. The full MMRP document is available on the State Clearinghouse (SCH) website under SCH Number 2024050834 or at this link: https://files.ceqanet.opr.ca.gov/300312- 3/attachment/9IQHS7YsxwvscnbsI2qVrsOz0lDgBPivgaes1ZJfInjOi5apFKw1qyE3XYwYwbN_nQk6lpM6j _CMV8oP0. This summary outlines the main themes of the mitigation measures. Key Mitigation Topics 1. Protecting Air and Water Quality • Reduce Dust: Water down construction sites, cover loose materials, and set speed limits on dirt roads. • Limit Equipment Idling: Keep engine idling to a minimum (2-minute limit). • Prevent Water Contamination: Use best practices to keep chemicals, fuel spills, and sediments out of irrigation canals and drainage ditches. • Control Erosion: Use sandbags, cover exposed soil, and follow stormwater pollution rules. • Follow Well Regulations: Follow Groundwater Sustainability Plans and the Sustainable Groundwater Management Act for any new well construction and for well operations associated with the Drought Protection Program Agreement. 2. Safeguarding Wildlife and Habitat • Avoid Sensitive Areas: Keep projects away from forests, wetlands, and protected habitats. • Protect Wildlife: Before starting work, conduct surveys for potentially present special status species (like giant garter snake [GGS]), use wildlife-safe fencing, avoid nighttime construction when possible, and implement measures to reduce noise and light pollution near sensitive habitats. • Protect Nests: Check for nesting birds before construction and create buffer zones if needed. • Maintain Water for Wildlife: In certain more important GGS habitat areas, keep water levels in canals at least 2 feet deep for wildlife, where possible. • Manage Vegetation: Minimize clearing of native plants and replant disturbed areas to restore habitat. 3.Preventing Erosion and Conserving Farmland •Implement Discing Practices: Only disc croplands when vegetation is short to reduce soil loss and protect habitat. •Avoid Erosion-Prone Areas: Keep projects away from unstable soils and steep slopes unless a professional approves. •Use Safe Land Areas: Do not build on active cleanup sites or mineral-rich zones. 4. Protecting Cultural and Historic Sites •Check for Artifacts: Before digging, check if the area has historical or Tribal artifacts. •Stop Work if Found: If any artifacts or human remains are discovered, stop work and notify the proper authorities. 5. Managing Noise and Construction Impacts •Inform Neighbors: Let nearby residents know about loud construction work in advance. •Limit Noise Impacts: Keep equipment well maintained and avoid working near historic buildings. •Use Safe Equipment Practices: Follow all safety guidelines when using heavy machinery. 6. Following Utility Rules •Check for Utility Lines: Before digging, check for underground utilities and notify utility companies. Conduct utility surveys as needed. Your Responsibility Each Contractor must: •Follow all mitigation measures described in the MMRP and ensure that any contractors hired for projects also comply with the MMRP. •Keep records of compliance and report them to the SRSC Corporation (ATT: Thad Bettner, tbettner@waterecology.net) and Glenn-Colusa Irrigation District (ATT: Jeff Sutton, jsutton@gcid.net). Cover Document for GCID-Individual SRSC Indemnification Agreements Recently, the SRS Contractors executed the 20-year Drought Protection Program (DPP) Agreement with Reclamation, under which they agreed to reduce diversions up to an additional 25% of Contract Totals under specified severe drought conditions in exchange for compensation, of which a majority (over 50%) must be used for water supply reliability projects, and other contractual and operational commitments. On December 30, 2024, GCID, as lead agency under the California Environmental Quality Act (CEQA), certified the Final Environmental Impact Report (the “DPP Final EIR”) for the DPP Agreement, adopted Findings of Fact and a Statement of Overriding Considerations, adopted the required Mitigation Monitoring and Reporting Program (“MMRP”), and approved the DPP Agreement. Thereafter, SRS Contractors that are public agencies similarly considered the DPP Final EIR, adopted findings, the MMRP, and approved the DPP Agreement as responsible agencies under CEQA. CEQA compliance was a prerequisite to successful completion of the DPP Agreement and the SRS Contractor signatories’ receipt of benefits thereunder, and GCID’s serving as lead agency provided a benefit to all SRS Contractor signatories to the DPP Agreement. Under the DPP Agreement, the parties acknowledge that the SRSC Corporation will coordinate activities among its members and other Sacramento River settlement contractors and distribute funding under the DPP Agreement to the SRS Contractor signatories. On January 23, 2025, the SRSC Corporation Board approved the execution of an agreement with GCID that provides for the indemnification and defense of GCID from any litigation related to GCID’s certification of the DPP Final EIR, and confirms that the Corporation will pay the costs and expenses of the MMRP requirements that are not specifically applicable to GCID or the other SRS Contractor signatories. That agreement, however, does not provide any indemnification for actions specifically taken by SRS Contractor signatories under the DPP Agreement. Under Article 7(d) of the DPP Agreement, the individual SRS Contractor signatories agreed to comply with any mitigation, monitoring and reporting requirements contained in the DPP Final EIR that are applicable to the SRS Contractor and associated with the Contractor’s performance under the DPP Agreement. Similarly, SRS Contractors that are public agencies separately agreed to implement the MMRP pursuant to their individual CEQA actions taken as responsible agencies. Despite these commitments, if an individual SRS Contractor signatory is subsequently challenged by third parties regarding their performance of their specific obligations under the DPP Agreement and the DPP Final EIR, including any actions or projects undertaken thereto, it is possible that GCID could be named as a defendant or otherwise implicated in any such challenge due to GCID’s position as the CEQA lead agency for the DPP Agreement. Accordingly, GCID, with the SRSC Corporation Board’s support, and in consideration of GCID acting as the CEQA lead agency for the benefit of all the SRS Contractors, is seeking the individual SRS Contractor signatories’ approval and execution of the attached indemnification agreement. For SRS Contractors that are not public agencies, these agreements will provide independent responsibility for your own actions/inactions in regard to the duties required by your execution of the DPP, and specifically providing that GCID will not be held legally responsible for your actions/inactions during the term of the DPP Agreement. For SRS Contractors that are public agencies, the indemnity agreement has additional terms to reflect the unique roles of lead and responsible agencies under CEQA and provide for reciprocal commitments to indemnify during the term of the DPP Agreement. 1 AGREEMENT REGARDING INDEMNITY FOR DROUGHT PROTECTION PROGRAM WHEREAS, the Glenn-Colusa Irrigation District (“GCID”) and (“Contractor”) each have executed the AGREEMENT BETWEEN THE UNITED STATES BUREAU OF RECLAMATION, THE SACRAMENTO RIVER SETTLEMENT CONTRACTORS, A CALIFORNIA NONPROFIT MUTUAL BENEFIT CORPORATION, AND INDIVIDUAL SACRAMENTO RIVER SETTLEMENT CONTRACTORS FOR THE ESTABLISHMENT OF A DROUGHT PROTECTION PROGRAM¸ (the “DPP Agreement”) dated January 10, 2025; WHEREAS, on December 30, 2024, Glenn-Colusa Irrigation District, as lead agency under the California Environmental Quality Act (CEQA), certified the Final Environmental Impact Report (the “DPP Final EIR”) for the Drought Protection Program Agreement Between the Sacramento River Settlement Contractors Nonprofit Mutual Benefit Corporation (SRSC Corporation), Individual Sacramento River Settlement Contractors, and the U.S. Bureau of Reclamation (SCH Number 2024050834), adopted Findings of Fact and a Statement of Overriding Considerations, adopted a Mitigation Monitoring and Reporting Program (MMRP), and approved the DPP Agreement; WHEREAS, Contractor, as a responsible agency under CEQA, certified the DPP Final EIR, adopted Findings of Fact and a Statement of Overriding Considerations, adopted a MMRP, and approved the Project and authorized execution of the DPP Agreement; WHEREAS, CEQA compliance was a prerequisite to successful completion of the DPP Agreement and GCID’s and Contractor’s receipt of benefits thereunder. THEREFORE, GCID and Contractor agree as follows: 1.Mutual Commitment to Enforce MMRP. In furtherance of its obligations under Article 7(d) of the DPP Agreement: a.Contractor agrees to comply with any mitigation, monitoring and reporting requirements contained in the DPP Final EIR, as certified by GCID, that are applicable to the Contractor and associated with the Contractor’s water reductions described in Articles 3 and 4 thereto, and the Contractor’s Drought Resiliency Projects described in Article 7(a)(ii) thereto; and b.GCID agrees to comply with any mitigation, monitoring and reporting requirements contained in the DPP Final EIR, as certified by GCID, that are applicable to GCID and associated with GCID’s water reductions described in Articles 3 and 4 thereto, and GCID’s Drought Resiliency Projects described in Article 7(a)(ii) thereto. City of Redding 2 2.Mutual Indemnity. a.By Contractor: Contractor will fully indemnify, defend and hold harmless GCID and its Directors, agents, employees, and contractors, from any and all losses, damages, liabilities, claims, demands, and expenses, including attorney’s fees, arising out of or related to GCID’s role as lead agency for the DPP Final EIR and resulting from any actions taken or projects implemented by the Contractor under the DPP Agreement, including, Contractor’s obligations with respect to applicable mitigation measures adopted as part of the DPP Final EIR certification and DPP Agreement approval, and the Contractor agrees it will be solely responsible for all costs, claims (including a claim for specific performance), damages, expenses, judgments, regulatory requirements, fines, or other financial obligations arising from the Contractor’s actions, or inaction (as it may apply to Contractor’s obligations to comply with mitigation measures specifically applicable to Contractor) and Contractor’s projects undertaken pursuant to the DPP Agreement. GCID may retain its own legal counsel in any such action, with all of GCID’s litigation costs including any attorney’s fees and expert witness fees reimbursed by the Contractor. GCID and its counsel shall report and consult with the Contractor regarding the defense of any such action. GCID shall not enter into any settlement or other voluntary resolution of any such action without approval of the Contractor, such approval not to be unreasonably withheld. b.By GCID: GCID will fully indemnify, defend and hold harmless Contractor and its Directors, agents, employees, and contractors, from any and all losses, damages, liabilities, claims, demands, and expenses, including attorney’s fees, arising out of or related to Contractor’s role as responsible agency for the DPP Final EIR and resulting from any actions taken or projects implemented by GCID under the DPP Agreement, including, GCID’s obligations with respect to applicable mitigation measures adopted as part of the DPP Final EIR certification and DPP Agreement approval that are not otherwise required to be performed by the SRSC Corporation pursuant to the “Agreement Regarding CEQA Indemnity For Drought Protection Program” executed by GCID and the SRSC Corporation, and GCID agrees it will be solely responsible for all costs, claims (including a claim for specific performance), damages, expenses, judgments, regulatory requirements, fines, or other financial obligations arising from GCID’s actions, or inaction (as it may apply to GCID’s obligations to comply with mitigation measures specifically applicable to GCID) and GCID’s projects undertaken pursuant to the DPP Agreement. Contractor may retain its own legal counsel in any such action, with all of Contractor’s litigation costs including any attorney’s fees and expert witness fees reimbursed by GCID. Contractor and its counsel shall report and consult with GCID regarding the defense of any such action. Contractor shall not enter into any settlement or other voluntary resolution of any such action without approval of the GCID, such approval not to be unreasonably withheld. 3 3.Further CEQA Actions. a.The Contractor agrees that GCID will have no responsibility, financial obligation, or other duties regarding any further CEQA compliance or documentation for DPP Agreement actions taken by the Contractor, beyond the obligations identified in the DPP Final EIR’s MMRP specific to GCID. Any required supplemental CEQA documentation for such Contractor actions is the responsibility of the Contractor and any responsible agencies considering discretionary approvals for Contractor’s related actions taken under the DPP Agreement. b.GCID agrees that Contractor will have no responsibility, financial obligation, or other duties regarding any further CEQA compliance or documentation for DPP Agreement actions taken by GCID, beyond the obligations identified in the DPP Final EIR’s MMRP specific to Contractor. Any required supplemental CEQA documentation for such GCID actions is the responsibility of GCID and any responsible agencies considering discretionary approvals for GCID’s related actions taken under the DPP Agreement. 4.Any person executing this Agreement on behalf of any party hereby personally represents and warrants to the other parties that he/she/they has the authority to execute this Agreement on behalf of, and to fully bind, such party. 5.This Agreement will terminate upon the earlier of: (1) completion of the anticipated 20- year term of the DPP Agreement; (2) early termination of the DPP Agreement; or (3) any action resulting in the decertification, in whole or in part, of the DPP Final EIR, but only, if applicable, after the exhaustion of any appeals of any such decertification. IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as set forth above. GLENN-COLUSA IRRIGATION DISTRICT By: __________________________ Name: ________________________ Its: ___________________________ Date:__________________________ CITY OF REDDING By: __________________________ Name: ________________________ Its: ___________________________ Date: _________________________ December 2024 State Clearinghouse Number: 2024050834 Drought Protection Program Agreement Between the Sacramento River Settlement Contractors Nonprofit Mutual Benefit Corporation, Individual Sacramento River Settlement Contractors, and the U.S. Bureau of Reclamation Project Mitigation Monitoring and Reporting Program Prepared for the Glenn-Colusa Irrigation District December 2024 State Clearinghouse Number: 2024050834 Drought Protection Program Agreement Between the Sacramento River Settlement Contractors Nonprofit Mutual Benefit Corporation, Individual Sacramento River Settlement Contractors, and the U.S. Bureau of Reclamation Project Mitigation Monitoring and Reporting Program Prepared for Glenn-Colusa Irrigation District P.O. Box 150 Willows, California 95988 Prepared by Anchor QEA 33 New Montgomery Street, Suite 1210 San Francisco, California 94105 Mitigation Monitoring and Reporting Program i December 2024 TABLE OF CONTENTS 1 Introduction ..................................................................................................................................1 2 Monitoring Program ................................................................................................................. 2 TABLE Table 1 Mitigation and Monitoring Program ............................................................................................. 3 Mitigation Monitoring and Reporting Program ii December 2024 ABBREVIATIONS BMP best management practice CCR California Code of Regulations CDFW California Department of Fish and Wildlife CEQA California Environmental Quality Act CESA California Endangered Species Act CHRIS California Historical Resources Information System CNDDB California Natural Diversity Database CNPS California Native Plant Society EIR Environmental Impact Report ESA Endangered Species Act FEIR Final Environmental Impact Report GCID Glenn-Colusa Irrigation District GGS giant garter snake GSP Groundwater Sustainability Plan HCP Habitat Conservation Plan IDP Inadvertent Discovery Plan MMRP Mitigation and Monitoring Reporting Program mph mile per hour MRZ mineral resource zone NPDES National Pollutant Discharge Elimination System OHP Office of Historic Preservation Reclamation U.S. Bureau of Reclamation RWQCB Regional Water Quality Control Board SGMA Sustainable Groundwater Management Act SRSC Sacramento River Settlement Contractors SRSCNC Sacramento River Settlement Contractors Nonprofit Mutual Benefit Corporation SWPPP Stormwater Pollution Prevention Plan USACE U.S. Army Corps of Engineers USFWS U.S. Fish and Wildlife Service USGS U.S. Geological Survey Mitigation Monitoring and Reporting Program 1 December 2024 1 Introduction On December 30, 2024, the Glenn-Colusa Irrigation District (GCID), in compliance with the California Environmental Quality Act (CEQA; California Public Resources Code, Division 13, Section 21000 et seq.) and CEQA Guidelines (14 California Code of Regulations [CCR] 15000 et seq.) certified a Final Environmental Impact Report (FEIR) to support the approval of the Drought Protection Program Agreement1 (project or Agreement) between the Sacramento River Settlement Contractors Nonprofit Mutual Benefit Corporation (SRSCNC), individual Sacramento River Settlement Contractors (SRSC), and the U.S. Bureau of Reclamation (Reclamation). Under the project, the SRSCNC and individual members of the SRSC will enter into an Agreement with Reclamation to forego a larger percentage of their contract supply in specified drought years under two phases. In addition, the SRSC will engage in drought-resiliency projects to address potential water loss and strengthen the resilience of the SRSC’s water system and long-term water delivery capabilities. The project would occur within the SRSC service areas in eight counties: Shasta, Tehama, Glenn, Butte, Sutter, Colusa, Yolo, and Sacramento. CEQA (PRC Section 21081.6) requires a Lead or Responsible Agency to adopt a Mitigation Monitoring and Reporting Program (MMRP) when approving or carrying out a project. The purpose of this program is to ensure that when an environmental document, either an Environmental Impact Report (EIR) or a negative declaration, identifies measures to reduce potential adverse environmental impacts to less-than-significant levels, that those measures are implemented as detailed in the environmental document. As lead agency for the EIR, GCID is responsible for implementation of this MMRP. The EIR prepared for the project addresses the potential environmental impacts and, where appropriate, recommends measures to mitigate these impacts. As such, this MMRP is required to ensure that adopted mitigation measures are successfully implemented and a monitoring strategy was prepared for each mitigation measure. Once GCID adopts the MMRP, the individual SRSC members signing the Agreement would be required to comply with these mitigation measures as enforceable conditions of the Agreement. Individual SRSC members must document their compliance with all applicable mitigation measures and provide proof of compliance to the SRSCNC, which shall maintain a record of compliance that is available for inspection and verification by GCID. Therefore, in accordance with the aforementioned requirements, this document lists each mitigation measure, describes the methods for implementation, and identifies the responsible party or parties. 1 Prior to its approval, the Drought Protection Program Agreement was previously known as the Water Reduction Program Agreement. Mitigation Monitoring and Reporting Program 2 December 2024 2 Monitoring Program This MMRP was prepared and is accompanied by the associated reporting forms used to verify compliance with individual mitigation measures. This MMRP identifies each mitigation measure by discipline, the entity or organization responsible for implementation, and the monitoring phase required for each measure. Certain inspections and reports may require preparation by qualified individuals; these are specified as needed. Mitigation Monitoring and Reporting Program 3 December 2024 Table 1 Mitigation and Monitoring Program Mitigation Measures Measure Responsible Party and Implementation Timing and Monitoring MM-AGR-1: Site Drought-Resiliency Projects Outside of Forest Lands. Drought-resiliency projects will not be sited in forest lands. The SRSC member implementing the drought- resiliency project shall review all proposed drought-resiliency project locations to ensure that none are sited in forest lands. During planning for drought- resiliency projects. MM-AIR-1: Construction Truck Idling Requirements. During construction of drought resiliency projects, SRSC contractors will require construction contractors to minimize heavy-duty construction equipment idling time to 2 minutes where feasible. Currently, the In-Use Off-Road Diesel Vehicle Rule restricts construction equipment idling to 5 minutes. This measure would further reduce the time allowance for idling to 2 minutes to reduce emissions. Exceptions include equipment that needs to idle to perform work, vehicles being serviced, or vehicles in a queue waiting for work consistent with the In-Use Off-Road Diesel Vehicle Rule. This measure shall be incorporated into any applicable construction contracts initiated by an individual SRSC for a drought-resiliency project. Prior to commencement of and during all drought-resiliency project construction events. MM-AIR-2: Dust Reduction Measures.  During drought-resiliency project construction in non- Agreement Years, the following dust control measures will be implemented as applicable to the drought-resiliency project: ‒ Active construction areas will be watered at least twice daily. ‒ Haul trucks will maintain at least two feet of freeboard. ‒ Trucks hauling soil, sand, and other loose materials will be covered. ‒ Non-toxic binders (e.g., latex acrylic copolymer) will be applied to exposed areas after cut-and-fill operations and hydroseed area. ‒ Inactive storage piles will be covered.  During Agreement Years, a 20-mph speed limit for vehicles driving on unpaved roads or farmland devoid of crops will be established and enforced. Speed limits will be posted and workers will be notified in writing of restrictions. In addition, the This measure shall be incorporated into any applicable construction contracts initiated by an individual SRSC for a drought-resiliency project. Prior to commencement of drought-resiliency project construction in non-Agreement Years and during all Agreement Years, as specified in the measure. Mitigation Monitoring and Reporting Program 4 December 2024 Mitigation Measures Measure Responsible Party and Implementation Timing and Monitoring following measures will be implemented as applicable to the drought-resiliency project: ‒ Haul trucks will maintain at least 2 feet of freeboard. ‒ Trucks hauling soil, sand, and other loose materials will be covered. ‒ Non-toxic binders (e.g., latex acrylic copolymer) will be applied to exposed areas after cut-and-fill operations and hydroseed area. ‒ Inactive storage piles will be covered. MM-BIO-1: Conduct Desktop Special Status Wildlife Species, Plant Species, and Aquatic Resources Evaluation for Drought- Resiliency Projects. Prior to implementing a drought-resiliency project that involves grading, vegetation removal, or other form of construction in irrigation and drainage canals or upland areas outside of established agricultural croplands with a history of discing, planting, and maintenance, a qualified biologist will conduct a desktop evaluation of the site using digital web-based aerial photography. The purpose of the desktop evaluation will be to determine the potential for special status wildlife and plant species habitat or aquatic resources subject to regulation by the USACE, RWQCB, or CDFW to occur on site. A qualified biologist will also perform a review of the USFWS Information for Planning and Consultation, CNDDB, CNPS, and Calflora databases to identify known records or potential for special status plant or wildlife species to occur in the project vicinity. If through this assessment, the biologist determines that potential habitat for special status wildlife or plants or jurisdictional aquatic resources exist, then site-specific survey(s) will be conducted per MM-BIO-2, MM-BIO-3, MM-BIO-4, MM-BIO-5, and MM-BIO-6, as applicable. If a drought-resiliency project involves grading, vegetation removal, or other form of construction in irrigation and drainage canals or upland areas outside of established agricultural croplands with a history of discing, planting, and maintenance, the SRSC implementing the project shall complete a desktop special status wildlife species, plant species, and aquatic resources evaluation. During planning for and prior to construction of drought- resiliency projects. MM-BIO-2: Conduct Special Status Plant Species Surveys and Avoidance for Drought-Resiliency Projects. If the drought- resiliency project site survey indicates that the project site contains suitable habitat for special-status plant species, surveys using USFWS, CDFW, and California Native Plant Society protocols will be If a drought-resiliency project site contains suitable habitat for special-status plant species, the SRSC implementing the project shall ensure that surveys by a qualified biologist are conducted During planning for, prior to construction of, and after completing construction for drought-resiliency projects. Mitigation Monitoring and Reporting Program 5 December 2024 Mitigation Measures Measure Responsible Party and Implementation Timing and Monitoring conducted by a qualified biologist. If present, special-status plant species will be flagged for avoidance. If avoidance is not possible, USFWS and/or CDFW will be consulted to determine the appropriate approach for minimizing impacts to special-status plant species and compensating for unavoidable impacts, and the project proponents will implement all necessary minimization and compensation measures. and that if present, special-status plant species are flagged for avoidance by the qualified biologist. If avoidance is not possible, the SRSC implementing the project shall consult with USFWS and/or CDFW regarding the appropriate approach for minimizing impacts to special status plant species and compensating for unavoidable impacts. The SRSC implementing the project shall implement all necessary minimization and compensation measures as applicable or required for drought-resiliency projects undertaken as part of the Agreement. MM-BIO-3: Conduct Special Status Wildlife Species Surveys and Avoidance for Drought-Resiliency Projects. If the drought- resiliency project site survey indicates that the project site provides habitat for special-status wildlife, site-specific pre-construction surveys using USFWS and/or CDFW protocols will be conducted by a qualified biologist. If special-status wildlife species are actively using an area within the site, work shall not be permitted to occur within 100 feet until the animals have left on their own or, if necessary, are relocated in accordance with MM-BIO-5. Setback areas will be flagged. A qualified biologist shall be present during construction to monitor construction activities. If a drought-resiliency project site contains suitable habitat for special status wildlife species, the SRSC implementing the project shall ensure that surveys by a qualified biologist are conducted. If wildlife is actively using the area, the SRSC shall verify the work area is flagged with setbacks until the animals have left on their own or are relocated in accordance with mitigation measure MM-BIO-5. Avoidance requirements in accordance with measure shall be incorporated into any applicable construction contracts initiated by an individual SRSC for a drought-resiliency project. During planning for, prior to construction of, and during construction of drought- resiliency projects. MM-BIO-4: Conduct Nesting Bird Species Surveys and Avoidance for Drought-Resiliency Projects. If the drought- resiliency project site survey indicates that the project site provides habitat for nesting birds that may be affected by construction and construction would occur between March 1 and September 15, pre- construction nesting bird surveys (two site visits at least one week apart) will be conducted by a qualified biologist within 14 days prior If the drought-resiliency project site contains suitable habitat for nesting birds that may be affected by construction, the SRSC implementing the project shall ensure pre-construction nesting bird surveys are completed by a qualified biologist. If an active nest is found, the SRSC shall ensure an appropriate buffer zone is established During planning for, within 14 days prior to commencement of construction activities for, and during construction of drought- resiliency projects. Mitigation Monitoring and Reporting Program 6 December 2024 Mitigation Measures Measure Responsible Party and Implementation Timing and Monitoring to construction to detect the presence of nesting birds. If an active nest is found, then the qualified biologist will establish an appropriate buffer (minimum 100 feet for non-raptors and 250 feet for raptors) based on site-specific factors such as the topography, the type of work to be performed, natural visual and/or auditory barriers between the nest and proposed work area, and the species. If work must be performed within the established buffer zone, a qualified biologist should monitor the nest prior to work activities to determine baseline nesting behaviors. Work shall be permitted to occur within the buffer zone with a qualified biologist present to monitor the work for signs of disturbance, to adjust (increase) the buffer size as needed, and to exercise stop work authority if nest disturbance is observed. No further work may occur within the buffer zone until nesting birds have fledged from nests on their own. Setback areas will be flagged. by a qualified biologist. If work must occur within the buffer zone, the SRSC shall ensure that a qualified biologist monitors the nest prior to construction, is present during all construction activities within the buffer zone, and flags all setback areas. Avoidance requirements in accordance with measure shall be incorporated into any applicable construction contracts initiated by an individual SRSC for a drought-resiliency project. MM-BIO-5: Implement General Biological Resources Protection Measures during Drought-Resiliency Project Construction. The construction contractor and operations personnel shall implement the following general biological resources protection measures during drought-resiliency project construction:  Limit construction and operations activities to daylight hours to the extent feasible. If nighttime activities are unavoidable, then workers shall direct all lights for nighttime lighting into the work area and shall minimize the lighting of natural habitat areas adjacent to the work area. Light glare shields shall be used to reduce the extent of illumination into sensitive habitats. If the work area is located near surface waters, the lighting shall be shielded such that it does not shine directly into the water.  Vegetation clearing will be limited to only those areas necessary for construction.  Any excavated and stockpiled soils will be placed outside of designated special status species habitat.  Dispose of cleared vegetation and soils at a location that will not create habitat for special status wildlife species. The SRSC implementing a drought-resiliency project shall ensure that the general biological resources protection measures are implemented in constructing drought-resiliency projects. The general biological resources protection measures shall be incorporated into any applicable construction contracts initiated by an individual SRSC for a drought-resiliency project. During planning for and prior to construction of drought- resiliency projects. Mitigation Monitoring and Reporting Program 7 December 2024 Mitigation Measures Measure Responsible Party and Implementation Timing and Monitoring  Dispose of food-related and other garbage in wildlife-proof containers and remove the garbage from the project area daily during construction. Vehicles carrying trash will be required to have loads covered and secured to prevent trash and debris from falling onto roads and adjacent properties.  Store all construction-related vehicles and equipment in the designated staging areas. These areas shall not contain native or sensitive vegetation communities and shall not support sensitive plant or wildlife species.  Construction-related vehicles and equipment will not exceed a 20 mile-per-hour speed limit at the construction site, staging areas, or on unpaved roads.  The qualified biologist will provide the contractor with worker environmental awareness training.  Prior to the initiation of work each day, the contractor will inspect construction pipes, culverts, or similar features; construction equipment; or construction debris left overnight in areas that may be occupied by special-status species that could occupy such structures prior to being used for construction.  Avoid wildlife entrapment by completely covering or providing escape ramps for all excavated steep-walled holes or trenches more than 1 foot deep at the end of each construction work day. The qualified biologist shall inspect open trenches and holes and shall remove or release any trapped wildlife found in the trenches or holes prior to filling by the construction contractors. Capture and relocation of trapped or injured wildlife listed under ESA or CESA can only be performed by personnel with appropriate state and/or federal permits. Any sightings and any incidental take (mortality) shall be reported to CDFW via email within one working day of the discovery. Notification shall include the date, time, and location (U.S. Geological Survey (USGS) 7.5-minute quadrangle and/or similar map at a scale that will allow others to find the location in the field) of the incident or of the discovery of an individual special-status species that is dead or injured (type of Mitigation Monitoring and Reporting Program 8 December 2024 Mitigation Measures Measure Responsible Party and Implementation Timing and Monitoring injury shall be included). For each special-status species encountered, the biologist shall submit a completed CNDDB field survey form (or equivalent) to CDFW no more than 90 days after completing the last field visit to the project site. MM-BIO-6: Implement GGS Avoidance Measures for Drought- Resiliency Projects. If the need for a drought-resiliency project site survey is identified as part of MM-BIO-1, and the initial assessment indicates that that the project site provides habitat for GGS, avoidance measures must be implemented to avoid GGS during construction. Construction activities within GGS habitat will be restricted to between May 1 and October 1, to the extent feasible. If work must be conducted within GGS habitat between October 2 and April 30, two GGS pre-construction surveys will be conducted in any area within 200 feet of GGS aquatic habitat by a qualified biologist. The first survey will occur within 15 days prior to onset of construction and the second will occur within 24 hours prior to the onset of construction. The information collected from the first pre- construction survey will serve primarily to alert the biologist and construction crews of the general level of GGS activity at the site and borrow area, and the second survey will serve to minimize potential for take of GGS. If GGS is found in the project area, then to avoid direct impacts on GGS, the following measures will be implemented during construction of the drought-resiliency project:  Temporary fencing will be installed to exclude GGS from the work area. The design of the fence will be approved by the CDFW prior to installation.  Fence installation will be supervised by a qualified biologist.  The qualified biologist will provide the contractor with worker environmental awareness training, including instructing the contractor on how to inspect the exclusion fence.  Prior to the initiation of work each day, the contractor will inspect the exclusion fence to ensure it is functional for the intended purpose. The SRSC implementing the project shall ensure that the GGS avoidance measures are implemented in constructing drought-resiliency projects. Avoidance requirements in accordance with this measure shall be incorporated into any applicable construction contracts initiated by an individual SRSC for a drought-resiliency project. During planning for and prior to construction of drought- resiliency projects. Mitigation Monitoring and Reporting Program 9 December 2024 Mitigation Measures Measure Responsible Party and Implementation Timing and Monitoring If GGS is observed within the temporary fencing around the construction site, the contractor will stop work and allow the species to leave the site of its own volition or the snake will be captured by a qualified biologist with appropriate collecting/handling permits and relocated to the nearest suitable habitat beyond the influence of the project work area. “Take” of a state or federal special status species is prohibited without appropriate permits from the USFWS and CDFW. MM-BIO-7: Obtain Incidental Take Authorization for Take of Listed Species from Drought-Resiliency Project Impacts. If species avoidance is not expected to be possible through implementation of MM-BIO-1, MM-BIO-3, MM-BIO-4, MM-BIO-5, or MM-BIO-6, USFWS and/or CDFW will be consulted to determine the appropriate approach for minimizing impacts to special-status wildlife species and compensating for potential incidental take. Impacts will be compensated for through purchase of mitigation credits at an approved conservation bank and/or on or offsite restoration and enhancement. Incidental take authorization will be obtained for take of listed species resulting from construction of a drought-resiliency project. The SRSC implementing the project shall ensure that incidental take authorization is obtained if special status species avoidance is not possible for constructing drought-resiliency projects. Prior to the commencement of construction activities for drought-resiliency projects. MM-BIO-8: Compensate for Permanent Loss of Special Status Wildlife Species Habitat from Drought-Resiliency Projects. If it is determined through implementation of MM-BIO-1 and MM-BIO-3 that a drought-resiliency project site includes high-quality foraging or breeding habitat for special status wildlife species and there will be a permanent loss of such habitat resulting from construction, impacts will be compensated for through onsite and/or offsite restoration, enhancement, and/or purchase of mitigation credits at an approved conservation bank. Based on the findings of MM-BIO- 3, the qualified biologist will prepare a plan that outlines proposed compensatory mitigation and coordinate with USFWS and CDFW. Compensatory lands will be of similar or better quality than habitat lost, preferably located in the vicinity of the drought-resiliency project site, and be permanently preserved through a conservation The SRSC implementing the project shall ensure that compensatory mitigation is provided for permanent loss of special status species habitat from construction of drought-resiliency projects. After implementation of mitigation measures MM-BIO-1 and MM-BIO-3 for drought- resiliency project sites that include high-quality foraging or breeding habitat for special status wildlife species and where there will be a permanent loss of such habitat resulting from construction. Mitigation Monitoring and Reporting Program 10 December 2024 Mitigation Measures Measure Responsible Party and Implementation Timing and Monitoring easement. The plan will identify conservation actions to ensure that the compensatory lands are managed to provide for the continued existence of the species. The plan will also identify an approach for funding assurance for the long-term management of the conserved land, as relevant. MM-BIO-9: Tree Replanting Requirements for Drought- Resiliency Projects. Avoid native tree removal where practicable through adjustments to the alignment of ditches, pipelines, or other construction features. If protected or heritage native tree removal is not avoidable, local county requirements for replacement would be prescribed at the ratio specified in their general plan. Replanting ratios vary between counties. For trees known to be used by nesting raptors, preservation efforts shall be pursued to the maximum extent possible. Nest tree losses in HCP covered areas could be subject to replacement at 15:1 such as in the Natomas Basin HCP. The SRSC implementing the project shall ensure that trees are replanted in accordance with this measure to compensate for any tree removal required for construction or operation of drought- resiliency projects. During drought-resiliency project planning and prior to any tree removal associated with a drought-resiliency project. MM-BIO-10: Timing Requirements for Discing in Fallow Fields During Agreement Years. If discing occurs in idled croplands during an Agreement Year, the following will be adhered to:  Between February 15 and September 15, discing will occur when vegetation is on average 12 inches or less in height.  Between September 15 and February 15, discing may occur without vegetation height restriction. During Agreement Years, all SRSC members idling croplands shall ensure that the timing requirements stated in this measure are complied with when discing croplands fallowed under the Agreement. Prior to discing croplands idled as a result of the Agreement. Mitigation Monitoring and Reporting Program 11 December 2024 Mitigation Measures Measure Responsible Party and Implementation Timing and Monitoring MM-BIO-11: Maintain Minimum Water Depth in Irrigation and Drainage Canals in Key Areas During Agreement Years. Certain croplands abut or are immediately adjacent to areas with known important GGS populations that may be in or connected to areas with specific management plans for GGS either for mitigation or as wildlife refuges. Croplands abutting or immediately adjacent to the following areas are considered important GGS populations:  Butte Creek between Upper Butte Basin and Gray Lodge Wildlife areas  Colusa Basin drainage canal between Delevan and Colusa National Wildlife Refuges  Gilsizer Slough  Colusa Drainage Canal  Land side of the Toe Drain along the Sutter Bypass  Willow Slough and Willow Slough Bypass in Yolo County  Hunters and Logan Creeks between Sacramento and Delevan National Wildlife Refuges  Lands in the Natomas Basin To the extent practicable, irrigation and drainage canal water depths in areas that are considered important GGS populations will be similar to years when the Agreement is not in effect or, where information on baseline water depths is limited, at least 2 feet deep. During Agreement Years and to the extent practicable, all SRSC members idling croplands shall ensure that any croplands abutting or immediately adjacent to the areas specified in this measure maintain irrigation and drainage canal water depths of at least 2 feet deep. Prior to cropland idling during Agreement Years. MM-BIO-12: Conduct Aquatic Resources Surveys and Avoidance for Drought-Resiliency Projects If the drought-resiliency project site survey identified in MM-BIO-1 indicates that the project site contains potentially jurisdictional aquatic resources, including wetlands, other waters, and riparian habitat, that may be affected by construction, an aquatic resources delineation to identify and delineate wetlands and other waters shall be conducted. Wetlands and waters identified on site will be flagged as environmentally sensitive areas and avoided to the extent practicable. Permanent impacts to jurisdictional aquatic resources will be mitigated per MM-BIO-13. The SRSC implementing the project shall ensure that aquatic resources surveys and avoidance measures are implemented for drought-resiliency projects. During planning for and prior to construction of drought- resiliency projects. Mitigation Monitoring and Reporting Program 12 December 2024 Mitigation Measures Measure Responsible Party and Implementation Timing and Monitoring MM-BIO-13: Obtain Required Permits and Implement Wetland Mitigation for Drought-Resiliency Projects. If impacts to wetlands and waters cannot be avoided, then required permits, potentially including permits from the USACE, RWQCB, and CDFW would be obtained and complied with per MM-BIO-13. Mitigation for project- related permanent impacts to jurisdictional wetlands or other waters will be provided at a minimum 1:1 ratio through onsite and/or offsite restoration, enhancement, and/or purchase of mitigation credits at an approved bank. The SRSC implementing the project shall ensure that required USACE, RWQCB, and CDFW permits are obtained and that mitigation for permanent impacts to waters and wetlands is provided at a minimum 1:1 ratio for drought-resiliency projects. This measure shall be incorporated into any applicable construction contracts initiated by any SRSC for a proposed drought-resiliency project. Prior to construction of, during construction of, and after construction of drought- resiliency projects. MM-HYD-1: Implement Erosion and Spill Control Measures for Drought-Resiliency Projects. To ensure that contaminants are not accidentally introduced into irrigation ditches and canals, the following measures will be implemented during construction of drought-resiliency projects:  Use of BMPs (e.g., filter fabric or sandbags) to prevent pollutants from entering drainage channels  Equipment be inspected daily for leaks or spills  Materials for cleanup of spills be available on site  Flammable materials be stored in appropriate containers  Spill prevention kits be in close proximity when using hazardous materials  Spills and leaks be cleaned up immediately and disposed of in accordance with local, state, and federal regulations  Vehicles and equipment be kept clean  Construction personnel to be appropriately trained in spill prevention, hazardous material control, and cleanup of accidental spills For drought-resiliency projects involving over an acre of land disturbance, a NPDES Construction Stormwater General Permit will be obtained and a construction Stormwater Pollution Prevention Plan (SWPPP) will be prepared. This measure and all listed BMPs shall be incorporated into any applicable construction contracts initiated by a SRSC member for any drought-resiliency project and enforced by the SRSC. Implementation of the measures and listed BMPs shall be documented by the SRSC implementing the project. Prior to commencement of and during construction of drought- resiliency projects. Mitigation Monitoring and Reporting Program 13 December 2024 Mitigation Measures Measure Responsible Party and Implementation Timing and Monitoring MM-HYD-2: Install and Operate Groundwater Wells in Accordance with Groundwater Sustainability Plans (GSPs) and the SGMA for all Groundwater Pumping Activities undertaken under the Agreement. The installation of any new groundwater wells and the operation of existing and new groundwater wells will be in accordance with targets and requirements set by applicable GSPs managed by Groundwater Sustainability Agencies in the project area, as well as the requirements set forth by SGMA, including the submittal of annual reports regardless of determination status following adoption of a GSP or alternative. The implementing SRSC shall ensure that any installation and operation of new wells, and operation of existing wells, is in accordance with GSPs and SGMA. During planning for any new groundwater wells; ongoing for continued compliance for existing groundwater wells. MM-CUL-1: Conduct CHRIS Review and Desktop Evaluation for Drought-Resiliency Projects. Prior to the start of any drought- resiliency project, a qualified historian/archaeologist will request information regarding cultural resources already recorded in CHRIS to determine whether a drought-resiliency project may be located in an area where cultural resources are recorded. If through this review, a cultural resource is identified within resiliency project area or the historian/archaeologist determines through desktop review that the specific project area has potential to contain cultural resources, then implementation of MM-CUL-2 will be required. The SRSC implementing the project shall verify that a CHRIS review and desktop evaluation has been completed for the drought-resiliency projects by a qualified historian/archaeologist. If a cultural resource is identified or it is determined that the project area has the potential to contain cultural resources, the SRSC shall ensure implementation of mitigation measure MM-CUL-2. During planning for and prior to the construction of any drought-resiliency project. MM-CUL-2: Conduct Pre-Construction Surveys and Establish Buffers for Drought-Resiliency Projects. If determined required by the qualified historian/archaeologist in MM-CUL-1, a site-specific pre-construction field survey will be conducted by a qualified historian/archeologist prior to the start of construction activities. The pre-construction survey will be designed to identify historic structures, archaeological sites, and potential Tribal cultural resources that may be present at the specific location of the drought-resiliency project that is to be implemented. Reports would be made available to the Office of Historic Preservation (OHP) and Native American Tribes that have requested consultation (if any), and these entities would be afforded an opportunity to comment prior to the start of construction. Any historical or archaeological If a qualified historian/archeologist determines that a site-specific pre-construction survey is required prior to the start of construction of a drought-resiliency project, the implementing SRSC shall ensure that a site-specific pre-construction survey is conducted. Reports on historic structures, archeological sites, and potential Tribal cultural resources that may be present a specific drought-resiliency project site shall be made available to OHP and Native American Tribes that have requested consultation and any resource shall be recorded and flagged with a 30-foot buffer (or appropriate). Prior to the start of construction for drought-resiliency projects. Mitigation Monitoring and Reporting Program 14 December 2024 Mitigation Measures Measure Responsible Party and Implementation Timing and Monitoring resources identified during the survey would be recorded and flagged with a 30-foot buffer (or based on topography and access points to protect the find, as determined appropriate by the qualified historian/archeologist). This measure shall be written in applicable contracts for drought-resiliency projects. MM-CUL-3: Develop and Implement Applicable Monitoring and Mitigation for Drought-Resiliency Project Impacts. If the pre- construction survey conducted in MM-CUL-2 identifies any historic or archaeological resources and a Tribe(s) has requested consultation, then that Tribe(s) will be notified. If historic structures, archaeological sites, and potential Tribal cultural resources are identified and flagged, but impacts cannot be avoided or adequately minimized, then OHP and Tribes that have requested consultation (if any) will be provided a project-specific monitoring and mitigation plan. Impacts will be mitigated through implementation of this plan, with mitigation expected to include but not be limited to monitoring, resource investigation, documentation, recovery, or preservation as well as interpretive measures. If historic or archaeological resources are identified in a project area and a Tribe(s) has requested consultation, the SRSC implementing the project shall confirm that requesting Tribe(s) are properly notified; that resources are identified and flagged and impacts are minimized and avoided; or, if needed, a project-specific monitoring and mitigation plan is developed and shared with requesting Tribe(s). This measure shall be written in applicable contracts for drought- resiliency projects. Prior to the start of construction for drought-resiliency projects. MM-CUL-4: Develop Inadvertent Discovery Plan (IDP) to be Implemented if Prehistoric or Historical Archaeological Resources Are Encountered during Drought-Resiliency Project Construction. A qualified archaeologist will develop an IDP for the proposed project to be provided to onsite personnel involved in drought-resiliency projects that involve excavation below depths routinely disced or disturbed through routine agricultural operations. The IDP will include steps to be taken in the event that cultural resources, any artifact, or an unusual amount of bone, shell, or non-native stone are identified during construction. Work will immediately stop and activities will be relocated to another area beyond 10 meters (30 feet) of the discovery. In the case of potential human remains, the find must be reported to local law enforcement. The IDP will specify steps to notify and consult with the OHP and Tribes. If the resources are found to be significant, they would be avoided or if avoidance is not possible, mitigated in accordance with MM-CUL-3. For drought-resiliency projects that involve excavation below depths routinely disced or disturbed, the SRSC implementing the project shall ensure an IDP is prepared by a qualified archaeologist and that it is implemented if prehistoric or historical archaeological resources are encountered during construction. Plans for all drought-resiliency projects that involve excavation shall include the IDP to be provided to onsite personnel, this measure shall be written in applicable contracts. Prior to the start of construction for drought-resiliency projects. Mitigation Monitoring and Reporting Program 15 December 2024 Mitigation Measures Measure Responsible Party and Implementation Timing and Monitoring MM-GEO-1: Needed Implementation of Geotechnical Recommendations for Drought-Resiliency Projects. Recommendations from geotechnical assessments or reports for specific project elements would be implemented as needed, including use of materials and construction techniques specifically addressing potential seismic and geologic hazards. The SRSC implementing the project shall ensure that geotechnical assessments or reports are consulted or prepared to verify the need for specific project elements, if any, to ensure seismic and geological hazards requirements are included in the final drought-resiliency project design. During planning for drought- resiliency projects. MM-GEO-2: Unstable Area Buffer for Drought-Resiliency Projects. Within a 50-foot-wide buffer around unstable areas regardless of percent slope, no drought-resiliency project construction would occur without approval from an earth sciences/physical sciences professional. The SRSC implementing the project shall engage an earth sciences/physical sciences professional to determine the need for and, if needed, establish a 50-foot buffer around any unstable areas regardless of percent slope. If needed, the implementing SRSC shall ensure this requirement is included in final drought-resiliency project plans. Prior to construction of any drought-resiliency project that includes unstable areas as determined by an earth sciences/physical sciences professional. MM-GEO-3: Adhere to Applicable Seismic Design Parameters for Drought-Resiliency Projects. Drought-resiliency projects would adhere to all applicable seismic design parameters. The SRSC implementing the project shall ensure that a drought-resiliency project is compliant with all applicable seismic design parameters and that these parameters are included in final drought- resiliency project plans. During planning for any drought-resiliency project. MM-HAZ-1: Soil Testing in Accordance with Disposal Site Requirements. To address potential impacts to people and the environment from management of potentially contaminated soils, any excavated soils that would not be reused on site would be tested in accordance with disposal site requirements. For drought-resiliency projects that will not reuse excavated soils on site, the SRSC implementing the project shall require that applicable construction contracts and plans include a requirement to test excavated spoils in accordance with disposal site requirements. During planning for any drought-resiliency project. MM-HAZ-2: Spill Kits. All heavy construction equipment vehicles would maintain spill kits with oil-absorbent material and tarps to contain minor releases. For drought-resiliency projects that involve use of heavy construction equipment vehicles, the SRSC implementing the project shall require that plans and contracts include a requirement to maintain spill kits with oil-absorbent material and tarps at all times to contain minor releases. During planning for any drought-resiliency project. Mitigation Monitoring and Reporting Program 16 December 2024 Mitigation Measures Measure Responsible Party and Implementation Timing and Monitoring MM-HAZ-3: Site Drought-Resiliency Projects Away from Active Cleanup Sites. Drought-resiliency projects will be sited away from active cleanup sites. The SRSC implementing the project shall ensure that a drought-resiliency project is sited away from active cleanup sites. During planning for any drought-resiliency project. MM-MIN-1: Avoid Siting Drought-Resiliency Projects in Mineral Resource Zones. Site drought-resiliency projects away from areas mapped as MRZ to the extent practicable. The SRSC implementing the project shall ensure that a drought-resiliency project is not sited in areas mapped as MRZ to the extent practicable. During planning for any drought-resiliency project. MM-NOI-1: Notification Requirements to Off-site Noise- sensitive Receptors for Drought-Resiliency Projects. Written notification of project activities would be provided to all off-site noise-sensitive receptors (e.g., residential land uses) located within 500 feet of drought-resiliency project locations. Notification would include anticipated dates and hours during which activities are anticipated to occur and contact information of the project representative, including a daytime telephone number. The SRSC implementing the project shall ensure written notification of drought-resiliency project activities is provided to all off-site noise-sensitive receptors located within 500 feet of a drought- resiliency project site. Prior to commencement of drought-resiliency project construction activities. MM-NOI-2: Power Equipment Use and Maintenance Requirements for Drought-Resiliency Projects. All powered heavy equipment and power tools will be used and maintained according to manufacturer specifications. All diesel- and gasoline-powered equipment will be properly maintained and equipped with noise- reduction intake and exhaust mufflers and engine shrouds, in accordance with manufacturers’ recommendations. Plans for all drought-resiliency projects shall include this requirement in all construction contracts that include the use of power equipment and power tools. During planning for drought- resiliency projects and during drought-resiliency project construction activities. MM-NOI-3: Heavy Equipment Must Operate at Least 25 Feet from Neighboring Structures for Drought-Resiliency Projects. Drought-resiliency projects involving the use of heavy equipment (such as a large bulldozer) will be sited to occur at least 25 feet from neighboring historical buildings and structures that are extremely susceptible to vibration damage. If a project is sited near historic buildings or structures that are extremely susceptible to vibration damage, and the drought-resiliency project would use heavy equipment, the implementing SRSC shall review final project plans to ensure that the project is not sited within 25 feet of those historic buildings or structures. During planning for drought- resiliency projects. Mitigation Monitoring and Reporting Program 17 December 2024 Mitigation Measures Measure Responsible Party and Implementation Timing and Monitoring MM-UTI-1: Notify Utility Companies of Drought-Resiliency Projects. Prior to construction of the drought-resiliency projects, utility companies will be contacted to determine whether the potential for utility line crossing or conflict exists. Notice of construction of the drought-resiliency projects will be provided to utility providers to request additional information on the location, if any, of private cables or utilities. The SRSC implementing the project shall notify all relevant utility companies in the vicinity of project activities to determine possible construction conflicts. The implementing SRSC shall verify this measure is included in final drought-resiliency project plans. Prior to construction of a drought-resiliency project. MM-UTI-2: Conduct Utility Surveys and Coordinate with Utility Companies for Drought-Resiliency Projects if Needed. During the design phase for each of the drought-resiliency projects and if coordination with utility companies reveals the potential for utility lines to be in the project area, site specific utilities surveys will be completed to locate, understand, and avoid conflicts with existing utilities. In addition, all overhead and buried utility lines will be demarcated and avoided unless modifications are required. Modifications will be coordinated with the utility company. The SRSC implementing the project shall conduct utility surveys to locate, understand, and avoid conflicts with existing utilities and coordinate with utility companies for modifications, as necessary. This measure shall be incorporated into any applicable design and engineering contracts for all proposed drought-resiliency projects undertaken under the Agreement. During planning for drought- resiliency projects. December 19th, 2024 A Plan for Critically Dry Years The Drought Protection Program (DPP) is a water reduction and infrastructure improvement agreement between the U.S. Bureau of Reclamation (Reclamation) and the Sacramento River Settlement Contractors (Settlement Contractors) and implements a voluntary water conservation and water acquisition program over the next two decades in response to drought conditions at Shasta Lake. Temporary Program as Part of Long-Term Operations (LTO) for the Central Valley Project Goal The DPP is a series of actions and investments that will lead to improved surface water reliability in future years to benefit our farms, communities, economy and environment. Drought Protection Program Outline OUTLINE Com m u n i t i e s Fa r m i n g Fish, Bird s , W i l d l ife Balancing Water Needs for Multiple Benefits 2December 19th, 2024OUTLINE Drought Protection Program OUTLINE Why We Need the DPP The DPP is needed to avoid repeating the devastating effects of 2022 when the Settlement Contractors received an 18% water supply from Reclamation. This resulted in 370,000 acres of farm land fallowed in the Sacramento Valley and little water for communities, fish and wildlife. The DPP provides improved certainty for water deliveries for all these purposes in future droughts, as well as funding for improving water supply infrastructure to help water management in all year types. Unpredictable water years (e.g., 2022) can lead to decisions by state and federal agencies and courts that can result in reductions to water supply that have devastating effects on the Sacramento Valley. Avoiding a Repeat of 2022 •18% delivered to farms, wildlife refuges • 370,000 acres fallowed • $1.3 billion hit to regional economy • Low salmon survival rates • Communities implemented water conservation measures 3December 19th, 2024OUTLINE Drought Protection Program OUTLINE When Does This Occur? The DPP’s water supply action is triggered only when hydrologic conditions at Shasta Lake hit specified critically dry year criteria over the next 20 years. These specified hydrologic conditions would have occurred seven times in the last 100 years (7% of the time). With the more recent drought periods we have experienced, this would have occurred in three of the last 10 years (2014, 2021, 2022). Previous to 2014, it would not have occurred since the early 1990s. In these defined years between now and 2045, Settlement Contract supplies would be reduced to as low as 50%. Contract performance would be similar to 2014, 2015, 2021 and 2022 with flexibilities to allow the Settlement Contractors to best use their reduced contract supplies including shifting contract amounts between months to best meet demands. DPP Water Supply Actions Conditions would have been triggered seven times in the last 100 years. “Phase One Program Year” shall mean when all the following conditions are satisfied by April 15 in any Year during Phase One: 1. Forecasted end-of-April Shasta Lake storage is less than 3.0 million acre-feet; 2. Forecasted end-of-September, for the current year, Shasta Lake storage is less than 2.0 million acre-feet; 3. Combined actual and forecasted natural inflow to Shasta Lake from October 1, of the prior year, through April 30, for the current year, is less than 2.5 million acre-feet; and 4. Reclamation forecasts a Critical Year under the Settlement Contracts. *Note: for Phase 2, only the 3rd and 4th points above would apply. 4December 19th, 2024OUTLINE Drought Protection Program OUTLINE How Does it Work? The DPP has two, ten-year phases, while the parties commit to implement these actions and working collaboratively on the holistic Winter-Run Action Plan (WRAP) to help recover salmon. * The water supply actions result in “Program Water” • Phase 1: (2025-2035): the Settlement Contractors would reduce contract supply by up to 500,000 acre-feet during years the hydrologic conditions triggers are met. • Phase 2: (2035-2045): the Settlement Contractors would reduce contract supply by up to 100,000 acre-feet during years the hydrologic conditions triggers are met. Program Water Defined As listed in this document, “Program Water” represents the total amount of water reduced from Settlement Contract totals when the water supply action is triggered. Program Water • The water supply action is a temporary added reduction in contract supply (in addition to the existing contract reductions under the Settlement Contracts for the specific year type). • The “Program Water” is deemed equivalent to a reasonable and beneficial use of water, however, the water supply action does not reflect any change to the underlying water rights. The current Settlement Contracts will remain in place under the DPP. • As the DPP is implemented and Shasta Lake is operated to meet 2.0 million acre- feet of storage at the end of September, the Settlement Contractors will receive at least 50% of total contract supply. • The Settlement Contractors will coordinate their diversions with Reclamation to ensure an adequate flow release schedule from Shasta Lake to meet their needs. • If hydrologic conditions triggers are met during Phase 1 that would call for reductions that exceed a cumulative of 500,000 acre-feet of Program Water (but no more than 50% reductions in any given year), any further reductions are contingent upon completing WRAP milestones or otherwise agreed to by Reclamation and the SRSC Corporation. Protects Water Rights Settlement Contractors will receive at least 50% of total contract supply. Members to be compensated for water reductions. 5December 19th, 2024OUTLINE Drought Protection Program OUTLINE Ac r e - F e e t o f W a t e r 30%13%19%22%9%7% 16% Critical Drought Protection Program 100,000 Acre-Feet Up to 500,000 Acre-Feet100,000 Acre-Feet 100,000 Acre-Feet Wet 100,000 200,000 300,000 400,000 500,000 Above Normal Below Normal Shasta Critical Dry Healthy Rivers and Landscapes 100 Years Frequency Note: Existing Shasta Critical Year reductions from 100% to 75% supply are not shown here. Shasta Critical +DPP Triggers Water for the Environment Funding Summary Reclamation will provide $250 million to the Sacramento River Settlement Contractor non-profit Corporation which will then disburse that funding to the SRS contractors based on contract amounts (assuming all contractors sign the agreement.) The $250 million in funding will be provided in January 2025 to the non-profit corporation which will then distribute to contractors after they have signed the agreement. More than half of the funds will need to be spent on water supply projects. Reclamation to make $125 Million Investment for Drought Resiliency • Improve and expand conjunctive management • Pipe or line open canals • Expand recirculation systems • Upgrade irrigation systems • Infrastructure improvements • Automation of gates and canals 6December 19th, 2024OUTLINE Drought Protection Program OUTLINE When Program Water Years are Defined On March 15, Reclamation will provide an initial forecast based on a 90% exceedance level to the Settlement Contractors to define whether the conditions trigger a water supply action, including the initial quantity of “Program Water.” This information will be updated by April 15 with Reclamation identifying the final amount of “Program Water.” This timing ensures operational certainty for growers as planting decisions are made. By July 15, Reclamation will provide an updated forecast (based on 90% exceedance level) for the end of September Shasta Lake storage. If the forecast is greater than 2.0 million acre-feet, the “Program Water” that creates storage above 2.0 maf will be available to the Settlement Contractors for their use. If Shasta Lake end of September storage is forecasted to be less than 2.0 maf, Reclamation and the Settlement Contractors will meet and confer on operations for the remainder of the water year. Creating Higher Carryover Storage During the temporary period of the DPP, Reclamation intends to operate Shasta Lake with higher carryover storage as a way to conserve water for extended drought years (see graph below). The carryover storage is to designed to temporarily allow federal and state agencies to manage temperatures in the river for Winter-run Chinook salmon while a broader Winter-run Action Plan (WRAP) is developed and we learn what is working best for salmon. Following implementation of the WRAP, evaluations will be undertaken to determine the best approach to carryover storage for temperature management and water supplies. Oct Sh a s t a S t o r a g e ( 1 , 0 0 0 a c r e - f e e t ) Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Year 1 (2013)Year 2 (2014)Year 3 (2015) Reclamation Operations +HRL keep end of September storage >2maf Prior Year Actions + DPP keep September storage >2maf Prior Years Actions create access to TCD upper gates for temperature management Modern Water Stewardship Historical Higher Shasta Carryover Storage for Temperature Management 7December 19th, 2024OUTLINE Drought Protection Program OUTLINE The Need for Resiliency Through the agreement, drought resiliency projects are expected to be constructed and implemented during Phase 1 to strengthen the resilience of the Settlement Contractors’ water system and long-term water delivery capabilities. Approximately $125 million from the Inflation Reduction Act will be dedicated to construct the following types of drought resiliency projects: • Improving and expanding conjunctive management of surface water and groundwater • Piping or lining open canals • Expanding recirculation systems • Upgrading irrigation systems • Water delivery infrastructure improvements • Automation of gates and canals It is anticipated that with implementing drought resiliency projects, the impact of taking land out of production as a means to meet water reductions should reduce over time. How Will the Program Affect Districts, Companies and Growers Each participating Settlement Contractor will take their own, and possibly different actions to meet the water supply reductions, perhaps including: • Reducing deliveries to growers • Cropland idling • Shifting from higher-water-intensive crops to lower-water-using crops • Implementing conservation measures • Rely on groundwater substitution in accordance with SGMA Please consult your district/company general manager for individual questions on the program and related questions on funding, taxes and crop insurance. Settlement Contractors that do not execute the DPP will not be eligible for funding opportunities under the Program and may be subject to greater water supply reductions and impacts. We strongly believe the DPP to be the most effective and least impactful path forward through the updated Long-Term Operations of the Central Valley Project. We urge you to discuss with your representatives, consultants, or others to make your decision for participation in the DPP. Thad Bettner / Sacramento River Settlement Contractors tbettner@waterecology.net sacvalleywater.org Sacramento River Settlement Contractors Drought Protection Program Agreement FAQ The Sacramento River Settlement Contractors (SRSC) and the Bureau of Reclamation signed an agreement for a Drought Protection Program (DPP) for the Sacramento River. What is the Drought Protection Program? The DPP supports the new plan for the Long-Term Operation of the Central Valley Project. The DPP is designed to help increase predictability for water supplies to Sacramento River Settlement Contractors and create a more reliable Central Valley Project response to multi-year droughts. A significant component of the DPP is funding for drought resiliency projects that will improve water supply reliability in future years to benefit farms, communities, the economy, and the environment. What is the goal of the Drought Protection Program? The goal is to ensure stability and resilience in our water system and avoid repeating the devastating impact we saw in 2022 to the west side of the Sacramento Valley, where there was only an 18% water supply to farms, wildlife refuges and cities, and disadvantaged communities. As a result, 370,000 acres were fallowed, the regional economy took a $1.3B hit, bird and snake habitat was impacted and we saw the lowest salmon survival rates in decades. What triggers the Drought Protection Program? The DPP will be implemented in specific critically dry years with low carryover storage and less than 2.5 million acre-feet of inflow between October 1st to April 10th in to Lake Shasta. The DPP’s water supply action is triggered only when hydrologic conditions at Shasta Lake hit specified critically dry year criteria over the next 20 years. How are landowners impacted by the DPP? Sacramento River Settlement Contract supplies will be reduced up to an additional 500,000 acre-feet collectively over the current contract reduction in these specified critically dry years, with water suppliers receiving funding intended to mitigate this new water supply shortage and for investment in drought resiliency projects. What funding did the Sacramento Settlement Contractors receive? The US Bureau of Reclamation provided $250 million that will be disbursed to individual Sacramento River Settlement Contractors that participate in the program. More than half of the $250 million will be spent on drought resiliency projects. Did the Sacramento Settlement Contractors receive any State of California funding for the DPP? No. What drought resiliency projects are tied to the funding from the Bureau of Reclamation? More than $125 million will be dedicated to: • Improving and expanding conjunctive management of surface water and groundwater • Piping or lining open canals • Expanding recirculation systems • Upgrading irrigation systems • Water delivery infrastructure improvements • Automation of gates and canals How does the DPP fit into other water actions? The DPP is a component of water operations along the Sacramento River specifically designed to address resilience to drought, both for water users and the environment. The DPP depends in part on the success of the Winter-Run Action Plan that is being developed and coordinated through a collaboration of five state and federal agencies with the SRSC. The DPP is independent of the Healthy Rivers and Landscapes Program, though it allows for coordination between the two programs in different types of water years. What projects are anticipated to make up for the loss of water from Shasta? Funding will be focused within the Sacramento River Settlement Contractors’ service area to implement projects related to water use efficiency and irrigation systems improvements. The water suppliers may use the funding to install new groundwater wells, however, those wells would need to comply with all statutory requirements and are specifically required to comply with the rules and requirements of the Sustainable Groundwater Management Act (SGMA) and follow local Groundwater Sustainability Plans (GSP). Drought Protection Program July 15, 2025 Michael Webb, Director of Public Works Drought Protection Program (DPP) Agreement between U.S. Bureau of Reclamation (USBR) and the Sacramento River Settlement Contractors (SRSC) o Water Reduction in Drought Years o Infrastructure Funding Goal •Improved surface water reliability •Higher carryover storage in Shasta Lake Key Takeaway Items •20 yr. agreement with the USBR and the SRSC •Funding for infrastructure DPP is a series of actions and investments that will lead to improved surface water reliability in future years to benefit the City. Background SRSC includes 135 Settlement Contractors totaling 2.1M acre-feet (AF) of water managed through the Central Valley Project (CVP) o City of Redding –21,000 AF o ACID –125,000 AF o Bella Vista WD is not a SRSC (24,500 AF*) Total DPP funding is $250M to SRSC. Funding to go toward: o Drought resiliency infrastructure o Sacramento River projects including Salmon habitat *Subject to Shortage Provisions Why the need for the DPP Avoid a repeat of 2022 when the SRSC/City of Redding received 18% of its water allocation. New DPP o 50% maximum reduction (drought years) o $2.4M funding for drought resiliency projects o 20 year agreement, supplements the existing contract. Renegotiate contract in 20 years (end of DPP). Conclusion Minimizes the reduction to future water allocation during drought years and provides funding for future drought resiliency projects. Funding for Projects City as part of the Enterprise Anderson Groundwater Sustainability Agency (EAGSA) has an abundant groundwater aquifer to utilize. No long term impacts due to use. Conclusion Funding will be used to bolster groundwater production. In a future drought when surface water is reduced, groundwater can supplement water supply. $2.4M in funding shall be used for drought resiliency infrastructure per the DPP agreement.Potential City Projects: o New well south of the Airport o Existing well rehabilitation/treatment Thank You!