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HomeMy WebLinkAbout _ 9.11(g)--SRSC Drought Protection Program and Reso GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: July 15, 2025 FROM: Michael Webb, Public Works ITEM NO. 9.ll(g) Director ***APPROVED BY*** ie ael � iiEali� oaks L)arector 7;'11242� t�s�a a �, ss � eF 7/7(202� mwebb@cityofredding.org btippin@cityofredding.org SUBJECT: 9.11(g)--Consider Resolution and enter into the Sacramento River Settlement Contractors Drou ht Protection Pro ram. 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 staf� Background/Analysis 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 we11 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 Va11ey 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�uture 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 Zoss 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. The 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 d�uly 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 ; �., 4 p , ������ .'����... ���a.r��,�,�. � ,`.wC;.'�'Td.P,h4F�i'T CPNTR,AC'Y�RS 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 (Si�ned DPPA USBR SRSC.�ad�. In furtherance of the SRSC's coordination role under the DPP, the SRSC requires 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.) Pavment 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: � �r.s�cs�alleg��nrater.�ar°� t�a����tner��v���������cc�l���r n�t Environmental Com�liance 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-FinaI-EIR.�adf� adopted by Glenn-Colusa Irrigation District (GCID), the Bureau of Reclamation Finding of No Significant Impact (FONSI) (link here Findin of Na Signzficant Impact.�df.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 �b�t�n��C� a���°���1� �en�� and iliz� st� bk�n��n���°sA�� . w`nro s a cv�11 eyw�te r.a r� tb�ttn�r°� ����-�cr�l�ggr,n�t 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: �l���tn��°C�? �����c�l�� on��; illi� s(� lak�n��z����°so�� 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: Banking Instructions Form � 1 1 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: htt�s;�t/fil�s,sec��r��t,opr,ca. cav�3QQ312- 3/afit�ehr�entf91QNS7Ysxv�rvscr�lasl2��PrsC)z01[� �Pi�rqa�sl�Jflnj(�iSapFKwlqvE3XYan�YvvblV r�C2�61pM6a ��JfV�aPQ. This summary outlines the main themes of the mitigation measures. Key Mitigation Topics "�. �r����t�ir� ir��� ���� �a�6i�y • 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 wel) operations associated with the Drought Protection Program Agreement. �. S�f��aa�r �rq �� ��f��r� � �°��� • 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� r����ti� �r��i�� ��d ���s���rQ� F�� I���E • 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. �. r������ir� ��I��ir�� �irr i��t�iri� �ifi�� • 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. ��� im�� ���� �r� �e���t��a��i�ra 1 p���� • 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. . ����� �r� ����i�t� �I�� • 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, tbettn�r wa��ree�lc� enet) and Glenn-Colusa Irrigation District (ATT:Jeff Sutton, is�attcan@ �id.r��t). Cover pocument 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 Environinental 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 subseguently 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 r�sponsibility for your own actions/inactions in regard to the duties required by your exeeution 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. AGREEMENT REGARDING INDEMNITY FOR DROUGHT PROTECTION PROGRAM WHEREAS, the Glenn-Colusa Irrigation District ("GCID") and City of Redding ("Contractor") each have executed the AGREEMENT BETWEEN THE UNITED STATES BUREAU OF RECLAMATION, THE SACRAMENTO RIVER SETTLEMENT CON�TRACTORS, A CALIFORNIA NONPROFIT MUTUAL BENEFIT CORPORATION, AND 1NDIVIDUAL 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-Col�usa 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: l. Mut�ual 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 reguirements 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 assoeiated with GCID's water reduetions described in Articles 3 and 4 thereto, and GCID's Drought Resiliency Projects described in Article 7(a)(ii) thereto. 1. 2. MutualIndemnity. 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, clai�ns, 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 Fina1 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 Fina1 EIR certification and DPP Agreement approval that are not otherwise reguired 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 wi11 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 GCTD 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. 2 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 wi11 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 o£ (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 CITY OF REDDING DISTRICT By: By: Name: Name: Its: Its: Date: Date: 3 � � � Deeemb�r 2024 �f� State �learinghouse Numb�re 2024Q50�3� ro�ghfi Pr�t�cti�� Progr�rr� Agr�em�r�� �tv�re�n th� Sacra�e►�t� Riv�� S�ttlerr�en� C�r�tr�c�te�rs Nor�pr�afit M�tual ��r��fit �carpcaratian, Individual S�crarn�nta Ri�rer Setfil�m�nfi Cc�r�fir��fiors, �nd th� tJ,S, �ure�� �f Re�l�r�atie�n Presject Prepared fr�r the �lenn-Colusa Irrigati�n �istrict December 2024 State Clearinghouse Number: 2024050834 rau ht Prot�ctican Prograrn �, r��rr��r�t etw�er� the Sacr�r�er�t� Riv�r S�ttlerr��nt �c�ntr�ct�rs c�npr�fit utu�l �enefit Cc�rpc�r�tion, Ir�dividual Sacrarn�r�to River Settler��n� Csantr��fic�rs, a�d the �1.Se �r��u af ���lamation Prc�j��t Prepared for Prepared by Glenn-Colusa Irrigation District Anchor QEA P.O. Box 150 33 New Montgomery Street, Suite 1210 Willows, California 95988 San Francisco, California 94105 1 I ntrod u ct i o n..................................................................................................................................1 2 Monitoring Program .................................................................................................................2 Table 1 Mitigation and Monitoring Program.............................................................................................3 Mitigation Monitoring and Reporting Program i December 2024 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 NCP 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 ii December 2024 I 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 Agreement' (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. ' Prior to its approval,the Drought Protection Program Agreement was previously known as the Water Reduction Program Agreement. Mitigation Monitoring and Reporting Program 1 December 2024 i i 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 2 December 2024 Table 1 Mitigation and Monitoring Program Mitigation Mea�ures Measure Re�pnnsible Party and Implementation Timing and Monitoring i MM-AGR-1:Site Drought-Resiliency Projects Outside of Forest The SRSC member implementing the drought- During planning for drought- Lands.Drought-resiliency projects will not be sited in forest lands. resiliency project shall review all proposed resiliency projects. drought-resiliency project locations to ensure that none are sited in forest lands. MM-AIR-1:Construction Truck Idling Requirements. During This measure shall be incorporated into any Prior to commencement of and construction of drought resiliency projects, SRSC contractors will applicable construction contracts initiated by an during all drought-resiliency require construction contractors to minimize heavy-duty individual SRSC for a drought-resiliency project. project construction events. 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. MM-AIR-2:Dust Reduction Measures. This measure shall be incorporated into any Prior to commencement of . During drought-resiliency project construction in non- applicable construction contracts initiated by an drought-resiliency project Agreement Years,the following dust control measures will be individual SRSC for a drought-resiliency project. construction in non-Agreement implemented as applicable to the drought-resiliency project: Years and during all Agreement - Active construction areas will be watered at least twice daily. Years,as specified in the - Haul trucks will maintain at least two feet of freeboard. measure. - 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 Mitigation Monitoring and Reporting Program 3 December 2024 Mitigati+�r�Measures Measure Responsible Party and Implemer�tati�n Timing and Monitc�ring _.____�:_ __. __ww _____._.�____._ _w__ ____e:_._____d ._____..m _.__._�._ __.__.w,___ . _� _._.__ .__�: ._� _.__ww___ �.___w __.�_..:,�____ ___�._______w _. . .___�,r__ _ _ ..�r.________ �__._.. __d___.__._ : following measures will be implemented as applicable to the drought-resiliency project: - Haul trucks will maintain at least 2 feet of freeboard. - Trucks hauling soii,sand,and other loose materials will be covered. - Non-toxic binders(e.g., latex acrylic copolymer)wiil 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, If a drought-resiliency project involves grading, During planning for and prior to Plant Species,and Aquatic Resources Evaluation for Drought- vegetation removal,or other form of construction construction of drought- Resiliency Projects. Prior to implementing a drought-resiliency in irrigation and drainage canals or upland areas resiliency projects. project that involves grading,vegetation removal,or other form of outside of established agricuitural croplands with construction in irrigation and drainage canals or upland areas a history of discing, planting,and maintenance, outside of established agricultural croplands with a history of the SRSC implementing the project shall complete discing, planting,and maintenance,a qualified biologist will conduct a desktop special status wildlife species, plant a desktop evaluation of the site using digital web-based aerial species,and aquatic resources evaluation. 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 wiil 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 orjurisdictional aquatic resources exist,then site-specific survey(s)wili be conducted per MM-BIO-2, MM-BIO-3, MM-BIO-4, MM-BIO-S,and MM-BIO-6,as applicable. MM-BIO-2:Conduct Special Status Plant Species Surveys and if a drought-resiliency project site contains During planning for,prior to Avoidance for Drought-Resiliency Projects. If the drought- suitable habitat for special-status plant species, construction of,and after resiliency project site survey indicates that the project site contains the SRSC implementing the project shall ensure completing construction for suitabie habitat for special-status plant species,surveys using that surveys by a qualified biologist are conducted drought-resiliency projects. USFWS,CDFW,and California Native Plant Society protocols will be Mitigation Monitoring and Reporting Program 4 December 2024 Mitigati+�r�Measures Measure Responsible Party and Implemer�tati�n Timing and Monitc�ring _.____�:_ __. ___:w _____._.�____._ w__ ____e:_._____d ._____.m _.__._�._ __.__.w,___ . _� _. .__ .__�: ._� _.__ww___ �__w _.�_..:,�____ ___�._______w _. . .___�,r__ _ _ ..�r.________ �__._.. __d___.__._ : conducted by a qualified biologist. If present,special-status piant and that if present,special-status plant species are species will be flagged for avoidance. If avoidance is not possibie, flagged for avoidance by the qualified biologist. USFWS and/or CDFW will be consulted to determine the appropriate If avoidance is not possible,the SRSC approach for minimizing impacts to special-status plant species and �mplementing the project shall consult with compensating for unavoidable impacts, and the project proponents USFWS and/or CDFW regarding the appropriate will implement all necessary minimization and compensation approach for minimizing impacts to special status measures. 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 if a drought-resiliency project site contains During planning for,prior to Avoidance for Drought-Resiliency Projects. If the drought- suitable habitat for special status wildlife species, construction of,and during resiliency project site survey indicates that the project site provides the SRSC implementing the project shall ensure construction of drought- habitat for special-status wiidlife, site-specific pre-construction that surveys by a qualified biologist are resiliency projects. surveys using USFWS and/or CDFW protocols wiil be conducted by a conducted.If wildlife is actively using the area,the qualified biologist. If special-status wiidlife species are actively using SRSC shall verify the work area is flagged with an area within the site,work shall not be permitted to occur within setbacks until the animals have left on their own 100 feet until the animals have left on their own or, if necessary,are or are relocated in accordance with mitigation relocated in accordance with MM-BIO-S.Setback areas will be measure MM-BIO-S. flagged.A qualified biologist shall be present during construction to Avoidance requirements in accordance with monitor construction activities. measure shall be incorporated into any applicable construction contracts initiated by an individual SRSC for a drought-resiliency project. MM-BIO-4:Conduct Nesting Bird Species Surveys and if the drought-resiliency project site contains During planning for,within Avoidance for Drought-Resiliency Projects. If the drought- suitable habitat for nesting birds that may be 14 days prior to commencement resiliency project site survey indicates that the project site provides affected by construction,the SRSC implementing of construction activities for,and habitat for nesting birds that may be affected by construction and the project shall ensure pre-construction nesting during construction of drought- construction would occur between March 1 and September 15, pre- bird surveys are completed by a qualified resiliency projects. construction nesting bird surveys(two site visits at least one week biologist.If an active nest is found,the SRSC shall apart)will be conducted by a qualified biologist within 14 days prior ensure an appropriate buffer zone is established Mitigation Monitoring and Reporting Program 5 December 2024 Mitigati+�r�Measures Measure Responsible Party and Implemer�tati�n Timing and Monitc�ring _.____�:_ __. ___:w _____._.�____.___w__ ____.e:_._____d ._____.m _.__._�._ __._ .w,___ . _� _. .__ .__�. � _.__ww___ �__w __.�_..:,�____ ___�. ______w _. . .___�,r__ _ _ ..�r.________ �__._.. __d___.__._ : to construction to detect the presence of nesting birds. If an active by a qualified biologist. If work must occur within nest is found,then the qualified biologist will establish an the buffer zone,the SRSC shali ensure that a appropriate buffer(minimum 100 feet for non-raptors and 250 feet qualified biologist monitors the nest prior to for raptors) based on site-specific factors such as the topography, construction, is present during all construction the type of work to be performed, natural visual and/or auditory activities within the buffer zone,and flags all barriers between the nest and proposed work area,and the species. setback areas. If work must be performed within the established buffer zone,a qualified biologist should monitor the nest prior to work activities to Avoidance requirements in accordance with determine baseline nesting behaviors.Work shall be permitted to measure shall be incorporated into any applicable occur within the buffer zone with a qualified biologist present to construction contracts initiated by an individual monitor the work for signs of disturbance,to adjust(increase)the SRSC for a drought-resiliency project. 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. MM-BIO-S:Implement General Biological Resources Protection The SRSC implementing a drought-resiliency During planning for and prior to Measures during Drought-Resiliency Project Construction.The project shall ensure that the general biological construction of drought- construction contractor and operations personnel shall implement resources protection measures are implemented resiliency projects. the following general biological resources protection measures in constructing drought-resiliency projects. during drought-resiliency project construction: The general biological resources protection • Limit construction and operations activities to daylight hours to measures shall be incorporated into any the extent feasible. If nighttime activities are unavoidable,then applicable construction contracts initiated by an workers shaii direct all lights for nighttime lighting into the work �ndividual SRSC for a drought-resiliency project. 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. Mitigation Monitoring and Reporting Program 6 December 2024 Mitigati+�r�Measures Measure Responsible Party and Implemer�tati�n Timing and Monitc�ring _.____�:_ __. __ww _____._.�____._ _w__ ____.e:_._____d ._____.m .__._�._ __._ .w,___ . _� _._.__ .__�: ._� _.__ww___ �.___w __.�_..:,�____ ___�._______w _. . .___�,r__ _ _ ..�r.________ �__._.. __d___.__._ : • 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 wiil 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-wailed 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 7 December 2024 Mitigati+�r�Measures Measure Responsible Party and Implemer�tati�n Timing and Monitc�ring .____�:_ __. ___:w _____._.�____._ _w__ ____.e: _____d ._____..m _.__._�._ __.__.w,___ . _� _._.__ .__�: ._� _.__ww___ �.___w __.�_..:,�____ ___�._______w _. . .___�,r__ _ _ ..�r.________ �__._.. __d___.__._ : 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- The SRSC implementing the project shall ensure During planning for and prior to Resiliency Projects. If the need for a drought-resiliency project site that the GGS avoidance measures are construction of drought- survey is identified as part of MM-BIO-1, and the initiai assessment implemented in constructing drought-resiliency resiliency projects. indicates that that the project site provides habitat for GGS, projects. avoidance measures must be implemented to avoid GGS during construction.Construction activities within GGS habitat will be Avoidance requirements in accordance with this restricted to between May 1 and October 1,to the extent feasible. If ineasure shail be incorporated into any applicable work must be conducted within GGS habitat between October 2 and construction contracts initiated by an individual April 30,two GGS pre-construction surveys will be conducted in any SRSC for a drought-resiliency project. 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 wiii occur within 24 hours prior to the onset of construction.The information collected from the first pre- construction survey wili 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. Mitigation Monitoring and Reporting Program 8 December 2024 Mitigati+�r�Measures Measure Responsible Party and Implemer�tati�n Timing and Monitc�ring _.____�:_ __. __ww _____._.�____._ w__ ____.e:_._____d ._____.m __.__._�._ __.__.w,___ . _� _._.__ .__�: ._� _.__ww___ �.___w __.�_..:,�____ ___�._______w _. . .___�,r__ _ _ ..�r.________ �__._.. __d___.__._ : 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 The SRSC implementing the project shall ensure Prior to the commencement of Listed Species from Drought-Resiliency Project Impacts. If that incidental take authorization is obtained if construction activities for species avoidance is not expected to be possible through speciai status species avoidance is not possible for drought-resiliency projects. implementation of MM-BIO-1,MM-BIO-3, MM-BIO-4, MM-BIO-S,or constructing drought-resiliency projects. 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. MM-BIO-8:Compensate for Permanent Loss of Special Status The SRSC implementing the project shall ensure After implementation of Wildlife Species Habitat from Drought-Resiliency Projects.If it is that compensatory mitigation is provided for mitigation measures MM-BIO-1 determined through implementation of MM-BIO-1 and MM-BIO-3 permanent loss of special status species habitat and MM-BIO-3 for drought- that a drought-resiliency project site includes high-quality foraging from construction of drought-resiliency projects. resiliency project sites that or breeding habitat for special status wildlife species and there will include high-quality foraging or be a permanent loss of such habitat resulting from construction, breeding habitat for special impacts will be compensated for through onsite and/or offsite status wildlife species and restoration,enhancement,and/or purchase of mitigation credits at where there will be a permanent an approved conservation bank. Based on the findings of MM-BIO- loss of such habitat resulting 3,the qualified biologist will prepare a plan that outlines proposed from construction. 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 Mitigation Monitoring and Reporting Program 9 December 2024 Mitigati+�r�Measures Measure Responsible Party and Implemer�tati�n Timing and Monitc�ring _.____�:_ __. __ww _____._.�____._ w__ ____e: ._____d ._____.m __.__._�._ __.__.w,___ . _� _._.__ .__�: ._� _.__ww___ �.___w __.�_..:,�____ ___�._______w _. . .___�,r__ _ _ ..�r.________ �__._.. __d___.__._ : 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- The SRSC implementing the project shall ensure During drought-resiliency Resiliency Projects.Avoid native tree removal where practicable that trees are replanted in accordance with this project pianning and prior to through adjustments to the alignment of ditches, pipelines,or other measure to compensate for any tree removal any tree removai associated construction features. If protected or heritage native tree removal is required for construction or operation of drought- with a drought-resiliency not avoidable, local county requirements for replacement wouid be resiliency projects. project. 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 repiacement at 15:1 such as in the Natomas Basin HCP. MM-BIO-10:Timing Requirements for Discing in Fallow Fields During Agreement Years,ali SRSC members idling Prior to discing croplands idled During Agreement Years. If discing occurs in idled croplands croplands shall ensure that the timing as a result of the Agreement. during an Agreement Year,the following will be adhered to: requirements stated in this measure are complied • Between February 15 and September 15,discing wiil occur with when discing croplands fallowed under the when vegetation is on average 12 inches or less in height. Agreement. • Between September 15 and February 15,discing may occur without vegetation height restriction. Mitigation Monitoring and Reporting Program 10 December 2024 Mitigati+�r�Measures Measure Responsible Party and Implemer�tati�n Timing and Monitc�ring MM-BIO-11:Maintain Minimum Water Depth in Irrigation and During Agreement Years and to the extent Prior to cropland idling during Drainage�anals in Key Areas During Agreement Years.Certain practicable,all SRSC members idling croplands Agreement Years. croplands abut or are immediately adjacent to areas with known shall ensure that any croplands abutting or important GGS populations that may be in or connected to areas immediately adjacent to the areas specified in this with specific management plans for GGS either for mitigation or as measure maintain irrigation and drainage canal wildlife refuges.Croplands abutting or immediately adjacent to the water depths of at least 2 feet deep. following areas are considered important GGS populations: • Butte Creek between Upper Butte Basin and Gray�odge 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. MM-BIO-12:Conduct Aquatic Resources Surveys and Avoidance The SRSC implementing the project shall ensure During planning for and prior to for Drought-Resiliency Projects that aquatic resources surveys and avoidance construction of drought- If the drought-resiliency project site survey identified in MM-BIO-1 measures are implemented for drought-resiliency resiliency projects. indicates that the project site contains potentiallyjurisdictional projects. 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 tojurisdictional aquatic resources will be mitigated per MM-BIO-13. Mitigation Monitoring and Reporting Program 11 December 2024 Mitigati+�r�Measures Measure Responsible Party and Implemer�tati�n Timing and Monitc�ring MM-BIO-13:Obtain Required Permits and Implement Wetland The SRSC implementing the project shall ensure Prior to construction of,during Mitigation for Drought-Resiliency Projects.If impacts to wetlands that required USACE, RWQCB,and CDFW permits construction of,and after and waters cannot be avoided,then required permits, potentially are obtained and that mitigation for permanent construction of drought- including permits from the USACE, RWQCB,and CDFW would be impacts to waters and wetlands is provided at a resiliency projects. obtained and complied with per MM-BIO-13. Mitigation for project- minimum 1:1 ratio for drought-resiliency projects. related permanent impacts tojurisdictional wetlands or other waters will be provided at a minimum 1:1 ratio through onsite and/or This measure shall be incorporated into any offsite restoration,enhancement, and/or purchase of mitigation applicable construction contracts initiated by any credits at an approved bank. SRSC for a proposed drought-resiliency project. MM-HYD-1: Implement Erosion and Spill Control Measures for This measure and all listed BMPs shall be Prior to commencement of and Drought-Resiliency Projects.To ensure that contaminants are not incorporated into any applicable construction during construction of drought- accidentally introduced into irrigation ditches and canals,the contracts initiated by a SRSC member for any resiliency projects. following measures will be implemented during construction of drought-resiliency project and enforced by the drought-resiliency projects: SRSC.Implementation of the measures and listed • Use of BMPs(e.g.,filter fabric or sandbags)to prevent BMPs shall be documented by the SRSC pollutants from entering drainage channels implementing the project. . 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. Mitigation Monitoring and Reporting Program 12 December 2024 Mitigati+�r�Measures Measure Responsible Party and Implemer�tati�n Timing and Monitc�ring MM-HYD-2: Install and Operate Groundwater Wells in The impiementing SRSC shall ensure that any During planning for any new Accordance with Groundwater Sustainability Plans(GSPs)and installation and operation of new wells, and groundwaterwells;ongoing for the SGMA for all Groundwater Pumping Activities undertaken operation of existing wells,is in accordance with continued compliance for under the Agreement.The installation of any new groundwater GSPs and SGMA. existing groundwater wells. 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. MM-CUL-1:Conduct CHRIS Review and Desktop Evaluation for The SRSC implementing the project shall verify that During planning for and prior to Drought-Resiliency Projects. Prior to the start of any drought- a CHRIS review and desktop evaluation has been the construction of any resiliency project, a qualified historian/archaeologist will request completed for the drought-resiliency projects by a drought-resiliency project. information regarding cultural resources already recorded in CHRIS qualified historian/archaeologist. If a cultural to determine whether a drought-resiliency project may be located in resource is identified or it is determined that the an area where cultural resources are recorded.If through this review, project area has the potential to contain cultural a cultural resource is identified within resiliency project area or the resources,the SRSC shall ensure implementation of historian/archaeologist determines through desktop review that the mitigation measure MM-CUL-2. specific project area has potential to contain cultural resources,then implementation of MM-CUL-2 will be required. MM-CUL-2:Conduct Pre-Gonstruction Surveys and Establish If a qualified historian/archeologist determines Prior to the start of construction Buffers for Drought-Resiliency Projects.If determined required by that a site-specific pre-construction survey is for drought-resiliency projects. the qualified historian/archaeologist in MM-CUL-1,a site-specific required prior to the start of construction of a pre-construction field survey will be conducted by a qualified drought-resiliency project,the implementing SRSC historian/archeologist prior to the start of construction activities.The shall ensure that a site-specific pre-construction pre-construction survey will be designed to identify historic survey is conducted. Reports on historic structures,archaeological sites,and potential Tribal cultural structures,archeological sites, and potential Tribal resources that may be present at the specific location of the cultural resources that may be present a specific drought-resiliency project that is to be implemented.Reports would drought-resiliency project site shall be made be made available to the Office of Historic Preservation (OHP)and available to OHP and Native American Tribes that Native American Tribes that have requested consultation (if any), have requested consultation and any resource and these entities would be afforded an opportunity to comment shall be recorded and flagged with a 30-foot prior to the start of construction.Any historical or archaeological buffer(or appropriate). Mitigation Monitoring and Reporting Program 13 December 2024 Mitigati+�r�Measures Measure Responsible Party and Implemer�tati�n Timing and Monitc�ring _.____�:_ __. __ww _____._.�____._ _w__ ____.e:_._____d ._____..m __.__._�._ __.__.w,___ . _� _. .__ .__�: ._� _.__ww___ �___w _.�_..:,� ___ ___�._______w _. . .___�,r__ _ _ ..�r.________ �__._.. __d___.__._ : resources identified during the survey would be recorded and This measure shaii be written in applicable flagged with a 30-foot buffer(or based on topography and access contracts for drought-resiliency projects. points to protect the find,as determined appropriate by the qualified historian/archeologist). MM-CUL-3:Develop and Implement Applicable Monitoring and if historic or archaeological resources are Prior to the start of construction Mitigation for Drought-Resiliency Project Impacts. If the pre- identified in a project area and a Tribe(s) has for drought-resiliency projects. construction survey conducted in MM-CUL-2 identifies any historic requested consultation,the SRSC implementing or archaeological resources and a Tribe(s) has requested the project shall confirm that requesting Tribe(s) consultation,then that Tribe(s)will be notified. If historic structures, are properly notified;that resources are identified archaeological sites,and potentiai Tribal cultural resources are and flagged and impacts are minimized and identified and flagged,but impacts cannot be avoided or adequately avoided;or, if needed,a project-specific minimized,then OHP and Tribes that have requested consultation (if monitoring and mitigation plan is developed and any)will be provided a project-specific monitoring and mitigation shared with requesting Tribe(s).This measure shall plan. Impacts will be mitigated through implementation of this plan, be written in applicable contracts for drought- with mitigation expected to include but not be limited to resiliency projects. monitoring, resource investigation, documentation, recovery, or preservation as well as interpretive measures. MM-CUL-4:Develop Inadvertent Discovery Plan (IDP)to be For drought-resiliency projects that involve Prior to the start of construction Implemented if Prehistoric or Historical Archaeological excavation below depths routinely disced or for drought-resiliency projects. Resources Are Encountered during Drought-Resiliency Project disturbed,the SRSC implementing the project Construction.A qualified archaeologist will develop an IDP for the shaii ensure an IDP is prepared by a qualified proposed project to be provided to onsite personnel involved in archaeologist and that it is implemented if drought-resiliency projects that involve excavation below depths prehistoric or historical archaeological resources routinely disced or disturbed through routine agricultural are encountered during construction. operations.The IDP will include steps to be taken in the event that p�ans for all drought-resiliency projects that cultural resources, any artifact, or an unusual amount of bone, sheli, �nvolve excavation shall include the IDP to be or non-native stone are identified during construction.Work will provided to onsite personnel,this measure shall immediately stop and activities will be relocated to another area beyond 10 meters (30 feet)of the discovery. In the case of potential be written in applicable contracts. 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. Mitigation Monitoring and Reporting Program 14 December 2024 Mitigati+�r�Measures Measure Responsible Party and Implemer�tati�n Timing and Monitc�ring MM-GEO-1:Needed Implementation of Geotechnical The SRSC implementing the project shall ensure During planning for drought- Recommendations for Drought-Resiliency Projects. that geotechnical assessments or reports are resiliency projects. Recommendations from geotechnical assessments or reports for consulted or prepared to verify the need for specific project elements would be implemented as needed, specific project elements, if any,to ensure seismic including use of materiais and construction techniques specifically and geologicai hazards requirements are included addressing potential seismic and geologic hazards. in the finai drought-resiliency project design. MM-GEO-2: Unstable Area Buffer for Drought-Resiliency The SRSC implementing the project shall engage Prior to construction of any Projects.Within a 50-foot-wide buffer around unstable areas an earth sciences/physical sciences professional to drought-resiliency project that regardless of percent slope, no drought-resiliency project determine the need for and, if needed, establish a includes unstable areas as construction would occur without approval from an earth 50-foot buffer around any unstable areas determined by an earth sciences/physical sciences professional. regardless of percent slope. If needed,the sciences/physical sciences implementing SRSC shall ensure this requirement professional. is included in final drought-resiliency project plans. MM-GEO-3:Adhere to Applicable Seismic Design Parameters The SRSC implementing the project shall ensure During planning for any for Drought-Resiliency Projects.Drought-resiliency projects would that a drought-resiliency project is compliant with drought-resiliency project. adhere to all applicable seismic design parameters. all applicable seismic design parameters and that these parameters are included in final drought- resiliency project plans. MM-HAZ-1:Soil Testing in Accordance with Disposal Site For drought-resiliency projects that will not reuse During planning for any Requirements.To address potential impacts to people and the excavated soils on site,the SRSC implementing drought-resiliency project. environment from management of potentially contaminated soils, the project shall require that applicable any excavated soils that would not be reused on site would be construction contracts and plans include a tested in accordance with disposal site requirements. requirement to test excavated spoils in accordance with disposal site requirements. __ MM-HAZ-2:Spill Kits.All heavy construction equipment vehicles For drought-resiliency projects that involve use of During planning for any would maintain spill kits with oil-absorbent material and tarps to heavy construction equipment vehicles,the SRSC drought-resiliency project. contain minor releases. 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. Mitigation Monitoring and Reporting Program 15 December 2024 Mitigati+�r�Measures Measure Responsible Party and Implemer�tati�n Timing and Monitc�ring MM-HAZ-3:Site Drought-Resiliency Projects Away from Active The SRSC implementing the project shall ensure During planning for any �leanup Sites. Drought-resiliency projects will be sited away from that a drought-resiliency project is sited away drought-resiliency project. active cleanup sites. from active cleanup sites. MM-MIN-1:Avoid Siting Drought-Resiliency Projects in Mineral The SRSC implementing the project shall ensure During planning for any Resource Zones.Site drought-resiliency projects away from areas that a drought-resiliency project is not sited in drought-resiliency project. mapped as MRZ to the extent practicable. areas mapped as MRZ to the extent practicable. MM-NOI-1: Notification Requirements to Off-site Noise- The SRSC implementing the project shall ensure Priorto commencement of sensitive Receptors for Drought-Resiliency Projects.Written written notification of drought-resiliency project drought-resiliency project notification of project activities would be provided to all off-site activities is provided to all off-site noise-sensitive construction activities. noise-sensitive receptors(e.g.,residential land uses)located within receptors located within 500 feet of a drought- 500 feet of drought-resiliency project locations.Notification would resiliency project site. include anticipated dates and hours during which activities are anticipated to occur and contact information of the project representative, including a daytime telephone number. MM-NOI-2:Power Equipment Use and Maintenance Plans for all drought-resiliency projects shall During planning for drought- Requirements for Drought-Resiliency Projects.All powered heavy include this requirement in all construction resiliency projects and during equipment and power tools will be used and maintained according contracts that include the use of power equipment drought-resiliency project to manufacturer specifications.All diesel- and gasoline-powered and power tools. construction activities. equipment will be properly maintained and equipped with noise- reduction intake and exhaust mufflers and engine shrouds, in accordance with manufacturers' recommendations. MM-NOI-3: Heavy Equipment Must Operate at Least 25 Feet If a project is sited near historic buildings or During planning for drought- from Neighboring Structures for Drought-Resiliency Projects. structures that are extremely susceptible to resiliency projects. Drought-resiliency projects involving the use of heavy equipment vibration damage,and the drought-resiliency (such as a large bulldozer)will be sited to occur at least 25 feet from project would use heavy equipment,the neighboring historical buildings and structures that are extremely implementing SRSC shall review final project plans susceptible to vibration damage. to ensure that the project is not sited within 25 feet of those historic buildings or structures. Mitigation Monitoring and Reporting Program 16 December 2024 Mitigati+�r�Measures Measure Responsible Party and Implemer�tati�n Timing and Monitc�ring MM-UTI-1: Notify Utility Companies of Drought-Resiliency The SRSC implementing the project shall notify all Prior to construction of a Projects.Prior to construction of the drought-resiliency projects, relevant utility companies in the vicinity of project drought-resiliency project. utility companies will be contacted to determine whether the activities to determine possible construction potential for utility line crossing or conflict exists. Notice of confiicts.The implementing SRSC shali verify this construction of the drought-resiliency projects will be provided to measure is included in final drought-resiliency utility providers to request additional information on the location,if project plans. any,of private cables or utilities. MM-UTI-2:Conduct Utility Surveys and Coordinate with Utility The SRSC implementing the project shall conduct During planning for drought- Companies for Drought-Resiliency Projects if Needed. During utility surveys to locate, understand,and avoid resiliency projects. the design phase for each of the drought-resiliency projects and if conflicts with existing utilities and coordinate with coordination with utility companies reveals the potential for utility utility companies for modifications,as necessary. lines to be in the project area,site specific utilities surveys will be This measure shall be incorporated into any completed to locate, understand,and avoid conflicts with existing applicable design and engineering contracts for all utilities. In addition, all overhead and buried utility lines will be proposed drought-resiliency projects undertaken demarcated and avoided unless modifications are required. under the Agreement. Modifications will be coordinated with the utility company. Mitigation Monitoring and Reporting Program 17 December 2024 Contract No. 25-WC-20-6345 1 2 UNITED STATES 3 DEPARTMENT OF THE INTERIOR 4 BUREAU OF RECLAMATION 5 Central Valley Project, Caiifornia 6 7 AGREEMENT SETWEEN THE UNITED STATES BUREAiT OF RECLAMATION, 8 THE SACRAMENTO RIVER SETTLEMENT CONTRA.CTORS A CALIFORNIA 9 NONPROFIT M[TTUAL BENEFIT C4RPORATION AND TNDIVIDUAL 10 SACRAMENTO RIVER SETTLEMENT CONTRACTORS 11 FOR THE ESTABLISHMENT OF A DROUGHT PROTECTION PROGRAM 12 I3 THIS AGREEMENT, made this , ��day of January, 2025, pursuant to the I4 Reclatnation Act of 1939 (53 Stat. 1187),the Rec�amation Reform Act of 1982 {P.L. 97-293), 15 and the Inflation Reduction Act of 2022 (P.L. 117-169), between the LTNITED STATES 16 BUREAU OF RECLAMATION, hereinafter the United States or Reclamation, and represented 17 by the officer executing this Agreement, the SACRAMENTO RIVER SETTLEMENT 18 CONTRACTORS, a California nonproft mutual benefit carporation, hereinafter referred to as 19 the SRSC Corp., acting far and on behalf of its members and any other non-member Sacramento 20 River settleament contractor that receives funding pursuant to this Agreement, and individual 21 Sacramento River settletnent con�ractors that have executed this Agreement. 22 EXPLANATORY RECITALS 23 [l st] WHEREAS, the United States has constructed and is operating�he Central Valley 24 Project{Project} for diversion, storage, ca�riage, and distribution of waters of the Sacramento 1 i Contract No. 25-WC-20-6345 25 River, the Arnerican River, the Trinity River, and the San Jaaquin River and their tributaries for 26 irrigation and other beneficial uses to serve Praject purposes; and 27 [2�'d] WHEREAS, Recla�nation has entered into contracts with senior water right holders 28 on the Sacramento River, known as the Sacramento River settlement contractors, for the 29 settlement of claimed water rights; and 30 [3rd] WHEREAS, Recla�nation and the Sacramento River settlement contractors renewed 31 these contracts in or around 2005, wluch a�nong other things provide for a 25%reduction of 32 water available for diversion in a Critical Year as defined in the contracts; and 33 [4th] WHEREAS, on Septernber 30, 2021, Reclamation requested reinitiation of 34 consultation with the United States Fish and Wildlife Service and the National Oceanic and 35 Atmospheric Administration's Nafional Marine Fisheries Service regarding the long-term 36 operations of the Central Valley Project and the State Water Project pursuant to 50 C.F.R. 37 § 402.16 of the federai Endangered Species Act; 38 [Sth] WHEREAS, on November 9, 2023, Reclamation issued a"Biological Assessment 39 far the 2021 Reinitiation of Consultation on the Long-Terrn Operation of the Central Valley 40 Project and the State Wat�r Project"; 41 [�th] WHEREAS, Reclamation issued a Final Environn�ental Impact Statement (EIS) for 42 the Long-Term Operation of the Central Valley Project and the State Water Project on 43 November 15, 2�24; 44 [7th] WHEREAS, Reclamation issued a Record of Decision on the Long-Terrn Operation 45 of the Central Valley Project az�d State Water Project on December 2p, 2024; 2 Contract No. 25-WG20-6345 46 [$th] WHEREAS, in anticipation of Reclamation's operational commitments in the LTO 47 Biological Assessment, Reclamation and the undersigned Sacxamento River settlement 48 contractars agree to a Drought Protection Program under specific hydrologic conditions; 49 [9th] WHEREAS, the undersigned Sacramento River settlement contractors agree to a 50 Drought Protection Program, to be iznplemented in two phases, based on the parties' 51 commitment to improve spawning, rearing, and migratory conditions for salmon species in the 52 Upper �acramento River, hatchery operations, and other spawning �ocations in tributaries like 53 Battle Creek, and to otherwise support the recovery of salmon species; 54 [I Oth] WHEREAS, the undersigned Sacrarzlenta River settlement contractors agree to a 55 second phase of a Drought Protection Program based on anticipated investments in drought 56 resiliency projects; 57 [11th] WHEREAS, the SRSC Corp. will coorc�inate activities among its members and 58 other 5acramento River settlement contractors and distribute fiuiding to the undersigned 59 Sacranrzento River settlement contractors as set forth in the articles to follow; 50 [12th] WHEREAS, the SRSC Corp. will accept fianding and coordinate activities in bl support of the Winter-Run Action Plan and to assist the United States in achieving the milestones b2 to support recovery of�almon species in the Upper Sacramento River; and 63 �I3th] WHEREAS, the U.S. Fish and Wildlife Service issued a biologicai opinion on the 64 Sacramento River Settlement Contractors Drought Protection Program, on Januazy 7, 2Q25; and 65 [14th] WHEREAS, Reclamation completed an Environmental Assessrr�ent for the 66 Sacramento River Settlement Contractors Drought Protection Program, and signed a Finding of 67 No Signif cant Impact, an January 8, 2025, 3 Contract No. 25-WG20-6345 68 [15th] WHEREAS, on December 30, 2024, Gienn-Colusa Irrigation District, as lead 69 agency, certified the Final Environmental �mpact Report for the Drought Protection Program 70 Agreement Between the Sacramento Ri�er 5ettlement Contractors Nonprofit Mutual Benefit 7I Corporatior�, Individual Sacramento River Settlement Contractors, and the U.S. Bureau of 72 Reclamation, adopted Findings of Fact and a Statement of Overriding Considerations, adoptec�a 73 Mitigation Monitoring and Reporting Prograrz�, and approved the project, and other Sacramento 74 River settlement contractors, as responsible agencies, approved execution of this Agreement in 7S reliance on the Final Environmental Impact Report. 76 NO W, THEREFORE, in consideration of the mutual and dependent covenants herein 77 contained, the parties ag�ee as follows: 78 l. DEFINITIONS 79 When used herein unless otherwise distinctly expressed, or rt�anifestly incampatible with the SO intent of the parties as expressed in this Agreement, the terrn: 81 (a) "Agreements to Support Healthy Rivers and Landscapes" shall z�ean the suite of 82 plans and voluntary agreements proposed by signatory state agencies, Reclamation, public water 83 agencies, and other water users as an a�tern.ative program of implementation for achieving water 84 quality objectives for the Sacramento River, tributaries, and the Delta as part of the Califarnia 85 State Water Resources Control Board's update of its Bay-Delta Water Quality Control Plan; 86 (h) `Base Supply" sha11 mean the quantity of Surface Water estabiished in Articles 3 87 and 5 of the Settlement Contracts, and listed in Exhibit A of each Settlement Contract, which 88 may be diverted by the Contractor from the Sacramento Ri�er or its Souxce of Supply without 89 payment to the United States far such quan�rties di�erted; 4 Contract No. 25-WC-20-6345 90 (c) "Contract Totals" shall mean the sum of the Base Supply and Project Water 91 available �or diversion under the Settlement Contracts held by the Settlement Contractors that 92 have executed this Agreement; 93 {d} "Critical Year" shall have the same meaning as the term "Critical Year" in the 94 Settlernent Contracts, which, as stated in the Settler�ent Contracts, means any Year in which 95 either of the �ollowing eventualities exists: 96 (i) The forecasted full naturai inflow to Shasta Lalce for the current Water 97 Year, as such forecast is made by the United States an or before February 15 and 98 reviewed as frequently thereafter as conditions and information warrant, is equal to or 99 less than 3.2 MAF; ar 100 (ii) The total accurr��ilated actual deficiencies below 4A million acre-feet in 101 the immediately prior Water Year or series of successive prior Water Years each of 102 which had inflows of less than 4.0 �nillion acre-feet, together with the forecasted 103 deficiency for the current Water Year, exceed 800,000 acre-feet. 104 For the purpose of determining a Critical Year, the computation of inflow to 105 Shasta Lake sha11 be performed in a manner that considers the extent of upstream l Ob development above Shasta Lake during the year in question, and shall be used as the full 107 natural flow to Shasta Lake. In the event that major construction has occurred ar occurs 108 above Shasta Lake after September 1, 1963, and which has zx�.aterially altered or alters the 109 regimen of the stream systems confiributing to Shasta Lake,the computed inflow to 110 Shasta Lake used to define a Critical Year will be adjusted to eliminate the effect of such 111 material alterations. After consultation with the State of California, �lie National Weather 112 Service, and other recognized forecasting agencies, the Contracting Officer will select the 5 Contract No. 25-WG20-6345 113 forecast to be used and will make the details of it available to the Settlement Contractors. I 14 The same forecasts used by the United States for the operation of the Project sha11 be 11 S used to make the farecasts hereunder; 116 (e} "Contracting Officer" will mean Reclamation's Regional Director{unless 117 otherwise stated) or his duly authorized representative; 118 (� "CVPIA" shali mean the Central Valley Project Improvement Act, Title XXXIV 119 of the Act of October 30, 1492 (106 Stat. 4706}; 120 (g) "Drought Resiliency Projects" shall mean an integrated, broad range of actions 121 intended to strengthen the resilience of the Settlement Contractors' water system and long-term 122 water delivery capabilities,thereby assisting Reclamation and the Settlement Contractors to 123 withstand and r�cover from climatic variability in order to support healthy rivers and landscapes 124 (including but not limited to terrestrial ecosysterr�s) and create durable water savings while 125 sustai.ning a more drought-resilient econorny that retains its vitality. Drought Resiliency Projects 126 inciude but are not limited ta the following actions: 1) protecting and enhancing natural systezns 127 through habitat projects and other environmental stewardship; 2) making investments to 128 conserve water supplies over the long-term; 3) diversifying water supplies; and 4) enhancing 129 water management actions with improved data, forecasting, conveyance, and administration 130 under the Settlement Contracts; 131 (h) "Effective Date" shall mean January 10, 2025. 132 (i) "Exhibit A" shall mean the listing of those Settlement Contractors that have 133 executed this Agreement, which Exhibit may be modified by t�.e SRSC Corp. withaut 134 an:�endment of this Agreement if and when those entities or persons that hold a Settlement 6 Cantract No. 25-WC-20-6345 135 Contract with Reclamation as originally executed in or about 1964, and as renewed in or about 136 2005, execute this Agreement after the Effective Date but on or before July 31, 2025. 137 (j) "Final EIR" shall mean the Final Environmental Impact Report to support a 138 Drought Protection Program Agreement Between the Sacramento River Settlement Contractors 139 Nonprofit Mutual Benefit Corporation, Individual Sacramento River Settlement Cantractors, and 140 the U.S. Bureau o�Reclamation, certified by Glenn-Colusa Irrigation District on December 30, 141 2024. 142 (k} "Five Agency Memorandum of Understanding" shall mean the "Memorandum of 143 Agreement for the Purpose of the Recovery of Winter-Run Chinook Salmon Pursuant to the 144 Winter-Run Action Plar�by and among United States Fish and Wildlife Service, National Marine 145 Fisheries Service, Bureau of Reclamation, Califarnia Department of Water Resources, California 146 Department of Fish and Wildlife, and Sacramento River Settlement Contractors Corporation" 147 dated , 2025. 148 {1} "Inflation Reduction Act" or"Act" shall rnean Public Law No. 117-169, 13fi 149 Stat. 1$18 (2022). 150 (m) "LTO Biological Assessment" means the "Biological Assessment for the 2021 151 Reinitiation of Consultation on the Long-Term Operation of the Central Valley Project and the 152 State Water Project" issued by Reclamation on November 9, 2023. 153 (n} "Parties" shall mean the United States or Reclamation, SRSC Corp., and the 154 Settlement Contractors that have executed this Agreement. 155 (o) "Phase One" shall mean the period that lasts ten years from the date of the 156 execution of this Agreement when the provisions of Article 3 of this Agreement are effective. 7 Contract No. 25-WC-20-6345 157 (p) "Phase One Pragram Year" shall mean when all the foilowing conditions are 158 satisfied by Aprii 15 in any Year during Phase One: 159 (i) Based on Bin 3B Indicators in the LTO Biological Assessment, forecasted 160 end-of-April Shasta Lake storage is less than 3.0 million acre-feet; 161 (ii} Based on Bin 3B Indicators in the LTO Bioiogical Assessment, #'orecasted 162 end-of-September Shasta Lake starage is less than 2.0 million acre-feet; 163 (iii) Cambined actual and farecasted natural inflow to Shasta Lake from 164 Octaber 1 through April 30 is less than 2.5 million acre-feet; and 165 {iv) Reclamation forecasts a Critical Year under the Settlement Contracts. 166 Forecasts to determine whether conc�itions (i)-(iv) are sa�isfied shall be based on a 167 90%exceedance. 168 (q) "Phase Two" shall mean the period following the expiration of Phase One through 169 February 28, 2045, when the provisions of Article 4 of this Agreement are effective. 170 (r} "Phase Two Pragram Year" shall mean when all the following conditions are 171 satisfied by April 15 in any Year during Phase Two: 172 (i) Combined actual and forecasted natural inflow to Shasta Lake from 173 Octaber 1 fhrough Apxi130 is less than 2.5 million acre-feet; and 174 (ii} Reclamation forecasts a Critical Year under the Settlement Contracts. 175 Forecasts to determine whether conditians (i}-{ii) are satisfied shall be based on a 176 90% exceedance. 177 (s) "Program Water" shall mear�the total quantity reduced under a11 Settlement 17$ Contracts participating in the Drought Protection Program during a Phase One Prograixa Year, nat 179 to exceed a combinecE 500,000 acre-feet per Fhase One Program Year, in order to result in a 8 Contract No. 25-WC-24-6345 180 forecasted end-of-September storage in Shasta Lake of up to 2.0 million acre-feet, the total 181 reduction shall be in addition to reductions under Article 5 Qf the Settlement Contracts. 182 (t) "Project" shall mean the Central Valley Project owned by the United States and I83 managed by the Department of Interior, Bureau of Reclamation; 184 (u} "Project Water" shall harre the same meaning as the tezm "Project Water" in the 1 SS Settlement Contracts, which, as stated in the Settlement Contracts, means all Surface Water I86 diverted or sch�duled to be diverted each Year by the Contractor from the Sacramento River 187 which is in excess of the Base Supply. The United States recognizes the right of the Contractor to 188 make arrangements for acquisition of water from projects of others than the United Stafes far 189 delivery through the Sacramento River and �ributaries subject to written agreennent between 190 Contractor and the United 5tates as to identification of such water which water when so 191 identified shall not be deemed Froject Water under this Settlement Contract; 192 (v} "Rates" shall have the same meaning as the term"Rates" in the Settlement 193 Cor�tracts, which, as stated in the Settlement Contracts, means the payments for Project Water 194 determined annually by the Contracting Off ce in accordance with the then current applicable 195 water ratesetting Policies for the Project, as described in subdivision (a) of Article 8 of the 196 Settlement Contract. 197 (w} "Reclamation Pragram Water" shall mean any Program Water made available for 198 use by Reclamation�ursuant to this Agreez�ent; 199 {x) "Record of Decision" shall mean the decision document issued on December 20, 200 2024, in which Reclamation selected an alternative for the long-term operations of the Central 201 Va11ey Project and State Water Praject based on the analysis of the ras�ge of alternatives analyzed 9 Contract No. 25-WC-20-6345 202 in the EIS titled"Long-Term Operations o�'the Central Valley Project and State Water Project", 203 posted on November 15, 2024. 204 (y) "Recoverable SRS Contractor Program Water" shall mean the quantity af SRS 205 Contractor Program Water that is available for use in accordance with Artic�e 3(g)-(i); except 206 that portion determined by Reclamation as Recoverable SRS Contractor Program Water Spill; 207 (z) "Recoverable SRS Contractor Program Water Spill" shall mean Recoverable SRS 208 Contractor Program Water that, upon determination by Reclamation, is irrecoverably lost from 209 Reclamation's contral at Shasta Reservoir; 210 (aa) "Rescheduling Fee" shall have the same meaning as the term"Rescheduling Fee" 211 in the Settlement Contracts, which, as stated in the Settlement Contracts, means the payments 212 required for each acre-foot of Base Supply rescheduled pursuant to subdivision(c)(1) of A_rticle 3 213 of the Settlement Contract, as determined annually by the Contracting Officer in accordance with 214 the then-current applicable water rate setting policies for the Project; 215 {bb) "SRS Contractor Program Water" sha11 mean any Program Water that is not made 216 available for use by Reclamatian as Reclamation Program Water; 217 (cc} "Secretary" shall mean the Secretary of the Interior, a duly appointed successor, 218 or an authorized representative acting�ursuant to any authority of the Secre�ary and through any 219 agency of the Department of the Interior; 22a {dd) "Settlement Cantractor{s)" shall mean those entities or persons that hold a 221 Settlemen�Contract with Reclazraation as originally executed in or about 1964, and as renewed in 222 or about 2005, and who have agreed to participate in the Drought Protection Program by 223 executing this Agreement. 10 Contract No. 25-WG20-b345 224 {ee} "Settlement Contract(s)" shall mean the Sacrannento River Settlement Contracts 225 as originally executed in or about 1964, and as renewed in or about 2005. 226 {f� "Surface Water" shall have the same meaning as the term"Surface Water" in the 227 Settlement Cantracts, which, as stated in the Settlement Contracts, means only those waters that 228 are considered as surface water under California law; 229 (gg) "Drought Protection Progra�n" shall mean the program implemenfing reductions 230 to Contract Totals in Phase One pursuant to Article 3 of this Agreement and in Phase Twa 231 pursuant to Article 4 of this Agreement. 232 (hh) "Water Year" shall have the same meaning as the term "Water Year" in the 233 Settle�x�.ent Contracts, which, as stated in the Settlement Contracts, means the period 234 commencing witn October 1 of one year and extending through Septernber 30 o�tl�e next; 235 {ii) "Winter-Run Action Plan"or"WRAP" shall mean�he plan that has been 236 developed collaboratively among representatives from Reclamation, National Marine �'isheries 237 Service, U.S. Fish and Wildlife Service, California Departmenf of Water Resources, California 238 Departrrient af Fish and Wildlife, and the SRSC Corp. as an integrated plan to improve the 239 survival and viability of Winter-run Chinook salman that functions alongside planned operation 240 of Shasta Reservoir, and as the p�an is identified and described in Sections 3.13.3.2 and 3.15.1 of 241 the LTO Biological Assessment; and 242 (jj) "Year" shall ha�e the same meariing as the term"Year" in the Settlement 243 Cantracts, which, as stated in the Se�tlement Contracts means a calendar year. 244 2. DURATION OF CONTRACTUAL QBLIGATIONS 245 Except for Reclamation's obligations under Article 7 of this Agreement, the Parties' 24b respective rights, responsibilities and performance obligations during Phase One of the Drought 11 Contract No. 25-WG20-6345 247 Protection Program sha11 remain in effect from February 1, 2025, through February 15, 2035. 248 The Parties' respective rights, responsibilities and performance abligations during Phase Two of 249 the Drought Protection Program shall begin on February l 6, 2�35, and shall remain in effect 250 through February 2$, 2045. 2S 1 3. PHASE QNE OF THE DROUGHT PROTECTION PROGRAM 252 (a) Reclamation.will establish a Drought Protection Program to reduce water 253 furnished to Settlement Contractors in certain years and under specific hydrologic conditions as 254 defned in this Agreement. The Drough�Protection Program will be i�plemented in two phases, 255 with each phase las�ing approximately ten years. This article prescribes the terms of Phase One 25& of tihe Drought Protection Program. 257 (b) Reclamation will identify whether any Year is a Phase One Prograzn Year, as 258 def ned in Article 1(p), and the amount of Program Water based on the following forecasts and 2S9 process: 2b0 (i) On March 1 S of each Year, Reclamation will provide a forecast based on a 261 90% exceedance to the Settlement Contractoxs as to whether the conditions for a Phase 262 One Prograr�Year are forecasted to be satisfied, and if so, will identify the initial 263 quantity of Program Water. 264 (ii) On April 15 af each Year, Reclamation will provide a forecast based on a 265 90% exceedance to the Settleznent Contractors as to whether the conditions for a Phase 266 One Program Year are satisfied, and if so, will identify the final amount of Program 26'7 Water. 12 Contract No. 25-WC-20-6345 268 {iii} Reclamation may not increase the arnaunt of Program Water after April 15 269 under this Agreement. The Sett�ement Contractors may volunta�ily agree to an increase 270 in the quantity of Program Water subject to a separate agreement with Reclamation. 271 (iv} The forecast provided by Reclamation on April 15 wi116e the finai notice 272 to Settlement Contractors as to whether it is a Phase One Program Year. 273 {c) In addition.to reductions under Article 5 of the Settlement Contracts, in a Phase 274 One Program Year, Reclamation will reduce the Contract Totals far the Settlement Contractors 275 by the final amount of Program Water identified on Apr�l 15; the reduction to Contract Totals 276 because of reductions for Program Water shall be distributed among the Settlement Contractors 277 as identified i�E�ibit A. The Settlement Contractors may redistribute th� reductions to 27& Contract Totals among the Settlement Contractors, provided that tl�e tota.I amount of Program 279 Water identified by Reclamation is met by the combined reduction to Contract Totals af the 280 5ettlemen�Cantractors. Any water reductions pursuant to this subdivision shall be deemed 281 equivalent to a reasanable benef cial use of water to the extent of fhe reduction in supply, do not 282 reflect any change to the underlying water rights of the Settlement Contractors, and will not be 283 considered by Reclama#ian as a reduction in water use or demand during any renewal of the 284 Settlement Contracts, unless otherwise mutuall� agreed. 285 (d) By April 1 S af any Phase One Program Year, Reclamation shall have the first 286 right to make Program Water available for use by Reclamation upon a mutually agreed upon 287 amount of funding made available�a the Set�lemez�t Contractors; such water shall be 288 "Reclamation Program Water." Program Water not funded by Reclamation by April 15 shall be 289 "SRS Contractor Program Water." �3 Contract No. 25-WC-20-6345 290 (e} Between April 15 and July 15 in a Phase One Program Year, the 5ettlernent 291 Contractors may voluntarily provide an option to Reclamation to provide funding for use of SRS 292 Co�tractor Program Water by Reclamation at an amount agreed upon in the future by 293 Reclamation and the Settlement Contracfors. 294 (f} In a Phase One Pragram Year, no later than July 15, Reclaznation will provide a 295 forecast based on a 90% exceedance to the Settlement Contractors that identifies the forecasted 296 end-of-September Shasta Lake storage: 297 {i} If the farecasted end-of-September Shasta Lake starage is greater than 298 2.0 million acre-feet, then the SRS Contractor Program Water will become "Recoverable 299 SRS Contractor Program Water" and may be used in accordance with subdivisions (g}-(i) 300 of this Article 3. Recoverable SRS Contractor Program Water will be c�istributed arr�ang 301 the Settlement Contractors in accordance with Exhibit A. 302 (ii} If'the farecasted end-of-September Shasta Lake starage is less than 303 2.0 million acre-feet, then Reclamation and the Settlemen�Contractors will meet and 304 confer on operations for the retnaining period of the Water Year in accordance rvith 305 Article 6 o�this Agreement. 306 (g) Each Settlement Contractor may use its amount of Recoverable SRS Contractar 307 Program Water for the following purposes and subject to Recla�nation's operational con.straints: 308 (i} Diversion and use within a Settlement Contractor Service Area identified 309 in Exhi�it B of a 5ettl�r�ent Contract; 310 {ii) Sett�ement Contractor flow contributions or other actions under the 311 Agreemenfs to Support Healthy Rivers and Landscages; 14 Contracfi No. 25-WC-20-6345 312 (iii) Subject to Reclamation's right of first refusal to provide funding to make 313 Recoverable SRS Contractor Program Water available for use by Reclamation, request 3I4 assignment and delivery to Project water service ancE/or repayment contractors or 315 National Wildlife Refuges, or 316 {iv) Subject to Reclamation's right of first refusal to pravide funding to make 317 Recoverable SRS Cantractor Prograrn Watex available for use by Reclamation, transfer to 318 non-Project contractars in accorclance with Article 3(e) of the Settlement Contracts. 319 Use of Recoverab�e SRS Contractor Program Water plus quantities diverted or 320 transferred under the Settlement Contracts in each Year shall not exceed the Contract Totals. 321 (h) Requested use of Recoverable SRS Contractor Program Water shall not result in a 322 forecasted end-of-September Sk�asta Lake storage of less than 2.0 mil�ion acre-feet during the 323 year of the requested use. 324 {i) Requests by Settlement Contractors to use Recoverable SRS Contractor Program 325 Water for the purposes in subdivision(g)(i)-{iv) of this Article 3 shall be submitted to 326 Reclamation at least two weeks prior to the date of the requested use. Reclamation and the 327 Settlement Contractors shall cooperate to reach agreement on a scheduie for the requested use, 328 subject to Reclamation's operational constraints, within two weeks of submittal of a request. 329 (j) After October 1 of each Year, SRS Contractor Program Water sh.all hecome 330 Recoverable SRS Contractor Program Water. Any Recoverable SRS Contractor Program Water 331 shall be carried over in Shasta Lake subject to the following: 332 (i) Reclamation shall have the right to provide funding to make any 333 Recoverable SRS Contractor Program Water available for use by Rec�amation beginz�ing 334 October 1. Any Recoverable SRS Contractor Program Water that Reclamation does not 15 Contracfi No. 25-WC-2a-6345 335 fund by April 15 of the following year shall remain Recoverable SRS Contractor 336 Program Water. 337 (ii) In the evenf the following year is not a Phase One Program Year, 33$ Settlement Contractors may use Recoverabie SRS Contractor Program Water for the 339 purposes and sub�ect to the conditions in subdivisior�(g) of this Article 3. Requested use 340 of Recoverable SRS Contractor Program Water shall not result in a forecasted end-of- 34� September Shasta Lake storage of less than 2.0 million acre-feet during the Year of the 342 requested use. 343 (iii} Recaverable SRS Contractor Pragram Water that is carried over may 34� become Recoverable SRS Contractor Program Water Spill. The determination of 345 Recoverable SRS Contractor Program Water Spill will be made by Reclamation. 346 (iv) Reclamation shall pro�ide an accounting of Aecoverab�e SRS Contractor 347 Pragram Water Spill with a notification to SRS Contactors within 45 days its 348 determination. 349 {v) Recoverable SRS Contractor Program Water Spill shall be accaunted as 35Q mee�ing the Settlement Contractors' obligations to provide flow contributions under the 351 Agreements to Support Healthy Rivers and Landscapes to the extent possible. 352 {k) Recoverable SRS Contractor Progrann Water rezxiaining in Shasta at the end of 353 Phase One, if any, will be cart7ed o�er in Shasta for future use for the purposes at�d subject to the 354 canditions in subdivision{g). 355 4. PHASE TWO OF THE DROUGHT PROTECT�ON PROGRAM 356 (a} This article prescxibes the terms of Phase Two of the Drought Protection Prograxx�. 357 Phase Two shall expire on February 28, 2045, unle�s otherwise extended by mutual agreement. 16 Contract Na. 25-WC-20-6345 358 (b) Reclamation will identify whether any Year is a Phase Two Program Year, as 359 defined in Article 1{r}, based on the following farecasts and process: 360 (i) On March 1 S of each Year during Phase Two, Reclamation will provide a 361 forecast based on a 90% exceedance to the Settlezxaent Cantractors as to whether the 362 conditions for a Phase Two Program Year are forecasted to be satisfied; and 363 (ii) If the conditions for a Phase Two Program Year are forecasted to be 364 satisfied on Ma�rch 15, then Reclamation and the Settlement Contractors wili begin to 365 meet and confer on whether a reduction, in addition to reductions under Article 5 of the 366 Settlement Contracts, is necessary to promote the survival and recovery of federally 367 endangered ar threatened species in the Sacramento Rivex below Shasta Dam above I 368 Street Bridge. 369 (iii} On April 15 af each year during Phase Two, Reclamation will provide a 370 forecast based on a 90% exceedance to Settlemen# Contractars as to whether the 371 conditions for a Phase Two Program Year are satisfied. The forecast provided by 372 Reclamation on April 15 will be the final notice to Settlement Contractors as whether it is 373 a Phase Two Program Year. 374 (c) If Reclamation detez�xiines that is a Phase Two Program Year on April 15, and, as 375 a result of the meet and canfer process described in Article 6, Reclamation and the Settlement 376 Contractors agree that a reduction in addition to red�ctions under Article 5 of the Settlement 377 Contracts is necessary to achieve temperat�re control in tlle Llpper Sacramento River, then the 378 Settlement Contractors will voluntarily reduce the Contract Totals under the Settlement 3 79 Contracts by up to 100,000 acre-feet. 17 Contract No. 25-WC-20-b345 3$0 (d) The Settlement Contractors anay distribute the reductions to Contract Totals 381 among the Settlemen� Contractors, provided that the total amount of up to 100,000 acre-feet is 382 met by the combined reductio�to Contract Totals by the Settlement Contractars. 383 (e) Any water reductions pursuant to Article 4(c) shall be c�e�rned equivalent to a 384 reasonable beneficial use of water to the extent o�the reduction in supply, do not reflect any 3$5 change to the underlying water rights af the Settlement Contractors, and will not be considered 386 by Reclamation as a reduction in water use or demand during any renewal of the Settlement 387 Contracts, unless otherwise mutually agreed. 388 (�} Reclamation will utilize any water savings resulting from the reductions by tY�e 389 Settlement Contractors under Article 4(c) of this Agreement for non-reimbursable purposes 390 necessary to promote the survival and recovezy of federally endangexed or threatened species i� 391 the Sac�amento River below Shasta Dam ahove I Street Bridge and will not make these savings 392 a�ailable for wat�r supply allocations to CVP contractors in a Phase Two Prograrn Year. 393 (g) The Parties agree that during Phase Two any voluntary reductions in water 394 furnished to the Settlement Contractars beyond the reductions provided for in Artfcle 4(c} of this 395 Agreement shall be subject ta a separate agreement with Reclamation. 396 5. SETTLEMENT C�NTRACT PERFORMANCE 397 {a} Reclamation agrees to the following terms during a Phase One Program Year or a 39$ Phase Two Program Year: 399 (i) Reclamation will allow Settlement Contractors to reschedule the amounts 400 of Base Supply not diverted in a month into any other months, inciuding into the critical 401 months defined in the 5ettlement Contracts, or otherwise as needed to accommodate the 402 demand shift pattern. 18 Contract No. 25-WC-20-6345 403 (ii) Reclamation sha11 ensure that water furnishec�under the �ettlement 404 Contracts is available on a pattern that allows the Settlement Contractors to make use of 405 the entire Contract Total, with applicable reductions under the 5ettlement Contracts and 406 this Agreement. 407 {iii) Reclamation will waive the requirement of Article 3(c}(2)(ii) of the 408 Settlement Contracts. 409 {iv) Reclarnation will allow the accounting order for diversion schedules for 410 each month to be regular monthly Base Supply, then ur�used Base Supply rescheduled 411 from another month, and then Project Water. 412 (v) Reclamation shall waive fees for the rescheduling af Base Supply into 413 other months as set forth in Article 3{c)(1) of the Settlement Contracts. 414 (vi} Reclamation will wai�e the take or pay provisions in Article S(a)(1) of the 415 Settlement Cantracts. 416 (vii) For the purpose af future water transfers related to groundwater �17 substitution or crop idling/shifting, Reclamation will account for baseline conditions only 418 in years that do not involve reductions to Contract Totais beyond those described in 419 Article 5 of the Settlement Contracts. 420 (viii} Bath Base Supply and Project Water shall be available for use in water 421 transfers consistent with sections 3403(� and 3405(a)(1){M) of th.e CVPIA. 422 (b) In the event o�a conflict between the terms in subdivision (a) of Article 5 of this 423 Agreement and the terms of a Settlement Contract, the terms in subdivision(a) af Article 5 of 424 this Agreement shali govern. 19 Contract No. 25-WG20-6345 42S (c} To the maximum extent possible, fhe terms in subdivision (a) of Article 5 of this 426 Agxeement will also apply to the use of Recoverable SRS Contractor Program Water if it 427 becomes available far use in a Phase One Prograzx� Year in Phase One of the Drought Protection 42S Progra�n. 429 6. MEET AND CONFER 430 The Settlement Contractors will meet and confer with Reclamation as appropriate to 431 determine if there is any additional role for the Settlement Contractors in connection with 432 Reclamation's operational decasion-making for Shasta Reservoir annual operations in Phase One 433 Program Years and Phase Two Prograrn Years. This dete�nznation will include consideration of 434 what actions are feasible, consistent with the terms of this Agreement and tY�e Settlement 435 Contracts. In addition to the reduction during Critical Years as set forth in the Settlement 436 Can.tracts, and the reductions under Articles 3 and 4 af this Agreement, the types of actions that 437 may be considered include, but are not necessarily limited to: {1} the scheduling of spring 438 diversions by the Settlement Contractors; (2) voluntary, compensated water transfers by the 439 Settlement Contractors subject to Reclamation approval; and (3) smoothed diversions by the 440 Settlement Contractors during the fall rnonths. Any mut�.zally agreeable proposed actions 441 resultin.g from these meet-and-canfer discussions must be consistent vvitk the terms of this 442 Agreement and the Settlement Contracts and subject to other regulatory approvals. 443 7. FUNDING FOR THE DROUGHT PROTECTION PROGRAM 444 (a) Reclamation will fund the Drought Protection Progxa.zn by providing the 445 following payment to SRSC Corp.: 20 Contract No. 25-WC-20-6345 44{ (i) $250 million upon the Effective Date of this Agreement, in a one-time, 447 non-refundable payment to the SRSC Corp., with funds available to Reclamation under 448 the Inflation Reduction Act. 449 {ii) The Settlement Contractors shall use the majority of the proceeds from 450 Article 7(a)(i} to invest in Drought Resiliency Projects. For purposes of this pro�ision, 451 Drought Resiliency Projects include actions taken by Settlement Contractors and costs of 4S2 those actions incuzxed from August 16, 2022, the date of enactment of the Inflation 453 Reduc�ion Act, to December 20, 2024, up to $30 million. The balance of the proceeds 454 (less than the rnajority of funds from the Inflation Reduction Act) may be used for any 455 �awful Settlement Contractor purposes. 456 (iii) The proceeds from Article 7(a), once transferred to the Settlement 4�57 Contractors under Article 11, are eligible to meet any local agency cost share for a 458 matching funds requirement. 459 {b} In accordance with Article 2 of this Agreement, Reclamatian has the right to the 460 first 275,000 acre-feet of Program Water during Phase One. Reclamation shall have the right to 4b i take actions to make additianal quantities of Prograrn Water or SRS Cantractor Program Water 452 available for use by Reclamation as set forth in subdivisions (d), (e), and (g) of Articie 3 of this 463 Agreement in exchange for a mutually agreed payment or payments to the Settlement �64 Contractoxs hased upan future negotiations between Reclamation and the Settlement Contractors. 465 (c} The funds described in subdivisian (a) of this Article will be distributed by the 466 SRSC Cozp. to the Settlement Contractors in accordance with Exhibit A. The SRSC Corp. will 467 retain 5% of the funds described in subdivision(a) of Article 7 as consideration far its 468 obligations arising under this Agreement ar�d as an administrative fee for rrzanaging such 21 Contract No. 25-WC-20-6345 469 funds. The SRSC Corp. wiil make the bala�ce of such funds available to Settlement Contractors 470 who are party to this Agreement proportionately based on a Settlement Contractor's share of 47I Contract Totals. 472 (d} The �ettlement Contractors agree to comply with any mitigation requirements 473 contazned in the Final EIR associated vvith the water reductions described in Articles 3 and 4 and 474 Drought Resiliency Prajects described in Article 7(a}(ii). 475 8. SUPPORT OF THE WINTER RUN ACTION PLAN 476 (a) During Phase One of the Drought Protectio�.Program, and upon Reclamation 477 acquiring a cumulative Program Water quantity of 500,000 acre-feet under Article 3 af this 478 Agreement, any additional Prograrn Water is contingent on completing mutually agreed Winter 479 Run Action Plan(WRAP) deadlines, rr�ilestones, and timely deliverables for each WRAP priority 480 action, as set forth in the mutually agreeable schedule to be d.eveloped by Reclamation and the 48 i Settlement Contractors consistent with sec�ion 4.10 of the Five Agency Memorandum of 482 Understanding, or as otherwise agreed upon between Reclamation and the SRSC Corp. 483 (b) To support the Winter Run Action Plan, Reclamation will use its rate-set�ing 484 policies and reduce the Rates for Project Water by $10 per acre-foot for all Project Water 485 charged to each Settlement Contractor during Fhase One. Reclamation will notify each 486 Se�tlement Contractor of the $10 per acre-foot reduction in accordance vv�th the procedures in 487 Article S(b) of the Settlement Contxact. Each Settlement Contractor will pay Rates for Project 48$ Water, reduced by $10 per acre-foot, in accordance with the schedule set forth in Article 8(c) of 489 the Settlement Contract. 490 (c) The SRSC Corp. will invoice each Settiement Contractor based on the amount of 491 Project Water that Reclamation charges the Settlement Contractor in Reclamation's final water 22 Contract No. 25-WC-20-6345 492 account recard for the Water Year in acre-feet and multiply that amount by $10. Each 493 Settlement Contractor shall pay the a�nount invoiced, based on this formula, to the SRSC Corp. 494 annually. The funds coilected by the SRSC Corp. will be managed by the SRSC Corp. and 495 provided either through contract, grant, or direct funding for studies and programs that support 496 the Winter-Run Action Plan. 497 (d) All fi�nds collected under this Article 8 are non-reiznbursable. 498 9. RESERVATION OF RIGHTS 499 Reclamation and the Settlement Contractors agree to enter into this Agreement in 500 anticipation of Reclamation's operational commitments in the LTO Biological Assessment and 501 Record of Decision. In the event that there are legal actions concerning the Record of Decision in 502 any forum, the Settlement Contractors reserve their rights to partici�ate in such actian.s to ensure 503 consistency with and the performance of this Agreement or the Settlement Contracts. Nothing in 504 this Agreement shall limit�ie Settletnent Contractors from defending any actions brought against 505 this Agreement or the Settlement Contracts. 506 In the event a court of competent jurisdiction finds that the Record of Decision, or any 507 portion thereof, is unlaw�ul, this Agreement shall continue to remain in effect in accardance with 508 Article 2 of this Agreement. 509 During the term af this Agreement, Reclamation will not voluntarily take any actions or 510 seek any relief, over any objection of the Settlement Contractors, that would result in further 511 water reductions under the Settlement Contracts beyond those reductions agreed to in this 23 Contract No. 25-WG20-6345 512 Agreement or consistent with the Settlement Contracts, unless requirad by applicable Iaw or 513 court ordex. 514 10. DISCLAIMER OF LIABILITY 515 Subject to the conditions, limitations, and provisions hereinafter expressed, the 516 Settlement Contractors agree to hold harmless, and the United States and its officers, agents, or 517 employees assurne no r�sponsibility for any damage whether direct or indirect arising out of or in 518 any manner caused by reducing Cantract Totals in a Phase One Program Year by the amount of 519 Program Water determined in accordance with Article 3 of this Agreement, or a Phase Two 520 Program Year in accordance with Article 4 of this Agreement. 521 1L METHOD OF PAYMENT 522 (a) The SRSC Carp. shall register at the U.S Federal District Registration System for 523 Award Management (SAM} website at www.sam.gov prior to receipt of payment. The SRSC 524 Corp. will notify Reclamation when it has successfully established a SAM account and provide 525 Reclamation tl�e necessary routing in�oz-rnation fo�prompt payment. 526 {b} All payment made by the United �tates under this Agreement shall be made by 527 electronic funds transfer (EFT} using the EFT information contained in the SAM database. The 528 SRSC Carp. is responsible during the term of this Agreement for the accuracy and completeness 529 of the data within�he SAM database, and for any liability resulting from the United States or 530 Reclamation's reliance on inaccurate or incomplete data. To remain registered in the SAM 53 I database after initial registration, the SRSC Corp. is required to review and update on an annual 532 basis, from the date of initial registratian or subsequent updates, its information in the SAM 533 database to ensure it is current, and complete. 24 Contract No. 25-WC-20-6345 534 (c) The SRSC Corp. will disburse the funds to the Settlement Contractors in 535 accordan.ce wit�Exhibit A. 536 (d) Any funds not distributed in accordance with subsection {c) of this Article 9 shall 537 be retained by the SRSC Corp. 538 12. NO ARGUMENT, PRECEDENT, OR ADM�SSION 539 Nothing in this Agreement shall be offered for or against a Party (or any of the Settlernent 540 Contracfors) as argument, admission, admission. of wrongdoing, liability, waiver, acquiescence, 5�1 or precedent regaxding any issue of fact or law, including but not limited to issues related to the 542 interpretation or future performance of the Settlement Contracts, in any mediation, arbitration, 543 litigation, or other administrative or legal proceeding, except that this Agreement may be used in 544 any future proceeding to interpret or enforce the tenns of this Agreement, consistent with 545 appiicable law. No actions under this Agreement shall be evidence of lack of beneficial use of 54b the subject water supp�ies, or shall in any way prejudice any of the Settlement Contractors' water S47 rights or Reclamation's water rights. 548 13. AUTHORIZATION 549 The Parties represent and warrant that the persons executing this Agreement on behalf of 550 each respective Party has full power and authority to enter this Agreement and that the Parties 551 are authorized by Iaw to perform the services and actions set forth herein. 552 14. NO C�UNTERPARTS CLAUSE 553 This Agreement may be executed in counterparts with the same force and e�fect as if 554 execufed in one complete document by all Parties. Sacraznento River settlement contractors may 555 become party to this Agreement by delivering a signed counterpart to SRSC Corp. on ar before 556 July 31, 2025, and thereby�e a Settlement Contractor under this Agreement. The SRSC Corp. 25 Contract No. 25-WC-20�6345 557 will assemble any such counterparts and attach them to the final Agreement and distribute copies 558 of the final Agreement to the parties. 559 15. PROTECTION OF WATER AND AIR QUALITY 560 The SRSC Corp. shall cornply with all applicable �w�rater and air pollution laws and 561 regulations of the United States and state Iaw; and shail obtain a�l required permits or licenses 562 from.the appropriate Federal, State, or local authorities necessary far the delivery of water by fhe 563 Settlement Contractors; and shall be responsible for compliance with a11 Federal, State, and local 564 water q�tality sfiandards applicable to surface and subsurt'ace drainage and/or discharges 565 generated thraugh the use of Central Valley Project facilities or Settlement Contractor facilities 566 or water provided by the Settlement Contractor within its water service area. 567 This article shall nat affect or alter any legal obligations af the Secretary of the Interior to 568 provide drainage or ather discharge services. 569 16. BOOKS, RECORDS, AND REPORTS 570 The SRSC Corp. and Settlement Contractors shall establish and maintain accounts and 571 other books and records pertaining to administration of the terms and conditions of this 572 Agxeement, including as applicable the SRSC Corp.'s and Settlement Contractors' financial 573 transactions; water supply data; Project operation, maintenance, and replacement logs; Project 57� land and rights-of-way �se agreements; �he wate�users' lan.d-use (crop census), landownership, 575 land-leasing, and water-use data; and other matters that the Contracting Officer may require. S76 Reports shall be furnished to the Contracting Officer in such form and on such date or dates as 577 the Cont�acting Officer may require. Subject to applicable Federal laws and regulations, each 578 party to this Agreement shall have the right during office hours to examine and make copies of 579 the other party's books and records relating to rnatters covered by this Agreement. S80 17. ASSIGNMENT LIMITED - SUCCESSORS AND ASSIGNS OBLIGATED 5 S 1 The provisions of this Agreexnent sha11 apply to and bind the successors and assigns of 582 �he parties hereto, but no assignment or transfer o�this AgreEment or any right or interest therein 583 b� either party shali be valid until approved in writing by the other party. 26 Contract No. 25-WC-20-6345 584 18. OFFICIALS NOT TO BENEFIT 585 No Member of or Delegate�a the Congress, Resider�t Cornmissioner, or official of the 586 SRSC Corp. and the Settlement Contractors shall benefit from this Agreement other than as a 587 water user or landowner in the same manner as other water users or landoruners. 588 19. NOTICES 589 All notices and other commuEnications required under this Agreement shall be in writing 590 and shall be deemed to have been duly given on the date of service, if served persona�ly, an the 591 person to whom notice is ta be given, or on the third (3rd) day after mailing, if mai�ed to the 592 party to whom notice is to be given by first class mail, registered or certified, postage-prepaid, 593 and properly addressed as follows: 594 To SRSC Corp.: 595 P.O. Box 150 596 Willows, CA 95988 597 598 To Reclamatian: U.S. Bureau of Reclam.ation 599 California Great Basin Region 600 Resources Management Division 601 Attention: Regional Resources Manager, CGB-400 602 2800 Cottage Way 603 Sacramento, California 95842 604 605 To Settlement Contractors: 60b c/o SRSC Corp. 607 P.O. Box 150 608 Willows, CA 95988 609 610 20. C�NTRACT DRAFTING CONS�DERAT�ONS b 11 This Agreement has been negotiated and re�iewed by the parties hereto, each of whom is 612 sophisticatec�in the matters to which this Agreement pertains. The clo�ble-spaced articles of this 613 Agreement have been drafted, negotiated, and reviewed by the Parties, and no one party sha�l be 614 considered to have drafted the stated articles. 27 Contract No. 25-WC-20-6345 615 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day 616 and year first above written. bX7 UNITED STATES OF AMERICA C/ 618 By: ��9 egional Director 620 Interior Region 10 California- Great Basin 621 Bureau of Reclaination 622 THE SACR.AMENT4 RiVER SETTLEMENT 623 CONTR.ACTORS, A CALIFORNIA NONPRQFIT 624 MUTUAL BENEk'IT CORPORATION 625 By: 626 resident, Board o�Directors 28 Contract No. 25-WC-20-b345 fi27 EXHIBIT A 628 (January 10, 2025 version} SRSC Cantract Contract % of Programi SRSC Funding No. Total SRSC W�.ter (Based on (af� Contract Reduction 500,000 AF} Total (Based on 500,000 AF) �� Glenn-Colusa Irrigation 14-06-200- 825,400 39.501% 197,505 $93,814,682.75 District 855A-R-1 Reclamation District No. 14-06-200- 232,000 11.108% 55,541 $26,381,825.94 108 87GA-R-1 SutterMutual Water 14-06-200- 226,000 10.821% 54,104 $25,699,537.34 Company 815A-R-i Anderson-Cottonwood 14-Ob-200- 125,000 5.985% 29,925 $14,214,345.87 Irrigation District 334bA-R-1 Natomas Central Mutual 14-06-200- 120,200 5.755% 28,776 $13,b68,514.99 Water Cornpany 8$SA-R-1 ReclamationDistrictNo. 14-06-200- 71,400 3.419% 17,093 $S,I19,23436 �004 890A-R-1 Princeton-Codora-Glenn 14-06-200- 67,810 3.247% 16,234 $7,710,99835 Irrigation District 849A-R-1 Provident Irrigation 14-06-200- 54,730 2.620% 13,102 $6,223,609.20 District 856A-R-1 Conar�vay Presezvation 14-06-200- 40,862 1.956% 9,782 $4,64b,612,81 Group, LLC 7422A-R�1 � Meridian Farms Water 14-06-200- 35,000 1.676% 8,379 $3,980,016.84 Company 838A-R-1 Sycamare Mutual Water 14-06-200- 31,800 I.523% 7,613 $3,616,129.59 Compaz�y 2146A-R-1 RRG Garden Properties, 14-06-200- 29,800 1.427% 7,134 $3,388,70a.Ob LLC 878A-R-1 Pleasant Grove Verona 14-06-200- 2b,290 1.259% 6,294 $2,989,561.22 Mutual Water Company 5520A-R-I Redding, City of 14-06-200- 21,000 1.005% 5,027 $2,3$$,D10.11 2871A-R-1 29 Contract No. 25-WC-20-6345 SRSC Contract Contract % of Program SRSC Funding No. Total SRSC Water (Based on (af} Contract Reduction SOO,OQO AF) Total (Based on 500,004 AF) *� Maxwell Irrigation District 14-06-200- i7,980 0.861% 4,304 $2,044,591.51 6078A-R-1 M&T Chica Ranch, Inc. 14-06-200- 17,956 0.8b0% 4,299 $2,041,862.36 940A-R-1 Woodland-Davis 14-06-200- 10,000 0.479% 2,394 $1,137,147.67 7422X-R-1 Pelger Road 1700 14-0�-200- 10,070 0.482% 2,411 $].,145,107.70 128bA-R-1 Tisdale Irrigation and 14-06-200- 9,900 0.474% 2,370 $1,125,776.19 Drainage Company 2781A Pelger Mutual Water 14-06-200- 8,860 0.424% 2,121 $1,007,512.84 Company 2073A Carter Mutual Water 14-06-200- 7,122 0341% 1,705 $$09,876.57 Company 2401 A Lomo Cold Storage I4-06-200- 7,11a 0.340% 1,702 $808,511.99 � 931 A ; Baber, Jack, et ai 14-06-200- 6,260 0.300% 1,499 $711,854.4� 1604A RD Heer Capital, LLC 14-06-200- 4,740 0.227% 1,135 $539,008.00 2427A Robert's Ditch Irrigation 14-06-200- 4,440 0.213% 1,063 $504,893.57 Company 93 SA Windswept Land& 14-06-200- 4,040 �.143% 967 $459,407.66 Livestock 2045A TeVeIde Family 14-06-200- 4,�00 0.192% 958 $454,$59.07 Revocable Trust 2�49A Knights Landing Investars, 14-06-200- 3,640 0.174% 871 $4 i 3,921.75 LLC 4604A Andreotti Associates 14-06-200- 3,620 0.173% 867 $411,647.4b 1898A Oji Brothers Farm, Inc. 14-06-200- 3,200 O.1S3% 766 $363,887.25 3753A 30 Contract No. 25-WC-20-6345 SRSC Contract Contract % of Program SRSC Funding No. Total SRSC Water (Based on (a�} Contract Reduction SOO,U00 AF) Total (Based on 500,000 AF) �* Saeed, Faraz A. 8-07-20- 3,160 0.151% 757 $359,338.66 W0117 Eastside Mutual Water 14-06-20p- 2,804 0.134% 671 $318,856.21 Company 1053A Richter Brothers, et al 14-06-200- 2,780 0.133% 666 $31b,127.05 4362A Howald Farms, Inc. 14-06-200- 2,760 0.132% 661 $3 i 3,852.76 1042A Griffin& Prater Tenancy- 14-06-200- 2,7C0 0.132% 661 $313,852.76 in-Common 2895A Tarke, �tephen 14-06-200- 2,700 0.129% 646 $307,029.87 T 949A Dennis, L.C. (Canal 14-06-200- 1,815 �.087% 435 $206,392.30 Farms) 2896A Giusti, Richard, et al 14-06-200- 1,610 0.077% 385 $183,080.77 4076A � T&P Farms 14-06-200- 1,560 0.075% 373 $17'7,395.04 2993A Thiara Family Trust 14-Ob-200- 1,533 0.073% 367 $174,324.74 7691A Van Ruiten Bros. 14-06-200- 1,485 0.071% 356 $168,866.43 880A MCM Properties, Inc. 14-06-200- 1,4�70 0.070% 3 52 $167,160.71 7$27A Byrd, Anna C. and Jane 14-06-200- 1,265 0.061% 303 $143,$49.1$ Osborr�e 1595A Lonon, Michael, et a1 14-06-200- 1,155 0.055% 277 $131,340.56 8b58A Kary, Carol 14-06-200- 1,000 0.048% 239 $113,714.77 252aA Lauppe, Burton 14-06-200- 950 0.045% 227 $108,029.03 1289A 31 Contract No. 25-WG20-6345 SRSC Contract Contract % of Program SRSC Funding No. Total SRSC Water (Based on {af� Cvntract Rec�uction 500,000 AF) Total (Based on �oa,00a aF� ]Y X Henle Family Limited 14-Ob-200- 935 O.d45% 224 $106,323.31 Partnership 932A Green Valley Corporation 14�06-200- 890 0.043% 213 $101,206.I4 (Swenson Farrns, LLC) 52 i OA Swenson Farms, LLC 14-05-200- 880 0.042% 211 $100,068.99 5211A Jaeger, William, et al 7-07-20- 870 0.042% 208 $98,931.$5 W0002 Wallace, Kenneth L. 14-06-200- 867 0.042% 208 $98,590.70 Living Trust 1175A-X O'Brien, Frank J., Family 14-06-200- 839 0.040% 201 $95,�06.69 Trust 41 OSX Dxiscoll Strawberry 14-Ob-200- 820 0.039% 196 $93,246.11 Associates, Incorporated 473bA Exchange Bank (TNC) 14-06-200- 780 0.037% 187 $88,697,52 377�A Lake California Property 14-06-200- 780 0.037% 1$7 $8$,b97.S2 Owners Association 4961A River Partners (Forry) 14-06-200- 7S2 0.036% 180 $85,513.50 7F91X Sacramento, County o� 14-06-200- 750 0.036% 1$0 $85,2$6.08 2404A Chesney, Adona, Bypass 14-06-200- 700 0.034°/o 168 $79,60034 Trust et a1 930A Leviathan, Inc. 14-06-200- 700 0.034% 168 $79,60034 73 08A Butte Creek Farms (P} 14-Ob-200- 640 0.031% 153 $72,777.45 7744X �dysseus Faz�r�s 14-06-200- 630 0.030% 151 $7�,640.30 Partnership 8574A Yolo Land Trust 14-06-200- 630 0.030% I51 $71,&40.30 2148A 32 Contract No. 25-WC-20-6345 SRSC Contract Contract % of Program SRSC Funding No. Tatal SRSC Water (Based on (a� Co�tract Reduction SOQ,400 AF} Total (Based on 500,000 AF} �� Van Ruiten Bros. 14-06-200- 584 0.028% 140 $66,409.42 880X Heidrick& McGinnis I4-Ob-200- 550 0.027% 134 $b3,680.27 Pro�erties, L.P. 1176A Dyer, Jeffrey E. and Jan 14-Ob-200- 52Q 0.025% 124 $59,131.68 Wing 2486A Four Corners Farmland 14-06-200- 520 0.025% 124 $59,131.68 Fund Yolo, LLC 991A J.B. Unlimited, Inc.(Flynn 14�06-200- 510 0.02�% 122 $57,994.53 Farmlands, LLC} 2519A Quad H Ranches 14-06-200- 500 0.024% 120 $56,857.38 2153A Riverby Ranches, LLC 14-06-204- 500 0.024% 120 $5b,85738 934A Natomas Basin 14-06-200- 490 0.023% 117 $55,720.24 Conservancy 1364A Anderson, Art, et al 14-06-200- 490 0.023% 1 I7 $55,7z0.24 3591A Seaver, Charles 14-06-200- 4$0 0.023% 115 $54,583.09 3296A Reische, Laverne C., et ux 14-06-200- 450 0.022% 108 $51,171.65 1150A Butler, Dianne E., 14-06-200- 434 0.021% 104 $49,352.21 Revocable Intervivos T�st 2365A Yocha Dehe Wintun 14-06-200- 430 O.D21% 103 $48,897.35 Nation(formerly Heidrick) 8322A Lockett, William P. & 14=06-200- 417 0.020% 100 $47,419.06 Jean B. 4105A Reclamation District 14-06-200- 404 0.019% 97 $45,9�4.77 #1000 1779A Tuttle, Charles W. - Trust 14-06-200- 390 0.019% 93 $44,3�8.76 7295A 33 Contract No. 25-WC-20-6345 SRSC Contract Contract % of Progra� SRSC Funding No. Total SRSC Water (Based on (af� Contract Reduction 504,000 AF) Total {Based o� 500,004 AF} �� Ehrke, Allen A., et ux 14-06-200- 380 4.018% 91 $43,211.61 8330A Wilson Ranch Partnership 14-06-200- 370 0.018% 89 $42,074.46 4520A Wal�ace, Joseph and 14-06-200- 355 O.OI7% 85 $40,368.74 Janine 5200A Lauppe, B & K 14-06-200- 350 O.OI7% 84 $39,800.17 13 64X Van Ruiten Bros. 14-06-200- 325 0.016% 7$ $36,957.30 1415A Charter,Nickolas J. and 14-06-20�- 300 0.014% 72 $34,114.43 Charter, Michael J. S 118A Cummings, William C. 7-07-20- 300 0.014% 72 $34,114.43 W0054 Riverview Golf& Country 14-06-200- 280 0.013% 67 $31,840.13 C1ub 8286A Morehead, Joseph A., et 14-Ofi-200- 255 0.012% 61 $28,997.27 ux 5789A Gomes, Frank&Judy - 14-Ob-200- 246 0.012% 59 $27,973.83 Trust 1827X Anderson Properties L.P., 14-06-200- 237 0.011% 57 $2b,950.4a R and J 1726A Driver Family Trust 14-06-200- 230 0.011% 55 $26,154.40 1314A Kaelin, Cameron C. Trust �4-06-200- 210 0.010% 50 $23,880.10 (Gillaspy) 8117A Fedora, Sib, et al 14-06-200- 210 0.010% 50 $23,880.i 0 2916A Redding Rancheria Tribe 7-07-20- 205 0.010% 49 $23,311.53 W0006 Butte Creek Farms (M) 14-Ob-200- 204 0.010% 49 $23,197.81 1976A 34 Contract No. 25-WC-20-b345 SRSC Contract Cantract % af Program SRSC Fund�ng No. Total SRSC Water (Based on (a� Contract Reduction 500,000 AF) Total (Based on 500,000 AF) �� Western Almonds, LLC 14-06-2Q0- 200 0.010% 48 $22,742.95 (Knights Landing 889A Praperties) 7ansen, Peter& Sandy 14-06-200- 190 0.009% 45 $21,605.81 1�26A Empire Graup, LLC 14-06-200- 181 0.009% 43 $20,582.37 2145A Cachil Dehe Band of 14-06-200- 180 0.009% 43 $20,4b8.66 Wintun Indians of the 720bA CoIusa Indian Comrr�unity Penner, Roger& Leona 14-06-200- 180 0.009% 43 $20,4{8.{6 960A KLSY, LLC 14-06-200- 170 0.008°/a 41 $19,331.51 7556A Ze1Mar Ranches 14-06-200- 164 0.008% 39 $18,649.22 1827A Van Ruiten Bros. J4-Ob-200- 160 0.008% 38 $18,194.36 5200X Driver, WilliamTrust, et 14-06-200- 160 0.008% 38 $18,194.36 al 939A-1 Sooch, Jagtar, et al 14-06-200- 155 0.007% 37 $17,625.79 (Munson} 7049A Nelson Family Trust 14-Ofi-200- 136 0.007% 33 $15,46S.2I 1954A Churkin, Michael, et al 14-06-200- I30 0.006% 31 $14,782.92 7227A Hale & M�rks 14-05-200- 130 0.006% 31 $14,782.92 7572A Micke, Daniel 14-06-200- 100 0.005% 24 $11,371.48 7995A Butte Creek Parms {A) 14-06-200- 95 0.005% 23 $10,802.90 5206A 35 Contract No. 25-WC-20-6345 SRSC Contract Contract % of Program SRSC Funding No. Total SRSC Wa�er (Based on (af) Contract Reduction SOQ,000 AF) Total (Based on 500,000 AF} �� Willey, Edwin& Marjorie, 14-06-200- 95 0.005% 23 $1p,802.90 Revocable Trust 3556A Reische, Eric 14-06-200- 90 0.004% 22 $10,23433 11 SOX Yocha Dehe Wintun 14-Ob-200- 85 0.004% 20 $9,665.76 Nation{formerly Heidrick) 1616A Davis, Grover L., et ux 14-06-200- 85 0.004% 20 $9,665.76 1851A Howard, Theodore 14-06-200- 76 0.004% 18 $8,642.32 1976X Hale & Marks 14-Q6-200- 75 0.004% 1 S $8,528.61 163 8A Eggleston, Ronald H., et 14-06-200- 65 0.003% 16 $7,391.46 ux 7339A B & D Fami�y Partr�ership 14-06-200- &0 0.003% i4 $6,822.$9 4178A Leonard, Jarrxes C. I4-06-200- 53 0.003% 13 $6,026.88 1175A Butte Creek Farms (Y) 14-06-200- 36 0.002% 9 $4,093.73 2851 A Wisler, .�ohn Jr. 14-Ob-200- 35 0.002% S $3,980.02 5215A Driver, Gary, et al 14-06-200- 30 0.001% 7 $3,411.44 8585A Hatfield, Robert and 14-0b-2U0- 26 0.001% 6 $2,956.58 Bonnie 23b5X King, Laura 14-05-200- 25 0.001% { $2,956.58 1086Z Alexander, Tharr�as, et ux 14-06-200- 22 0.001% 5 $2,501.72 7754A Driver, Gregory E. 14-06-200- 20 0.001% 5 $2,27430 939A-2 36 Contract No. 25-WC-20-6345 SRSC Contract Contract % of Program SRSC Funding No. Total SRSC Water {Based on (a#� Contract Reduction 500,400 AF) Total (Based on 500,000 AF) *� Lauppe, Alan, et al (ELH) 14-Ob-200- 20 0.001% 5 $2,274.3Q 1364Y Daniell, Harry Z4-Ob-200- 20 0.001% S $2,27430 4348A King, Ben 14-06-200- 19 0.001°/a 5 $2,160.5$ 1086Y Driver Family Trust �4-06-200- I 6 0.001% 4 $1,$19.44 23 98A Rubio, Exequiel & Elsa 14-06-200- 16 0.001% 4 $1,819.44 236$A Gjerrnami, Hal 14-06-200- 12 0.001% 3 $1,364.58 4010A Burdick 1999 Fatnily Trust 14-06-200- 10 0.000% 2 $1,137.15 2552A Total 133 2,088,559 100% 500,000 $Z37,500,Q00 Contracts **If the Program Water amount identified during any Phase One 5% SRSC $12,500,000 Program Year is less than SQ0,000 AF, then there will be proportionate reductians to the amounts shown in this column for each contractor. During any Phase Two Program Year, there will be IRA $250,00O,OOU proportionate reductions based on Contract Totals to meet the Funding obligation in Article 4(c). 629 37 �l.lTI�II�E � Sa��� ��t� i�r�� ---------st;z�•rt,snTr,Nr can�rxncraes � Temporary Program as Part of Long-Term Operations (LTO) for the Central Valley Proj ect A Plan for Critically Dry Years The Drought Protection Program (DPP) is a water reduction and infrastructure improvement agreement between tne 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. �Z�i4i�7�� {J�tiyi u}'r� (�� i � � � � �l � �' S ' � � � � � �l: � -. • � � • -� � � � � , _ �y t � ,�f�i ; st `; � �°° � t } } t 1�V 3; t;� t t�l t t 1 S ft F t 1 � � � � � t tr 5`� Ut1� y f S t i � + 4 �� . �7 1 � ts S t. s 1 4 i t �� Y � �r i1 3 � ia si}�:t �: �r�,. t 3 � tl1` ':�.ui�z�.rw.. � ���1��1%f� � � �� �� ����� ,� ° �� a �� �� C�ecember 19th,ZC�2A I3r�u��� �'�c�t�etia�� P����� o u � G i � � �� t i�T�� Sli'L'1'LIi.MEN"['CONTKAC'f'OItS et��?�'s` rri}lti�rt t,11;=-" i,�'t�'�� . Why We Need the DPP f�°�'° 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 resuit in reductions to water supply that have devastating effects on the Sacramento Valley. � � � -� � . � � � � � � � � � • � �� � � . � -� ��'S �zl k +t� ��ti ;t itUt .r l �'�`t `� �; t�F ts.,���\����k� ��t� SY S � �j •��+� � ��� ��� �����lt,f�t „i�� 7l t �t����`t , :, '.. ".. �� is � t} � � �aat t �t§ tj ��� .,��. ' z ����u s�h�t�3�r .r zSy��������� t5 ���Z�����`���������>�S`�7��� � „ �v a �- �, ' ��`��s ��2>it�������' � t 7 fi�s?��� �...�„ ., ..,�, ^� �,� , �5��`\��a�,�� tf; ?tl� i1 Z{t!}C..E�k�'' {y ��#t�t `��,A , � ';�� ..9:`,:;:,.r: ...�.ss`:£�li��' � , :r.���.: t t, .4� .. „ , �.:, z.,, � ?��r c r� 7 y': �„ ,..:, ., ..; , i '� .. ,l .b�� `ti S;'�, tty;s�,�, ,, 3, .v c�; mut�,a,,� � t < � �+ � t".� ° �I , � , �., ��` ""� '� l '' ���' �� i � ,�` � ,r � YE ` �' � � �' � �x � � � �. � �,�. � ��� � �= a ��. �� 4 y� � 'k�a- � $�t �4 ��.� ,u}., t�'. �� ��h _ �t.m. f flr�- i ,:.,. ,..„ .�,,.., {: � , ''`$� �t +� � �„, . ° y°- �-, { �,:.,. 2 n � �. �A+fm �ax *� w ������ t �. �t� . � . , � � �., �� a� h ' ��,�w �s��a� ,,. . . C�UT�INE Uec�mber 19th,202� 2 I3r�u��� �'�c�t�etia�� P����� o u � G i � � �� t i�T�� Sli'L'1'LIi.MEN"['CONTKAC'f'OItS �tqs�'�t����. �1i�ii�, When Does This Occur? ������ The DPP's water supply action is triggered only when hydrologic conditions at � E Shasta �ake 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. ��� �w� �� � . � �� 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 ailow the Settlement Contractors to best use their reduced contract supplies including shifting contract amounts between months to best meet demands. "Phase One Program Year"shall mean when all tne 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 a,bove would apply. � � � � ��� ��� � � . �� � � ' � ���x�� �� �� m � �. ���� ' � � ��- "��` .,� � I �4 � '�*��,"��' ��N � � �� � �i �"f� � , w�„ ,�. �.� . �.,. �. : ��� � � � "'� �� I�I I ' � i I �I�II, ��„� � ���� � �� i � I � �� v � r, �a. � � �� �� � . �g� �: � .,�� + � �' ` ""�`.� ,.,n,.� —.�M��- ,�., � �� � ,:� . �� �, . . . �,. ., _ ,,.. � . y,. � „ '� �� � ��j���„� �,r:�,... ,� �a ,. :� �, ��'"��` 't � � � . z4 ����"�S;x i, r ='M -� -+ .•�'� � �c'�b'�„� '� �x,,s ��"� : �,} . _ � .' �_�----�� '� �.�.. . .r,a�':i F .� .: i .vr'.�� .� - r ;. , , ��,;. . 1 ..'� \ ��1�� , �. ..r� w'. •�� , �, � �ti , � �„ � t� � „ : � m�` �� A �x � t�, F ����.,, � �_ . ...9.������,ts... �� . :� �,, C�UTLINE Dec�mber 19th,202�1� 3 I3r�u��� �'�c�t�etia�� P����� o u � G i � � �� t i�T�� Sli'L'1'LIi.MEN"['CONTKAC'f'OItS et��?�'s` rri}lti�rt t,11;=-" i,�'t�'�� . How Does it Work? f�°�'° The DPP has two, ten-year phases, while the parties commit to implement these � � , � actions and working coilaboratively on the holistic Winter-Run Action Plan (WRAP) � � to help recover salmon. w � • 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 � � • , m �� �� contract supply by up to 100,000 acre-feet during years the hydrologic conditions triggers are met. � � � � � � *The v�ater suppfy actions resuCt in"F��°a�r�c�rr� t��t��" �� � � ��� �� �� t���s}�,t,,. ���F�"e, Program Water „�r� • 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 . � d� �' � � � 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 Settiement Contractors will receive at �- � •� least 50%of total contract supply. � �. � .� � � � • The Settlement Contractors will coordinate their diversions with Reclamation to 6� � 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 tne SRSC Corporation. C�UT�INE December 19th,202�4 �I� I3r�u��� �'�c�t�etia�� P����� o u � G i � � �� t i�T�� Sli'L'1'LIi.MEN"['CONTKAC'f'OItS tti��4~ s S �f;� ���.�� ���� . uc s.�.w�'�.s4����.ae�aau*e�v.�, 7�,'��'��.� U;��. t .�� � � �.��*, �ei„ .,� a �.�cYCZa�„ � � ;'�a � � � � � �l. `��5+ ,�: �.L.C�i�'t��""'.i � � �� �R 4 >w .„� � � `t&„ � y�'� � � � � b Funding Summary � � � � � � �" � � ��_ Reclamation will provide$250 million to the Sacramento River Settiement Contractor � �� • _ ��� non-profit Corporation which wiil 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 � � a tnan half of the funds will need to be spent on water supply projects. � � � � � �� m � � IY 16% Critical 30% t 13% 19% „ 22% 9°!a 7% 100 Years Wet � Above �� Below s,� Dry Shasta ' �� Shasta E'requency Normal Normal Criti�al ' Critical +[�PP Triggers 500,000 ,, � ' ' ' v � 400,000 ' � � @ v— ' ' ' ° M ' � M O a 300,000 ' � �� . v ' � , Q200,000 � Healthy Rivers and �andscapes � � �" �� � „ a � �'� ��'� ���;t � 1 stl �`� ��3� a .� �.»� 1���D�Q �"�' ��1� ��� � � � it 3� �tJ {F { i�3}t � a � . Y � 4, �e ... � � 7 , 5 5£ � h,,,5,,,,:,{u„itaki ......... ..... ... ... .. .. . .. .._... . . .. . �sr..� 5 �S�v.t)l„rr:u.. 4 . St .... ..... ..... I�ote: Existir��Shas�a Cr�tical YcaoR r�d€���i�ans frc�r�� 1(�C�°�o i�a 75%sup�ly��r� nc�t sE�crwr h�re. C�UT�INE Dec�mber 19th,202�1� 5 I3r�u��� �'�c�t�etia�� P����� o u � G i � � �� t i�T�� Sli'L'1'LIi.MEN"['CONTKAC'f'OItS 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 whetner 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 tne final amount of"Program Water." This timing ensures operational certainty for growers as planting decisions are made. By�uly 15, Reclamation wili 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 wiil 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 Settiement 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. i r r r r r r � ��:, Modern Water — W�sto�rical �tewa rdsh i p Year 1 (2013) Year Z (2014) Year 3 (2015) 4,500 � 4,000 �., , , � `� 3,500 , v � � 0 3,000 .. �` .,; , o ' ' ' � ' ��.. , � 2,500 ° , ' , � `��... ..` , '_ �._ � ,� ; � 2,000 = 0 � � � 1,500 , aasa r �' ��u„ �° a 0 , � N ��m �'�m , � p '�.. � ��. �, �. ��. '�. �, v�, 1,000 ��� . � 9 8q, -s � o - . , ' �� - � � � � � � ��- � ' � 500 a� . �- � �m. ,�.Q �:�<, � � � •� . � � 0 ' Oct Jan Apr Jul Oct �an Apr �ul Oct �an Apr Jul C�UT�INE December 19th,2024 6 I3r�u��� �'�c�t�etia�� P����� o u � G i � � �� t i�T�� Sli'L'1'LIi.MEN"['CONTKAC'f'OItS 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. �p . :� � � � � • a r ���� � �� l�T�� �� � � �� � - SG'P'TLLMEN'C'CONTA4�CTQEiS C�UT�INE December 19th,202�4 7 �;y ���r��t��tt��tz��� — settiea��ent ec�ntractors � ' � ro� ht rot �ti�� ro r� r �t The Sacramento River Settlement Contractors (SRSC) and the Bureau of Reclamation signed an agreement for a Drought Protection Program (DPP) for the Sacramento River. ti t r t rt �ti r r ? 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 fundinq for drought resilienc�projects that will improve water su�plv reliability in future �ears to benefit farms, communities, the economy, and the environment. ti t I ft r t r t t� r r ? 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 $1.38 hit, bird and snake habitat was impacted and we saw the lowest salmon survival rates in decades. t tri r t r t r t ti r r ? 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 1 St to April 10t" 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. r I r i �t t � 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. ioi������ S��T°� �Ii��3�iV��° —setClement contractars h�t f�r��ir�g d� th� ��r� �rtt� ��ttlerner�t ��r�tr��t�r� r���iv�? 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. i t �r t ttl t tr t r r iv � t f lif r i f�nding f�r th� P�`� No. t r t r ili r j �t r ti t t f i fr t r f �1 ti ? 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 t fit i t t r t r t� ? 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 �andscapes Program, though it allows for coordination between the two programs in different types of water years. t r j t r t� i t t f r t 1 f t r fr t ? 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).