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Rep. Costa Introduces Bill to Authorize San Luis Unit Settlement Agreement

May 12, 2016

Washington, DC – Today, Representative Jim Costa (CA-16) introduced the San Luis Unit Drainage Resolution Act. The legislation would authorize a settlement agreement concerning the management of drainage water within the San Luis Unit of the Central Valley Project (CVP) in California. An agreement was reached in September 2015 between the United States and the Westlands Water District (Westlands), and a separate agreement was recently reached between the United States and the northerly San Luis Unit water and irrigation districts: Pacheco, San Luis, and Panoche Water Districts. This legislation will not affect water allocations for other CVP water contractors.

“Introducing the San Luis Unit Drainage Resolution Act is the next step to ensure that all claims by water districts within the entire San Luis Unit against the United States are resolved,” said Rep. Costa. “Once authorized by law, the settlement agreement reached between the United States and the San Luis Unit districts will end decades of frustration that began when the U.S. government determined it was not going to complete drainage service to the San Luis Unit of the Central Valley Project. The passage of the San Luis Unit Drainage Resolution Act in the House and Senate would ensure that the settlement agreement is authorized, and U.S. tax payers will no longer face the burden of the estimated $3.8 billion the federal government is currently obligated to pay. I look forward to working on a bipartisan basis with my colleagues in the House and Senate to get this important legislation passed and signed into law.”

“This legislation would implement a comprehensive drainage solution at the local level for the entire San Luis Unit of the Central Valley Project and relieves the United States from costly litigation and the obligation of providing those services,” said Lon M. Martin, General Manager of the San Luis Water District. “The Obama Administration, San Luis Unit water districts, along with Representative Costa have developed legislation to implement the settlement agreements that will protect taxpayers from legal liability and help to preserve the water quality of the San Joaquin River and the Sacramento San Joaquin Bay-Delta.”

In 1960, Congress passed the San Luis Act, authorizing the construction of and operation of the San Luis Unit as a part of CVP with the principal purpose of furnishing water for irrigation of land in Merced, Fresno, and Kings Counties. The San Luis Act expressly conditioned the construction of the San Luis Unit on the provision for drainage facilities. Although changes in cropping patterns and technological advances in irrigation practices have proven beneficial, the drainage problem within the San Luis Unit remains significant.

The United States has a Statutory and court-ordered obligation to manage drainage. The Ninth Circuit Court of Appeals has held that the San Luis Act requires the Secretary of the Interior (the Secretary) to provide drainage to the San Luis Unit of the CVP. There are currently several court cases pending regarding the federal government’s obligation to provide drainage to Westlands.

The San Luis Unit Drainage Resolution Act would authorize the following provisions which are part of the settlement agreement:

  • Require the Northerly Districts to assume all responsibility for drainage within their respective boundaries in accordance with all legal requirements under state and federal law.
  • Require the Northerly Districts to indemnify the U.S. for any damages and pay compensation for claims arising out of litigation related to drainage.
  • Allow the Northerly Districts to assume title to certain facilities owned by the U.S.
  • Relieve the U.S. of all statutory obligations to provide drainage to the Northerly Districts.
  • Relieve the Northerly Districts of their approximate $52.7 million repayment obligation (in April 2015 dollars) for CVP construction charges.
  • Convert the Northerly Districts water 9(e) water service contracts into 9(d) repayment contracts.
  • Provide $70 million appropriated/discretionary in funding to assist the Northerly Districts with the completion of the Westside Regional Drainage Plan.
  • Settle litigation with Westlands land owners and relieve the United States of its potentially multi-billion dollar statutory and court-ordered drainage obligation.
  • Require Westlands to manage drainage water within its boundaries, in accordance with the federal and California law, and provide Interior the right to cease water deliveries to Westlands if it fails to do so.
  • Require Westlands to indemnify the U.S. for any damages and pay compensation for landowner claims arising out of the Etchegoinberry litigation.
  • Relieve Westlands of its existing approximate $375 million ($295 million in April 2015 dollars) repayment obligation for CVP construction charges.
  • Require Westlands to permanently retire 100,000 acres of land within its boundaries.
  • Allow Westlands to assume title to certain facilities owned by the U.S.
  • Authorize the Secretary to convert Westlands’ existing water service contract entered into under section 9(e) of the 1939 to a repayment contract under section 9(d) of the same act.
  • Cap Westlands contract deliveries at 75% of its CVP contract amount.

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