247 



Since enactment of the CVPIA only one water transfer from within the CVP to a non- 

 CVP district outside the service area has been proposed (that proposal is no longer being pursued 

 for reasons imrelated to the CVPIA). At the same time, numerous (environmentally and 

 economically sound) intra-CVP water management transfers have been delayed or denied due to 

 unnecessary imposition of CVPIA requirements. 



Contract Provisions 



The current three/two year interim contract renewal process has proven to be logistically 

 and economically impractical, and provides no real environmental benefit. The proposed 

 legislative changes would provide for a single interim renewal contract until the completion of the 

 CVPIA Programmatic Environmental Impact Statement and appropriate site-specific 

 enviroimiental analysis. Contrary to critics' arguments that this and other proposed changes to the 

 CVPIA contract provisions are somehow detrimental to the enviroimient, this change will likely 

 result in the timely completion of enviroimiental analysis by freeing up federal resources - 

 ultimately resulting in contracts that reflect up to date and studied CVP enviroimiental conditions. 



Further, the current restrictions on long term contraa renewal are mconsistent with 

 federal reclamation law and state law regarding contract renewal, have adverse financial 

 consequences and provide no real environmental benefit. California water law and federal 

 reclamation laws applicable everywhere else across the west provide a right of successive contract 

 renewal Limitmg renewal creates uncertainty for long-term financing and planning - with 

 consequent financial costs to contractors (how many banks would write 30 year mortgages to 

 people wto by law will be unemployed in 25 years or less?) As a defined contract length is 

 critical to securing economical long-term financing, the incentive to complete the required 

 environmental review and enter mto long-term contracts remains. 



As a result and despite what critics of attenqit to refine the CVPIA contracting provisions 

 may claim, there is no threat to meeting environmental obligations as a result of long-term 

 contracts since the Project is operated to meet the environmental requirements of federal water 

 quality, federal and state endangered species needs and CVPIA mandates before deliveries of 

 water under contract are made. Further, the State Water Resources Control Board and state law 

 requirement that water be put to reasonable beneficial use are the true and appropriate authorities 

 for making decisions regarding use of California's water resources. 



CVPWA Statement Page 5 - 20 July 1995 



