bay delta conservation plan economic benefits and financing strategies september, 2012
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Bay Delta Conservation Plan Economic Benefits and Financing Strategies September, 2012. Sacramento-San Joaquin Delta: California’s Water Epicenter. A Vulnerable & Incomplete System. Past generations invested in a network of dams, aqueducts and pumps to move water around the state - PowerPoint PPT PresentationTRANSCRIPT
Bay Delta Conservation Plan
Economic Benefits and Financing Strategies
September, 2012
ACWA Workshop Bakersfeld
Past generations invested in a network of dams, aqueducts and pumps to move water around the state
100-year-old man-made levee system is old and fragile Much of the land has subsided below sea level Future sea level rise and changing weather patterns will
put greater pressure on the levees
A Vulnerable & Incomplete System
“Should the Delta levees fail, the consequences are likely to
be sudden and catastrophic for local residents, landowners,
Delta species, and water exporters.”
-Public Policy Institute of California
A retrofit of the existing system that secures it
from risk of flood,
earthquake and sea level rise in the Delta is the most sensible
approach
Southern California Water CommitteeBDCP Public OutreachEconomic Benefits and Financing Strategies Paper (PFM)
Funding Agencies
Castaic Lake Water AgencyCoachella Valley Water DistrictMojave Water AgencyThe Metropolitan Water District of Southern CaliforniaSan Bernardino Valley MWD
BDCP Capital Costs
CVP/ SWP Water Users
Delta Water Conveyance ($12.7 billion)
Mitigation ($300 million)
Investing In The Seismic Retrofit
Project is prudent, affordable & urgently needed Cost of the water conveyance project would be
covered by public water agencies ~$10 billion Project would be financed over many years No state general fund dollars involved
Broader funding sources, including potentially voter approved bonds, would pay for environmental improvements
Economic Benefits of BDCP Economic impacts due to loss of Delta supplies due to
Seismic, Flood, and Sea Level Rise: Estimated 65,000 to 230,000 jobs lost Billions of dollars of economic activity depending on duration
and timingWater supply reliability and water quality improvements
SalinityDrinking Water QualityAvoid regulatory shortages
Job StimulusConstruction of Delta Water Conveyance (129,000 jobs)Ecosystem restoration (40,000 jobs)
“Significant Economic Benefits”
Water Quality Benefits to So. California
SWP salinity averages about 270 mg/L over past 20 years
BDCP conveyance will reduce to about 100 mg/L
Economic Benefits:Long term salinity reductions worth about $200
million per yearDrinking water benefits of lower bromide, THMs,
will result in lower treatment plant capital and operating costs
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BDCP Debt Financing
• PFM traditional revenue bond financing consistent with DWR practices-Capital costs range from $12-$14 billion
• Four bond issues during construction (10-12 years)
• Total Debt Service: $1.1 billion
Historical Cost Comparisons
0%
2%
4%
6%
8%
10%
12%
14%
16%
CRA SWP BDCP Project
Perc
ent o
f Ass
esse
d V
alue
Historical Cost Comparisons
Historical Cost Comparisons
$-
$50,000,000.00
$100,000,000.00
$150,000,000.00
$200,000,000.00
$250,000,000.00
CRA CVP Hoover Dam
Historical Cost Comparisons
CRA was funded at market interest rates (4-5%) with no grants / subsidies