Reclamation completes first group of congressionally-mandated Central Valley Project contract conversions

Donald Trump
Posted at 2:15 PM, Feb 28, 2020
and last updated 2020-02-28 17:15:21-05

SACRAMENTO, Calif. – The Bureau of Reclamation executed congressionally-mandated contract conversions Friday with Central Valley Project contractors pursuant to the Water Infrastructure Improvements for the Nation Act. These contracts provide water to families, farms and communities in the respective California contractors’ service areas. These contract conversions are the first group of more than 75 repayment contract conversions requested by CVP contractors.

“Completing these contracts is a big win-win for our contractors and the American public,” said Ernest Conant, California-Great Basin’s regional director. “The federal government will receive early payment of over $200 million, which Congress directed should be used for much-needed storage projects.”

These completed contract conversions include the East Bay Municipal Utility District, City of Folsom, City of Roseville, Sacramento County Water Agency, Sacramento Municipal Utility District, San Juan Water District, and Westlands Water District. Each WIIN Act-mandated conversion contract is negotiated and completed by Reclamation’s regional career professionals.

Section 4011 of the WIIN Act directs Reclamation to convert water service contracts to repayment contracts upon a contractor’s request and authorizes prepayment of outstanding CVP construction costs. Full repayment is due within three years of the contract conversion. Both the prepayment and accelerated repayment of the contracts will result in the federal government being repaid well in advance of the original repayment deadline. Those repayment dollars will be used to fund additional water storage projects.

The CVP-wide contract negotiations began in May 2019 after these and more than 75 other contractors requested conversion. Converted contracts modify only repayment provisions of existing contracts, include Reclamation’s current standard articles and continue so long as the contractors make all required payments, including operation and maintenance costs and future capital expenses.