Sites Reservoir Authority officials said the water storage project west of Maxwell is the closest it’s been to becoming a reality since first proposed in the 1960s.
The U.S. The Environmental Protection Agency last week said it would provide up to $2.2 billion in additional federal financing for the proposed off-stream water project, which would account for about 49 percent of the project’s total cost.
When finalized, the funding would be the single largest loan in the history of the Water Infrastructure Finance and Innovation Act (WIFIA) program, officials said.
“The off-stream Sites Reservoir will bring California closer to achieving a drought-resilient water system, storing floodwater from the Sacramento River during wet years for use during dry years by farmers, our communities, and the environment,” said Congressman John Garamendi, in a statement.
The low interest loan could dramatically reduce the costs to participants, making it more affordable for cities, farms, and resource managers to have access to more water in dry years, officials said.
The project, which includes nine dams and 23 miles of pipes, is a water storage facility that would utilize existing canals and infrastructure to divert flood water from the Sacramento River during wet years to store and then use during dry years, said JP Robinette, Sites engineer and construction manager, who updated the Colusa County Board of Supervisors on the project on March 15.
The project is currently under state environmental review.
“At 1.5 million acre feet, it will be the seventh largest reservoir in the state when completed, so it does move the needle on the amount of storage in the state,” Robinette said. “It is a significant project.”
Local, state, and U.S. agencies have all contributed financially to the project, which, as of June, is estimated to cost about $3.9 billion.
Colusa County officials said they remain committed to funding their share of the project, which would secure about 62,000 acre-feet of storage capacity for water that could potentially release 10,000 acre feet of water during critically dry years.
The total out-of-pocket for Colusa County will be about $6.8 million, largely in repayment of the loan, or $600 per acre-foot over the long term.
Robinette said about 257,000 acre feet of storage has been secured by participants north of the Delta in the Sacramento Valley. Federal reclamation has purchased about $91,000 acre feet with their investment. California has secured about 244,000 acre feet, largely for environmental protection, from their investment.
The State of California, during phase 1 of the project, contributed $836 million from Proposition 1, the water bond act of 2014, in addition to $40.8 million in other funds, although Sen. Jim Nielsen’s SB 890, which would have helped fully fund the Sites project using California’s surplus, was voted down by Senate Democrats on March 8.
Although local and state leaders said California should do more to support the water infrastructure project, Nielsen said the Federal WIFIA loan is still good news for the project’s advancement.
The federal government previously contributed $100 million from the WIIN Act during the Trump Administration.
South of the Delta participants, including municipal water companies in Southern California, seek to secure about 788,000 acre-feet of water through their investment in the project.
The amount of water that could be diverted will be determined year-to-year, depending on water availability, Robinette said.
Government officials said the $2.2 billion WIFIA loan will ultimately make storing water more affordable for everyone in the state as well as bring substantial and critical environmental benefits to California.
“We need Sites more than ever; our state is facing another historic drought,” said Congressman Doug LaMalfa, in a statement. “I’ve been a strong supporter of this project for years. It will provide water for over 24 million Californians and 500,000 acres of farmland. This loan will drastically reduce the costs for consumers and make it more affordable for taxpayers to get the water they need, even in dry years.” ■