SACRAMENTO, Calif. - The Bureau of Reclamation executed another set of congressionally mandated contract conversions with Central Valley Project contractors, which provides water to families, farms and communicates in their respective areas. These contracts are in agreement with the Water Infrastructure Improvements for the Nation Act.
These completed contract conversions include the City of Shasta Lake, Shasta County Water Agency, Mountain Gate and Shasta Community Service Districts, and a two-party agreement with Santa Clara Valley Water District and Westlands Water District. Each WIIN Act-mandated conversion contract is negotiated and completed by Reclamation’s regional career professionals.
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. These dollars will be placed in an account to fund much needed storage projects. Increasing storage capacity will allow Reclamation’s projects to capture additional water in wet years to help meet the water needs for project purposes in dry years.
The contract negotiations began in May 2019 after these and more than 86 other contractors requested conversions. Converted contracts modify only repayment provisions of existing contracts, include Reclamation’s current standard articles and continue if the contractors make all required payments, including operation and maintenance costs and future capital expenses.
Reclamation hosted public negotiation sessions for each contract and draft conversion contracts were published for at least a 60-day comment period.
View additional WIIN Act information at https://www.usbr.gov/mp/wiin-act/.
Source: Bureau of Reclamation
