Program:
Colorado River Quantification Settlement Agreement

Administrating Agency: Resources Agency
Bond: Proposition 84
Department Name: Department of Water Resources
Bond Statute: Ch. 5, Section: 75050(b)
Implementing Statute: Water Code §12560-12565

Front-end Accountability

The Colorado River Management Account was established by Water Code §12560-12565 (SB 1765 [Chapter 813, Statutes of 1998] as amended by SB 654 [Chapter 613, Statutes of 2003]) for funding canal linings and other projects considered essential to reduce the State’s Colorado River water use to its basic apportionment of 4.4 million acre-feet, in normal years, as specified in California’s Colorado River Water Use Plan, the Quantification Settlement Agreement, and other related documents. Funds for the lining of the All American and Coachella canals have been continuously appropriated from State General Funds and recent bond initiatives (e.g., Proposition 50, Water Code § 79567). The Account is administered by the Department of Water Resources, which has executed contracts with the Imperial Irrigation District and San Diego County Water Authority to oversee construction of the All American and Coachella Canal Lining Projects, respectively. Together these projects would annually conserve up to 93,700 acre-feet of water that is currently being lost due to seepage from the canals. The projects are consistent with provisions of California’s Strategic Growth Plan, in that it helps improve and protect the integrity of major water conveyance features necessary for a healthly and vibrant economy.

The bond funds allocated for this program have been equally divided between the two projects listed above. At this time the Coachella Canal Lining Project is close to completion. Upon completion of the Coachella Project, the remaining Proposition 84 funds appropriated under this program will be allocated solely to the All Ameerican Canal Lining Project to cover the continuing costs associated with construction and compliance with legal and environmental requirements. The construction of the projects must meet standards set by the Department of Interior - Bureau of Reclamation, which owns both canals, and is contingent on acceptance of the work by the Bureau. Under terms of the Quantification Settlement Agreement, San Diego County Water Authority will be the beneficiary of the conserved water from these projects, which would help provide a sustainable source of water for over 650,000 people per year.

More information and status reports on the lining of the All American Canal can be found on Imperial Irrigation District’s website at http://www.iid.com/Water_Index.php?pid=64. Information and status reports on the lining of the Coachella Canal can be found on the Coachella Valley Water District’s website at http://www.cvwd.org/news/canal/.

In-Progress Accountability

Bond expenditures under this program are by statute limited to water conservation projects that implement the Allocation Agreement as defined in the Quantification Settlement Agreement. Specific projects that meet this statutory criterion are the lining of the All American and Coachella canals. Grant funding for these projects under the Colorado River Management Account program must be spent according to the approved project scope and budget. The Department of Water Resources requires monthly construction progress reports on the status of each project and coordinates site visits and inspections by the U.S. Bureau of Reclamation (who own both canals) during construction. Payment requests must include a certification by the grantee that each expense complies with requirements outlined in the grant funding agreement. Grantees must also submit supporting documentation for each expense, with reimbursements approved only for eligible expenses pursuant to program guidelines and the approved project budget. The Department of Water Resources also withholds ten percent of each payment request to be released only upon certification by the U.S. Bureau of Reclamation of completion of discrete project elements as defined in the grant funding agreement and approved in advance by the Department of Water Resources.

Follow-up Accountability

All projects funded via the Colorado River Management Account program receive a close-out visit conducted by the Department of Water Resources at the time the project is complete and/or grant funding is exhausted. The purpose of the close-out field visit is to ensure project components were completed according to program guidelines and the terms of the grant funding agreement, including project scope and budget. All grantees must certify that the project has been completed according to approved project plans and specification and obtain written acceptance of the work by the U.S. Bureau of Reclamation. All grantees must comply with all current laws and regulations which apply to the project and submit documents summarizing total project costs and all additional funding sources.