STATE WATER RESOURCES CONTROL BOARD

SACRAMENTO, CALIFORNIA

JUNE 15, 2000

 

ITEM  4

 

SUBJECT

 

SEAWATER INTRUSION CONTROL LOAN PROGRAM, APPROVAL OF A LOAN FOR PAJARO VALLEY WATER MANAGEMENT AGENCY, WATSONVILLE/ HARKINS SLOUGH PROJECT

 

DISCUSSION

 

The Safe, Clean, Reliable Water Supply Act (1996 Bond Law) established a Seawater Intrusion Control Subaccount and provided $10 million for low-interest loans for seawater intrusion control projects.  The Safe Drinking Water, Clean Water, Watershed Protection, and Flood Protection Act (2000 Bond Law) established a Seawater Intrusion Control Subaccount, provided an additional $25 million for low-interest loans for seawater intrusion control projects, and transferred unallocated funds from the 1996 Bond Law to the new Subaccount.  No allocations have been made thereby resulting in $35 million available for loans and administration. The 2000 Bond Law language does not differ from the 1996 Bond Law other than providing additional funds and transferring unallocated funds.

 

On October 23, 1997, the State Water Resources Control Board (SWRCB) approved the Seawater Intrusion Control Loan Program Guidelines (Guidelines).  At the same time, the SWRCB reserved $5 million until January 1, 2000, for the Pajaro Valley Water Management Agency (Agency).  The Agency had until that date to submit a complete application.

 

The Agency submitted a satisfactory application for $5 million and received facilities plan approval for the Watsonville/Harkins Slough project on December 24, 1999.  The project purpose is to reduce pumping from the Pajaro Valley Groundwater Basin, thereby reducing seawater intrusion.  The project consists of facilities to divert wet weather flows in Harkins Slough to a recharge basin for storage in groundwater, to extract the stored flows as well as additional supplemental groundwater during the irrigation season and deliver the water to farmers to replace their individual well supplies.  The total estimated eligible project cost is $12.4 million for construction and construction administration.

 

In accordance with the Guidelines, after the Agency has submitted final plans and specifications and the Division of Clean Water Programs (Division) has approved them, the project is to be brought before the SWRCB for approval.

 

The Agency prepared a Draft Environmental Impact Report (EIR) for the proposed project, which was distributed to the public and circulated through the State Clearinghouse (SCH# 97021006) for review from May 4, 1998, through July 10, 1998.  During the review period the Agency received comment letters from seven agencies and four individuals.  The Agency provided adequate responses to the comments and revised mitigation measures in the Final EIR.

 

The Agency approved the project, certified the Final EIR, and adopted a Statement of Overriding Considerations and Mitigation Monitoring Plan on May 19, 1999.  The Agency did not file a Notice of Determination (NOD) with the County or the Governor’s Office of Planning and Research (OPR).  Because the 180 day statute of limitations has expired, the Agency is not required to file a NOD with OPR.  The Division will file a NOD with OPR upon Seawater Intrusion Control Loan Program funding approval.

 

POLICY ISSUE

 

Should the SWRCB approve Seawater Intrusion Control Loan Program funding in the amount of $5 million for the Agency for the Watsonville/Harkins Slough Project?

 

RWQCB IMPACT

 

The project receiving financial assistance is in the jurisdiction of the Central Coast Regional Water Quality Control Board.  The project is an effort to reverse the pollution of ground water by seawater.

 

FISCAL IMPACT

 

A total of $35 million is available in the Seawater Intrusion Control Loan Program.  The SWRCB’s approval of the $5 million loan will leave a balance of $30 million available for loans and administration.

 

STAFF RECOMMENDATION

 

The SWRCB adopt a resolution approving the proposed project and authorizing a loan of $5 million from the Seawater Intrusion Control Loan Program.

 

 

 

DRAFT  May 22, 2000

STATE WATER RESOURCES CONTROL BOARD

RESOLUTION NO. 2000 - ___ 

 

APPROVAL OF A

SEAWATER INTRUSION CONTROL LOAN PROGRAM

LOAN TO PAJARO VALLEY WATER MANAGEMENT AGENCY (AGENCY)

FOR WATSONVILLE/HARKINS SLOUGH PROJECT

 

WHEREAS:

 

1.  The Safe, Clean, Reliable Water Supply Act (1996 Bond Law) established the Seawater Intrusion Control Subaccount and provided $10 million for low interest loans for seawater intrusion control projects;

 

2.  The State Water Resources Control Board established the Seawater Intrusion Control Loan Program by adoption of the Seawater Intrusion Control Loan Program Guidelines (Guidelines) on October 23, 1997, which implemented provisions of the 1996 Bond Law;

 

3.  The Safe Drinking Water, Clean Water, Watershed Protection, and Flood Protection Act (2000 Bond Law) established a Seawater Intrusion Control Subaccount, provided an additional $25 million for low-interest loans for seawater intrusion control projects, and transferred unallocated funds from the 1996 Bond Law to the new Subaccount;

 

4.  A loan application was submitted by the Agency requesting funding for the Watsonville/ Harkins Slough Project;

 

5.  The Office of Water Recycling staff has reviewed the application, plans and specifications, and other supporting information for the project and has determined that the submitted documents comply with the Guidelines; and

 

6.  The Agency has certified an EIR (State Clearinghouse No. 97021006), which has been reviewed and considered, and it is determined that:

 

a.  As stated in the EIR, the project may result in significant and unavoidable impacts related to the loss of approximately one-half acre of prime farmland.

 

The SWRCB hereby adopts the following statement of overriding considerations to address the unmitigatable significant impacts that may occur from approval of the project:

 

Implementation of the water supply and distribution project would result in benefits including: relief from overdraft problems, improvement of groundwater quality due to a decrease in seawater intrusion, and improvement of regional water supply problems by providing additional fresh water for current and future needs.  In balancing the project benefits against the potential significant loss of prime farmland, the SWRCB finds that the public benefits of the project outweigh the unavoidable adverse environmental effects, and therefore, determines that the impacts are acceptable.

 

b.  Changes or alterations have been required in, or incorporated into the proposed project which avoid or reduce to less than significant levels other potentially significant environmental effects identified in the EIR with respect to: (i) hydrology and water quality impacts, which will be mitigated by complying with NPDES permit requirements and employing storm water quality management practices; (ii) wetlands impacts, which will be mitigated by timing construction activities to periods of low flows, while maintaining a bypass flow option outside the zone of construction, placing sediment curtains around construction sites, implementing a re-vegetating plan, and erecting exclusion fencing at the perimeter of the construction zone; and (iii) geology and soils impacts, which will be mitigated by conducting geologic investigations, implementing best construction practices, removing loose soils, re-seeding to ensure soil stability, exposing as little new ground as possible, and preparing an inspection and maintenance program.

 

c.  With respect to other potentially significant environmental impacts identified in the environmental

document, appropriate changes or alterations are not within the responsibility and jurisdiction of the SWRCB.  Such other changes or alterations have been adopted or should be adopted by other agencies.

 

THEREFORE BE IT RESOLVED THAT:

 

The SWRCB approves a Seawater Intrusion Control Loan Program loan from the 2000 Bond Law for the eligible costs but not to exceed $5 million to Pajaro Valley Water Management Agency for the Watsonville/Harkins Slough Project.

 

 

CERTIFICATION

 

 

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on June 15, 2000.

 

 

                                                                              ___________________________________

                                                                              Maureen Marché

                                                                              Administrative Assistant to the Board