Long anticipated Los Vaqueros Reservoir expansion cancelled
For ten years, Bay Area water companies have wanted to increase storage capacity of the Los Vaqueros Reservoir above Brentwood as insurance against another drought. But as time dragged on without construction, the project became more expensive and less beneficial. Now, water agencies that were once desperate for more water are saying, 'Thanks, but no thanks.'"
In 2014, in the grips of a prolonged drought, water agencies began looking at raising the dam at Los Vaqueros as a way to increase their supplies during future dry times. Water would be banked for cities around the Bay Area, as well as Central Valley farmers and even a wildlife refuge. But on September 18th, the Contra Costa Water District, which owns the reservoir, called for an end to its participation in the project.
"Well, if we're not part of that, obviously that would mean the facility is no longer part of the project," said CCWD Public Affairs Director Jennifer Allen.
What happened? Los Vaqueros was supposed to be the easiest place to expand water storage, perhaps in the state. It's basically a large container that can be filled with water from the Delta during times of plenty. It's not part of any river system and there were no environmental lawsuits slowing it down. But Allen said, over the years, new State regulations and permit restrictions kicked in.
"That started driving down the benefits for the partners of the project," she said. "And then, at the same time, because of schedule changes and also inflation, the costs started to increase."
In six years, it's gone from $980 milliion to about $1.5 billion. So far, just the planning has cost more than $50 million. That was enough to make partners like EBMUD look for water somewhere else.
"So, the math just really didn't work out for us any longer when we looked at our other alternatives," said EBMUD spokesperson Andrea Pook. "We're really looking deeply at groundwater banking and groundwater storage. And we've embarked on a project with San Joaquin County that is very promising."
Because CCWD wouldn't gain any water from the expansion, it refused to pay anything toward the cost overruns, even though it retained sole control of the project.
"We are unwilling to take on financial risks for construction of a facility that we are not going to gain benefits from," said Allen.
That convinced the folks at the Santa Clara Valley Water District to cut their participation by 60 percent.
"The proposed project terms ask for Valley Water to take considerable financial risk without having any input into the decisions which would affect that risk," said Valley Water's CEO Rick Callender, at their meeting on September 10th.
Other agencies began reducing their involvement as well, including EBMUD which dropped its contribution entirely. That led CCWD's President to announce on Monday that "this well-intended project is not viable."
"I mean, in order to build something, you have to have everybody that's going to be paying for it to make that happen," said Allen.
"And as we've seen that interest decrease--and again, costs are only increasing--it makes it even less viable to move forward with this project."