Water infrastructure and investments in California and Oregon are on track to receive billions of dollars in funding over the next couple of years.
Most notably, the Environmental Protection Agency formally invited the Sites Project Authority to apply for a $2.2 billion loan to finally build a reservoir in Sites, CA. In addition, the Department of the Interior (DOI) is inviting project proposals to apply for $162 million in funding for restoration in the Klamath Basin in Oregon and California.
Sites Reservoir
Once finalized—which could take up to two years—the $2.2 billion low-interest loan for the Sites Reservoir Project would be the single largest loan in the history of the Water Infrastructure Finance and Innovation Act (WIFIA) program. A loan through WIFIA could reduce the repayment cost by as much as 10 percent for participants, making it more affordable for water users to obtain water.
The reservoir is projected to break ground in 2024, be complete by 2030 and provide an average of 230,000 acre-feet of water (an acre-foot is equivalent to 325,851 gallons) per year, or enough water for approximately 2 million people.
The project is estimated to cost around $4 billion, and the WIFIA loan would effectively fund half of the project cost. The state of California has also committed $816 million for the project through the passage of Proposition 1 in 2018, and an additional USDA loan and potential investment from the Bureau of Reclamation should fund the remainder of the project cost.
“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 Rep. John Garamendi (D-CA-03) in a press release.
“After years of planning, it is time to finish the state permitting process and build the first major new reservoir in California since 1999.”
The reservoir is an off-stream water storage facility that does not dam a major river system and would not block fish migration or spawning. The reservoir captures and stores stormwater flows from the Sacramento River for release in dry and critical years.
The reservoir has been an idea for over 70 years, but it has always lacked the funding and political support. Once complete, it will be almost twice the size of the New Melones Lake reservoir, which is the fourth largest reservoir in the state (following Shasta Lake, Lake Oroville and Trinity Lake).
While the project is largely supported by stakeholders, some environmental groups are opposed to the reservoir due to potential harm to endangered salmon and the high cost. In particular, the Natural Resources Defense Council (NRDC) has opposed the reservoir since it was proposed.
“Most dams and reservoirs have had devastating impacts on our native fish and wildlife, and the Tribes, fishing jobs, and communities that depend on their health,” wrote Doug Obegi, an attorney with NRDC, in an August 2021 blog post. “After all, even where dams don’t entirely block the flow of a river, they still take water from the environment.”
In other water news, DOI is allocating $162 million from the Infrastructure Investment and Jobs Act to address the drought crisis in the Klamath Basin. Proposed projects will restore habitat, control invasive species and conserve threatened species, according to DOI. The infrastructure act also contains $8.3 billion in funding to support water resilience and drought mitigation.
“The ecological infrastructure of the Klamath Basin needs a wholistic approach, and this funding will help create opportunities for collaboration that, in turn, can help Basin communities come together to find lasting solutions for Tribes, agriculture and others who rely on a healthy and functional ecosystem,” said U.S. Fish and Wildlife Service Director Martha Williams in a released statement. — Anna Miller, WLJ managing editor
