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Technical Capability, Financial Commitments, Implementation

Columbia-Snake River Irrigators Association Odessa Subarea Systems 1, 2, and 4 Review Private Sector Financing-Development for Surface Water Delivery. Technical Capability, Financial Commitments, Implementation. Prepared For Odessa Subarea Leadership Irrigators, Landowners,

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Technical Capability, Financial Commitments, Implementation

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  1. Columbia-Snake River Irrigators AssociationOdessa Subarea Systems 1, 2, and 4 ReviewPrivate Sector Financing-Development for Surface Water Delivery Technical Capability, Financial Commitments, Implementation Prepared For Odessa Subarea Leadership Irrigators, Landowners, Financial Community, Elected Officials, Agency Staff Darryll Olsen, Ph.D. Regional Planner/Resource Economist CSRIA Board Representative CSRIA-10-2014

  2. Columbia-Snake River Irrigators AssociationOdessa Subarea Systems 1, 2, and 4 ReviewPrivate Sector Financing-Development for Surface Water Delivery Mission Statement The CSRIA will “keep the water at the pumps,” and it will work to enhance access to new water supplies for its irrigation, industrial, and municipal members. The CSRIA supports water resources projects that are economically sound and promote the direct interests of water right holders and the communities that serve our economic base. CSRIA working with the Odessa Subarea Irrigators: -- Preconstruction Engineering. -- Water System Financing. -- Water Service Contract. CSRIA-10-2014

  3. Columbia-Snake River Irrigators AssociationOdessa Subarea Systems 1, 2, and 4 ReviewPrivate Sector Financing-Development for Surface Water Delivery State-USBR Project (Modified Partial Replacement Alternative) 70,000 acres N/S-I-90 Private Projects 75,000 acres N-I-90

  4. Columbia-Snake River Irrigators AssociationOdessa Subarea Systems 1, 2, and 4 ReviewPrivate Sector Financing-Development for Surface Water Delivery Phase II Analysis: Systems 1 and 2 Detailed Preconstruction Analysis and Economic Costs (CSRIA.org) CSRIA-10-2014

  5. Columbia-Snake River Irrigators AssociationOdessa Subarea Systems 1, 2, and 4 ReviewPrivate Sector Financing-Development for Surface Water Delivery System 1 Final Configuration CSRIA-10-2014

  6. Columbia-Snake River Irrigators AssociationOdessa Subarea Systems 1, 2, and 4 ReviewPrivate Sector Financing-Development for Surface Water Delivery N-I-90 Systems 1 (2 and 4) Private Sector Package Development: • Participants’ Water System Agreement (WSA). • Financial and Development “Instrument” • for System Participants. • Legal Construction Contract • and Development Management. • Legally Binds Land Owners-Lease • Holders to System Financial Obligation. • Structures Post Development OM&R Obligations. CSRIA-10-2014

  7. Columbia-Snake River Irrigators AssociationOdessa Subarea Systems 1, 2, and 4 ReviewPrivate Sector Financing-Development for Surface Water Delivery It’s the Water—New State Conditional Water Use Permit Issued to USBR: • New State Secondary Water Use Permit Issued to USBR. • Office of Columbia River (OCR) and Eastern Region Office, Ecology, • Working with CSRIA to Verify System 1 Groundwater Rights with • System 1 Lands—On the Ground Water Determination. • Water Right Verification and Application to New Lands. • Use of Nameplate Acres without Relinquishment. • RCW 90.03.380 Water Spreading to Include • Extension-Seasonal Transfer Lands. • Economic-Financial Viability of ALL System Projects. CSRIA-10-2014

  8. Draft Water Service Contract Submittal: • Bringing 21st Century Irrigation Development to Subarea. • Engineering for On-the-Ground Irrigation Efficiency and Water Use. • Optimize the Environmental Regulations (EIS), State Water Code, Federal Water Service Contract Parameters. • Rely on Private Sector Economics-Financial Model—There Is No • State-Federal Money. • Respecting the “Invisible Hand” of Private Sector Economics. • For System(s) development, Allow the Irrigators to Make the Decision for Willingness-to-Pay; “Let Them Do as They Will...” • Let the Irrigators for Each System Determine Payment Structure— • Multiple Zones with Marginal Costs. • Allow for Optimized Private Sector Financial Capability with Water Spreading to Land Previously Receiving Groundwater. • Equity Based on Market Capability, Determined by the Direct Stakeholders. Columbia-Snake River Irrigators AssociationOdessa Subarea Systems 1, 2, and 4 ReviewPrivate Sector Financing-Development for Surface Water Delivery CSRIA-10-2014

  9. Private Sector Irrigators vs. ECBID Public Sector Financial Models: Columbia-Snake River Irrigators AssociationOdessa Subarea Systems 1, 2, and 4 ReviewPrivate Sector Financing-Development for Surface Water Delivery CSRIA-10-2014

  10. Water System Contract Review Issues? Impeding Action? • Water Spreading. • “He Said, She Said, Who Said?” • State Water Code Prevails. • Required for Financial Viability. • EIS Configuration: • All Systems Must Be Within 87,000 Acres. • Within Allocated Water Supply. • Real Issue Is Actually Getting All the Acres. • Changes Affect Any Allocation from EIS. • USBR NED-B/C Analysis. • Direct Net Value Must Be Positive Per Acre. • Yes, It Is…Market Value Exceeds USBR Production Budget Estimates. • Direct Service Contract with Private Irrigators. • Operations Conveyed to ECBID. • Wait for Master Water Service Contract? Time and Money Indifference? Meeting with USBR Regional Director-Accountability? Columbia-Snake River Irrigators AssociationOdessa Subarea Systems 1, 2, and 4 ReviewPrivate Sector Financing-Development for Surface Water Delivery CSRIA-10-2014

  11. Columbia-Snake River Irrigators AssociationOdessa Subarea Systems 1, 2, and 4 ReviewPrivate Sector Financing-Development for Surface Water Delivery Further Perspectives—Development Picture: • Move Now to Get Water on the Ground—Success Breeds Success. • Get System 1 Operational by 2016; Systems 2, 3, and 4 by 2017-2018. • There Is No Further State-Federal $ Available for Development. • Future Federal $ for Direct Canal Expansion Below Lind Coulee? • Further State Dollars for Canal? Show Some Results! • Do Not Snub Financial Reality—Take Advantage of Private Sector • Financing and Construction Capability. • The “Normalized” Model Does Not Add Acres, It Further Disperses Acres and Increases Costs—Discouraging Irrigator/Lender Participation. • ECBID: Focus on Canal Expansion to Lind Coulee and South. • Obvious Question: Should the ECBID Request More State/Federal Funds, When They Are Not Supporting the Irrigators’ Private Sector Financing Model for System 1? CSRIA-10-2014

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