The California Department of Water Resources, in coordination with the California Natural Resources Agency, is accepting proposals for the Instream Flow Water Purchase Program, formerly named the Protecting California’s Rivers, Streams, and Watersheds grant program.
Donor Name: California Natural Resources Agency
State: California
County: All Counties
Type of Grant: Grant
Deadline: 10/01/2023
Size of the Grant: $2,000
Details:
Voters and the Legislature have authorized funding of projects that measurably enhance streamflow at a time and location necessary to provide fisheries or ecosystem benefits or that improve upon existing flow conditions. To ensure the greatest environmental benefit, promote the recovery of species, and improve upon existing flow conditions, the WPP program shall focus on funding the acquisition of instream flows in the Sacramento-San Joaquin watershed provided January through June, with priority for flows provided in dry and critically dry water year types as further explained in these guidelines. The State has determined that instream flows provided during this period will improve upon existing conditions in a manner that will promote species recovery and environmental enhancement.
The sole focus of this WPP program shall be on establishing financial instruments and agreements necessary to ensure water for beneficial instream flows is made available from those with legal rights to use or dedicate water.
The process for obtaining an award of funding through this program shall be conducted in three phases, as described below.
PHASE 1- Statement of Preliminary Proposal
A preliminary feasibility assessment will include, but not be limited to the following factors:
- Understanding full ownership of the rights for the proposed water supply.
- The cost value of the proposed water supply.
- Volume of water in acre-feet; total and per day/week/month, as applicable.
- Location:
- Water course (river/tributary, etc.).
- Point of flow availability (existing diversion point, project discharge location, etc.).
- River mile(s) of intended instream beneficial use, if extending beyond point of flow availability.
- Water source (change in use, fallowing, pumping, etc.).
- Water year types and seasonality (months, weeks, days). Flows must be provided between January 1st and June 30th.
- Flexibility – inter-annual and seasonally.
- Term of commitment. Minimum of 10 years, with preference given to 15-year or longer commitments. The term of commitment is subject to negotiation if only offered in specific water year types.
- The feasibility of the mechanism the applicant proposes to provide the flows in-stream.
- Timing and availability of the water.
- Risk of diversion by downstream water rights holders and the timing and feasibility of any proposed protective measures.
The Phase 1 assessment will also include a preliminary assessment of alignment with State priorities, including the following:
- Augmented flows in any water course (e.g., river or stream, etc.) within the SacramentoSan Joaquin Delta Watershed that can be made available below the furthest downstream storage reservoirs.
- Flows expected to add to existing Delta Outflow during spring (e.g., March, April, and May) will be prioritized.
- Flows that can be provided expeditiously (within the next 2 years) will be prioritized.
- Relative benefits of ecosystem and other environmental enhancements provided by the proposed instream flow increases.
- Seniority of the water rights used to implement the proposal.
- Risk of lack of availability based on priority of right, including during dry and/or critically dry years and due to curtailment during drought.
- Providing flows during dry and/or critically dry years
- Benefits to water quality in impaired water courses (303(d) listed).
- Likelihood of resulting in increased Delta outflow in addition to any local water course streamflow improvements.
PHASE 2- Proposal Development
Factors that the State will consider include, but are not limited to, the following:
- Local and regional interests, including the relationship the proposal would have on surrounding land and water uses, tribal rights and communities, and environmental justice or disadvantaged communities.
- Potential groundwater impacts. (e.g., compliance with the Sustainable Groundwater Management Act, impacts to conjunctive use systems that rely on recharge, etc.).
- Land use constraints and other property right considerations.
- Time required to secure any State, federal and local regulatory approvals necessary to implement the proposal.
- Planning, execution and contracting considerations, including feasibility of implementation.
- Impact on other public beneficial uses, such as recreation.
- Scientific research opportunities.
- Total project cost and cost value of comparable water sources.
PHASE 3 – Execution of Grant Agreements
- Once proposals are fully developed, an evaluation shall be undertaken by the State to determine which proposals to award grant funding to and from which funding source the grant will be awarded (DWR or CNRA).
- The State shall include, where relevant, experts at the California Department of Fish and Wildlife and other agencies in this evaluation. The State shall compare the proposals that best achieve its priorities and issue letters of intent to award to the proposals expected to contribute most toward the priorities and factors described above. It shall publish notices of intent to award that are sent to project proposers. If a proposer rejects the award, the State will evaluate whether it has sufficient funds to offer an award to the next best performing proposed project. Note, the State reserves the right to refrain from making subsequent offers if applicants who have received an intent-to-award letter withdraw.
The State shall not identify a cap on the maximum amount of award under this program and expects there to be variation in offers made relative to the cost per acre-foot of water depending on location and other factors. However, the State will favor greater volumes of water and longer time periods (all other considerations being equal), and all projects must provide a minimum of 2,000 acre-feet per year of water over 10 years between January and June in the Sacramen to San Joaquin Delta watershed (subject to negotiation if provided in only specific water year types).
Eligible Projects
Funds may be used for projects that provide, and are subject to, the following:
- A minimum of 2,000 acre-feet of water, that measurably enhances instream flows, unless a proposer is seeking to offer a block grant program, in which case a minimum of 5,000 acre-feet of water must be made available
- Augmented flows in any water course (e.g., river or stream, etc.) within the SacramentoSan Joaquin Delta Watershed that can be made available below the furthest downstream storage reservoirs.
- The water must be provided during the months of January through June during all years the project is making water available.
- All proposals must be for a minimum of 10 years (with a preference for 15 years or more and subject to negotiation if only offered in specific water year types).
- Grants may fund the purchase of water rights or contractual rights to use water without associated land. Applicants shall have the option of seeking a formal dedication via Water Code section 1707 but may also use other mechanisms to protect instream flows. However, permanent water right dedications require formal dedication via section 1707 and the State may require the grantee to include proposed water right terms and conditions in any related petition to the State Water Board to assure the dedication in perpetuity for the intended purpose. No matter how a grantee intends to ensure the flows are provided instream, all grant agreements shall require annual State Water Board diversion and use reporting, as applicable, and access by State staff for measurement purposes.
- Offers may include forbearance of riparian use. However, such forbearance must include information on how such water will be made available during January through June, how water will be protected from diversion by downstream diverters, and how such water will be an additive instream flow contribution (e.g., grantee cannot forebear riparian use and divert the same volume of water under another type of water right [permit, license, etc.]). Valuation of offered water shall be required by the State to show the cost value of the flows provided are reasonable. The State reserves the right to use internal technical staff for this review, or to require grantee to pay a third party for such valuation. Third-party valuation work may be funded by the grant and must be complete prior to any funding released for implementation, and within a time frame agreed upon by the State and the grantee. Failure to timely submit such valuations shall be grounds for termination of the grant at the State’s discretion.
- Project types that may be eligible include, but are not limited to:
- Water transactions such as lease, purchase, transfer, dedication, or exchange;
- Change-of-use petitions to benefit fish and wildlife;
- Forbearance of use of water rights including but not limited to fallowing irrigated lands, refraining from pumping contract supplies, or otherwise reducing consumptive uses;
- Water that requires infrastructure improvements that allow for provision of water to be dedicated to measurably enhancing stream flows;
- Reservoir reoperations both at existing and new storage sites that allow for provision of water to be dedicated to measurably enhancing stream flows.
- No funds may be expended for existing mitigation obligations imposed on any party under law.
- If activities such as a formal instream dedication pursuant to Water Code section 1707, or modifications to a water storage or water conveyance system, are included in the proposed project, the acquisition and implementation activities must be clearly differentiated as separate tasks in the work plan, budget, and budget justification. All offers should demonstrate how they will verify water has been made available in those years it is required by the grant agreements.
Eligibility Criteria
- Eligible applicants for General Funds include individuals, public agencies, nonprofit organizations, public utilities (including water and irrigation districts), federally recognized
- Native American tribes, non-federally recognized California Native American tribes, and mutual water companies.
- Proposition 68 limits eligibility as follows: public agencies, nonprofit organizations, public utilities (including water and irrigation districts), federally recognized Native American tribes, non-federally recognized California Native American tribes, and mutual water companies
- For individuals, funding shall be provided only from General Fund sources, and the State encourages partnerships with public entities or non-profits where feasible and appropriate, given that limitation.
- Applicants are not required to specify whether their project seeks General Funds or Proposition 68 funding. The State will determine the appropriate funding source for individual projects before issuing letters of intent to award.
For more information, visit Instream Flow Water Purchase.
