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Islands of Water
A long-discussed plan to turn two Delta islands into reservoirs got a crucial green light in February when the State Board issued a decision granting the project water rights.
The decision gives Delta Wetlands, a privately held Lafayette-based company, the right to store up to 238,000 acre-feet of water on Webb Tract and Bacon Island. To mitigate for any environmental impacts, Delta Wetlands will also convert two other islands, Bouldin Island and Holland Tract, into 9,000 acres of permanent wildlife habitat.
"This project can benefit both the environment and the state and federal water systems by providing much more flexibility for the projects," says Delta Wetlands general manager Jim Easton. He notes that because Delta Wetlands would be the reservoirs located closest to the export pumps, water from the islands could be the first shipped to users, preserving upstream supplies for temperature control and electricity generation. The CALFED Record of Decision calls for 950,000 acre-feet of new storage and specifically identifies Delta Wetlands as a possible option.
Still undecided is who will operate the project once it is complete. Delta Wetlands may do so itself, selling the water to the state or federal projects or directly to users. Alternatively, the company may sell or lease the project to state or federal water agencies or to another company. Easton says the latter scenario would be the preference of the current owners, who have been working on the project since 1987. "The investors have waited a long time for a return on their money," he says. Estimates put the project’s value between $500 million and $1.5 billion.
The approval includes a host of terms and conditions designed to protect wildlife, water quality and levees, and to minimize seepage onto nearby islands. However, some of the project’s neighbors are unconvinced. "The [interceptor system designed to prevent seepage] may or may not work, and there is a substantial risk to approximately 17 islands," says attorney Dante Nomellini, who is appealing the board’s decision on behalf of neighboring landowners. Delta Wetlands maintains that number is significantly overstated and notes that the company has a no-net seepage policy.
Nomellini also maintains that state law prohibits a private company from profiting off water that "belongs to the people of the state," and worries that if the project turns out to be economically unfeasible, the owners might abandon it. "The project could fall on its face, and then we’d be left with a huge problem right in the heart of the Delta," he says.
Despite these concerns, Easton says the project has reached agreements with most of its opponents, including those worried about its effect on migrating fish. "The project’s operations will be very protective of fish," he says. "We will be very careful about how much we divert, and about the timing of diversions and releases." Easton also notes that in-Delta storage is one of the least environmentally disruptive of new storage options: "We’re not building new dams or blocking new streams."
Permits from the Corps of Engineers are still pending, although they are expected this year. Construction is expected to begin in 2002, says Easton.
Contact: Jim Easton (916) 351-0600
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