SUPPLEMENTAL ENVIRONMENTAL ASSESSMENT 

FOR THE CITY OF FRESNO 

FRIANT DIVISION 

40-YEAR LONG-TERM CONTRACT RENEWAL 

FINAL 

Bureau of Reclamation 

Mid Pacific Region 

South Central California Area Office 

1243 N Street 

Fresno, California 93721 

September 2004 
BACKGROUND 

Reclamation completed the Draft Friant Division Long-Term Contract Renewal 

Environmental Assessment on October 16, 2000 and the Final Friant Division Long-Term 

Contract Renewal Environmental Assessment in January 2001 (Friant EA). Fresno was 

included in the above documents, herein, incorporated by reference. Reclamation 

anticipates a Finding of No Significant Impact will be issued for the City of Fresno 

Long-Term Water Service Contract at the conclusion of consultation with the Fish and 

Wildlife Service (Service) and the National Oceanic Atmospheric Administration under 

the Endangered Species Act (ESA). The Friant EA analyzed the impacts of the new 

contracts for a period of 25 years. Fresno is located in Fresno County, California, and is 

within the Friant Division. Fresno’s original long-term renewable contract (No. 14-06-

200-8901) does not expire until 2006. However, the Central Valley Project Improvement 

Act (CVPIA) provided incentives for contractors to renew their contracts early. 

Therefore, it is anticipated Fresno would sign their new contract (No. 14-06-200-8901-

LTR1) early and would begin in Contract Year 2005. 

Under the provisions in the Central Valley Project Improvement Act (CVPIA), 

Reclamation Reform Acts, and Reclamation Project Acts, Reclamation is offering 40-

year contracts to Central Valley Project (CVP) contractors with Municipal and Industrial 

(M&I) supplies in their long-term renewable contracts. Reclamation is offering the City 

of Fresno (Fresno) a 40-year term renewable contract and would begin in Contract Year 

2005 and end in Contract Year 2045. A Contract Year typically begins March 1st and 

ends February 28th of the following year. 

In addition, Reclamation has new information that the City of Fresno has completed 

environmental analysis under the California Environmental Quality Act to examine the 

impacts to resources related to the revision to the City’s General Plan. The City of Fresno 

has developed the 2025 Fresno General Plan and has expanded its sphere of influence and 

service area. It is anticipated CVP water would be delivered to those areas. Under the 

existing long-term contract with the City of Fresno and Reclamation, no discretionary 

action is required by the Contracting Officer or Reclamation for boundary changes. 

Reclamation has found a Supplemental Environmental Assessment (SEA) is required to 

examine the impacts of continued water deliveries for an additional 15 years to the City 

of Fresno. 

The focus of this SEA is the continued water deliveries to Fresno beyond 2025 to 

February 28, 2046. 

PROPOSED ACTION AND ALTERNATIVES 

 

Proposed Action Alternative 

Reclamation proposes to supplement the Proposed Action Alternative described in the 

Friant EA for the City of Fresno Long-term Water Service Contract. Under the Proposed 
Action, Reclamation would offer a 40-year, long-term water service contract, to continue 

water service delivery of CVP water for M&I uses to Fresno. As stated earlier, it is 

anticipated Fresno would sign a 40-year, long-term contract that would begin in Contract 

Year 2005. Under the proposed action, Fresno would enter into a 40-year contract. M&I 

users in Fresno would have uninterrupted deliveries of CVP water for 40 years. 

The change in the contract term from 25-years to 40-years is the only substantive changes 

to the Friant EA. 

This SEA has been prepared pursuant to and in accordance with the National 

Environmental Policy Act (NEPA) of 1969 (42 USC § 4321-4370d) and the Council on 

Environmental Quality (CEQ) regulations on implementing NEPA (40 CFR Parts 

1500-1508). 

No Action Alternative 

The Friant EA contains the description of the No Action Alternative. 

PURPOSE AND NEED FOR THE ACTION

The purpose and need for action is unchanged from that described in the Friant EA. 

Reclamation is responsible for operational control of the CVP including securing 

payment for the cost of water facilities and operations and maintenance established in the 

water service contract with the Federal government. In addition, as a duly authorized 

representative, Reclamation administers all actions pertaining to the establishment of

water service contracts on behalf of the Secretary of the Interior. 

The purpose of this action is renew the City of Fresno long-term water service contract, 

consistent with Reclamation authority and all applicable state and federal laws, including 

the Central Valley Project Improvement Act (CVPIA) (H.R. 429, Public Law 102-575). 

The project alternatives will include the terms and conditions of the long-term contracts 

and tiered water pricing. 

Long-term contract renewal (LTCR) is needed to: 

• Continue beneficial use of water, developed and managed as part of the CVP, 

with a reasonable balance among competing demands, including the needs of 

irrigation and domestic uses; fish and wildlife protection, restoration, and 

mitigation; fish and wildlife enhancement; power generation; recreation; and 

other uses consistent with requirements imposed by the State Water Resources 

Control Board (State Board) and the CVPIA; 

• Incorporate certain administrative conditions into the renewed contract to ensure 

CVP continued compliance with current federal reclamation law and other 

applicable statues; and 
• Allow the continued reimbursement to the federal government for costs related to 

CVP construction and operation. 

BASIS TO OFFER 40-YEAR CONTRACTS AND RENEW CENTRAL VALLEY 

PROJECT WATER SERVICE CONTRACTS

The River and Harbors Act of 1935 included the initial authorization for the CVP. The 

Central Valley Project Authorization Act of 1937 re-authorized the CVP and allowed the 

Secretary of the Interior to enter into repayment contracts and other necessary contracts 

with “all agencies with which contracts are authorized under reclamation law”. 

Public Law 88-44, the Reclamation Project Act of 1939, provided for repayment of 

construction charges and authorized sale of CVP water to municipalities and other public 

corporations and agencies, plant investment, and certain irrigation water deliveries to 

leased lands. This act required the Secretary to comply with laws of the State relating to 

the control, appropriation, use, or distribution of water used in irrigation or vested rights 

acquired there under. This act also provided that the Secretary include provision for 

contract renewal, upon request of the other party to any long-term contract for municipal, 

domestic, or industrial water supply. The contract renewal would be subject to 

renegotiation of: (1) the charges set forth in the contract in the light of circumstances 

prevailing at the time of renewal; and (2) any other matters with respect to which the

right to renegotiate is reserved in the contract. The act also states that the Secretary shall, 

upon request, provide in any such long-term contract that the other party to the contract 

shall, during the term of the contract and of any renewal (subject to fulfillment of other 

obligations), have a first right to a stated share or quantity of the CVP water supply 

available for municipal, domestic, industrial, or irrigation use. 

Sections 9(c) of the Reclamation Project Act of 1939 authorized the Secretary to enter 

into contracts to furnish water for municipal water supply or miscellaneous purposes, 

provided that such contracts require repayment to the United States over a period not to 

exceed forty years. Section 9(e) of the Reclamation Project Act of 1939 allowed the 

Secretary to enter into either short- or long-term contracts to furnish water for irrigation 

purposes, with each such contract to be for a period not to exceed forty years. 

The Water Service Contracts Act of 1944 provided for delivery of specific quantities of 

irrigation and municipal and industrial water to contractors. 

The Reclamation Project Act of 1956 provided the right of renewal of long-term

repayment or water service contracts for agricultural contractors for a term not to exceed

40 years. The Reclamation Project Act of June 21, 1963, Renewal of Water Supply 

Contracts, extended the right of renewal of long-term repayment or water service 

contracts for municipal and industrial (M&I) contractors. 

On October 30, 1992, the President signed into law the Reclamation Projects 

Authorization and Adjustment Act of 1992 (Public Law 102-575) that included Title 
XXXIV, the Central Valley Project Improvement Act (CVPIA). The CVPIA amended 

the previous authorizations of the CVP to include fish and wildlife protection, restoration, 

and mitigation as project purposes having equal priority with irrigation and domestic uses 

and fish and wildlife enhancement as a project purpose equal to power generation. 

Section 3409 of the CVPIA required the Secretary to prepare a PEIS to evaluate the 

direct and indirect impacts and benefits of implementing CVPIA. That PEIS was 

prepared under the NEPA by Reclamation and U.S. Fish and Wildlife Service (Service). 

Reclamation released a Draft PEIS on November 7, 1997. An extended comment period 

closed on April 17, 1998. Reclamation and the Service released the final CVPIA PEIS in 

October 1999 and the joint Record of Decision in January 2001. 

Section 3404(c) of the CVPIA directs the Secretary of the Interior (Secretary) to renew 

existing CVP water service and repayment contracts following completion of the 

Programmatic Environmental Impact Statement (PEIS) and other needed environmental 

documentation by stating that: 

 "...the Secretary shall, upon request, renew any existing long-term

repayment or water service contract for the delivery of water for a period 

of 25 years and may renew such contracts for successive periods of up to 

25 years each....(after) appropriate environmental review, including 

preparation of the environmental impact statement required in section 

3409 (i.e., the PEIS)..." 

Section 3404(c) of the CVPIA clearly indicates that 25 years will be the upper limit for 

long-term irrigation repayment and water service contracts within the CVP. However, 

Section 3404(c) did not amend the provisions of Section (9(c) of the Reclamation Project 

Act of 1939 and the Act of June 21, 1963 which authorized renewal of M&I water 

contract terms for up to 40 years. These 1939 and 1963 authorizations remain in place as 

guidance for establishing the terms of M&I contracts. 

AFFECTED ENVIRONMENT 

The affected environment is described in the Friant EA and further described below. 

The City of Fresno has prepared a General Plan projected growth in 2025 and identifies 

the North Growth Area and Southeast Growth Area. The areas would accommodate 

approximately 10,000 and 55,000 people, respectively. This change in boundaries 

includes approximately 20 square miles (approximately 12,800 acres). 

The Programmatic Environmental Impact Statement for the Central Valley Project 

Improvement Act (PEIS) herein incorporated by reference, provided descriptions of the 

CVP facilities including the Friant-Kern Canal and resources within the CVP. The 

incorporated Friant EA provided site specific analysis including identification and 

discussion of resources within the Friant Division and in Fresno. 
ENVIRONMENTAL CONSEQUENCES 

A water-needs assessment was performed for each long-term CVP contractor including 

the City of Fresno. Each water needs assessment was predicated on the amount of water 

that would be beneficially utilized by year 2025, and that amount was used to determine 

the proposed long-term contract amount. The water-needs assessments showed that each 

contractor’s future water demand equaled or exceeded their full contract amount at year 

2025. (No interim time period conditions were considered or evaluated with respect to 

build-out conditions or changes in the CVP contract). Thus, all environmental impacts 

associated with use of the full contract amount would be manifested at the end of the 

25-year water-needs analysis period. Therefore, the initial analysis of impacts in the 

Friant EA covered a 25-year period. 

Potential impacts that would occur from 2025 to 2046 and the use of CVP water on 

additional 12,800 acres are being considered in this Supplemental EA. Because full use 

of the contract water-supply would occur by 2025, all environmental affects within the 

City of Fresno water service area related to this contract renewal will have occurred by

year 2025. Because the full water-contract amount would already be in use, any 

Contract renewal environmental effects occurring at year 2025 would not increase in 

magnitude or change in scope after that date. 

If there are changes in actual amount of CVP water delivered after full build-out in year 

2025, those would not be related to the contract, but would be a result of allocations 

reflecting future CVP demands, hydrology, or reductions in the reliability of CVP water 

supply. Any such changes in allocations would not exceed their full contract amount at 

year 2025. Any decrease in the actual amount of water delivered would not result in 

additional development in M&I service areas between Contract Years 2025 to 2045. Any 

analysis of changes in actual water delivery after 2025 would be highly speculative, 

difficult to quantify, and minor in scope. Thus, Reclamation believes that an analysis of 

impacts in year 2025 covers the full range of impacts associated with a 40-year contract 

term to the M&I-only contractors. Therefore, the environmental impact analysis 

presented in the Friant EA would not change under the Proposed Action. The Proposed 

Action would not result in significant impacts to the resources analyzed in the Friant EA. 

Effect on Endangered Species 

The City of Fresno is one of the 28 water-service contractors included in the Friant 

Division of the CVP. The effects analysis in the Friant EA included the City of Fresno. 

However, the City of Fresno was not included in the Biological Opinion for the 

Long-Term Contract Renewal for the Friant Division in 2001 (2001 BO). Reclamation is 

currently consulting with the Service for the long-term contract renewal for the City of

Fresno and a BO is anticipated in Fall 2004. The proposed long-term contract for the City 

of Fresno requires the contractor’s compliance with the applicable BOs. 

Reclamation has found the Proposed Action of replacing the 25-year contract with a 

40-year contract for Fresno would have no affect on federally listed threatened or 

endangered species, their designated critical habitats or species proposed for listing under 
the ESA. The Proposed Action would not change the maximum contract amount from the 

60,000 acre-feet/year considered in the Friant EA, and would not result in an increase of 

water supplies. No new construction would be required. The water needs assessment 

project full build-out to year 2025. The continued CVP water deliveries to Fresno to 

Contract Year 2045 would not result in incentives to construct additional homes or 

businesses. 

Effect on Other Resources 

The effect of the Proposed Action on Surface Water, Water Supply, Groundwater 

Resources, Water Quality, Fisheries Resources, Land Use Resources, Biological 

Resources, Recreational Resources, Socioeconomic Resources, Cultural Resources, 

Social Conditions, Air Quality, Geology and Soils, Visual Resources Indian Trust Assets, 

low income and disadvantaged populations is identical to the effect described in the 

Friant EA. 

REFERENCES 

US Bureau of Reclamation, 1999, Programmatic Environmental Impact Statement for the 

Central Valley Project Improvement Act. October 

US Bureau of Reclamation, 2000, Draft, Friant Division Long-Term Contract Renewal 

Environmental Assessment, October 16. 

US Bureau of Reclamation, 2001, Final, Friant Division Long-Term Contract Renewal 

Environmental Assessment and Finding of No Significant Impact. January 19. 

US Fish and Wildlife Service, 2001, Biological Opinion for the Friant Division 

Water Contract Renewals, Sacramento, California. January 19.