United States Department of the Interior

BUREAU OF RECLAMATION

South-Central California Area Office

2666 North Grove Industrial Drive, Suite 106

Fresno, California 93727-1551

5CC-i 10

LND-5.0O

December 18, 1996

MEMORANDUM

Laura King, MP-102

John Davis, MP-120

Patricia Rivera, MP-120

Penny Howard, MP-150

Frank Michny, MP-152

Gary Bedker, MP-320

Ruth Johnson, MP-360

John Johannis, MP-180

Kellye Kennedy, MP-400

Gale Heffler Scott, MP-440

Nan Yoder, MP-440

Graham McMullen, MP-450

Mona Jefferies-Soniea, MP-700

Mike Delamore. 5CC-lOS

Valerie Curley, SCC-130

Kurt Flynn, NC-320

Jim Turner, Solicitor

Bill McDonald, Solicitor

Bob May, Land Retirement Program Manager

Release ofInterim Guidelines for the Land Retirement Program

Attached is an Interested Party letter and the Interim Guidelines for the Land Retirement

Program. Also attached is a copy ofthe News Release announcing the release ofthe Interim

Guidelines.

Thank you for taking the time from your busy schedulesto provide comments during the

development ofthese Interim Guidelines. If you have any questions, please do not hesitate to

call me at (209) 487-5137 or my e-mail.

IN REPLY

REFER TO

TO:

From:

Subject:

Attachments
United States Department ofthe Interior

U.S. Fish and Wildlife Service U.S.Bureau of Reclamation U.S. Bureau of Land Management

Region 1 Mid-Pacific Region California State Office

911 N.E. 11th Avenue 2800 Cottage Way 2135 Butano Drive

Portland,0R97232-4181 Sacramento, CA 95825-1898 Sacramento, CA95825-0451

December 12, 1996

Dear Interested Party:

Attached are the Interim Land Retirement Program Guidelines which were developed in

accordance with Subsection 3408(h) ofthe Central Valley Project Improvement Act and Section

14900 ofthe California Water Code. These guidelines were developed by the Bureau of

Reclamation, U.S. Fish and Wildlife Service, Bureau ofLand Management and the California

Department of Water Resources in cooperation with stakeholder’s groups, other Federal and state

agencies and water users.

The objective ofthese Interim Guidelinesis to establish the process and selection criteria for the

acquisition, from willing sellers, ofland and associated water rights as authorized by law.

Proposals for this fiscal year are being accepted through March 31, 1997. For every year

thereafter, proposals will be accepted from September 1 through November 1. Priority will be

given to retiring drainage-impaired lands as identified in the San Joaquin Valley Drainage

Report, September 1990.

A series ofpublic information meetings will be held in January 1997 to more fully explain the

guidelines and application procedures. Locations and dates will be announced as meetings are

confirmed.

All comments received during the development ofthese guidelines were greatly appreciated. If

you have any questions about the guidelines ofthe land retirement program, please contact Bob

May, Land Program Manager, at (209) 487-5137.

Roge~atte ~

rson H. Dale Hall Ed Hastey

Regional Director Assistant Regional Director State Director

U.S. Bureau ofReclamation U.S. Fish and Wildlife Service U.S. Bureau of Land Management

Mid-Pacific Region Pacific Region California State Office
CENTRAL VALLEY PROJECT IMPROVEMENT ACT

SECTION 3408(h)

LAND RETIREMENT PROGRAM

INTERIM GUIDELINES

TABLE OF CONTENTS

I. INTRODUCTION I

II. OBJECTIVE 2

Ill. AUTHORITY 2

IV. APPLICABILITY 3

V. PURPOSE 3

VI. ELIGIBILITY 4

VII. PROCESS 4

A. Solicitation of Offers 5

B. A~olications 5

C. Reviews 5

D. Preliminary Selection 5

E. Confidentiality 6

F. Notification 7

G. Final Review and Selection 7

‘Jill. RETIREMENT OF LAND 7

IX. WATER MANAGEMENT 7

X. DEFINITIONS 8

XI. APPENDIX 10

Preliminary A~olication 11
1

I. INTRODUCTION

On October 30,1992, Congress enacted Public Law 102-575. Section 3408(h)(1), Title XXXIV of

Public Law 102-575 (known as the Central Valley Project ImprovementAct or CVPIA), authorized a federal

land retirement program, as recommended in the San Joaquin Valley Drainage Program Final Report

(SJVDP, Sept. 1990). Also in 1992, the California State Legislature passed Senate Bill 1669 (SB 1669), the

San Joaquin Valley Drainage Relief Act that incorporated the SJVDP recommendations. This State statute

authorized a land retirement program (California Water Code, Section 14900) to be administered through

the California Department of Water Resources (DWR).

Acomprehensive study of agricultural drainage and drainage-related problems on the Westside of

the San Joaquin Valley resulted in the management plan presented inthe San Joaquin Valley Drainage

Program (SJVDP) final report issued in September, 1990. The recommended drainage management

actions included the selective retirement of irrigated lands that are characterized by low productivity, poor

drainage, and high selenium concentrations in shallow ground water. As currently envisioned, this Land

Retirement program will be accomplished cooperatively by the Department of Interior (BaR, EWS, BLM)

and California’s Department of Water Resources (DWR) through a process in which willing sellers

volunteer to removetheir lands from irrigated production in return for compensation.

Land retirement, or taking lands out of irrigated agricultural production, is away to reduce irrigation

drainage problems. Since irrigation water is no longer applied therewould be reductions in the amount of

subsurface drainage water produced. With less water moving through the soil profile, less leaching would

occur, thereby reducing the amountof salts and other solids passing into the drain water. Other associated

benefits would be the lowering of the water table, and opportunities to use the Project water, which was

previously used on the retired lands, on other lands and to increase or enhance fish and wildlife resources,

by changing the land use.

Public meetings were held in December 1993 and two ~InvolvedParties~ meetings were held in

winter and spring 1994. In addition, presentations, and input and discussion meetings, were held with

specific constituent groups such as the San Luis Delta-Mendota water users, San Joaquin Valley Drainage

Implementation Program Management Group, Drainage Oversight Committee, and others. Draft interim

guidelineswere mailed to the involved parties list in earlyMay, 1994. Few substantive comments resulted

from this review of the preliminary draft.

II. OBJECTIVE

The objective of these Interim Procedures and Guidelines is to establish the process and selection

criteria forthe acquisition, from willing participants, of land and associated water rights, as authorized in

Section 3408(h) CVPIA and Section 14900 CWC. This process is referred to as the Land Retirement

program.

Both the State and Federal land retirement authorizations are based, in part, upon recommendations

of the San Joaquin Valley Drainage Program. Therefore, in consideration of the similar objectives of the

State and Federal statutes, the Department of the Interior and the State Department of Water Resources

have agreed in concept to undertake a Joint Federal-State land retirement program. Such a joint program

would avoid duplication and confusion, increase efficiency of both efforts, and maximize flexibility and

versatility of the program.
2

Generally, a single pool of prospective applications would be evaluated, priorities set and both Federal and

State resources then utilized, as available, to effectthe greatest net benefit to the overall program

objectives. Therefore, these Interim Guidelines are designed to accommodate implementation of this joint

program, covering both the Federal and State authorizing statutes, where practicable.

III. AUTHORITY

CENTRAL VALLEY PROJECT IMPROVEMENTACT, PL 102-575, TITLE XXXIV

Section 3408(h)(1) authorizes the purchase, from willing sellers, of land and associated water rights and

other property interests identified in paragraph (h)(2) which receives CentralValley Project water under a

contract executed with the United States, and to target such purchases to areas deemed most beneficial to

the overall purchase program, including the purposes of this title.

Section 3408 (h)(2) authorizes the Secretary to purchase, pursuant to such rules and regulations as may

be adopted or promulgated to implement the provisions of this subsection, agricultural land which, in the

opinion of the Secretary-

(A) would, if permanently retired from irrigation, improve water conservation by a district, or

improve the quality of an irrigation district’s agricultural wastewater and assist the district in

implementing the provisions of a water conservation plan approved under section 210 of the

Reclamation Reform Act of 1982 and agricultural wastewater management activities developed

pursuant to recommendations specific to water conservation, drainage source reduction, and land

retirement contained in the final report ofthe San Joaquin Valley Drainage Program (September

1990);

OR

(B) are no longer suitable for sustained agricultural production because of permanent damage

resulting from severe drainage or agricultural wastewater management problems, groundwater

withdrawals, or other causes.

SAN JOAQUIN VALLEY DRAINAGE RELIEFACT, California Water Code(CWC), Section 14900

The State program as authorized by and described in CWC, Sect.14900, isto encourage cessation of

irrigation on drainage-impaired lands and assist in the resolution of agricultural subsurface drainage

problems in the San Joaquin Valleythrough the coordinated efforts of Federal, State and Local agencies,

Non-profit organizations, and private landowners who elect to participate in the program.

Basicprogram elements. are:

The Department of Water Resources may acquire and manage drainage-impaired land, and

acquire and transfer associated water.

The area of focus is the 75,000 acres referenced in the final report ofthe San Joaquin Valley

Drainage Program (SJVDP), but could be anywhere in California.

The program must be self-supporting through the sale of conserved water.

The land acquired would be managed as habitat or non-irrigated agriculture.
3

One-third of the water conserved but not sold may be used by local agencies for environmental

purposes or ground water recharge.

Distribution of conserved water must maximize amounts for environmental purposes.

IV. APPLICABILITY

These Interim Guidelineswill be effective immediately and apply to the implementation of an interim

program to retire irrigated agricultural lands which receive Central Valley Project water under a contract

with the United States. This interim program pursuant to these Interim Guidelines will remain in effect until

final rules and regulationsfor PL 102-575 are promulgated. However, as the interim land retirement

program proceeds, these Interim Guidelines may be revised as necessary.

The applicability of these Interim Guidelineswill not impede or restrict in any manner the execution of any

land/and or watertransaction between or among the United States, the State of California, or any person or

entity.

V. PURPOSE

The purposes of the land retirement program are:

A. Assist water districts in implementation of an approvedwater conservation plan, or

improve the quality of an irrigation district’s agricultural wastewaterthrough drainage

source reduction.

B. Acquire waterfor purposes identified in the Central Valley Project ImprovementAct and/or

the San Joaquin Valley Drainage Relief Act.

C. Protect, restore, and/or enhance fish and wildlife resources.

VL ELIGIBILITY

GEOGRAPHIC AREA

Lands eligible for participation in this interim land retirement program are thosethat:

Receive Central Valley Project water under a contract executed with the United States (for

participation under the Federal program)

OR

Are located in the drainage problem study area as defined in the final report of the San

Joaquin Valley Drainage Program September, 1990. (for participation under the State

program)

OFFERS

Offers will be considered from any and all landowners, groups of landowners, their duly authorized
4

representatives and any combination thereof.

Offers involving multi-party arrangements must include all necessary parties legally capable of

executing the terms of the offer.

TYPES OF TRANSACTIONS

Any and all types of transaction possibilities will be considered (fee acquisition, lease, leasepurchase, easement, etc.), provided the transaction meets the requirements for land retirement as

specified inthe Act.

VII. PROCESS

OVER’~AEW

The program will be on a willing seller basis. Offers will be solicited by the land retirement team from

willing sellers within the eligible area as described in section VI. Atwo-part process will be used to evaluate

and select lands to be included in the interim land retirement program. Interested participants will be asked

to submit an initial application form outlining the terms and conditions of the offer, and basic information

needed to screen offers for eligibility and potential to meet goals of the program. The preliminary

application will be as short and non-burdensome as possible, and require only basic information likely to be

known or readily available to the landowner. The second part of the process will require more detailed

information, and will be developed only for lands which mightreasonably be considered.

A. Solicitation of Offers

A proactive effort to retire those lands which meet the priorities of the program and the objectives of

the Act will be an ongoing process throughout the life of the program. Offers will be solicited by the

land retirement team on a recurring basis, generally annually. An announcement will be made

following determination of the currently available Federal and State funds for the land retirement

program. The announcement will identify the period covered by the announcement, general land

retirement program goals, the selection criteria, and instructions forthose who wish to submit

offers. Announcements will be mailed to landowners, local and State government agencies, and

persons that have requested to be keptinformed through general mail. The announcement will

also be published through advertisements taken in newsletters through Farm Bureau, Water

Districts, Drainage Districts, and/or through public newspapers. Applications will be accepted fora

period of 60 days from the date of publication of the solicitation announcement. Applications

received after this date will be considered in the next round.

B. Ap~Iications

Preliminary Anolication

Those interested in participating in the program will submit a non-binding application responsive to

the criteria. The purpose of the preliminary application will be to 1) express interest in participating

in the program, 2) identify under what terms and conditions the interest is based, and 3) provide

sufficient information for a determination of eligibility and initial evaluation of the offer with respect
5

to goals and objectives of the program.

Attachment I shows the minimum information that will be requested in the preliminary application

phase. Return completed applications to Land Retirement Program Manager, USBR SouthCentral California Area Office, 2666 N. Grove Industrial Dr., Suite #106, Fresno, CA 93727.

C. Review

Areview committee will be established consisting of State and Federal agency personnel with

technical expertise and experience relative to the selection criteria. Upon the closing date for

applications, this group will reviewthe applications for eligibility and priority according to their

potential to meet the purposes of the program. Applicants will be notified of the status of their

application within 60 days of the closing date.

D. Preliminary Selection

Applications, oncedetermined to meet the minimum eligibility criteria described above, will be

evaluated and prioritized according to pre-determined criteria. Data and information utilized for

evaluation will be provided by the applicant, and through State, Federal, or Water District data

bases. The selection criteria will include the following:

o Structure of Offer

- flexibility of offer to fit program needs

- pnce

o Socio-Economic Effects

- public health & safety

- secondary impacts

- post-retirement effects

o Severity of Drainage/Contamination

- Estimated total contribution to contamination problems of the local area

- Estimated % of reduction of contamination problems that would resultfrom permanent

retirement

- Depth to shallow groundwater

- Quality of shallow groundwater, particularly selenium concentrations

- Whether tiles have been installed; if so, quality, quantity, and destination of drainage

effluent

o Disposition of Water

- Property water allocation, priority

- Recentirrigation history

- Proposed post retirement disposition of water allocation

- Umitations (transfer, type and place of use, conveyance issues, etc.)

- Water Conservation Plans

- Surface and groundwater usage

a Wildlife Resources
6

- Location relative to other existing native habitats and/or potential managed habitats

- Land use of adjacent properties and potential conflicts ifretired and/or restored for

wildlife habitat

- Suitability or potential for management forthreatened or endangered species or other

species of special concern

- Potential for wildlife habitat restoration

o Potential forMonitoring, Evaluating Effects

- Parcel Size

- Existing monitoring, availabilityof hydrogeologic, biologic, & land-use data

- Potential to measure and discern effects of retirement including water table response,

drainage flow and load response, soil salinity response, habitat restoration/succession,

land management needs and requirements

o Agricultural Productivity

- USBR irrigation suitability land classification; Stone Index classification, other soil/land

use classifications

- Recent crop history

o Relationship to other Plans, Land Use Regulations or Constraints and Cumulative Effects

E. Confidentiality

Information about a particular transaction or potential transaction, including information about

property owners involved and lands being considered for retirement, will be held in confidence by

agency personnel (Federal and State) until negotiations about that particular transaction have been

completed and a letter of intent has been signed. Information about applications that are not

selected, potential transactions that do not progress to formal negotiations, and other discussions

will also be held in confidence.

F. Notification

Applicants will be notified within 60 days of the close of the application period of the status of their

applications. A supplemental information packet will be sent to thosewho have been selected to

participate in the final process. This packet will contain instructions, requests for specific additional

information, and a time line with mandatory response dates.

G. Final Review and Selection

Based upon the supplemental information packet provided by the landowner and upon the

guidelines and purposes of the land retirement program, an assessment of the applications will be

made and recommendations forselectionswill be made by the review committee and forwarded to

management forapproval. Upon approval, those selected parcel owners will be notified, and

formal negotiations will be initiated. Qualified applicants who are not selected for participation in

this round will automatically be placed on the list to be considered for the next solicitation event

(unless the applicant requests otherwise).
7

‘JUl. RETIREMENT OF LAND

A. Land to be retired under the Federal program shall be appraised by a Department of the Interior

appointed appraiser, and shall include a hazardous materials inspection. Lands to be retired under

the State program will follow a similar process.

B. Lands found to contain hazardous wastes1 are not eligible for lease or acquisition, unless the

identified hazardous materials are removed and certified prior to public agency lease or purchase.

Alevel I preacquisition contaminants survey will be completed and approved on all parcels

selected for retirement prior to further consideration under these guidelines.

C. All debt service against the land to be retired, shall be retired prior to, or as partof, any fee

purchase agreement or included as partof the lease arrangements.

D. Appropriate environmental review and documentation shall be prepared and completed prior to

transaction closure.

E. A post retirement land management plan shall be developed by the management agency or entity

prior to retirement of a parcel of land. The post-retirement plan shall include, as necessary,

consultation, coordination and review by other agencies and interested parties to ensure any

potential adverse effects of post-retirement management are addressed.

IX. WATER MANAGEMENT

A. All irrigation activities will cease, exceptfor limited land management purposes which will not

contribute to existing drainage problems.

B. Water from retired land will not be used where it may contribute to existing agricultural drainage

pollution problems, or other shallow groundwater related problems.

C. Water acquired for fish and wildlife, or other purposes ofthis Act, through the interim land

retirement program may be transferred forfuture use(s) on lands outside the District in which the

acquired land is located in accordance with CVPIA sections 3406(b)(3), water acquisitions and

3405(a), water transfers.

K, DEFINITIONS

As used herein, the term:

Act’

means Title XXXIV of Public Law 102-575, known as the “Central Valley Project

Improvement Act” or CVPIA.

Agricultural Land”

means those lands which are utilized to growa marketable crop of botanical or biological

nature, and are not used forMunicipal or Industrial use.

1. Environmental Protection Agency’spublication entitled National Priorities List FactBook (December

1992) and supplements, which identify hazardous waste sites requiring cleanup under the “Superfund” law.
8

“Drainagewater

Surplus water removed from within the soil by natural or artificial means, such as by drains

placed below the surface to lower the water table below the root zone.

“Easement”

means an interest in land owned by another that entitles its holder to a specific limited use

“Fee acquisition”

means purchase of land in complete title with the associated rights.

“Interim Program”

means the time period between the initiation of the land retirement program and that time

when the PEIS has been accomplished and final rules and regulations have been

promulgated.

“Irrigation Water

means Project Water to be used for agricultural purposes as set forth in the Water

Contractor’s Water Service, Repayment or Water Right Settlement Contract.

“Land Retirement”

means cessation of irrigation upon a parcel of land.

“Lease”

Negotiated contract granting use of the land for a specified period and for a specified

amount.

“Lease-purchase”

means a negotiated contract granting use of the land for a specified period and for a

specified amount, which includes an option to purchase (fee title) in a given time period.

“Multi-party” arrangement

refers to land acquisition/lease proposals with more than one landowner of record, such as

a partnership, deeds held in Trust, etc...AII legal owners (those legally capable of

executing the terms of the offer) must sign the offer.

“Municipal and Industrial Water”

means Project Waterto be used forother than agricultural purposes as set forth in the

Water Contractor’s Water Service, Repayment or Water Rights Settlement Contract.

“Project”

means the Central ValleyProject, California

“Project Water

means water that is developed, diverted, stored or delivered by the Secretary in

accordance with the statutes authorizing the Central Valley Project and in accordance with

the terms and conditions of water rights acquired for the Central Valley Project pursuant to

California law.

“San Joaquin Valley Final Report” (SJVDP final report)

means the final report of the San Joaquin Valley Drainage Program dated September

1990. (a.k.a. the “rainbow report”).

“Secretary”
9

means the Secretary of the Interior, or his designee.

“Wastewater”

refers to agricultural drainage wastewater, commonly collected in subsurface collector

drains in shallowwater tables and transported via ditches and canals to evaporation ponds

or streams.

“Water Conservation Plan” (WCP)

refers to the water conservation plan as developed in accordance with provisions of the

Reclamaiton Reform Act (RRA) and CVPIA by the CVP water contracting district in which

that parcel is located.

“Water Contractor”

shall mean any entity or indMdual who is a party to a Water Service Contract, a

Repayment Contract ora Water Rights Settlement Contract with the United States for a

Project Irrigation and/or Municipal and Industrial Water supply, which may be supplemental

to a non-Project water supply, pursuant to Section 9 of the Reclamation ProjectAct of

1939, as amended and supplemented.

~WaterDistricts”

refers to water contractors.

Water Service Contract”

means a contract with the United States providing Project Water pursuant to subsections

(c)(2) and/or (e) of Section 9 of the Reclamation Project Act of 1939, including Water

Rights Settlement Contracts which provide for the delivery of supplemental Project Water.
10

XI. APPENDIX
11

CVPIA LAND RETIREMENT PROGRAM

PRELIMINARY APPLICATION

(A SEPARATE APPLICATION MUST BE FILLED OUT FOR EACH PARCELOR BLOCK OF LAND)

Purpose of Retirement (eligibility rar): Water Conservation ( ), Drainage C ). Other

1. Owners Name _____________________________ Phone# (

)

Address , City , St. , Zip _____________

2. Location of Acreage

Address

County _____________ Range Township _____Section Meridian

Parcel map attached? Yes ( ) No ( )

3. TotalAsking Price $ , Per Acre $.......................

water allocation included? (yes/ no)

Terms:

(use reverse-side foradditional space)

4. Number of Acres _________________ 5. Water District___________________________________

6. WaterAllocation ACRE FEET total ~ or per acre ______ explain:

7. Crop History: (identify crop and production, dry pasture or fallow for past 10 years)

Year I Crops __________________ Production per Acre

Year 2 Crops __________________ Production per Acre ______________

Year 3 Crops __________________ Production per Acre ______________

Year 4 Crops __________________ Production perAcre ______________

Year 5 Crops _________________ Production per Acre _____________

Year 6 Crops ___________________ Production per Acre

Year7Crops __________________ Production perAcre

Year 8 Crops ___________________ Production per Acre ______________

Year 9 Crops ___________________ Production per Acre

Year 10 Crops_________________ Production perAcre

8. Drainage History:

Method of Irrigation (circle all that apply) Sprinkler Flood Furrow Drip Comb.

Wells on Property? (yes/no), Depth of Wells_______________Depth to useable water__________

Collector drains? (yes I no), Depth to shallowground watertable ___________________________

9. Please note any other features that may add value on the back of this application

(e.g. House, Barns, Outbuildings, Wildlife I Wetland compatibility, Cost savings of drainage cleanup, etc.)

Signature: ___________________________________ Date: I I

Return this form to: Land Retirement Prograrn Manager, USSR SCCAO, 2666 N. Grove Industrial Dr., #106, Fresno, CA 93727