CENTRAL VALLEY PROJECT IMPROVEMENT ACT

SECTION 3408(h)

LAND RETIREMENT PROGRAM

INTERIM GUIDELINES

NOVEMBER 1997

United States Department of the Interior

Interagency Land Retirement Team

2666 N. Grove Industrial Drive, Suite 106

Fresno, CA. 93727-1551
CENTRAL VALLEY PROJECT IMPROVEMENT ACT

SECTION 3408(h) 

LAND RETIREMENT PROGRAM

INTERIM GUIDELINES

TABLE OF CONTENTS

I. INTRODUCTION............................................................................................... 1

II. OBJECTIVE...................................................................................................... 1

III. AUTHORITY..................................................................................................... 2

IV. APPLICABILITY................................................................................................ 3

V. PURPOSE......................................................................................................... 3

VI. ELIGIBILITY...................................................................................................... 3

VII. PROCESS......................................................................................................... 4

 A. Solicitation of Offers................................................................................ 4

 B. Applications.............................................................................................. 5

 C. Reviews................................................................................................... 5

 D. Preliminary Selection............................................................................... 5

 E. Confidentiality.......................................................................................... 5

 F. Notification............................................................................................... 5

 G. Final Review and Selection..................................................................... 6

VIII. RETIREMENT OF LAND.................................................................................. 6

IX. WATER 6

MANAGEMENT...................................................................................

X. DEFINITIONS................................................................................................... 7

XI. APPENDIX........................................................................................................ 9

 Preliminary Application................................................................................. 10

 Selection Criteria Matrix .............................................................................. 11 

 
1

 Revised: November 17, 1997

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 Improvement Act 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).

A comprehensive study of agricultural drainage and drainage-related problems on the Westside of

the San Joaquin Valley resulted in the management plan presented in the 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 (BOR, FWS, BLM)

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

volunteer to remove their lands from irrigated production in return for compensation.

Land retirement, or taking lands out of irrigated agricultural production, is a way to reduce

irrigation drainage problems. Since irrigation water is no longer applied there would 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 amount of 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 'Involved Parties' 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

guidelines were mailed to the involved parties list in early May, 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 for the 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. 

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

State resources then utilized, as available, to effect the greatest net benefit to the overall program
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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 IMPROVEMENT ACT, 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 Central Valley 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 of the 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 RELIEF ACT, California Water Code(CWC), Section 14900

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

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

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

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

Basic program 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 of the 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.

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

purposes or ground water recharge.
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 Distribution of conserved water must maximize amounts for environmental purposes.

IV. APPLICABILITY

 These Interim Guidelines will 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 regulations for 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 Guidelines will not impede or restrict in any manner the execution of any

land/and or water transaction 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 approved water conservation plan, or

improve the quality of an irrigation district’s agricultural wastewater through drainage

source reduction.

B. Acquire water for purposes identified in the Central Valley Project Improvement Act and/or

the San Joaquin Valley Drainage Relief Act.

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

VI. ELIGIBILITY

GEOGRAPHIC AREA

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

 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

representatives and any combination thereof.

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

executing the terms of the offer.
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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 in the Act.

VII. PROCESS

OVERVIEW

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. A two-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 might reasonably 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 for those who wish to submit

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

persons that have requested to be kept informed 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 for

a 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. Applications

 Preliminary Application

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 to goals and objectives of the program.

Attachment 1 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.
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C. Review

A review 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 review the 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, once determined 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 Matrix is contained in the Appendix.

 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 those who 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 for selections will be made by the review committee and forwarded

to management for approval. 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).
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1. Environmental Protection Agency’s publication entitled National Priorities List Fact Book (December

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

law.

VIII. 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, according to the

standards for such inspections set by the American Society for Testing and Materials, E-1527-97

& E-1528-96. Lands to be retired under the State program will follow a similar process.

B. Lands found to contain hazardous wastes are not eligible for lease or acquisition, unless the 1

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

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

purchase agreement or included as part of 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, except for 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 of this Act, through the interim land

retirement program may be transferred for future 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.

X. 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 grow a marketable crop of botanical or biological

nature, and are not used for Municipal or Industrial use.

“Drainage water”

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.
7

“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...All legal owners (those legally capable of

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

“Municipal and Industrial Water”

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

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

“Project”

means the Central Valley Project, 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”

means the Secretary of the Interior, or his designee.
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“Wastewater”

refers to agricultural drainage wastewater, commonly collected in subsurface collector

drains in shallow water 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 individual who is a party to a Water Service Contract, a

Repayment Contract or a 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

Project Act of 1939, as amended and supplemented.

“Water Districts”

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.
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XI.APPENDIX
10

CVPIA LAND RETIREMENT PROGRAM 

PRELIMINARY APPLICATION

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

Purpose of Retirement (eligibility for): Water Conservation ( ), Drainage ( ), Other ( )

1. Owners Name Phone # ( ) - 

 Address , City , St. , Zip 

2. Location of Acreage : APN #___________________

Address 

County Township Range Section Meridian_____

Attach Parcel map to this form.

3. Total Asking Price $ , Per Acre $ 

 water allocation included? ( yes / no )

Terms: 

_ (use reverse-side for additional space)

4. Number of Acres 5. Water District 

 

6. Water Allocation ACRE FEET total , or per acre explain: 

 

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

Year 1 Crops Production per Acre 

Year 2 Crops Production per Acre 

Year 3 Crops Production per Acre 

Year 4 Crops Production per Acre 

Year 5 Crops Production per Acre 

Year 6 Crops Production per Acre 

Year 7 Crops Production per Acre 

Year 8 Crops Production per Acre 

Year 9 Crops Production per Acre 

Year 10 Crops Production per Acre 

Has parcel been idled more than 4 years? (yes/no)

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 / no ), Depth to shallow ground water table 

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

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

Signature: Date: / / 

Return this form to: Land Retirement Program Manager, USBR SCCAO, 2666 N. Grove Industrial Dr., #106, Fresno, CA 93727
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Ranking Criteria for CVPIA Land Retirement Program March 4, 1998

Does parcel receive CVP water? Y N

Drainage Reduction Max Pts: Score

Depth to Groundwater

0-5 ft.

5-10 ft.

>10 ft.

Selenium

> 200 ppb

50-200 ppb

 20-50 ppb

 5-20 ppb

Salinity(e.c.)

>10 dS/m

5-10 dS/m

2.5-5 dS/m

>0-2.5 dS/m

Boron

 > 8ppm

2-8 ppm

 0-2 ppm

Soil Drainage Class

Poorly Drained

Moderately Drained

Well Drained

Other

As > 10 ppb

Mo > 10 ppb

Totals for Drainage Reduction:
12

Fish & Wildlife Max pts: Score:______

Risk of Exposure to contaminated waters 

Active drain to SJR/pond

Potential drain to SJR/pond

No drains 

Parcel Size

Parcel size

Parcel location

Parcel is within 1 mile of managed habitat

Parcel is between 1-5 miles of managed habitat

Parcel is located contiguous to river or perennial stream, or within

its historical floodplain

Retirement of parcel will assist in implementation of current habitat

management/recovery/conservation plans (corridor concept)

Geographic relationship of parcel to other parcels in applicant pool

Parcel is >5 miles from urban development or high-use facilities

Totals for Fish & Wildlife Enhancement:

Acquisition of Water for CVPIA Purposes Max pts: ____ Score:_____

Entire water district (assignment of water contract)

Amount of water available for acquisition

Totals for Acquisition of Water:

TOTALS

Maximum possible points

Applicant’s score
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Instructions for using Ranking Criteria

Does Parcel Receive CVP water? (Y/N) This is to document eligibility of parcel for the land retirement

program, per requirements of sect. 3408(h), CVPIA.

Drainage Reduction

Depth to Groundwater taken from San Joaquin Valley Drainage Program Final Report, 1990 dataset, or

most current GIS data

Selenium--same

Salinity--same

Boron--same

Soil Drainage Class--obtained from NRCS.

Other--As, Mo obtained from GIS dataset listed above

Fish & Wildlife

Risk of Exposure to contaminated waters: in order to factor in the risk of contaminant exposure to

wildlife from such things as selenium, arsenic, etc., we need to know the pathway of the drainage and

irrigation tailwater and the ultimate destination of these waters.

Parcel Size: simply mutliply the acres available by 0.01 , capped at 50 pts.

Parcel Location

Parcel within 1 mile of managed habitat: managed habitat is defined as lands in public ownership or a

private preserve, managed for native species

Parcel is between 1-5 miles: using definition of managed habitat, use GIS map to locate proximity of

parcel to other managed habitat.

Parcel is located contiguous to river or perennial stream, or within its historical floodplain: using

GIS dataset and floodplain maps, determine location of parcel relative to this criterion. Criterion is

important because riparian habitat is rare.

Retirement of parcel will assist in implementation of current habitat

management/recovery/conservation plans (linkage concept): flexibility is needed here to obtain

parcels that are key linkages to complement other program efforts. Determination of parcel importance

includes such things as threatened and endangered species, and other wildlife values.

Geographic relationship of parcel to other parcels in applicant pool: Using GIS map, compare

location of offered parcel to other parcels in the applicant pool, previously selected lands, managed public

lands, etc.. to form “linkages”, and larger block sizes.
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Parcel is >5 miles from urban development or high-use facilities: urband development is defined as

areas with populations of 20,000 or more. High-use faciltiies are defined as those that have created major

land disturbance activities and are operated on a daily or continual basis. Major land disturbance activities

may include borrow pits, sand and gravel operations, airports, freeway interchanges, etc..

Acquisition of Water for CVPIA Purposes:

Entire water district (assignment of contract)--if able to purchase the entire water district, the

purchaser assumes control of the water contract and can easily move water elsewhere, such as to

refuges, in accordance with CVPIA, section 3405(a)(1) and (2) water transfers. Assumption of the

contract is of great benefit as it locks up a stable supply of water (no allocation uncertainties), may reduce

long-term operation and maintenance costs and debt-load issues , which may improve water management

and conservation in accordance with CVPIA, section 3405, Water Transfers, Improved Water

Management and Conservation.

Amount of water available for acquisition:--multiply acre-feet offered by 0.01 per acre-foot.