Federal funding announcements of ~$750M One Big Beautiful Bill Act plus ~$750M aging infrastructure were described as imminent; ~$650M IRA drought funds face a Sept. 30 obligation deadline. Golden mussels are colonizing facilities; response is mitigation-focused and vulnerability assessment final report is pending. Ops: federal San Luis just under 700,000 AF, exports ~4,200 cfs; Vernalis inflows declining; April–May restrictions remain a concern.
The Board advanced Phase 1 of the DMC Subsidence Correction Project, authorizing $200,000 for pre-construction services with Kiewit and a $4.1 million advanced funding agreement with Westlands Water District. Water Year 2026 OM&R rates were approved for 25% and 50% allocation scenarios, with collections starting at the 25% rate. Jones Pumping Plant exports are currently around 1,900 CFS to help meet February X2 requirements.
The Board approved substantial executive compensation increases recognizing outstanding 2025 performance, along with the FY 2027 budget of $13.87 million including modest salary increases and new succession planning positions. Enhanced Delta export flexibility under new operational procedures is already delivering significant water supply benefits, with approximately 40,000 additional acre-feet exported during the recent first flush period.
Reclamation issued a Record of Decision on Action 5, providing increased operational flexibility for South of Delta exports. Delta-Mendota Canal subsidence correction Phase 1 solicitation is out, proposals are due January 9 with board consideration of pre‑construction work expected in early February and potential construction authorization in May. Golden mussels, first detected in October 2024, are present in many facilities and a vulnerability assessment will focus on smaller piping systems.
The board approved a $93 million cost allocation plan for Phase 1 of the Delta-Mendota Canal subsidence correction project, with $30 million in state funding reducing member costs, though controversy arose over excluding some contractors from certain task payments. Staff is pursuing federal funding as the primary option while approving backup cost allocations in case federal money doesn't materialize by February 2026. A transformer failure during scheduled maintenance left the O'Neill ...