SOD ag allocation could rise 1–3% above 25% within 24–48 hours, while Friant Division remains at 100% Class 1. Staff discussed forecasts suggesting a potentially record-strong El Niño heading into winter. The Board approved PFM Asset Management to manage ~$230M in project funds, projected to net $1.6–$1.7M after fees with a conservative strategy.
Golden mussels remain a long-term management issue; monthly veliger monitoring found a positive at milepost 134, and staff are planning dewatering-period treatment in November, with limited funding. Class 1 allocation remains at 100% and Millerton may run near minimum pool (~150 TAF). MRCCP Phase 2 ROW and the Porterville borrow-site LOI were on the agenda. An August groundbreaking is being planned.
Staff discussed a draft OBBB letter agreement ($195M to FWA with a $5M Reclamation holdback) supporting Friant-Kern Canal subsidence correction, including Phase 1 replacement pump stations and Phase 2A parallel canal work. Golden mussel settlement was confirmed; AAIS NPDES permit expected mid-September.
Board received a $200M federal OBBB allocation. Staff was directed to proceed with bid solicitation for five Phase 1 replacement pump stations as early as the following Monday, with award targeted for May and NTP around late June 2026. The 2024 cost recovery methodology was vacated and a 3-director committee will develop a replacement. Class 1 holds at 100% but could drop to ~90%.
An invasive golden mussel infestation was discovered in the Friant-Kern Canal, prompting coordination with state agencies on treatment options and a funding proposal coming to the Board in February. Water supply outlook for 2026 is strong with reservoirs well above average and agricultural allocation forecasts ranging from 35-65%. The Governor's proposed budget includes $30 million for river restoration and fish hatchery operations.
