The Western Area Power Administration (WAPA), part of the Department of Energy, has confirmed and placed into effect procedures for collecting restoration payments from power contractors associated with the Central Valley Project (CVP). These procedures, effective from the first full billing period on or after April 1, 2026, support the environmental habitat restoration goals of the Central Valley Project Improvement Act (CVPIA) of 1992. Published in the Federal Register on February 20, 2026, the notice republishes existing methods without substantive changes, primarily to eliminate references to a specific outdated WAPA Sierra Nevada Region Power Marketing Plan. This administrative update ensures ongoing funding for fish and wildlife habitat improvements in California's Central Valley, addressing long-term environmental impacts from federal water projects. The process involves coordination between WAPA and the Bureau of Reclamation, with payments deposited into a dedicated Restoration Fund. No public comments were received during the consultation period, highlighting procedural continuity amid evolving administrative needs.
Background on the Central Valley Project Improvement Act
The CVPIA, enacted as Title 34 of Public Law 102-575 on October 30, 1992, amended the operations of the CVP to prioritize environmental protection. The CVP, a federal water management system spanning from northern California's Cascade Range to the Kern River plains south of Bakersfield, has historically supported irrigation, power generation, and flood control. However, these activities contributed to habitat degradation for fish and wildlife. Section 3407 of the CVPIA established the CVP Restoration Fund in the U.S. Treasury to finance habitat restoration, improvement, and acquisition. The act requires the Secretary of the Interior to assess annual mitigation and restoration payments from CVP water and power users. The Bureau of Reclamation calculates the total annual obligation, while WAPA's Sierra Nevada Region handles collections from power contractors due to its role in marketing and transmitting CVP power. A 1993 letter of agreement between Reclamation and WAPA formalized these deposit procedures. This framework reflects broader federal efforts to balance resource development with ecological sustainability, drawing on precedents like the Trinity River Division Act of 1955 and the Flood Control Act of 1962, which influenced project operations and user entitlements.
Key Players and Responsibilities
WAPA's Sierra Nevada Region acts as the intermediary for power-related collections, managing contracts with CVP power customers. Reclamation determines the annual Power Restoration Payment Obligation (PRPO), notifying WAPA around July 1 each year with a detailed computation for the upcoming fiscal year, which runs from October 1 to September 30. WAPA then allocates and bills based on contractors' base resource percentages, defined as the share of CVP and Washoe Project power available after meeting project use and first preference customer needs. First preference customers, located in counties like Trinity, Calaveras, and Tuolumne, are exempt from these payments due to the environmental benefits already provided by reoperated facilities such as the Trinity River Division and New Melones projects. This exemption acknowledges how these projects contribute to CVPIA goals, potentially reducing energy entitlements for affected users. Perspectives on this setup vary: environmental advocates view it as essential for habitat recovery, while power contractors may perceive it as an additional financial load amid fluctuating energy demands.
Allocation and Billing Processes
Upon receiving Reclamation's PRPO notification, WAPA allocates the obligation proportionally among CVP power contractors based on their contractual base resource shares. The annual amount for each contractor is divided into 12 equal monthly payments, billed starting within 30 days after August 1 or receipt of notification, whichever is later. Bills are issued by the end of each month, with payments due within 20 calendar days or the next business day if that falls on a weekend or holiday. Late payments incur a daily charge of 0.05 percent on the unpaid principal. Collected funds, including penalties, are transferred to Reclamation for deposit into the Restoration Fund by the 27th of the following month, with a final transfer deadline of September 30 each fiscal year. These mechanics ensure steady funding, with WAPA's procedures republished in the February 2026 Federal Register to align with the 2025 CVP Marketing Plan definitions, removing ties to prior plans for administrative clarity.
Reconciliation and Exchange Program Adjustments
An annual reconciliation addresses discrepancies from the exchange program, where contractors may receive or return energy beyond their base resource allocations. This 'true-up' occurs before August billing, tracking exchanges from July to June service months. Contractors receiving excess exchange energy face an additional charge on their August bill, while those providing it receive credits. This process prevents under- or overpayments, maintaining equity. For instance, if a contractor's actual usage falls below their contractual share due to returned energy, the adjustment ensures their restoration obligation reflects reality. Such mechanisms highlight the procedural emphasis on fairness, though they add complexity to billing for contractors managing variable loads.
Public Involvement and Procedural Review
WAPA initiated a 30-day public comment period on August 12, 2025, via a Federal Register notice and notifications to preference customers. No comments were received by the September 11, 2025, deadline, leading to the procedures' confirmation without alteration. Information was made available on WAPA's website, promoting transparency. The notice also outlines a review every five years or upon significant changes, such as legislative shifts or discovered inequities, ensuring adaptability. Environmental compliance was affirmed under a categorical exclusion from the National Environmental Policy Act, as the action involves rate-related changes without new environmental impacts.
In summary, WAPA's republished procedures maintain a structured approach to funding CVPIA initiatives, emphasizing administrative efficiency and environmental accountability. Potential next steps include the annual PRPO determination for fiscal year 2027 and ongoing monitoring for procedural adjustments. Challenges may arise from evolving energy markets or legal interpretations of CVPIA, sparking debates on funding equity among stakeholders. These elements underscore the enduring tension between resource utilization and restoration in federal water policy.
