By Don A. Wright
The Exchange Contractors board of directors met at its Los Banos headquarters on Friday, September 4, 2026 and by telephone. I remember when I used to have to get up before everyone else went to bed, drive through the fog to Los Banos and sit through a four-hour meeting. Things have changed. But I miss hanging out with the folks there and they always had good snacks. Briefly on that subject; if you’re a California water agency, even though I like them, don’t serve peanuts. Almonds and pistachios are always the preferred offering.
The Meeting
Things got rolling at 9:00am the scheduled start time when Chairman Chris Cardella called the meeting to order. This meeting will require roll call votes because Director Mike Stearns had to call in while exercising his two mulligans per year to not show up in person. This can be due to family health issues for example. Although I don’t know Mr. Stearns’ situation. Also, Mike Palazzo with San Luis Canal Company was sitting in as alternative for Director Cannon Michael.
Anyway, they pledged allegiance to the flag of the United States of America, approved the agenda and there were no public comments.
Finance
I believe it was Marisol Bonilla Reynoso who gave the financial report. A number of items were passed including: general budget comparison, water transfer budget, water resources plan budget, the San Joaquin Valley Drainage Authority budget and the cash activities report. She did such a great job the board approved.
Water Report
Water Master Adam Hoffman reported allocations are holding steady. Ex Con is running 1,600 cfs in demand at the moment. The biggest part of the year is behind us. The San Joaquin River is releasing water from Friant. Shasta has been able to cut back on releases as Delta water quality is holding its own. San Luis Reservoir’s low point in August was more than 300,000 a/f on the federal side and the state is way above average. (These figures as well as the financial numbers are available as public record.)
The federal Jones Plant is running all five units and if I understood correctly the state Banks Plant is running full out as well. There has been rain in the Shasta area and that and the lower temperatures have been good for storage.
Exec Direct Report
Chris White said both Samantha Barncastle of the Family Farm Alliance and Michelle Paul of the California Farm Water Coalition were able to join the Ag Leadership Tour during the Exchange Contractor’s portion and it was considered a success.
White said the Community Infrastructure Fund has a great set of projects to award funds and that will be covered later on the agenda. He said the Water Resources Plan is developing an activity agreement that will allow each member to opt in or out depending on its preference.
The Del Puerto Dam project is moving along well. That’s been an amazing development, to have above ground storage gain traction. This plan has been circulating for more than two decades and it’s finally seeing some light.
Policy
Steve Chedester reported the US Bureau of Reclamation put out an RFI for dealing with subsidence on the southern portion of the San Luis Canal. Stantec Engineering was one of the applicants. That’s the same firm that did the Friant Kern Canal subsidence project.
The Bay Delta Plan has enough money, $100 million to start some projects like the Mendota Pool Bypass Structure. There is still legislation needed to authorize the release of funds and the goal is to have that take place by next year.
Chedester said the Water Blueprint for the San Joaquin Valley has released the Unified Water Plan. There will be a Blueprint planning session this coming week.
Chedester said the recovery well construction is coming along under the water resources program. The San Luis Water District supplied a pipeline to the Los Banos Reservoir project. Good for them. California Fish & Wildlife has been unexpectedly helpful in this
program. I heard something about a media filter that included sand and glass. Which makes sense since glass is sand. He was asked if there are any particles the size of golden mussel veligers that can make it past the filter. I believe they hope so but there is more to be learned about this method of combating the nasty, little bivalves.
Gov’t Mischief
David Cory reported on the nitrates in groundwater regulatory scheme. He said well testing and replacement of wells with high nitrate levels are being considered. Consolidating domestic wells with community water distribution and other ways to lessen dependence on bottled water are on the table. There is a document to be released in June for Priority One Areas. He said the Regional Board has its expectations and this needs to be looked at closely. The Modesto Management Zone may or may not go before the State Water Resources Control Board under a challenge by the environmental justice NGOs.
There will be a State Board meeting next month to discuss managing salt under the Central Valley Salt Plan. This will cost billions and rely on infrastructure. They are hiring consultants and lobbyists to start finding a funding stream.
Resolution
Resolution No. 2026-02 is the official method to award Community Infrastructure Program Awards. The board will have to approve. White spoke about funding engineering studies at Cal Poly San Luis Obispo for studies to help water quality and such in the San Joaquin Valley. There was an award for upgrading electrical control panels. The City of Firebaugh has a River Walk project that has already begun construction. The City of Los Banos is looking for help with a water quality study and its well fields. A mutual water company in Firebaugh needs funds to meet state requirements for hook ups. The total amount of awards is $1.4 million and staff recommends kicking down the cash.
White added these projects and policy have been reviewed by legal counsel. There was a question about awarding money to Cal Poly since it is out of the area. I believe it was attorney Andy McClure who said this location question was settled by an agreement to do the work that will benefit the Valley.
Lauren Lane, attorney, advisor to the President of Cal Poly, rocket surgeon (what don’t she do?) said investing in the Cal Poly award is amazing and in her opinion will yield good results for farmers and those of us who live in the San Joaquin Valley.
Legislative Report
White said the state legislation cycle has been completed save for a September deadline for Governor Gavin Newsom to sign or veto bills before him. There is a longer state report in the board packet. On the federal side there is also a written report in the packet. The campaign season will soon kick in.
Attorney’s Report
McClure said the Del Puerto Canyon Dam EIR was approved on August 18th and that opens the 30-day comment period. This will open up legal challenges but they feel this has been covered more than adequately. That won’t stop suits from being filed but it will help to get the judge to reject the efforts.
The Healthy Rivers & Landscapes, HRL, has put this fly in the ointment – any increase in exports will require the CVP contractors to increase their contribution to outgoing Delta flows. It sounded like this was in response to Action Five. Unfortunately, Trump derangement syndrome can also infect bureaucracy.
Managers’ Reports
Mike Gardner, General Manager Columbia Canal Company reported construction projects are underway and they are working fast in case the El Nino dumps on the state.
Jeff Bryant, GM Firebaugh Canal Water District said this is shaping up to be a typical fall irrigation season. They are continuing to work with the Bureau to get the environmental hoops jumped through for the canal lining project. He said transformers are in short supply if I understood. He said they are not treating golden mussels but they are hitting the canals with copper and inspecting the facilities. There will be a further in-depth look when the system shuts down this winter.
John Weirsma, GM San Luis Canal Company said they are working on construction/maintenance projects. They executed an MOU with the Bureau on Sac Dam releases. This project is scheduled to wrap up in 2028.
Jarrett Martin, GM Central California Irrigation District said they are also working on maintenance.
Informational/Closed Session
White said September 12th is the annual fishing trip on the O’Neill Forebay for handicapped children. Reynoso said they are looking for boats as there is a record number of children signed up. The meeting went into closed session at 9:59am for seven items, mostly litigious in nature save for one item dealing with real estate.
That was it for September’s Ex Con meeting. Go be good to yourselves and others.
DISCLAIMER OF RESPONSIBILITY; WaterWrights.net strives to provide its clients with the most complete, up-to-date, and accurate information available. Nevertheless, WaterWrights.net does not serve as a guarantor of the accuracy or completeness of the information provided and specifically disclaims any and all responsibility for information that is not accurate, up-to-date, or complete. WaterWrights.net’s clients therefore rely on the accuracy, completeness and timeliness of information entirely at their own risk. The opinions expressed in this report are those of the author and do not represent any advertisers or third parties.
ALL RIGHTS RESERVED. Copyright 2026 by WaterWrights.net
SAN JOAQUIN RIVER EXCHANGE CONTRACTORS WATER AUTHORITY
Main Office: 541 H Street, P.O. Box 2115 Los Banos, CA 93653 Office 209/827-8616 www.sjrecwa.net Email: contactus@sjrecwa.net
DWR SGMA Identifier #5-022.07
The Exchange Contractors cover almost a quarter of a million acres in Fresno, Madera, Merced and Stanislaus Counties.
Mission Statement
The Exchange Contractors Water Authority mission is to effectively protect the Exchange Contract and maximize local water supply, flexibility and redundancy in order to maintain local control over the members’ water supply.
Board
Chris Cardella -Chair Columbia Canal Company, Mike Stearns-Vice Chair Director Firebaugh Canal Water District, Cannon Michael-Treasurer San Luis Canal Company, Eric Fontana- Director Central California Irrigation District
Staff
Chris White-Executive Director, Steve Chedester- Director Policies & Programs, Adam Hoffman-Water Resources Specialist, Joann White-Director Finance and Human Resources, Marisol Bonilla Reynoso – Administrative Assistant, Andy McClure-Attorney Minasian Law Firm.
History
From the Exchange Contractors’ website: www.sjrecwa.net The San Joaquin River Exchange Contractors hold some of the oldest water rights in the state, dating back to the late 1800s. The rights were established by Henry Miller of the legendary Miller and Lux cattle empire. In 1871, Henry Miller constructed canals to divert water from the San Joaquin and North Fork of the Kings Rivers for irrigation of his vast acreage. Today, several of the original Miller and Lux canals are operated by the Exchange Contractors.
Although Henry Miller’s canals served the irrigation needs of his estate in the western portion of Fresno, Madera, Merced, and Stanislaus counties, in order for more growth on the east side of the San Joaquin Valley to occur, more water was needed. In 1933, the United States Department of Interior undertook the Central Valley Project, a vast undertaking to build dams throughout the great Central Valley including the Sacramento, American and San Joaquin Rivers. When construction of the Friant Dam (north of Fresno) was under consideration, feasibility studies showed that irrigation development of the Friant Project between Chowchilla and Bakersfield depended upon water being diverted from the San Joaquin River at Friant Dam and brought to the east side of the valley, via the Friant-Kern Canal.
To accomplish this, the government asked the heirs of Miller and Lux to agree to “exchange” where they receive their pre-1914 appropriative and riparian water from the San Joaquin and Kings Rivers for guaranteed deliveries of “substitute” water from the Sacramento River by means of the Delta-Mendota Canal and other facilities of the United States. This agreement, known as the “Exchange Contract,” along with the accompanying “Purchase Contract,” were reached in 1939 and that led to the name “San Joaquin River Exchange Contractors.” In normal years, the Exchange Contractors are guaranteed 100% of their contractual water allotment (840,000 acre feet) and in critical years the amount is 75% (650,000 a/f).
The Exchange Contractors, however, did not abandon their San Joaquin River water rights. Instead, they agreed not to exercise those San Joaquin and Kings Rivers’ water rights if guaranteed water deliveries continued through the Delta-Mendota Canal or other facilities of the United States.
