Former PID director raising concerns about pipe to Chico

At a recent Paradise Irrigation District meeting, former PID Director Cliff Jacobson stood in front of the current board and asked them not to take up in closed session an item related to the potential pipe to Chico.

The item was a negotiation between PID and Perenfra and Mi Systems.

Perenfra is a Coloradobased company while Mi Systems is owned by Grant Page, who Jacobson said is the son of Laura Page — an employee of Congressman Doug LaMalfa’s (R-Richvale) office.

Jacobson openly questioned whether or not the district could negotiate a deal behind closed doors, saying that it was simply an attempt to privately discuss allowing Page’s company Magna Imperio Systems build a pipe to Chico.

He argues that in fact, it’s the state of California that owns the waters of the state; it is only through licenses, permits, contracts and government approval that individuals in entities are allowed to use the water. Therefore in Jacobson’s opinion, the water right is not an ownership right but rather a use right.

Therefore, given it is a use right and not a property right PID must discuss that plan in public not private. The board held the closed session and didn’t report out any action.

Potential pipe

The item is around the potential pipe from Paradise to Chico that would allow PID water to be sold to Chico while Paradise could access Table A water from Lake Oroville.

That plan goes back to the Camp Fire’s aftermath and the effort to keep PID solvent. According to Assemblyman James Gallagher (R-Yuba City), the consideration of the pipe was something Gov. Gavin Newsom wanted in return for three years of backfill funding.

In August 2019, Erika Li, a Department of Finance program budget manager, sent a letter to then PID District Manager Kevin Phillips that pointed out that the first year of the state’s disbursement to the district was dependent on agreeing to a feasibility study that was to be arranged by the state water resource board and funded by the state.

That study was to examine the possibility of consolidating PID‘s operations with one or more neighboring water districts,

Li also said that the second year’s disbursement was contingent upon the districts continuing to participate in the feasibility study.

Phillips responded to Li by pointing out that it had in fact taken on the possibility of a feasibility study that would analyze an intertie project to deliver treated water to the county for Cal Water to use in Chico’s service area.

Rejection by board

That intertie was rejected by the Butte County Board of Supervisors 3-2 vote that required 4-1 vote because it was an emergency budget allocation.

That vote came after Phillips’ letter to Li acknowledging the contingency.

However, now three years later, Jacobson sees that deal as a bad one for Paradise. He argues that it places the control of the use right in the hands of the state and will be detrimental to Ridge’s recovery.

Phillips wants the town of Paradise to loan the Paradise Irrigation District nearly $14 million of PG&E money in order to pay off the state.

The town could then place a sunset date on the repayment of that loan that if not met, would result in the PID becoming the town’s to own and run.

Once the backfill is repaid, Jacobson said that PID would then be in control of its water rights use.

That means the flow of water in any pipe — which he doesn’t oppose — would be under PID’s control. From there, PID — with LaMalfa — could lobby for federal money to get Hendricks Canal to be a way to get Table A Water to PID and to raise Paradise Dam.

Issue of control

The opposition to the pipe to Chico he said is based on an opposition to growth. But he notes that’s for Chico to decide. His only concern is that Paradise remains in control of its water use rights.

He adds that the pipe could be used to fill the aquifer and allow Cal Water to shut off lots well, saving it and ratepayers lots of money.

He also points out that the sustainability study being conducted by Sacramento State University is really a means to an end.

He thinks the study will in fact recommend a pipe down to Chico, which is what the state wants.

For Jacobson it’s not whether or not a pipe will happen, it’s about how and who will control the water use rates once that pipe is in the ground.