Sutter Butte Flood Control Agency approves transfer of federal credits to San Joaquin Area Flood Control Agency

The Sutter Butte Flood Control Agency on Sept. 10, 2025 approved an excess federal credit transfer agreement with the San Joaquin Area Flood Control Agency and delegated authority to the executive director to execute the agreement.

Agency staff said the agreement formalizes the transfer of federal credits the Sutter Basin project holds to the San Joaquin Basin project through an amendment to a Project Partnership Agreement the Army Corps of Engineers has approved. Michael Bassett, the agency presenter, told the board the essential terms remain: the buyer will pay 60% of the face value of credits it uses at any given time.

The board was told the recipient agency's project has been delayed by federal budget decisions and that the buyer does not expect to use the credits until 2028 at the earliest. Because of that delay, the buyer has requested temporary relief on timing and a lower minimum annual payment when a payment is required; staff summarized the request as reducing the minimum annual payment from $900,000 to $450,000 to help near-term cash flow.

Bassett told the board the original term sheet was approved in April 2024 and that the Army Corps' amendment to the Project Partnership Agreement was the formal mechanism to transfer credits. He said the transfer benefits both sides: the buyer would gain credits to use on its project while the seller would realize proceeds over time. Bassett summarized, “That essence has not changed.”

Board members asked clarifying questions about the 60% payment level and confirmed the recommendation. With no public comment, a motion to approve the agreement passed unanimously.

The board did not specify vote-by-name counts in the publicly read minutes; the transcript records a unanimous voice vote in favor.