CBEWP Chino Basin Conjunctive Use Environmental Water Storage/Exchange Program Proposition 1 Water Storage Investment Program June 2018

CBEWP Chino Basin Conjunctive Use Environmental Water Storage/Exchange Program Create a dedicated environmental water account with 100% of the water available for Delta Benefits while providing regional and local water resiliency benefits Ecosystem Support Drought Resilient New Supply Groundwater Sustainability Water Use Maximization Water Quality Enhancement Regional Integration The Chino Basin Project was conceptualized specifically to respond to WSIP, unlike many proposals that have been under study for many years and adapted. The local AWT component of the project was contemplated in many of the regional planning documents to meet water quality needs. The project was molded with the opportunity of the WSIP … meld the needs of the N. Cal with S. Cal’s requirements and provide public benefit to the Delta … As such, the project was crafted with a resilient source of supply from the AWT recycled water … as pulse flows … Resilient: recycled water, not dependent on climate Environmental benefits: dedicated pulse flows for Chinook salmon, salinity control, allows continued use of recycled water, addresses land subsidence Included in 14 local and regional planning studies Local project tailored to provide Delta ecosystem benefits Secured non-potable supply agreements from local agencies 50+ years proven record of working collaboratively with regional stakeholders and regulatory agencies

CBEWP Chino Basin Conjunctive Use Environmental Water Storage/Exchange Program 7 5 6 Secure local recycled water supplies Advanced water treatment Store treated water in groundwater basin Pump stored groundwater to local SWP contractor SWP contractor transfers equivalent amount of water at Oroville Reservoir Water released during dry and critically dry years to Feather River Water flows downstream to Delta 1 Sacramento San Joaquin Delta 2 3 Lake Oroville Feather River 4 5 CA Aqueduct 6 1 2 3 4 The Chino Basin Project was conceptualized specifically to respond to WSIP, unlike many proposals that have been under study for many years and adapted. The local AWT component of the project was contemplated in many of the regional planning documents to meet water quality needs. The project was molded with the opportunity of the WSIP … meld the needs of the N. Cal with S. Cal’s requirements and provide public benefit to the Delta … As such, the project was crafted with a resilient source of supply from the AWT recycled water … as pulse flows … 7 Chino Basin

CBEWP Cost Effectiveness Chino Basin Conjunctive Use Environmental Water Storage/Exchange Program Cost Effectiveness CWC staff review: B/C ratio is substantially less than 1.0 Alleviating historical land subsidence was not monetized Potential costs to exchange stored water was not monetized Response: Project refinements add significant new non-public benefits, increasing B/C ratio 1.0 to 1.5 Monetization of land subsidence benefit + added conjunctive use water supply benefit NO SIGNIFICANT ADDITIONAL COST for exchange is expected Cost Effectiveness to IEUA & Partnering agencies -emergency supply during non-call years -enhance local water quality -consistent with long-term planning documents (accelerates to provide salmonids?? ecosystem benefits, and would be available in use by region by time region requires it) (planning docs anticipated constructing these type of facilities for local use by ~2045-2050) Other Agency Considerations: -consistent with environmental ethos of providing maximum benefits to human and environmental needs (IEUA has a long history and outstanding record of going above and beyond to incorporate ecosystem consideration into projects, such as wetland park, RP-3… HCP…) -strongly believe this type of project is the future for how to have (language from Susan’s letter…) ecosystem and public needs met across the state Request Commission to make determination that the project is cost effective

CBEWP Chino Basin Conjunctive Use Environmental Water Storage/Exchange Program  Cost Item CWC Staff IEUA A IEUA B IEUA C Capital Costs $372 Interest $44 $42 SAR Agreement $119 $0 AWT O&M $398 $350 Ad’l Water Supply O&M -  - $58 Equipment Replacement $43 TOTAL COST $977 $807 $865 Public Benefits $368 $523 Non-Public Benefit   Avoided O&M Cost  $21 $67 Water Supply Benefit $109 $87 $382  $382 Subsidence Abatement  - $294 TOTAL BENEFIT $498 $816 $1,111 $1,265 B/C Ratio 0.51 1.01 1.28 1.46 Technical cost corrections CWC valuation of Public benefits No SAR Agreement Cost Monetized subsidence B/C = 1.01 The Chino Basin Project was conceptualized specifically to respond to WSIP, unlike many proposals that have been under study for many years and adapted. The local AWT component of the project was contemplated in many of the regional planning documents to meet water quality needs. The project was molded with the opportunity of the WSIP … meld the needs of the N. Cal with S. Cal’s requirements and provide public benefit to the Delta … As such, the project was crafted with a resilient source of supply from the AWT recycled water … as pulse flows …

CBEWP Chino Basin Conjunctive Use Environmental Water Storage/Exchange Program  Cost Item CWC Staff IEUA A IEUA B IEUA C Capital Costs $372 Interest $44 $42 SAR Agreement $119 $0 AWT O&M $398 $350 Ad’l Water Supply O&M -  - $58 Equipment Replacement $43 TOTAL COST $977 $807 $865 Public Benefits $368 $523 Non-Public Benefit   Avoided O&M Cost  $21 $67 Water Supply Benefit $109 $87 $382  $382 Subsidence Abatement  - $294 TOTAL BENEFIT $498 $816 $1,111 $1,265 B/C Ratio 0.51 1.01 1.28 1.46 Technical cost corrections CWC valuation of Public benefits No SAR Agreement Cost Monetized subsidence New conjunctive use benefit averaging 15 TAF/Y B/C=1.28 The Chino Basin Project was conceptualized specifically to respond to WSIP, unlike many proposals that have been under study for many years and adapted. The local AWT component of the project was contemplated in many of the regional planning documents to meet water quality needs. The project was molded with the opportunity of the WSIP … meld the needs of the N. Cal with S. Cal’s requirements and provide public benefit to the Delta … As such, the project was crafted with a resilient source of supply from the AWT recycled water … as pulse flows …

CBEWP Chino Basin Conjunctive Use Environmental Water Storage/Exchange Program  Cost Item CWC Staff IEUA A IEUA B IEUA C Capital Costs $372 Interest $44 $42 SAR Agreement $119 $0 AWT O&M $398 $350 Ad’l Water Supply O&M -  - $58 Equipment Replacement $43 TOTAL COST $977 $807 $865 Public Benefits $368 $523 Non-Public Benefit   Avoided O&M Cost  $21 $67 Water Supply Benefit $109 $87 $382  $382 Subsidence Abatement  - $294 TOTAL BENEFIT $498 $816 $1,111 $1,265 B/C Ratio 0.51 1.01 1.28 1.46 Technical cost corrections No SAR Agreement Cost Monetized subsidence New conjunctive use benefit averaging 15 TAF/Y IEUA valuation of Public Benefits B/C=1.46 The Chino Basin Project was conceptualized specifically to respond to WSIP, unlike many proposals that have been under study for many years and adapted. The local AWT component of the project was contemplated in many of the regional planning documents to meet water quality needs. The project was molded with the opportunity of the WSIP … meld the needs of the N. Cal with S. Cal’s requirements and provide public benefit to the Delta … As such, the project was crafted with a resilient source of supply from the AWT recycled water … as pulse flows …

Extraction Facilities CBEWP Chino Basin Conjunctive Use Environmental Water Storage/Exchange Program Extraction Facilities 10 Injection Facilities The Chino Basin Project was conceptualized specifically to respond to WSIP, unlike many proposals that have been under study for many years and adapted. The local AWT component of the project was contemplated in many of the regional planning documents to meet water quality needs. The project was molded with the opportunity of the WSIP … meld the needs of the N. Cal with S. Cal’s requirements and provide public benefit to the Delta … As such, the project was crafted with a resilient source of supply from the AWT recycled water … as pulse flows …

Request Commission to increase the Implementation Risk score CBEWP Chino Basin Conjunctive Use Environmental Water Storage/Exchange Program Implementation Risk CWC Staff Review: Stated adaptive management strategies were not identified Funding sources for local funding not identified Response: Referenced sections in application pertaining to adaptive management strategies; identified additional sources of local water Local funds provided with dedicated fee and rate structure Project is cost effective, with B/C of 1.0 to 1.5 Request Commission to increase the Implementation Risk score

Request Commission to increase the Non-monetized Benefit score CBEWP Chino Basin Conjunctive Use Environmental Water Storage/Exchange Program Non-monetized Benefits CWC Staff Review: Insufficient qualitative description of emergency response benefit Response Provided additional description for emergency 50 TAF, 29% of total demand for San Bernardino County Project south of San Andreas Fault, provides water supply during catastrophic infrastructure failures Provides additional conjunctive use water supply benefit Monetized local land subsidence benefit 50,000 AF of supplemental water and represents approximately 30% of the annual SWP demand in the San Bernardino County area. Increase regional distribution system flexibility and ability to utilize local supplies during emergency shut down or catastrophic events by constructing regional conveyance pipeline and new groundwater wells Request Commission to increase the Non-monetized Benefit score

Request Commission to increase the Resiliency score CBEWP Chino Basin Conjunctive Use Environmental Water Storage/Exchange Program Resiliency CWC Staff Review: Lack of specificity of regional documents 2070 climate change scenarios not provided Response: Recycled water independent of hydrology & climate change Included in 14 regional planning documents, referenced in application 2070 conditions: not applicable & subsequent analyses confirm NO EFFECT on operations/benefits Since the original application, incorporated into the 2017 Drought Response Plan, and the 2018 Santa Ana Watershed Program Authority’s “One Water One Watershed” Plan, which is the regions Integrated Regional Water Management Plan. In addition, the Chino Basin Watermaster has evaluated ranges of additional storage for the Chino Basin Water Bank, and including the project in the Chino Basin Storage Framework evaluation for how safely manage future basin operations. Request Commission to increase the Resiliency score

CBEWP Chino Basin Conjunctive Use Environmental Water Storage/Exchange Program   Maximum Component Score Preliminary Component Score Maximum Commission Adjustment (25%) IEUA Requested Revised Score PBR & Non-Monetized Benefits 33 23 1 24 Relative Environmental Value 27 Resiliency 25 12 6 18 Implementation Risk 15 10 4 14 TOTAL SCORE 100 69 11 80 Since the original application, incorporated into the 2017 Drought Response Plan, and the 2018 Santa Ana Watershed Program Authority’s “One Water One Watershed” Plan, which is the regions Integrated Regional Water Management Plan. In addition, the Chino Basin Watermaster has evaluated ranges of additional storage for the Chino Basin Water Bank, and including the project in the Chino Basin Storage Framework evaluation for how safely manage future basin operations. Request Commission to determine the project is cost effective and adjust category scores

Proposed Exchange is Small Relative to State Water Project Scale CBEWP Chino Basin Conjunctive Use Environmental Water Storage/Exchange Program Proposed Exchange is Small Relative to State Water Project Scale Lake Oroville Capacity: 3,500,000 Acre-Feet CBEWP Exchange: 50,000 Acre-Feet