Municipal & Industrial Conservation and Reuse Workgroup 10/4/2019 10:06 PM The Metropolitan Water District of Southern California Colorado River Basin Study Next Steps Municipal & Industrial Conservation and Reuse Workgroup Jack Safely Imported Supply Unit Manager August 14, 2014 © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation.Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Presentation Outline MWD Strategies Basin Study M&I Conservation and Reuse Workgroup

Metropolitan Water District of Southern California Regional water wholesaler Serves 6 counties, 19 million people 5,200 square mile service area $1 trillion regional economy 50%+ of region’s water supply Population increasing ~120,000 per year 3 3

Regional economy: $1 trillion Regional water wholesaler to 50% of State’s residents -5,200 square miles in 6 counties 26 member agencies/ 37 Member Board Regional economy: $1 trillion Serves 18 million people= 50% of the state’s population with projected population growth ~150,000 people/year Supplies about half of all regional retail demands

Sources of Water for Southern California Sierra Mountains LA Aqueduct Bay/Delta Colorado River Aqueduct State Water Project Conservation Local Groundwater and Recycling

Colorado River Supplies

State Water Project Supplies

2014 Drought Statewide Impacts Almaden Reservoir, San Jose January 2014 Lake Ghisolfo, Calistoga January 2014 Folsom Lake, Sacramento January 2014 Lake Oroville December 2013 Message, we are prepared for a dry year

Metropolitan’s Regional Investments Program # of Projects Deliveries to Date* Incentives to Date* Conservation N/A 1,569,000 $309 M Recycling 64 1,490,000 $271 M Groundwater Recovery 21 530,000 $102 M Desalination 3 $0 M Message Points Show the amounts and geographic spread of the local supply partnerships Emphasize the incentives and the number of projects *Through FY 2010/11

Metropolitan’s Storage Programs Central Valley/SWP Storage San Luis Carryover Semitropic Arvin-Edison Kern Delta Mojave CRA Storage DWCV Advance Delivery Lake Mead ICS Local Storage Diamond Valley Lake Mathews Lake Skinner Conjunctive Use Groundwater DWR State Project Reservoirs Metropolitan has a number of storage programs inside & outside of the region. Partnerships have been developed with Central Valley agencies to store water. Several have been developed in recent years, and we have added additional programs this past year.

2010 IRP Update Process 2008 Stakeholder Forums 4 locations, 550+ participants IRP Technical Workgroups 6 areas Resource potential and issue papers Strategic Policy Review 6 month Board process Evaluate alternative roles for MWD 2010 Stakeholder Forums Receive input on Draft IRP

MWD Water Supply Strategy Average Year Water Supply – 1990 vs. 2035 Conservation & Recycling (7%) Colorado (14%) Colorado (27%) Conservation & Recycling (33%) Local Supply (34%) State WP (22%) State WP (33%) Local Supply (31%) 1990 – 41% Local 2035 – 64% Local Heavy dependence on imported supplies Emphasis on conservation, recycling, & local supplies 12

1. Calendar year data. 2. 2012 GPCD based on best available data as of September 2013 and is subject to change. 3. Baseline per capita water use based on 1996-2005 average (181 GPCD). 4. Target GPCD for 2020 based on 20% reduction from baseline (145 GPCD). 13

Long-Term Conservation Plan Goals 10/4/2019 10:06 PM Long-Term Conservation Plan Goals Achieve the conservation target in the 2010 IRP Targeting a 20% reduction in GPCD Pursue innovation that will advance water use efficiency and conservation Transform the public’s perception of the value of water within the region 14

Strategies Use catalysts for market transformation 10/4/2019 10:06 PM Strategies Use catalysts for market transformation Incentives to influence consumer preferences Develop regional technical capability Share lessons learned through local program implementation Encourage action through outreach, education Strategic focus on proper irrigation control Landscape irrigation surveys 15

Strategies (cont’) Advance water efficiency standards 10/4/2019 10:06 PM Strategies (cont’) Advance water efficiency standards Full water-use efficiency research program Develop EPA WaterSense specifications Build strategic alliances Increase collaboration with manufacturers, distributors, contractors Work with Alliance for Water Efficiency, California Urban Water Conservation Council, EPA WaterSense 16

Programs Regional rebate New public agency landscape 10/4/2019 10:06 PM Programs Regional rebate New devices New public agency landscape New fitness center Turf removal Commercial & multi-family high-efficiency toilet 17

Programs (cont’) Conserving recycled water Innovative conservation 10/4/2019 10:06 PM Programs (cont’) Conserving recycled water Innovative conservation H2O TECH CONNECT World water forum California Friendly® Landscape Class Education programs 18

Programs (cont’) Plumbing codes Conservation ordinances 10/4/2019 10:06 PM Programs (cont’) Plumbing codes Legislation through the CUWCC Influence legislation in Sacramento Conservation ordinances Developed model ordinance Adopted prerequisites for participation in certain Metropolitan programs Water savings incentive program 24 of 26 MWD agencies have submitted a water con ordinance or pledge to adopt one 19

Water Savings Incentive Program 10/4/2019 10:06 PM Water Savings Incentive Program “Pay for performance” Goals Encourage custom projects that can provide long-term water savings Encourage water management as a standard business practice Incentive = up to $0.60/1,000 gal saved for up to 10 years (cannot exceed 50% of eligible costs) 20

Eligible Projects Retrofit existing equipment Improve process to reduce water use per unit of output Improve irrigation systems, reduce landscape water use Contract for water management services

Colorado River Basin Water Supply and Demand Study Study Objective Assess future water supply and demand imbalances over the next 50 years Develop and evaluate opportunities for resolving imbalances Study conducted by Reclamation and the Basin States, in collaboration with stakeholders throughout the Basin Began in January 2010 and completed in December 2012 Provides a technical foundation for future activities; non-decisional document Colorado River water supply Serves over 40 million people Provides irrigation water for over 5.5 million acres Lifeblood for over 22 tribes Significant source for Mexico Major source of hydropower for the Southwest 7 Wildlife Refuges, 4 National Rec Areas, and 11 National Parks Major drivers of change Population growth (up to 70 million) Drought and climate change Evolving Ag and energy water needs Evolving federal, state, and NGO roles 22

Significant Long-Term Imbalances and Drought Risks are Projected Historical Range Wet Periods Droughts Deficit or Surplus Spell Length (yrs) New Frontiers 23

System Reliability – Multiple Resources System reliability evaluated over the next 50 years for each scenario, with and without options and strategies Use metrics and vulnerabilities to quantify impacts to Basin resources Resource Categories Water Deliveries Electrical Power Resources Water Quality Flood Control Recreational Resources Ecological Resources

Options and Strategies Evaluation Process Increase Supply Decrease Demand Broad assessment of options to address long-term reliability Multiple criteria evaluation Portfolio development and analysis Common elements in portfolios that reduce vulnerability Modify Operations Governance & Implementation Economic, Environmental, Social Attributes of Options Portfolio Development and Analysis A B C D Long-Term Reliability Urban Agriculture Environment

Basin Study Findings The system is significantly vulnerable due to future potential trajectories of climate change and growth Broad range of options can reduce resource vulnerability and improve the system’s resiliency to low and variable hydrologic conditions In the near term, all portfolios show that conservation, transfers, and reuse are cost-effective ways to reduce vulnerability In the longer term, more tradeoffs emerge to achieve an acceptable level of risk in terms of options, cost, resources, and other implications http://www.usbr.gov/lc/region/programs/crbstudy/finalreport/index.html

Moving Forward Next Steps after the Study Addressing future imbalances will require diligent planning and collaboration at all levels Next Steps process initiated in June 2013 Phase I underway and anticipated to be completed by Summer 2014

M&I Workgroup Primary Study documents: M&I water use in the Basin 10/4/2019 10:06 PM M&I Workgroup Primary Study documents: Technical Report C – Water Demand Assessment Technical Report F – Development of Options and Strategies M&I water use in the Basin Conservation and reuse programs, practices Effect on M&I demand Future programs Expanding conservation and reuse 28

M&I Water Use in the Basin 10/4/2019 10:06 PM M&I Water Use in the Basin Characteristics influencing water use Demographics Climate Water supply systems Trends in M&I water use ~ 30 years of data Focus on major metropolitan areas (pop. > 100,000) 29

M&I Water Use in the Basin

Conservation and Reuse Programs 10/4/2019 10:06 PM Conservation and Reuse Programs Current programs and practices Sectors and program types Successful, innovative programs Case studies for in-basin programs Summary information on programs from other areas 31

Colorado River Basin Study – Figure 8 10/4/2019 10:06 PM Effect on M&I Demand Water savings, water cost, cost effectiveness Investment efforts Impact on Colorado River demand 32 Colorado River Basin Study – Figure 8

Future Programs Currently planned Projected effect on demand 10/4/2019 10:06 PM Future Programs Currently planned Projected effect on demand Potential savings in Basin Study Review assumptions Identify opportunities, constraints 33

Expanding Conservation and Reuse 10/4/2019 10:06 PM Expanding Conservation and Reuse Assess potential opportunities Identify obstacles to implementation Create a starting point for Phase 2 activities 34

Next Steps Prepare and review draft report Prepare final workgroup report for Coordination Team