1. Santa Ana River Conservation and Conjunctive Use Program Update
Kelley Gage
September 14, 2017

2. Background
Santa Ana River Conservation and Conjunctive Use Program (SARCCUP):
SARCCUP is the watershed-scale program that will bank imported water to enhance water supply reliability and increase available dry year supplies in the Santa Ana River Watershed
SARCCUP is a $100 million program developed by the five regional water agencies in a collaborative effort to target Proposition 84 funding
SARCCUP successfully received over $55 million in grant funding in the last round of Proposition 84 funding

3. Background
EMWD
IEUA
OCWD
SBVMWD
WMWD
SARCCUP Agencies

4. Background SARCCUP includes the following elements:
Water Use Efficiency: Assistance for agencies to develop conservation-based rates
Habitat Creation: for the Santa Ana Sucker fish and Arundo Removal along the Santa Ana River
Watershed-Scale Cooperative Water Banking Program: includes water banking to store water in wet years and provides a new supply during droughts and emergencies resulting in new Dry Year Yield (DYY) for the watershed

5. Previous Board Actions on SARCCUP
In 2014: Board approved a Memorandum of Understanding that authorized the five SAWPA member agencies to collaborate and secure Prop 84 IRWM funding for a watershed-scale conjunctive use program
In 2015: the Board approved Amendment 1 to the MOU, which added references to the more formalized Santa Ana River Conjunctive Use Program, along with “Foundational Principles” to maximize local resources and avoid competition between the SAWPA member agencies for the Prop 84 IRWM funding
In 2016: the Board approved a new MOU between all SARCCUP parties agreeing to equally pay one-fifth cost of local match for program and lays out all future necessary agreements between the parties

6. SARCCUP Program Agreement Framework
Program Funding
Program Operations
Grant & Construction
Coordinated Operating, Storage, Exchange and Management Agreement
SARCCUP Agencies
EMWD
IEUA
OCWD
SBVMWD
WMWD
Operating Committee
Funding Agreement
SARCCUP Agencies
PA-23 Agreement
(Grant Administration & Construction Management)
SARCCUP Agencies
SAWPA
Other Agreements
MWD Demonstration Project Agreement
HSJ Watermaster Storage Agreement

7. SARCCUP Agencies – MWD Agreement Background
Representatives from the SARCCUP Agencies met with MWD staff a total of six times since May 2016 on SARCCUP operating terms
Draft proposed terms for an agreement were reviewed and conceptually agreed upon by MWD staff at an April 5, 2017 meeting
Terms being incorporated into a draft Operating Agreement
Agreement will be executed through an administrative process, signed by General Managers of SARCCUP Agencies and MWD; no Board action required

8. SARCCUP – Proposed Water Supply Sources
Conceptual Proposal
MWD water purchased by SARCCUP MWD member agencies (and OCWD)
Water purchased at prevailing full-service untreated rate.
Surplus SWP supplies from SBVMWD*
Sold to MWD under SBVMWD/MWD contract
SARCCUP agencies purchase from MWD for storage at Tier 1 untreated rate in effect at time of delivery
SARCCUP member agencies purchase up to 50% of an equivalent amount of water that Valley provides to Metropolitan agencies
Water not purchased by SARCCUP agencies available to MWD for use in MWD service area
Non-SWP supplies wheeled through MWD system*
MWD agencies pay MWD prevailing wheeling rate.
Non-SWP supplies wheeled through SBVMWD system*
SARCCUP agencies pay SBVMWD prevailing wheeling rate.
* Treated as Extraordinary Supply if produced during Allocation
Preliminary – For Discussion Purposes

9. SARCCUP Agencies – MWD Agreement Draft Proposed Terms
Draft terms:
MWD agrees that up to 50% of an equivalent amount of water that Valley District provides to MWD can be purchased by SARCCUP and could qualify as Extraordinary Supply to participating SARCCUP MWD member agencies.
The stored water must continue to meet all MWD Board Principles (Appendix G) to become Extraordinary Supply.

10. SARCCUP Agencies – MWD Agreement Draft Proposed Terms (cont’d)
Draft terms:
Water Delivery Options
Delivery to SARCCUP MWD member agencies’ SARCCUP facilities
Delivery to SARCCUP MWD member agencies’ MWD Cyclic Storage Account
Surplus Valley SWP water stored for the benefit of SARCCUP MWD agencies, banked/stored in Valley’s service area
Valley will not store over 50% of the amount of water that Valley will provide MWD
SARCCUP MWD member agencies call for the water and Valley executes an exchange of equivalent amount of water delivered to MWD
Stored and recovered water is considered Extraordinary Supply

11. SARCCUP Agencies – MWD Agreement Draft Proposed Terms (cont’d)
Draft terms:
MWD decides not to purchase Valley surplus SWP in a given year (assumes MWD has no storage available)
MWD delivers 100% of an equivalent amount of water Valley provides MWD to SARCCUP MWD member agencies, with 50% delivered to SARCCUP facilities and the other 50% delivered to agencies’ MWD Cyclic Storage Account, if available
MWD proposes to review the SARCCUP agencies’ proposal and provide a pre-certification, conditioned on the MWD member agencies following the proposal and staying consistent with MWD Board policy principles related to Extraordinary Supply (Appendix G).

12. Next Steps SARCCUP agencies finalize term sheet with MWD
Develop and execute SARCCUP – MWD Agreement
All terms consistent with existing MWD policies
No Board action required
Agreement executed through an administrative process
Anticipated by end of 2017/early 2018

13. Contact Information
Kelley Gage
Senior Director of Water Resources Planning
(951) Ext. 4561