1. 1 Amy Chen, Director of MWD Program

2.  San Diego County Water Authority background  Reliability through diversification  Bay-Delta issues 2

3. 3 San Diego County Water Authority  Wholesale water agency created by State Legislature in 1944  24 member agencies  36-member board of directors  Serves 3.2 million people and region’s $206 billion economy  Service area ◦ 950,000 acres ◦ 97% of county’s population  Imports 80%-90% of water used in San Diego County  Builds, owns, operates and maintains regional water infrastructure  Largest member agency of Metropolitan Water District of Southern California

4. Sources of San Diego County’s Water Supply (2010-14 five-year average) LAKE SHASTA LAKE OROVILLE 19% State Water Project (Bay-Delta via MWD) 64% Colorado River (Long-term transfers and MWD) Local Supplies and Conservation 17% 4

5. Northwest MWD Service Area Basins San Fernando Valley Basins LA County Coastal Plain Basins San Gabriel Valley Basins Orange County Basins Inland Empire Basins Eastside MWD Service Area Basins San Diego County Basins San Diego County Has Very Little Groundwater 945,000 505,000 450,000 245,000 135,000 439,000 500,000 19,000 5 Available Groundwater Basin Storage Space (AF)

6. 6 Total = 578,000 AF Metropolitan Water District 552,000 AF 95% Local Supplies 26,000 AF 5%

7.  San Diego has very few natural water assets  Employ resource strategies unique to local conditions  No single resource strategy can manage all uncertainties 7 Reclaimed water pipelines  Multi-faceted approach Conservation New diversified supplies Imported Local Infrastructure improvements Lining the Coachella Canal

8. Cornerstone of Water Authority’s Diversification Plan: 2003 Water Conservation & Transfer Agreements  Water Authority secures new, more reliable Colorado River supplies  Imperial Irrigation District transfer  200,000 AF/year for 45 to 75 years  Canal-lining projects  80,000 AF/year for 110 years  Key to diversification strategy  Provides 180,000 acre-feet in 2015  By 2021, 46% of region’s supply Lining the Coachella Canal IID and Canal Lining Deliveries 2003-2021 8

9. 9

10.  Carlsbad Seawater Desalination Project $1 billion investment 56,000 acre-feet/year of drought-proof supplies Largest seawater desalination facility in North America Expected on-line in late 2015 10

11. 1991 550 TAF 95% 28 TAF 5% Total = 578 TAF TAF=Thousand Acre-Feet Imperial Irrigation District Transfer Metropolitan Water District All American & Coachella Canal Lining Local Surface Water Groundwater Recycled Water Seawater Desalination Potable Reuse (Includes conceptual and planned projects) 11 2015 Total = 534 TAF 304 TAF 57% 5 TAF 1% 18 TAF 3% 27 TAF 5% 80 TAF 15% 100 TAF 19% Estimated 2020 Total = 587 TAF 150 TAF 26% 48 TAF 8% 27 TAF 5% 44 TAF 7% 80 TAF 14% 190 TAF 32% 48 TAF 8% Projected 2035 Total = 680 TAF 120 TAF 18% 50 TAF 7% 30 TAF 4% 50 TAF 7% 80 TAF 12% 200 TAF 30% 50 TAF 7% 100 TAF 15%

12. The reduction in potable per capita water use since 1990 offsets the need for over 300,000 acre-feet per year within the region. 12

13. 13 Bay-Delta Water Authority’s Effort to Support a Solution

14. Sources of San Diego County’s Water Supply (2010-14 five-year average) LAKE SHASTA LAKE OROVILLE 19% State Water Project (Bay-Delta via MWD) 64% Colorado River (Long-term transfers and MWD) Local Supplies and Conservation 17% 14 Sacramento-San Joaquin Bay-Delta

15. CalFed formed to resolve issue of transporting SWP water through the Delta Bay-Delta Accord initiated long- term planning process to improve the Delta CalFed published plan to fix Delta and address challenges over next 50 years State created California Bay Delta Authority to oversee implementation of CalFed’s plan 15 1994 2000 2003 2005 2006 2007 2009 2013 Little Hoover Commission found CalFed to be “costly, underperforming, unfocused and unaccountable.” Legislature dissolves CBDA and California Natural Resources absorbed its functions Bay Delta Conservation Plan process initiated Delta Reform Act creates Delta Stewardship Council (Delta Plan) to achieve state mandated co-equal goals Administrative Drafts of BDCP released BDCP Public Comments Received California WaterFix Released 2014 2015

16.  Water Authority and San Diego business community support a Bay-Delta fix ◦ Supported 2009 legislation that established co-equal goals:  Water Supply Reliability  Ecosystem Restoration ◦ San Diego legislative delegation’s support vital to passage of legislation  Water Authority Board of Directors: ◦ Adopted Bay-Delta Policy Principles to guide review of a Delta solution ◦ No water agency in California has undertaken a more rigorous, independent evaluation of BDCP than the Water Authority ◦ Has not endorsed a specific project or solution 16

17. 17 Bay Delta Conservation Plan (BDCP)

18.  The BDCP is a joint Habitat Conservation Plan/Natural Communities Conservation Plan ◦ Provides regulatory stability and assurances for 50- year term  Purpose is to contribute to co-equal goals (eco-restoration and water supply reliability)  Uses adaptive management and monitoring to adjust to changed conditions and new information

19. BDCP Preferred Project: Twin TunnelsBDCP Preferred Project: Twin Tunnels 19 BDCP Estimate: $25 billion

20. Water Authority’s BDCP Review ProcessWater Authority’s BDCP Review Process  Years-long Board and staff education process on BDCP proposal and related issues  20 public meetings since January 2013  Intensive, multi-disciplinary staff analysis of BDCP environmental and planning documents  Year of extensive Board discussion  Water Authority comment letters submitted May and July 2014 20 BDCP Plan and EIR/EIS Water Authority’s BDCP Analyses

21. San Diego’s Water Future: Imported or Local? 1. Continue to Rely on Imported Supplies? 2. Invest in New Local Water Reuse Supplies? BDCP Cost to S.D Ratepayers 1 $1.1 Billion to $2.2 Billion Potential Restored Imported Water Supplies 54,000 to 76,000 AF/Year 2 City of San Diego Pure Water Project $2 Billion to $2.2 Billion 3 New, Drought-Proof, Local Water Supplies 96,000 AF/Year North County Recycled Water Program $420 Million to $730 Million New, Drought-Proof, Local Water Supplies 19,000 to 35,400 AF/Year 1 Assumes BDCP cost estimates are accurate and costs are divided among water contractors in proportion to each contractor’s water supply contract. 2 Average annual restored Bay-Delta yield based upon BDCP estimates and the Water Authority’s preferential right to MWD supplies. 3 Capital cost only. 21

22. Water Authority purchases from MWD:  1990: 672,800 acre-feet  2015: 304,000 acre-feet  2020: 150,000 acre-feet: 78% less than 1990 Reducing Reliance on MWD and Bay-Delta by 66%Reducing Reliance on MWD and Bay-Delta by 66% 22

23. Reduced Demands Going Forward (Water Authority Service Area)  Reduced demands/increased conservation (2010 UWMP) compared to earlier forecasts  Increased supply diversification  Significant member agency planned/conceptual local projects  Water rates and increasing price sensitivity 23

24. 24

25. 1.How big does the project need to be? 2.How much will it cost? 3.How much water will San Diego get? 4.What is the portion of the cost San Diego will be obligated to pay? 25 5.Who is going to commit to pay for it? 6.How will Water Authority ratepayers be protected from paying disproportionate share of BDCP costs? 7.Will the costs of BDCP to San Diego ratepayers negatively impact local supply development?

26. 26 California WaterFix

27. What is the California Water Fix?What is the California Water Fix? 27  Approach to make physical and operational improvements to delivery system in Delta ◦ Responds to unprecedented level of public review and comment  Released July 10, 2015  Lead agencies: ◦ Department of Water Resources (CEQA) ◦ Bureau of Reclamation (NEPA) ◦ Cooperating Agencies:  National Marine Fisheries Services and US Fish and Wildlife Service (Section 7)  CA Fish and Wildlife (Permit after EIR/EIS Approval)

28. Key Difference Between BDCP and California Water Fix 28  BDCP’s strategy (Alternative 4) proposed as a Habitat Conservation Plan (HCP) ◦ 50-year permit assurances  Permit through ESA Section 10 and Natural Community Conservation Plan  Large-scale regional habitat restoration and new Delta water delivery infrastructure  California Water Fix (Alternative 4A) ◦ No long-term permit assurances (year-to-year)  Proposes Section 7 consultation and CESA Section 2081(b) permit process  Includes new Delta water delivery infrastructure, without HCP

29.  Introduction of three new sub-alternatives  Design Modification to Alternative 4 (BDCP Preferred Alternative)  Updated environmental analysis  Fish and Aquatic Habitat  Water Quality  Effects Downstream of the Delta  Air Quality Health Risk Assessment, Traffic and Noise  Geotechnical Investigations  Inclusion of Additional NEPA Determinations  Estimated cost: $14.9 billion (2014$)  Public comment deadline: October 30, 2015 What’s Changed since the 2013 BDCP Draft EIR/EIS? 29

30. Key questions remain unanswered: 1.After accounting for local supply development, what is the real demand for water from the Delta? 2.What is the right-sized project to meet the demand? 3.Where is a financing plan to pay for the project? 4.Who is going to commit to pay for it? 5.Should MWD contractually commit to pay billions of dollars without contractual commitments from its 26 member agencies to pay it?  Without such commitments, how will San Diego County businesses and ratepayers be protected from shouldering a disproportionate cost burden in the future What Hasn’t Changed?What Hasn’t Changed?

31. 31 Water Authority’s Supply Conditions 2015

32. Water Authority Can Meet 99% of Projected Demands in FY 2016, Even with 15% MWD Shortage Allocation Estimated FY 2016 Potable M&I Demand ~ 523 TAF * Local Supplies 25 TAF Long-Term Colorado River Transfers 180 TAF Water Authority CDP 39 TAF MWD Initial Allocation M&I 274 TAF Based on actual FY 2014, escalated at 1/2% per year. MWD supply allocation in effect 7/1/15 through June 30, 2016. 32

33. * 2015 dollars San Diego County: 1990 vs. 2015 Potable water use (thousand acre-feet) Cost of water per acre-foot (full service treated water rate) Population (millions) Gross Domestic Product (billions) Jobs (millions) Potable gallons per capita daily use 33

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