The document summarizes announcements made on July 25th by the Governor and Secretary of Interior regarding amendments to the draft Bay-Delta Conservation Plan (BDCP). Key points include: - The revised BDCP will feature a smaller twin tunnel project with a capacity of 9,000 cubic feet per second and three intakes rather than five, and gravity flow rather than pumping. - A "decision tree" approach over 15 years will determine project operations and water supply yields based on achieving biological goals, with yields expected between 4.5-5.3 million acre-feet per year but actual outcomes unknown until completion. - The projected $13 billion cost will be shared by state and federal water contractors, who must

1. Bay-Delta Quarterly Update
Imported Water Committee
July 26, 2012

2. Bay-Delta Announcement
 July 25
 Governor and Secretary of Interior
 State and Federal Joint Recommendations
 Amend draft BDCP:
 Downsize tunnel project
 Use “decision tree” over 15 years to determine
operations and yield of the project
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3. Downsize Tunnel Project
 Draft BDCP called for double tunnel
under Delta with capacity of 15,000 cfs
 Five intakes on Sacramento River with
capacities of 3,000 cfs
 Revised BDCP will call for double tunnel
with capacity of 9,000 cfs
 Three intakes with capacities of 3,000 cfs
 Gravity flow, instead of pumped
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4. Decision Tree
 At the outset, the state and federal water
projects will operate under the best
criteria available.
 As the tunnel project is built, operating
criteria will be adjusted either up or down
depending on achievement of biological
goals and objectives.
 When the tunnel is completed, operating
criteria will be based on adjustments.
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5. Concerns
 Outcome of decision tree may result in
less water being available when tunnels
are complete than present 4.9 maf per
average year.
 While yield is expected to be between
4.5 and 5.3 maf per year. Actual outcome
water supply yield will not be known until
tunnels are complete.
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6. Finance
 Expected cost of tunnels is $13 billion
over 10 years.
 Cost will be born by the state and federal
water contractors.
 “Step up” provisions will be required by
bond holders.
 Require remaining contractors to pick up
default if one or more contractors back out.
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7. Finance
 MWD is expected to pick up 25 percent
or more of cost of tunnel project.
 MWD does not have contractual
commitments from its member agencies
to pay for project.
 MWD could be faced with a larger
burden if other contractors back out or
default.
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8. Next Steps
 State and federal water contractors have
to decide whether the reduced yield is
worth the expense.
 A public review draft of the BDCP and its
companion EIR/EIS are expected in
September.
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