1. The document discusses the history of the Water Authority's involvement with the Bay Delta Conservation Plan/California WaterFix and potential costs to the Water Authority. 2. The preferred project is a large infrastructure project to deliver water through the Delta and costs have increased to an estimated $14.9 billion. 3. There is uncertainty around supply benefits without an NCCP/HCP and around how costs will be allocated.

1. Amy Chen, Director of MWD Program
Bay Delta Conservation Plan/
California WaterFix:
Potential Cost Impact to the Water Authority
Imported Water Committee
December 10, 2015

2. Board Meeting Date Imported Water Committee/Board Activity
February 23, 2012 Adopt Delta Policy Principles √
January 24, 2013 Portfolio Approach to BDCP √
March 23, 2013 Bay-Delta Alternatives √
July 25, 2013 Provide guidance on Proposed Staff Analysis for BDCP
and Alternatives
√
August 8, 2013 Bay-Delta Historical Context and Outline of BDCP
Alternatives for Water Authority Evaluation and
Analysis
√
August 22, 2013 Overview of BDCP Administrative Environmental Review
Process and Identification of Underlying Plan
Assumptions
√
September 12, 2013 BDCP Costs, Financing and Economic Benefits √
September 26, 2013 BDCP Estimated Export Yields √
October 24, 2013 BDCP Implementation Process and Evaluation of
Portfolio Alternative
√
2
Board Meeting
Date
Imported Water Committee/Board Activity
October 24, 2013 BDCP Environmental Review Process √
November 14, 2013 BDCP Supply and Reliability Analysis √
January 9, 2014 BDCP Supply and Demand Risk Assessment √
January 23, 2014 BDCP Preliminary Assessment of Financing Risk
Parameters
√
February 13, 2014 BDCP Infrastructure Review √
February 13, 2014 BDCP Governance √
February 27, 2014 BDCP Economic and Financial Risk Assessment to the
Water Authority
√
March 27, 2014 Authorize the GM to submit a comment letter on the
BDCP Draft EIR/EIS
√
March 27, 2014 BDCP Infrastructure Review – Response to letter from
BDCP Engineering Team
√
Board Meeting
Date
Imported Water Committee/Board Activity
June 18, 2014 Resolution supporting prompt completion of the BDCP
environmental review process
√
July 24, 2014 Draft supplemental comment letter on the BDCP Implementing
Agreement
√
February 26, 2015 Adopt Proposed 2015-2016 Bay-Delta Workplan √
March 26, 2015/
April 23, 2015
State Treasurer’s Assessment of the Affordability and
Financing Considerations of the Bay Delta Conveyance Facility
√
July 23, 2015 Bay-Delta Activities Update √
August 27, 2015 Presentation on the California WaterFix Plan and California
EcoRestore -- Recirculated BDCP DEIR/SDEIS
√
September 24,
2015
Review of the BDCP/California WaterFix Partially Recirculated
DEIR/SDEIS
√
October 22, 2015 Comment letter on the BDCP/California WaterFix Partially
Recirculated DEIR/SDEIS
√
December 10, 2015 BDCP/California WaterFix: Potential Cost Impact to the Water
Authority
√

3. 3
 Makes physical and operational improvements
to water delivery system in Delta
◦ Basically same facilities as described
in BDCP CM1
 PRDEIR/SEIS released July 10, 2015
 Design Modifications
◦ Relocate pumping plants
◦ Revise tunnel alignment
 Estimated capital cost: $14.9
billion (2014$)

4. 1. Preferred project is a large infrastructure project,
and costs may climb
2. Without an NCCP/HCP, uncertain supply benefits
3. Cost allocation matters – but today, is unknown
4. Water Authority’s region has local projects that may
be explored to lessen supply risks from SWP
4

5. 5
Facility Capital Cost
• $15 Billion
• $22.5Billion
• $30 Billion
MWD Share of the Cost
(based on “Water follows Money”)
• SWP = 55%; MWD share = Proportional Table A
• Proportional share of urban water take
• 100 percent of cost
Water Authority’s allocation of WaterFix
• Status quo rate structure and preferential rights
• Trial court decision affirmed

6. California WaterFix Potential Costs
to Water Authority
Cost Allocation SWP/CVP:
55/45
Urban/Ag:
90/10
MWD: 100%
$15Billion
Annualized Share
of Capital
$40.3 M $83.5 M $160.1 M
$74.9 M $155.1 M $297.4 M
Water Rate Impact
$/AF
$71 $146 $281
$131 $272 $521
$22.5
Billion
Annualized Share
of Capital
$60.5 M $125.3 M $240.2 M
$112.4 M $232.9 M $446.1 M
Water Rate Impact
$/AF
$106 $220 $421
$197 $408 $782
$30Billion
Annualized Share
of Capital
$80.7 M $167.1 M $320.2 M
$149.8 M $310.3 M $594.7 M
Water Rate Impact
$/AF
$141 $293 $561
$263 $544 $1,042
= Trial Court Decision = Status Quo

7.  Change of permitting approach creates uncertainty
on long-term supply stability
 How costs are allocated matter, even with “water
follows money” approach
◦ How much water can MWD take?
 Whether trial court decision is affirmed matters
 How much water San Diego will get and at what cost
are still unknown
 Investment in local resources in San Diego County
could cover supply risks of SWP
7

8. 8

9. 9
Cost Allocation to Water Authority –
February 2014 Analysis
Description 9,000 cfs Twin Tunnels
Water Authority Share of Total Capital Cost $1,066 M
Water Authority Share of Annualized Cost $70 M
High Outflow
(H4)
Low Outflow
(H1)
Water Authority Share of Incremental Delta
Fix Yield (PR)
55 TAF 78 TAF
Unit Cost to Water Authority ($/AF) $1,278 $901

10.  Introduction of three new sub-alternatives
 Design Modifications to Alternative 4
◦ Relocate pumping plants
◦ Revise tunnel alignment
10
 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 capital cost: $14.9 billion
(2014$)

11. 11
 BDCP (Alternative 4) is a Habitat
Conservation Plan/Natural Community
Conservation Plan (HCP/NCCP)
o 50-year permit assurances via IA
 ESA permits through federal Section 10 and
state Section 2835
 Large-scale regional habitat restoration and
new Delta water delivery infrastructure
‣ California Water Fix (Alternative 4A) is
a stand-alone project
o No long-term permit assurances (year-to-year)
• ESA permits through federal Section 7 and state Section 2081(b)
• Includes new Delta water delivery infrastructure and required
mitigation, but without the HCP/NCCP components