1. 1 Water Dialogue Meeting February 22, 2006 All-American Canal Lining Project Dan Hentschke General Counsel San Diego County Water Authority

2. 2 All-American Canal 82-mile long canal located in the southeast corner of California Conveys water from Colorado River to Imperial and Coachella Valleys Operated and maintained by the Imperial Irrigation District under contract with Bureau of Reclamation

3. 3 Canal Lining 23 miles of parallel, concrete-lined canal will be constructed next to existing canal Capture water lost to seepage with earthen canal Water will be conveyed through exiting Colorado River aqueduct system to San Diego

4. 4 AACLP Project Location

5. 5 Public Law 100-675 Adopted 1988 Congress authorized the Secretary “in order to reduce seepage” to “construct a new lined canal or to line the previously unlined portions of the All American Canal from the vicinity of Pilot Knob to Drop 4” Conserved water to be consumptively used in California

6. 6 Environmental Review JULY 29, 1994 FEIS/EIR – ROD Five alternatives including linings, parallel canal, well field and no action Parallel Canal Alternative Selected Funding by Metropolitan 1998 State Law (Wat. C. § 12562) $200 million 1999 Reexamination 2001 Determination for Funding Agreements Jan. 12, 2006 USBOR Supplemental Information Report

7. 7 Public Law 106-377 H.R. 4733 (Packard Amendment) October 2000 Notwithstanding any other provision of law 16,000 acre-feet permanently and annually to the SLR Settlement Parties Sufficient power from Parker-Davis Project to convey water to Lake Matthews

8. 8 Quantification Settlement Agreement Signed October 2003 Provides diversification of San Diego supply portfolio: Total of 277,700 AF in 2021 IID Transfer - up to 200,000 AF/yr for 75 years Coachella Canal Lining – 26,000 AF/yr – (4,500 to SLR) All-American Canal Lining – 67,700 AF/yr – (11,500 to SLR)

9. 9 Related Agreements Colorado River Water Delivery Agreement US, IID, CVWD, MWD, and SDCWA Allocation Agreement US, MWD, CVWD, IID, SDCWA, and SLR Settlement Parties MWD assigns canal lining water to SDCWA

10. 10 Current Timeline USBOR Supplemental Information Report – 1/12/06 Construction and finance agreements approved - SDCWA, IID and USBOR – 1/06 Construction Contract Award -- May - June Notice to Proceed -- June 2006 Completion deadline Dec. 31, 2008

11. 11 Effect on QSA? YES! Domino Effect Significant delay can terminate QSA “TRANSFER STOPPAGE” On termination of QSA, related agreements unravel QSA Conservation Benchmarks Suspension of Interim Surplus Guidelines Loss of Inadvertent Overrun/Payback Policy

12. 12 Water Conserved from Lining the All-American Canal 67,700 Acre-Feet per Year – 97 cfs diverted at Parker (>2% avg. mo. flow) – 10 – 12 % reduction in “recharge”

13. 13 Existing AAC Construct Lining New AAC

14. 14 All-American Canal typical sections Proposed Lined Section 13/4H or 2H:1V side slope Existing Unlined Section 2H:1V side slope 50’ 136-164’ 130’ +/- Spoils 24’ O&M Road

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18. 18 Litigation Original complaint 8 counts 1-4 water law counts 5-8 environmental law counts Feb. 8, 2006 Judge Roy dismisses all but Count 5 (NEPA/APA Count) Amended Complaint? Status Conference March 3, 2006