August 25, 2011

Regional Water Wholesaler to 6 counties 5,200 square miles 26 Member Agencies ~19 million residents Regional economy: $1 trillion Retail demand 2009: 4 million acre-feet Provided about ½ of retail demands

Delta LA Aqueduct Colorado River Aqueduct Supplies State Water Project Supplies Sierra Mtns Local Groundwater and Recycling Conservation

Heavy dependence on imported supply and SWP Diversions Emphasis on Conservation, Local Supplies, and Storage & Transfers

Retail Demand

New Local Supply & Conservation

14x Increase in Capacity

Actual Projected Regional Investments Thru 2010 Urban Conservation$ 44 Million Recycling & GW Recovery$1,240 Million Total$1,580 Million

Regional Projects Urban Conservation-- Recycling64 GW Recovery21 Seawater Desalination3

Colorado River Decade-long drought Growth in the lower basin Environmental

Cut to Basic Apportionment Lower Colorado River MSCP 1 MAF+

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Local Los Angeles Aqueduct Colorado River Aqueduct State Water Project

San Andreas HaywardHayward CalaverasCalaveras GreenvilleGreenville Vaca-KirbyVaca-Kirby Rodgers Crk ConcordConcord MidlandMidland AntiochAntioch Bay-Delta Region Major Faults San Gregorio 27% 21% 10% 11% 3% 4% %

,000 Acre-feet ~$201 million ,000 Acre-feet ~$186 million ,043,000 Acre-feet ~$313 million

Co-Equal Goal 1 – Ecosystem Restoration Co-Equal Goal 2 – Water Supply Reliability Disaster ESA protection

Ecosystem Restoration Target = Twice the size of Washington DC Restoration & Preservation Targets Tidal Marsh ,000 ac Seasonal Floodplain10,000 ac Riparian Habitat5,000 ac River Channel Margin20 mi TOTAL ,000 ac

26 Sac River Predator Control Corbula amurensis (Overbite clam) Ammonia Ocean Conditions Invasive Species Egeria densa (Brazilian Waterweed) Invasive Species Egeria densa (Brazilian Waterweed)

Sacramento SWP Pumps CVP Pumps Sac River Stockton SJ River

Long-term operations permit Coverage for existing & future listed species Future regulatory obligation defined upfront

East Canal ~ $8 billion * West Canal ~ $9 billion * Tunnel ~ $12.7 billion * * URS developed initial cost estimates; Second independent expert cost analysis from 5RMK Inc completed in Jan *Includes 35% construction contingency on tunnel (25% on non-tunnel) and 18% for engineering/project management. Preliminary Subject to Revision

Preliminary Subject to Revision PreliminaryPreliminary Final Design Procure Equipment FinalFinal FinalFinal OperationalOperational Bio Op Public Draft Working Draft Public Draft Land Acquisition & Construction Near-Term Habitat Restoration Implementation Admin Draft – Apr 2012; Public Draft – May 2012; Final EIR/EIS – Dec 2012

Source: Governors Delta Vision Report (Estimated total annual runoff maf) Pacific Ocean 48% Upstream Consumptive Use 31% CVP-SWP Exports 17% In-Delta Consumptive Use 4%

Source: Governors Delta Vision Report (Estimated total annual runoff maf) Pacific Ocean 48% Upstream Consumptive Use 31% CVP-SWP Exports 17% Upstream Urban Use 2% MWD 4% In-Delta Consumptive Use 4%

18-36 new desalination plants (1 MAF) Every 4-8 miles from LA to San Diego 600 MW gross power requirement Cost – $1,300 to $2,000 per acre-foot

Affordability based on tunnel option $12.7 billion MWD share ~$3.4 billion (25 percent of total) 15,000 cfs capacity 1,560,000 acre-foot average SWP yield for Metropolitan

MWD estimates Restored Delta – Incremental cost of tunnel not melded with overall SWP supply; includes $200/af energy costs $ ,300/AF $ /AF* $ ,000/AF $1, ,300/AF $1, ,000/AF

* Capital Cost/AF = Total Capital Cost / Annual Deliveries

* Per-Capita Cost = Total Capital Cost / Population Served

Colorado River Aqueduct $220 million bond$220 million bond Assessed Valuation: $2 billionAssessed Valuation: $2 billion Ratio: 10% Colorado River Aqueduct $220 million bond$220 million bond Assessed Valuation: $2 billionAssessed Valuation: $2 billion Ratio: 10% State Water Project $1.75 billion bond (MWD share ~50%)$1.75 billion bond (MWD share ~50%) Assessed Valuation: $6 billionAssessed Valuation: $6 billion Ratio: 6% State Water Project $1.75 billion bond (MWD share ~50%)$1.75 billion bond (MWD share ~50%) Assessed Valuation: $6 billionAssessed Valuation: $6 billion Ratio: 6% Delta Solution $3.4 billion (assumed MWD share) Assessed Valuation: $2 trillion Ratio: 0.2% Delta Solution $3.4 billion (assumed MWD share) Assessed Valuation: $2 trillion Ratio: 0.2%

Legislative/Congressional Support Regulatory assurances Sound science & adaptive management Effective governance structure Local benefits

For myself I am an optimist – it does not seem to be much use being anything else. - Winston Churchill If youre going through hell, keep going. - Winston Churchill