1. Proposal for Improved CVP/SWP Integrated Operations

2. Proposal for Improved CVP/SWP Integrated Operations Proposal for Improved CVP/SWP Integrated Operations DWR, USBR, and CVP/SWP water contractors met in mid-July and developed a proposal for improved integration of the two projects DWR, USBR, and CVP/SWP water contractors met in mid-July and developed a proposal for improved integration of the two projects This proposal defines the context of discussions with DFG, USFWS, NOAA Fisheries, Bay-Delta Authority, and interested stakeholders regarding the components of the proposal and the characteristics of a long-term EWA. This proposal defines the context of discussions with DFG, USFWS, NOAA Fisheries, Bay-Delta Authority, and interested stakeholders regarding the components of the proposal and the characteristics of a long-term EWA.

3. Proposal for Improved CVP/SWP Integrated Operations Meeting necessary to resolve issues: Schedule of the CVP/SWP Operations Criteria and Plan (OCAP) Schedule of the CVP/SWP Operations Criteria and Plan (OCAP) Support for continuation of the EWA Support for continuation of the EWA Accounting under the Coordinated Operation Agreement (COA) Accounting under the Coordinated Operation Agreement (COA) Sharing of planned increased export capability (8500) Sharing of planned increased export capability (8500) Operation of DMC/CA Intertie Operation of DMC/CA Intertie

4. Proposal for Improved CVP/SWP Integrated Operations Components of the Proposal Conveyance SWP conveys up to 100,000 af of Level 2 waterfowl refuge supply SWP conveys up to 100,000 af of Level 2 waterfowl refuge supply CVP Storage Accounting Up to 75,000 af of CVP north-of-Delta water supply used to meet SWP Delta water quality/flow requirements Up to 75,000 af of CVP north-of-Delta water supply used to meet SWP Delta water quality/flow requirements

5. Proposal for Improved CVP/SWP Integrated Operations Components of the Proposal (con’t) Environmental Water Account Fully support EWA continuation Fully support EWA continuation Commit to developing a long-term EWA with DFG, USFWA, and NOAA Fisheries having adequate assets, operational flexibility, and financing Commit to developing a long-term EWA with DFG, USFWA, and NOAA Fisheries having adequate assets, operational flexibility, and financing ESA Commitments Multi-year, multi-species ESA commitment in exchange for long-term EWA asset commitments. Multi-year, multi-species ESA commitment in exchange for long-term EWA asset commitments.

6. Proposal for Improved CVP/SWP Integrated Operations Components of the Proposal (con’t) CVP/SWP Operations Criteria and Plan (OCAP) Include Freeport Regional Water Project, SDIP (8500), the DMC/CA Intertie, a long-term EWA, and the other components of the integration proposal. Include Freeport Regional Water Project, SDIP (8500), the DMC/CA Intertie, a long-term EWA, and the other components of the integration proposal. The associated Biological Opinion to cover these projects, and be considered a long-term opinion The associated Biological Opinion to cover these projects, and be considered a long-term opinion

7. Proposal for Improved CVP/SWP Integrated Operations Components of the Proposal (con’t) Delta Water Quality Implemented within a balanced CALFED Program, which includes projects to improve water quality Implemented within a balanced CALFED Program, which includes projects to improve water quality Upstream Reservoir Coordination SWP may borrow storage in CVP reservoirs for greater certainty in delivery allocation early in the year. SWP may borrow storage in CVP reservoirs for greater certainty in delivery allocation early in the year.

8. Proposal for Improved CVP/SWP Integrated Operations Components of the Proposal (con’t) San Luis Reservoir Coordination DWR develops a program to assure SLR storage does not drop below 200,000 af above dead storage. DWR develops a program to assure SLR storage does not drop below 200,000 af above dead storage. Program increases certainty of CVP delivery allocation early in the year. Program increases certainty of CVP delivery allocation early in the year. Storage for Water Transfers USBR stores for SWP contractors water obtained through transfer agreements. If reservoir enters flood control operations, stored transfer water first to spill. USBR stores for SWP contractors water obtained through transfer agreements. If reservoir enters flood control operations, stored transfer water first to spill.

9. Proposal for Improved CVP/SWP Integrated Operations Components of the Proposal (con’t) Operational Implementation Process Steps to improve coordination of projects to increase allocations earlier in the water year. Steps to improve coordination of projects to increase allocations earlier in the water year. COA Accounting Issues Agreement on accounting for new facilities/agreements (North Bay Aqueduct, Freeport Regional Water Project, SDIP, DMC/CA Intertie) Agreement on accounting for new facilities/agreements (North Bay Aqueduct, Freeport Regional Water Project, SDIP, DMC/CA Intertie)

10. Proposal for Improved CVP/SWP Integrated Operations Next steps Define process for stakeholder involvement Define process for stakeholder involvement Define the characteristics of a long-term EWA Define the characteristics of a long-term EWA Refine schedules of Integrated Key Milestones Refine schedules of Integrated Key Milestones