Water Dialogue Meeting

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

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 2

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 3

AACLP Project Location

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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 5

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 6

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 7

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) 8

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 9

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 10

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 11

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”

SLR 11,500 ac- ft SDCWA 56,200 ac-ft

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Construct Lining

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All-American Canal typical sections

Proposed Lined Section 13/4H or 2H:1V side slope 136 164’ Existing Unlined Section 2H:1V side slope

24’ O&M Road Spoils

130’ +/ 50’

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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 18