Presentation by Frank Belock, Deputy General Manager to the Public Policy group at the North County Chamber on 9/17/09

1. San Diego Region
Water Supply Outlook
Frank Belock
September 17, 2009
1

2. Water Authority Background
Wholesale water agency
created by State
Legislature in 1944
24 member agencies
6 cities
14 water utility
3 irrigation districts
1 military base
Service area
920,000 acres
97% of county’s population
2 2

3. 3

4. Who Provides Your Water?
Individual customers Local Water Agencies
served by local retail Camp Lakeside WD City of Santa Fe
water agency Pendleton
Carlsbad National City*
Poway
Rainbow
ID
South Bay
Local agencies supplied MWD MWD Irrigation
District*
by wholesaler (Water City of Del City of Ramona Vallecitos
Authority) Mar Oceanside MWD WD
Water Authority secures City of Olivenhain Rincon Del Valley
supplies from outside Escondido MWD Diablo
MWD
Center
MWD
the region for 24 local Fallbrook Otay Water City of San Vista ID
agencies PUD District Diego
6 cities Helix WD Padre Dam
MWD
San
Dieguito
Yuima
MWD
14 water/utility districts WD
3 irrigation districts * Member of the Sweetwater Authority
1 military base
4

5. San Diego County’s Water Sources (2008)
LAKE
SHASTA
San Diego County imports
LAKE more than 80% of its
OROVILLE
water supply
State Water
Project
(Bay-Delta) Colorado River
28% 54%
Local Water
Supply Projects
18%
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6. 6

7. FONTENELLE
RESERVOIR
FLAMING
GORGE
RESERVOIR
BLUE MESA, MORROW
POINT, CRYSTAL
RESERVOIRS
NAVAJO RESERVOIR
7

8. Colorado River Entitlements
(Million acre-feet)
8

9. Imported Water Sources
Colorado River Supplies State Water Project Supplies
Department of Interior
Department of
Bureau of Reclamation Water Resources
Priority 1: Palo Verde Irrigation District
State Water Contractors
Priority 2: Yuma Project
Metropolitan Water District of Southern California
Priority 3a: Imperial Irrigation District
Priority 4 and 5a:
Metropolitan Water District
of Southern California
San Diego County Water Authority
24 Local Retail Agencies and cities
9

10. California Water Use
Urban
13%
Agricultural
Environmental 52%
35%
Source: Water Plan Update 2005
10

11. How do we use water locally?
Acre Feet
450,000 59%
400,000
350,000
300,000
250,000
200,000 17%
150,000 13% 12%
100,000
50,000
-
Commercial Public & Residential Agriculture
& Industrial Other
11

12. Three Challenges to Our Water Supply
1. Regulatory
Pumping restrictions are sharply limiting
imported water from Northern California
2. Drought
Last three years in California
8 of last 10 on the Colorado River
3. Low storage
Major reservoirs have been drawn down
to low levels
12

13. Fish Protections Restrict Pumping
Delta smelt
Central Valley
steelhead
Longfin smelt
Banks Pumping Plant
State Water Project Chinook salmon
Green sturgeon
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14. Pumping Restricted ¾ of the Year
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
s
ion
Re N o
ict
s tr
14 14

15. Impacts of Regulatory Restrictions
on Southern California’s Supplies
Water supplies from the
State Water Project 1,886,000 AF
without restrictions 1,518,000 AF
598,000 AF
Critical Dry Average Wet
AF = Acre-feet. One acre-foot = 325,900 gallons.
15 15

16. Impacts of Regulatory Restrictions
on Southern California’s Supplies*
Reductions in water
supplies from the State 1,851,000 AF
Water Project due to 1,709,000 AF 30% lost
pumping restrictions to 30% lost
protect fish
980,000 AF
23% lost
460,460 AF 1,058,046 AF 1,320,200 AF
Critical Dry Average Wet
AF = Acre-feet. One acre-foot = 325,900 gallons.
*Source: Metropolitan Water District; updated 7/78/2009
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17. Key Delta Risks
Fishery Declines
Delta smelt
Seismic Risk Flooding Risk
Bay Area Faults Jones Tract (2004)
17

18. We face significant losses of spring snowpack
• Less snow,
more rain
• Particularly at
lower elevations
• Earlier run-off
• More floods
• Less stored
water
By the end of the century California could lose half of its late
spring snow pack due to climate warming. This simulation by
Noah Knowles is guided by temperature changes from PCM’s
Business-as-usual climate simulation. (a middle of the road
emissions scenario)
Knowles and Cayan 2001 18

19. Water Resource Impacts
Decreasing snowpack, earlier snowmelt
More rain - increased runoff – altered
water quality
Increased demand & evaporation– due
to higher temperatures
Increased saltwater intrusion – due to
sea level rise
Increased salinity in Delta
19

20. Current Drought Condition in
San Diego County
Metropolitan Water District (MWD)
will allocate supplies
13% cut from MWD starting July 1
Water Authority allocating supplies
to its 24 member retail agencies
Regional shortage: 8%
Cutbacks to agriculture: 13% to 30%
Financial penalties in place
“Drought Alert” condition
Mandatory water use restrictions
20

21. Mandatory Water Use Restrictions
Irrigation restrictions
Limits on number of days/duration/prohibited hours
Stop runoff/time limits to repair leaks
Ornamental water fountain/feature use prohibited
Unless using recycled water
Washing paved surfaces prohibited
Car washing: positive shut-off nozzle or commercial site
that re-circulates/re-uses water
Restaurants: water served only upon request
Lodging: must offer guests option of not laundering
towels and linens daily
Construction purposes: use recycled or non-potable
For specifics on local regulations: www.sdcwa.org
21

22. CY 2010 Recommended Rates
and Charges— Summary
Overall increase is 18.1% starting September
1, 2009
Impact on a typical household is $5.80/month
Increase is below MWD’s treated water
increase of 21.1%
Wholesale full-service, treated water rate is
$905/acre-foot
Average single-family household of four with an
irrigated landscape uses ½-acre-foot per year
22

23. Diversifying San Diego County’s
Water Supply Portfolio
1991 2010 2020
Local Supplies
Dry-Year
40%
QSA Transfers
95% Supplies 2%
Local Supplies
20% 16%
MWD
Supplies
QSA 29%
Supplies
31%
MWD Supplies
62%
Metropolitan Water District Seawater Desalination
Imperial Irrigation District Transfer Local Surface Water
All American & Coachella Canal Lining Recycled Water
Conservation Groundwater
Dry-Year Water Transfers 23

24. Diversification Strategy is Working
Colorado River Quantification Settlement Agreement (QSA)
155,000 AF in FY 2010
Ramping up to 280,000 AF/YR by 2021
Expanding development of local supplies
Recycled water
Groundwater
Seawater desalination
Conservation
$3.7 billion Capital Improvement Program
Historic regional infrastructure investments
24

25. Enhancing Colorado River
Supplies to San Diego
QSA Supplies (Colorado River)
Imperial Irrigation District
transfer (45 to 75 years)
Canal-lining projects (110 years)
All-American Canal Lining
Canal-lining project
Coachella Canal Lining
Provide 129,000 acre-feet
combined in 2009
280,000 acre-feet annually by
2021
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26. All American Canal Lining
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27. Desalination
Benefits: Challenges:
New locally-controlled Higher capital and
potable water supply operating cost (similar
to the cost of recycled
Drought-proof supply water)
Improved water quality Availability of coastal
Reliable supply (proven sites for desalination
technology) Intake and Discharge
Economies of Scale Permitting (impacts to
marine life)
Higher energy use
relative to other water
resources
27

28. Carlsbad Desalination Project
Private 50 mgd local desalination project being developed by Poseidon
Resources
Located at the Encina Power Station in Carlsbad
Water purchase agreements with nine SDCWA member agencies
Major permitting hurdles:
Coastal development permit (cleared)
Lease amendment from SLC (cleared)
Discharge permit with RWQCB
(now cleared)
Work continues on finalizing the
configuration of distribution system
Projected on-line date: 2012
28
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29. Camp Pendleton
Seawater Desalination Project
Proposed capacity between 50 and
150 mgd
Feasibility Study nearing
completion
Subsurface and open ocean intake
options
Potential integration with existing
Camp Pendleton systems
Next Steps
Planning Agreement with
MCBCP
Complete Environmental
Review
Complete Preliminary Design
Earliest On-line Date - 2018 29
29

30. Seawater Desalination:
Mexico and South County
Joint study with Mexico and U.S.
Colorado River water agencies
Rosarito Beach site
25 to 50 mgd
South San Diego County
Follow-up to 2005 Water Authority study
Site north of border, near International
Outfall
Up to 25 mgd
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31. What about Water Recycling?
Non-potable Recycled Water:
is a high-quality, drought-proof water supply
is an environmentally sensible use of a limited
resource
replaces potable water use for the irrigation of
landscapes, crops, golf courses, freeways, etc.
is not impacted by potable water restrictions/
aqueduct shutdowns
Will represent 6% of the supply portfolio in
2020
31

32. Indirect Potable Reuse
Need creative solutions for San Diego
- Accommodate small groundwater basins
- Reservoir Augmentation
Coordination with
Regional Board &
California Department
of Public Health
Protect public health
and water quality
Public acceptance
32

33. City of San Diego Indirect Potable
Reuse (IPR)/Demonstration Project
Advanced Water Treatment process
Tertiary Detention
Reverse Pipeline Treatment
Treatment
Ultra-
filtration + Osmosis
+ UV +
Peroxide + Chlori-
nation + Time
in
Reservoir
+ at
Drinking
Water
Plant
33

34. Capital Improvement Projects
Emergency Storage Program
Major Projects Completed or under
construction
Asset Management
34

35. $3.8 Billion Capital Improvement
Program (1989-2030)
System of facilities to: $3.8 Billion CIP
Meet regional demands
Meet emergency demands Support
Emergency
Common to both: Demands
34%
Dams and reservoirs Support
Regional
Pipelines Demands
Pump stations and
66%
flow control facilities
Treatment Plant &
Hydroelectric regional assets
35

36. Water Storage –
Olivenhain Reservoir
Completed in
2003 at a cost
of $198
million, the
Olivenhain
Reservoir
stores 24,000
AF of water,
enough water
for 50,000
families a year
36

37. Water Storage –
Lake Hodges Projects
Will provide
20,000 AF of
water storage
for emergency
use, enough
for up to
40,000
homes, and
annually
generate
enough
electricity for
26,000 homes
37

38. Lake Hodges Projects
Construction of
the Lake Hodges
Projects began in
2005 and is
anticipated to be
complete in late
2010.
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40. Water Storage –
San Vicente Dam Raise
Will increase lake capacity by 150,000
AF from the current 90,000 AF
Total project cost is $568 million
Construction will be complete by the fall
of 2012
Once finished, depending upon rainfall
and water supply and demand, will take
2 – 5 years to fill to capacity
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43. Twin Oaks Valley
Water Treatment Plant
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44. Brand Identity Package
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45. Water Smart Branding
Landscapes
Design
Irrigation
Plants
Maintenance
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46. Challenges and Opportunities
The diversification of our water supplies
is key to reliability
We need to create a “new water ethic”
The price of water will continue to
increase as a result of supply shortages,
environmental requirements, and new
facility development.
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47. Questions?
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48. 48