1

San Diego Region San Diego Region Water Supply OutlookWater Supply Outlook

Frank BelockSeptember 17, 2009

2 2

Water Authority Background

Wholesale water agency created by State Legislature in 1944

24 member agencies6 cities14 water utility 3 irrigation districts1 military base

Service area920,000 acres97% of county’s population

3

4

Who Provides Your Water? Individual customers served by local retail water agencyLocal agencies supplied by wholesaler (Water Authority)Water Authority secures supplies from outside the region for 24 local agencies

6 cities14 water/utility districts3 irrigation districts1 military base

Local Water Agencies

Yuima MWD

San DieguitoWD

Padre Dam MWD

Helix WD

Vista IDCity of San Diego

Otay Water District

Fallbrook PUD

Valley Center MWD

Rincon Del Diablo MWD

Olivenhain MWD

City of Escondido

Vallecitos WD

Ramona MWD

City of Oceanside

City of Del Mar

South Bay Irrigation District*

Rainbow MWD

National City*Carlsbad MWD

Santa Fe ID

City of Poway

Lakeside WDCamp Pendleton

* Member of the Sweetwater Authority

5

San Diego County’s Water Sources (2008)

LAKESHASTA

LAKEOROVILLE

State Water Project

(Bay-Delta) 28%

Colorado River 54%

Local Water Supply Projects

18%

San Diego County imports more than 80% of its water supply

5

6

7

FONTENELLERESERVOIR

FLAMINGGORGE

RESERVOIR

NAVAJO RESERVOIR

BLUE MESA, MORROW POINT, CRYSTAL

RESERVOIRS

8

Colorado River Entitlements(Million acre-feet)

9

Imported Water SourcesState Water Project SuppliesColorado River Supplies

24 Local Retail Agencies and cities

San Diego County Water Authority

Bureau of Reclamation

Department of Interior

Priority 1: Palo Verde Irrigation District

Priority 2: Yuma Project

Priority 3a: Imperial Irrigation District

Priority 4 and 5a:Metropolitan Water District

of Southern California

Department ofWater Resources

State Water ContractorsMetropolitan Water District of Southern California

10

California Water Use

Environmental35%

Urban13%

Agricultural52%

Source: Water Plan Update 2005

11

How do we use water locally?

-50,000

100,000150,000200,000250,000300,000350,000400,000450,000

Commercial& Industrial

Public &Other

Residential Agriculture

Acre Feet

17%13%

59%

12%

1212

Three Challenges to Our Water Supply

1. RegulatoryPumping restrictions are sharply limiting imported water from Northern California

2. DroughtLast three years in California8 of last 10 on the Colorado River

3. Low storageMajor reservoirs have been drawn down to low levels

1313

Fish Protections Restrict Pumping

Banks Pumping PlantState Water Project Chinook salmon

Central Valley steelhead

Green sturgeon

Delta smelt

Longfin smelt

1414

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

NoRe

stric

tions

NoNoRe

stric

tions

Rest

rictio

ns

Pumping Restricted ¾ of the Year

1515

Impacts of Regulatory Restrictions on Southern California’s Supplies

Critical Dry Average

598,000 AF

1,518,000 AF1,886,000 AF

Water supplies from the State Water Project without restrictions

AF = Acre-feet. One acre-foot = 325,900 gallons.

Wet

1616

Impacts of Regulatory Restrictions on Southern California’s Supplies*

980,000 AF

1,709,000 AF1,851,000 AF

23% lost

30% lost30% lost

460,460 AF 1,058,046 AF 1,320,200 AF

Reductions in water supplies from the State Water Project due to pumping restrictions to protect fish

AF = Acre-feet. One acre-foot = 325,900 gallons.

Critical Dry Average Wet

*Source: Metropolitan Water District; updated 7/78/2009

17

Key Delta RisksKey Delta Risks

Seismic RiskBay Area FaultsSeismic RiskSeismic RiskBay Area FaultsBay Area Faults

Flooding RiskJones Tract (2004)

Flooding RiskFlooding RiskJones Tract (2004)Jones Tract (2004)

Fishery DeclinesDelta smelt

Fishery DeclinesFishery DeclinesDelta smeltDelta smelt

18

We face significant losses of spring snowpack

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)

• Less snow, more rain

• Particularly at lower elevations

• Earlier run-off

• More floods

• Less stored water

Knowles and Cayan 2001

19

Water Resource Impacts

Decreasing snowpack, earlier snowmelt More rain - increased runoff – altered water qualityIncreased demand & evaporation– due to higher temperaturesIncreased saltwater intrusion – due to sea level rise

Increased salinity in Delta

2020

Current Drought Condition inSan 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” conditionMandatory water use restrictions

2121

Mandatory Water Use RestrictionsIrrigation restrictions

Limits on number of days/duration/prohibited hours Stop runoff/time limits to repair leaks

Ornamental water fountain/feature use prohibitedUnless using recycled water

Washing paved surfaces prohibitedCar washing: positive shut-off nozzle or commercial site that re-circulates/re-uses water Restaurants: water served only upon requestLodging: must offer guests option of not laundering towels and linens dailyConstruction purposes: use recycled or non-potableFor specifics on local regulations: www.sdcwa.org

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/monthIncrease 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

23

Diversifying San Diego County’s Water Supply Portfolio

Metropolitan Water District

Imperial Irrigation District Transfer

All American & Coachella Canal Lining

Conservation

Seawater Desalination

Local Surface Water

Recycled Water

Groundwater

2010 20201991

95%

MWD Supplies 62%

MWD Supplies

29%

QSA Supplies

20%Local Supplies

16%

QSA Supplies

31%

Local Supplies 40%

Dry-Year Transfers

2%

Dry-Year Water Transfers

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 suppliesRecycled waterGroundwaterSeawater desalinationConservation

$3.7 billion Capital Improvement ProgramHistoric regional infrastructure investments

24

2525

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

Coachella Canal Lining

Provide 129,000 acre-feet combined in 2009

280,000 acre-feet annually by 2021

Canal-lining project

26

All American Canal Lining

27

Desalination

Benefits:New locally-controlled potable water supplyDrought-proof supplyImproved water qualityReliable supply (proven technology)Economies of Scale

Challenges:Higher capital and operating cost (similar to the cost of recycled water)Availability of coastal sites for desalinationIntake and Discharge Permitting (impacts to marine life)Higher energy use relative to other water resources

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

28

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

29

29

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

Camp PendletonSeawater Desalination Project

30

Seawater Desalination: Mexico and South County

Joint study with Mexico and U.S. Colorado River water agencies

Rosarito Beach site25 to 50 mgd

South San Diego CountyFollow-up to 2005 Water Authority studySite north of border, near International OutfallUp to 25 mgd

3131

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

What about Water Recycling?

32

Indirect Potable Reuse

Coordination with Regional Board & California Department of Public HealthProtect public health and water qualityPublic acceptance

Need creative solutions for San Diego- Accommodate small groundwater basins- Reservoir Augmentation

33

City of San Diego Indirect Potable Reuse (IPR)/Demonstration Project

+ + + + +Ultra-filtration

ReverseOsmosis

UV +Peroxide

PipelineChlori-nation

DetentionTime

inReservoir

Treatmentat

Drinking WaterPlant

Tertiary Treatment

Advanced Water Treatment process

34

Capital Improvement ProjectsEmergency Storage ProgramMajor Projects Completed or under constructionAsset Management

35

$3.8 Billion Capital ImprovementProgram (1989-2030)

System of facilities to:Meet regional demands

Meet emergency demands

Common to both:Dams and reservoirs

Pipelines

Pump stations and flow control facilities

Treatment Plant & Hydroelectric regional assets

$3.8 Billion CIP

Support Emergency Demands

34%

Support Regional Demands

66%

36

Water Storage –Olivenhain Reservoir

Completed in 2003 at a cost of $198 million, the OlivenhainReservoir stores 24,000 AF of water, enough water for 50,000 families a year

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

38

Lake Hodges Projects

Construction of the Lake Hodges Projects began in 2005 and is anticipated to be complete in late 2010.

3939

40

Water Storage –San Vicente Dam Raise

Will increase lake capacity by 150,000 AF from the current 90,000 AFTotal project cost is $568 millionConstruction will be complete by the fall of 2012Once finished, depending upon rainfall and water supply and demand, will take 2 – 5 years to fill to capacity

41

42

43

Twin Oaks ValleyWater Treatment PlantTwin Oaks ValleyWater Treatment Plant

43

44

Brand Identity Package

45

Water Smart Branding

LandscapesDesignIrrigationPlantsMaintenance

46

Challenges and Opportunities

The diversification of our water supplies is key to reliabilityWe 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.

47

Questions?

48