California League of Cities Briefing on Water Supply Issues

California League of Cities Briefing on Water Supply Issues Stephen N. Arakawa Manager, Bay-Delta Initiatives The Metropolitan Water District of Southern California May 5, 2016

California WaterFix: Securing Water Supplies for California Enhances supply reliability and Delta ecosystem Supports Southern California s local resources Modernizes the State Water Project and addresses flaws since its creation Protects billions of dollars of past investments made by Southern California 2

Metropolitan Water District Regional water wholesaler 26 Member Agencies 6 counties Serving ~19 million residents 5,200 square mile service area $1 trillion economy 3 3

Bay-Delta: Critical Component of Metropolitan s Diverse Water Supplies Some regions 100% dependent on Bay-Delta supplies Bay Area 33% State Water Project Central Coast 37% Metropolitan 30% Conservation, Local Groundwater, Recycling and Desalination Bay-Delta Los Angeles Aqueduct Central Valley 23 to 90% Colorado River Aqueduct Southern California Water Portfolio 25% Colorado River 30% State Water Project (through the Delta) 45% Local Supplies Los Angeles Aqueduct Conservation Groundwater Recycling Desalination 4

MWD Water Resource Strategy Supply/Demand Management 1990 vs. 2035 Conservation & Recycling (7%) State Water Project (33%) Colorado River Aqueduct (26%) Conservation & Recycling (33%) State Water Project (22%) Colorado River Aqueduct (14%) Local Surface/Groundwater (34%) 1990 41% Local Heavy dependence on imported supplies Local Surface/Groundwater (31%) 2035 64% Local Emphasis on conservation, recycling, desalination and local supplies 5

State Water Project: Supports Development of Local Supplies Southern California s local supplies depend on water quality benefits of State Project water: Blending impaired supplies Maximizing recycled water opportunities Groundwater replenishment and recovery Conservation Garden Recycled Water Groundwater Recharge 6

Northern Sierra April Snow Survey April 2015: 5% April 2016: 94%

North Fairing Better than South OCTOBER 2015 April 2016 Improvement Some Improvement No Improvement ABNORMAL MODERATE SEVERE EXTREME EXCEPTIONAL

6.0 Million Acre-Feet 5.0 4.0 3.0 2.0 1.0 13x Increase in Capacity 0.0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Storage Reserves Buffer Drought Impacts End of Year Balances 5 4 Million Acre-Feet 3 2 1 2.2 1.8 1.1 1.0 1.7 2.4 2.7 2.3 1.2 0.9 1.5? 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Emergency Storage Dry-Year Storage

Sacramento/San Joaquin Bay-Delta Sacramento River/ West Delta Sacramento River Sacramento Stockton SWP Pumps San Joaquin River CVP Pumps 11

Water Flowing from the Delta Watershed In-Delta Consumptive Use 4% Upstream Consumptive Use 31% Pacific Ocean 48% Delta Exports 17% Metropolitan 4% Source: Delta Vision Report (2007) Time Period: 1990-2005 Estimated total annual runoff 32.85 maf 12

State s Proposal Another Step Forward Protects State s water supplies through Delta system upgrades Dual tunnel facilities and mitigation Water user funded Supports long-term health of native fish & wildlife Habitat restoration ~ 30,000 acres in 5 years Requires broader public funding 13 13

California WaterFix: Improved Water Delivery North Delta Modern intake screens allow fish to bypass without diversion Flexibility to divert excess flood flows & reduce fish impacts during low flow periods Additional Intakes Tunnels SWP Pumps CVP Pumps South Delta Reduces reverse flows in river Less fish diversion at pumps 14 14

2016 Storm Events 80,000 70,000 60,000 50,000 40,000 30,000 20,000 Sacramento River Storm #1 (21-day analysis) 1,622,000 AF Sacramento River 78,000 AF to State Water Project 10,000 Flow (cfs) - SWP Pumping ~ 1,500 2,000 cfs 1/6 1/13 1/20 1/27 2/3 2/10 2/17 2/24 3/2 January February March

Metropolitan Water Sales* 2.5 Actual Sales Long Term Average Sales Projection Million Acre-Feet 2.0 1.5 1.0 0.5 2.43 2.07 2.11 2.35 2.26 2.15 1.77 1.60 1.70 1.85 2.06 1.90 0.0 2004 2005 2006 * Includes Exchange 2007 2008 2009 2010 2011 2012 2013 2014 Fiscal Year Ending 2015 2016 2017 2018

Sacramento River 100 mg/l California WaterFix Improved Water Quality Would Help Local Supply and Management SWP (Existing) 302 mg/l SWP (CA Water Fix) 221 mg/l (27% improvement) San Joaquin River 320 mg/l Colorado River 650 mg/l Sacramento, San Joaquin & Colorado River water quality represents historical average annual recorded data State Water Project water quality is comparison of modeled data from the Recirculated Draft EIR/EIS 17

Modernizing the State Water Project Water security Improved reliability Seismic safety Environmental protection Climate change adaptation Designed to meet the state s mandated co-equal policy goals Improved reliability Ecosystem restoration 18

California WaterFix Updated Cost Analysis Tunnels/Pipeline Capital $15.0 billion Operations/Maintenance/Mitigation /Monitoring $2.5 billion (50 years) Total $17.5 billion Cost Paid by water users ~$5/month/house (urban) Estimated costs from DWR; in undiscounted 2014 dollars with a 36% contingency Metropolitan s share is approximately 25%-30% 20

Future Resource Development Costs Supply Cost ($/AF) $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $12,000/AF MWD 2016 Tier 1 Treated (with California Water Fix) ~$1,089 to $1,118/acre-feet $1,000 $0 Stormwater Centralized Stormwater Distributed Groundwater Recovery Recycled Water Seawater Desalination * 2015 IRP Update local supply cost analysis as of November 2015, in 2015 dollars

Time for Action Need to modernize Unsustainable system Infrastructure Ecosystem Changing regulations Changing environment Protect Investments SWP Storage DVL/Inland Feeder Treatment Processes Local supplies Can t afford to delay Stephen N. Arakawa sarakawa@mwdh2o.com mwdh2o.com Bewaterwise.com @mwdh2o 22

Delta: Hub of California s Water Supply Supplies 25 million Californians with State Project water Provides irrigation for much of the produce grown domestically 57 Islands and Tracts 700 miles of sloughs and channels 1,100 miles of levees 23

Water Investment Projects Project Cost Population Served Per capita cost SFPUC s Hetch Hetchy Project $4,600,000,000 2,500,000 $1,840 SWP Coastal Aqueduct and CCWA Project $575,000,000 430,000 $1,337 CCWD Los Vaqueros Project $570,000,000 550,000 $1,036 BDCP Conveyance Tunnels (BDCP August 2015) 14,900,000,000 25,000,000 $596 SDCWA Emergency Storage Project $1,500,000,000 2,800,000 $536 EBMUD Freeport Project $517,000,000 1,300,000 $398 Diamond Valley Lake/Inland Feeder $3,100,000,000 18,000,000 $172 BDCP Economic Benefits and Financial Strategies, SCWC/The PFM Group, February 2012 24

Metropolitan Board 2016: Anticipated Decisions Supported planning process-no formal action taken yet Reviewing Technical, legal and financial analysis Overall Process Fall 2016 Final EIR/S Review Endangered Species Permits 25