1

Water Dialogue MeetingFebruary 22, 2006

All-American Canal Lining Project

Dan HentschkeGeneral Counsel

San Diego County Water Authority

2

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

3

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

4

AACLP Project Location

5

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

6

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

7

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

8

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)

9

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

10

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

11

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

12

Water Conserved from Lining the All-American Canal

SDCWA 56,200 ac-ft

SLR11,500 ac- ft

67,700 Acre-Feet per Year – 97 cfs diverted at Parker (>2% avg. mo. flow) – 10 – 12 % reduction in “recharge”

13

Existin

g AAC

Construct Lining

New

AA

C

14

All-American Canal typical sections

Proposed Lined Section13/4H or 2H:1V side slope

Existing Unlined Section2H:1V side slope

50’

136-164’

130’ +/-

Spoils

24’ O&M Road

15

16

17

18

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