California Water Commission Pacheco Reservoir Expansion Unique Opportunity

California Water Commission Pacheco Reservoir Expansion Unique Opportunity for Fisheries Recovery, Flood Risk Reduction and Emergency Water Supply Consideration for Early Funding Award July 24, 2018 PPWD 1 of 8

Pacheco Reservoir Funding Application Enhances steelhead habitat PPWD Supplies Delta refuges Provides emergency supply Resolves water quality problem Supports disadvantaged communities 2 of 8

Pacheco Reservoir Expansion Project – Early Funding Request Early Funding is to complete Environmental Documentation and Permitting for the Project • PPWD Requested $24. 2 Million (5%) in August 14, 2017 Application 3 of 8

Pacheco Reservoir Expansion Project – PPWD Early Funding Objectives Significant work needed to complete final environmental documents and permits by January 2024 State’s funding will meet these objectives: • Assist SCVWD in ramping up budgets during early years • Reduce early rate increases 4 of 8

Pacheco Reservoir Expansion Project – PPWD Early Funding Need Early Funding will help meet statutory deadlines, aggressive schedule and ease ramp-up costs 5 of 8

Early Funding and Qualified Expenditures by Calendar Year $ 25, 0 Early Funding SCVWD Cost Share Expenditures (millions) $ 20, 0 $ 15, 0 $ 8, 8 $ 7, 7 $ 10, 0 $ 5, 3 $ 5, 0 $ 7, 7 $- PPWD $ 16, 9 $ 8, 8 $ 6, 9 $ 5, 3 $ 1, 2 2018 $ 15, 0 $ 1, 1 2019 2020 2021 2022 $- $- 2023 2024 6 of 8

Pacheco Reservoir Expansion Project – PPWD Early Funding SCVWD has the staff resources and financial capability to complete the environmental documentation and permitting • State’s funding would assist with ramping up costs, with consideration of streamlining impacts on ratepayers • State’s investment will not be stranded with Early Funding 7 of 8

Pacheco Reservoir Expansion Project – Summary Approve full Early Funding Requested to Complete Environmental Documentation and Permitting for the Project • PPWD Requested amount $24. 2 Million 8 of 8