WATER STORAGE INVESTMENT PROGRAM Agenda Items 8 9

WATER STORAGE INVESTMENT PROGRAM Agenda Items 8 & 9: Maximum Conditional Eligibility Determinations For Ranks 2 & 3 July 24, 2018

Project Scores and Ranks ØIn June, the Commission: ü Finalized Total Return for Public Investment scores; and ü Made the required determinations ØRegulations require the final scores prior to ranking projects ØRegulations define the Ranks by Score, as follows: • Rank 1: 85 or higher • Rank 2: 70 -85 • Rank 3: less than 70 Water Storage Investment Program

Maximum Conditional Eligibility Determination Rank 2 Projects Pacheco Reservoir Expansion Los Vaqueros Reservoir Expansion South County Ag Program Temperance Flat Reservoir Chino Basin Conjunctive Use Total of Rank 2 MCEDs Rank 3 Projects Sites Reservoir Willow Springs Water Bank Kern Fan Groundwater Storage Water Storage Investment Program Suggested MCED $484. 55 million $459. 00 million $280. 50 million $171. 33 million $206. 90 million $1, 602. 28 million

Commission Options ØAccept staff-suggested MCEDs for Rank 2 ØAdjust MCEDs for Rank 2 projects, considering: • Leveraging of private, federal, or local funding • Ability of collective suite of projects to advance long term objectives of restoring ecological health and improving water management for beneficial uses of the Delta • Implementation of the California Water Action Plan ØCan assign MCEDs for Rank 3 projects if: ü Funds remain from Rank 2, and ü Rank 2 projects receive MCEDs equal to eligible funding request. Water Storage Investment Program

Rank 3 Maximum Conditional Eligibility Determinations Ø$979. 32 million is available if the Commission chooses to assign an MCED to Rank 3 projects ØIt is up to the Commission to decide how to assign MCEDs to Rank 3 projects ØStaff report includes examples Water Storage Investment Program

EXAMPLES OF MAXIMUM CONDITIONAL ELIGIBILITY DETERMINATIONS (MCEDS) FOR RANK 3 Total Amount to Invest $2, 581, 601, 000 Rank 2 MCED subtotal $1, 602, 280, 000 Remainder $979, 321, 000 $ in Millions $979. 32 PROPORTIONATE TO REQUEST Rank 3 Projects Sites Project Funding Request ($M) $916. 62 Kern Fan Groundwater Storage Project Willow Springs Water Bank SHORTFALL TO HIGHEST REQUEST ASSIGN MCED BY SCORE MCED ($M) $916. 62 Amount remaining to Assign ($M) $62. 70 % of Applicant’s Request 100% 87% $62. 70 $0. 00 87% $0. 00 MCED ($M) $797. 52 % of Applicant’s Request 87% $85. 66 $74. 53 $123. 29 $107. 27 Total $1, 125. 57 $979. 32 Shortfall ($146. 25) $979. 32 SHORTFALL SPLIT: 50%, 25% MCED ($M) $770. 37 % of Applicant’s Request 84% MCED ($M) $843. 50 % of Applicant’s Request 92% 73% $85. 66 100% $49. 10 57% 0% $123. 29 100% $86. 73 70% $979. 32

Proposition 1 Water Quality, Supply, and Infrastructure Improvement Act of 2014 Water Storage Investment Program