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6.G. - Page 37 of 238 <br />will be reported to the SFPUC and the BAWSCA board of directors during the first quarter of <br />each calendar year. <br />3.12. Wheeling of Water from Outside SFPUC System <br />Subject to the Wheeling Statute, the SFPUC will not deny use of Regional Water System <br />unused capacity for wheeling when such capacity is available for wheeling purposes during <br />periods when the SFPUC has declared a water shortage emergency under Water Code Section <br />350 if the following conditions are met: <br />A. The transferor pays reasonable charges incurred by the SFPUC as a result of the <br />wheeling, including capital, operation, maintenance, administrative and replacement costs (as <br />such are defined in the Wheeling Statute). <br />B. Wheeled water that is stored in the Regional Water System spills first. <br />C. Wheeled water will not unreasonably: (1) impact fish and wildlife resources in <br />Regional Water System reservoirs; (2) diminish the quality of water delivered for consumptive <br />uses; or (3) increase the risk of exotic species impairing Regional Water System operations. <br />The transferor may at its own expense provide for treatment to mitigate these effects. <br />D. Priority will be given to wheeling by Wholesale Customers or BAWSCA over <br />arrangements for third -party public entities. <br />3.13. Limits on New Customers <br />A. New Wholesale Customers Prior to December 31, 2028. Until December 31, <br />2028, San Francisco will not enter into contracts to supply water to any entity other than a <br />Wholesale Customer (whether permanent or temporary, firm or interruptible) unless: <br />It completes any necessary environmental review under CEQA of the <br />proposed new wholesale water service obligations as provided in Section 4.07; <br />2. It concurrently completes any necessary environmental review under <br />CEQA as provided in Section 4.07 and commits to make both San Jose and Santa Clara <br />permanent customers with Individual Supply Guarantees equal to at least 9 MGD; and <br />3. This Agreement is amended to incorporate any commitments to proposed <br />new wholesale customers and to San Jose and Santa Clara, and to address the effects, if any, <br />19 <br />15118728.1 <br />368 <br />