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6.G. - Page 42 of 238 <br />3.16. New Sources of Water Supply to Increase Supply Assurance <br />A. Surface Water Supplies From Existing Watersheds After 2018. The <br />Commission action in SFPUC Resolution Number 08-0200, adopted October 30, 2008 requires <br />certain decisions by San Francisco regarding whether to supply more than 265 MGD from its <br />watersheds following 2018. Such decisions are to be made by December 31, 2018, subject to <br />the exercise of San Francisco's retained CEQA discretion in Section 4.07. San Francisco's <br />future decisions may include an offer to increase the Supply Assurance at the request of some <br />or all of its Wholesale Customers. Costs associated with providing additional water from its <br />existing water supplies in San Mateo, Santa Clara, Alameda, Tuolumne, and Stanislaus <br />Counties shall be allocated to Wholesale and Retail Customers as described in Article 5. <br />B. New Water Supplies. If San Francisco seeks to develop additional water <br />supplies from new sources to increase the Supply Assurance available to Wholesale <br />Customers, studies and resulting water supply projects will be conducted jointly with BAWSCA <br />under separate agreement(s) specifying the purpose of the projects, the anticipated regional <br />benefits and how costs of studies and implementation will be allocated and charged. Nothing in <br />this Agreement shall serve as precedent for the allocation of such new supply capital costs <br />between Retail and Wholesale Customers or associated operational expenses, which shall only <br />occur following approval of both parties and amendment of this Agreement, if necessary, under <br />Section 2.03. <br />3.17. Westside Basin Groundwater Storage and Recovery Project <br />In August 2014, the SFPUC approved a WSIP project called the Groundwater Storage <br />and Recovery Project ("Project"), which authorized the SFPUC to enter into an agreement <br />governing the operation of the Project with the Participating Pumpers entitled "Agreement for <br />Groundwater Storage and Recovery from the Southern Portion of the Westside Groundwater <br />Basin by and among the San Francisco Public Utilities Commission, the City of Daly City, the <br />City of San Bruno, and California Water Service Company" ("Project Operating Agreement"), <br />which became effective on December 16, 2014. The Project produces Regional benefits for all <br />customers of the Regional Water System by making use of available groundwater storage <br />capacity in the Southern portion of the Westside Basin through the supply of additional surface <br />water ("In Lieu Water") to the Participating Pumpers from the Regional Water System, in <br />exchange for a corresponding reduction in groundwater pumping at existing wells owned by the <br />Participating Pumpers. The new groundwater supply that accrues to storage as a result of <br />24 <br />15118728.1 <br />373 <br />