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6.G. - Page 52 of 238 <br />proceeds that remain in the reserve fund as of December 31, 2018 shall <br />be used to complete projects previously approved under subsection E. <br />Upon completion of the identified projects, the balance of any <br />unexpended sums in the reserve fund shall be distributed to BAWSCA <br />and the SFPUC in proportion to the total amount of surcharges assessed <br />to the Wholesale and Retail Customers, respectively. <br />E. Use of Environmental Enhancement Surcharge Proceeds. Specific uses of <br />Environmental Enhancement Surcharges will be decided by the SFPUC and BAWSCA General <br />Managers following input from environmental stakeholders and other interested members of the <br />public. If parties are unable to agree, then they will jointly select a third person to participate in <br />making the decision. <br />4.05. San Jose/ Santa Clara Interim Supply Allocation and Process for Reduction/ <br />Termination. <br />San Francisco will supply a combined annual average of 9 MGD to the cities of San <br />Jose and Santa Clara through 2028. Water supplied by San Francisco may only be used in the <br />defined service areas of San Jose and Santa Clara shown on Attachment Q-1 and Q-2, <br />respectively. San Francisco may reduce the quantity of water specified in this section when it <br />establishes the Interim Supply Allocations for Wholesale Customers in Section 4.02. The <br />establishment of Interim Supply Allocations for San Jose and Santa Clara shall not be <br />considered a reduction of supply within the meaning of this section, provided that the Interim <br />Supply Allocations assigned to San Jose and Santa Clara do not effect a reduction greater than <br />the aggregate average reduction in Individual Supply Guarantees for Wholesale Customers that <br />have such guarantees. The application of Interim Supply Allocations to San Jose and Santa <br />Clara, and water supply planning after December 31, 2018, are subject to the following <br />provisions: <br />A. In December 2010 and in each December thereafter through 2027, the SFPUC <br />shall prepare and the Commission shall consider, at a regularly scheduled public meeting, a <br />Water Supply Development Report detailing progress made toward (1) meeting the Interim <br />Supply Limitation by June 30, 2018 and (2) developing additional water supplies that will allow <br />the Commission to designate San Jose and Santa Clara as permanent Wholesale Customers of <br />the Regional Water System with a combined Individual Supply Guarantee of up to 9 MGD by <br />the end of the Term on June 30, 2034. <br />34 <br />15118728.1 <br />383 <br />