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6.G. - Page 54 of 238 <br />relevant to the water supply and the possible offer of permanent status for the two cities by the <br />SFPUC. <br />4.06. San Francisco Decisions in 2028 Regarding Future Water Supply <br />A. By December 31, 2028, San Francisco will have completed any necessary <br />CEQA review pursuant to Section 4.07 that is relevant to making San Jose and Santa Clara <br />permanent customers of the Regional Water System and will decide whether or not to make <br />San Jose and Santa Clara permanent customers of the Regional Water System with a <br />combined Individual Supply Guarantee of 9 MGD allocated equally between the two cities, as <br />well as how much water in excess of 9 MGD it will supply to San Jose and Santa Clara. San <br />Francisco will make San Jose and Santa Clara permanent customers only if, and to the extent <br />that, San Francisco determines that Regional Water System long term water supplies are <br />available. In the event that San Francisco decides to afford permanent status to San Jose and <br />Santa Clara, this Agreement will be amended pursuant to Section 2.03. <br />B. By December 31, 2028, San Francisco will have completed any necessary <br />CEQA review pursuant to Section 4.07 and will decide how much water, if any, in excess of the <br />Supply Assurance it will supply to Wholesale Customers from the Regional Water System to <br />meet their projected future water demands until the year 2040, and whether to offer a <br />corresponding increase in the Supply Assurance as a result of these determinations. <br />4.07. Retained Discretion of SFPUC and Wholesale Customers <br />A. This Agreement contemplates discretionary actions that the SFPUC and the <br />Wholesale Customers may choose to take in the future that could result in physical changes to <br />the environment ("Discretionary Actions"). The Discretionary Actions include decisions to: <br />Develop additional or alternate water resources by the SFPUC or one or <br />more Wholesale Customers; <br />2. Implement the physical facilities comprising the WSIP by December 30, <br />2021; <br />3. Approve wheeling proposals by Wholesale Customers; <br />4. Approve new wholesale customers and water exchange or cost sharing <br />agreements with other water suppliers; <br />5. Provide additional water to San Jose and/or Santa Clara; <br />6. Offer permanent status to San Jose and/or Santa Clara; <br />36 <br />15118728.1 <br />385 <br />