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14 <br />2021 Amended and Restated WSA 17162043.1 <br />transferees who are subject to, or not yet subject to, the minimum annual purchase <br />requirements of Section 3.07.C. <br />4. Duration and Expiration of Temporary Modified Minimum Annual <br />Purchase Quantity. <br />a. Once a transfer under this sub-section is approved and effective, <br />the transferee is required to purchase from the SFPUC its Temporary Modified Minimum Annual <br />Purchase Quantity until the quantity of water delivered annually to the transferee by the SFPUC <br />meets or exceeds the Temporary Modified Minimum Annual Purchase Quantity for three <br />consecutive fiscal years. It may take many years for the quantity of water delivered to meet or <br />exceed this amount. The transferee’s Temporary Modified Minimum Annual Purchase Quantity <br />is subject to waiver by the SFPUC as described in Section 3.07.C. However, even in the event <br />of such a waiver, a fiscal year in which the transferee still purchases from the SFPUC an <br />amount of water that meets or exceeds its Temporary Modified Minimum Annual Purchase <br />Quantity will count as a fiscal year in which the transferee has met or exceeded its Temporary <br />Modified Minimum Annual Purchase Quantity for the purposes of this paragraph. <br />b. Once the quantity of water delivered to the transferee by the <br />SFPUC reaches the milestone described in the preceding paragraph, the transferee will no <br />longer be subject to the Temporary Modified Minimum Annual Purchase Quantity. Instead, the <br />transferee will have a new permanent Minimum Annual Purchase Quantity, which will equal the <br />sum of (1) its previous Minimum Annual Purchase Quantity, if applicable, plus (2) the relevant <br />reduction in the transferor’s Minimum Annual Purchase Quantity. The transferee’s new <br />permanent Minimum Annual Purchase Quantity will be reflected on Attachment E, and its <br />expired Temporary Modified Minimum Annual Purchase Quantity will be removed from <br />Attachment E-1, pursuant to Section 3.04.F. Any other Temporary Modified Minimum Annual <br />Purchase Quantities of the transferee will remain in effect on Attachment E-1. <br />D. Transfers of portions of Individual Supply Guarantees, including transfers of <br />portions of Minimum Annual Purchase Quantities, are subject to approval by the SFPUC. <br />SFPUC review is limited to determining (1) whether a proposed transfer complies with the Act, <br />and (2) whether the affected facilities in the Regional Water System have sufficient capacity to <br />accommodate delivery of the increased amount of water to the proposed transferee. <br />E. The participants in a proposed transfer shall provide written notice to the SFPUC <br />and BAWSCA specifying (1) the amount of the Individual Supply Guarantee proposed to be