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<br />periods when the SFPUC has declared a water shortage emergency under Water Code Section <br />350 if the following conditions are met: <br /> <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 /> <br />B. Wheeled water that is stored in the Regional Water System spills first. <br /> <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 /> <br />D. Priority will be given to wheeling by Wholesale Customers or BAWSCA over <br />arrangements for third-party public entities. <br /> <br />3.13 Limits on New Customers <br /> <br />A. New Wholesale Customers Prior to December 31,2018. Until December 31, <br />2018, 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 />1. It completes any necessary environmental review under CEOA of the <br />proposed new wholesale water service obligations as provided in Section 4.07; <br /> <br />2. It concurrently completes any necessary environmental review under <br />CEOA as provided in Secfion 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 /> <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 />of the new customer(s) on water supply reliability, water quality and cost to existing customers <br />of the Regional Water System. <br /> <br />B. New Wholesale Customers After December 31, 2018. As of January 1, 2019, <br />San Francisco will not enter into contracts to supply water to any entity other than a Wholesale <br />Customer (whether permanent or temporary, firm or interruptible) unless: <br /> <br />-19- <br /> <br />I R40795.8 <br />