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<br />watersheds following 2018. ~uch 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 /> <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 antic.ipated regional <br />benefits and how co~ts of studies and implementation will be allocated and cliarged. 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 /> <br />3.17 Westside Basin Conjunctive Use ProQram <br />Subject to completion of necessary CEQA review as provided in Section 4.07, the <br />SFPUC may enter into an agreement with the cities of Daly City and San Bruno and the <br />California Water Service Company, South San Francisco Service Area ("Participating <br />Pumpers") governing the operation of the South Westside Basin Conjunctive Use Program <br />("Program"), a WSIP Project. The Program would produce Regional benefits for all customers <br />of the Regional Water System by making use of available groundwater storage capacity in the <br />Southern portion of the Westside Basin through the supply of additional surface water ("In Lieu <br />Water") to the Participating Pumpers from the Regional Water System, in exchange for a <br />corresponding reduction in groundwater pumping at existing wells owned by the Participating <br />Pumpers. The new groundwater supply that would accrue to storage as a result of delivery of In <br />Lieu Water would then be recovered from the SFPUC basin storage account durihg water <br />shortages using new SFPUC Regional Program wells operated by the Participating Pumpers <br />and the SFPUC. Program annual operations and maintenance expenses and water supplies <br />are expected to be allocated as follows: <br /> <br />-24- <br /> <br />1840795.8 <br />