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<br />the reserve fund as of December 31, 2018 shall be used to complete projects previously <br />approved under subsection E. Upon completion of the identified projects, the balance of any <br />unexpended sums in the reserve fund shall be distributed to BAWSCA and the SFPUC in <br />proportion to the total amount of surcharges assessed to the Wholesale and Retail Customers, <br />respectively. <br /> <br />E. Use of Environmental Enhancement SurcharQe Proceeds. Specific uses of <br />Environmental Enhancement Surcharges will be decided by the SFPUC and B~WSCA 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 /> <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 2018. Water supplied by San Francisco may only be used in the <br />existing defined service areas in the northern portions of San Jose and Santa Clara shown on <br />Attachment Q. 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 is subject to the following provisions: <br /> <br />A. In December 2010 and in each December thereafter through 2017, 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 meeting the Interim Supply <br />Limitation by June 30, 2018. <br /> <br />B. The annual Water Supply Development Report shall be based on water purchase. <br />projections and work plans for achieving the Interim Supply Limitation in the Retail and <br />. Wholesale Service Areas. The projections and work plans will be prepared by the SFPUC for <br /> <br />-30- <br /> <br />1840795.8 <br />