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<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. San Francisco <br />will make San Jose and Santa Clara permanent customers only if, and to the extent that, San <br />Francisco determines that Regional Water System long term water supplies are available. In <br />the event that San Francisco decides to afford permanent status to San Jose and Santa Clara, <br />this Agreement will be amended pursuant to Section 2.03. <br /> <br />B. By December 31, 2018, 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 2030, and whether to offer a <br />co.rresponding increase in the Supply Assurance as a result of its determination. <br /> <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 /> <br />1. Develop additional or alternate water resources by the SFPUC or one or <br />more Wholesale Customers; <br /> <br />2. Implement the physical facilities comprising the WSIP by December 31, <br /> <br />2015; <br /> <br />3. Approve wheeling proposals by Wholesale Customers; <br /> <br />4. Approve new wholesale customers and water exchange or cost sharing <br />agreements with other water suppliers; <br /> <br />5. Provide additional water to San Jose and/or Santa Clara; <br /> <br />6. Offer permanent status to San Jose and/or Santa Clara; <br /> <br />7. Reduce or terminate supply to San Jose and/or Santa Clara; <br /> <br />8. Provide additional water to Wholesale Customers in excess of the Supply <br />Assurance to meet their projected future water demands; and <br /> <br />-32- <br /> <br />1840795.8 <br />