Agmt09 San Francisco City and County of Water Sales Agreement

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9. Offer a corresponding volumetric increase in the Supply Assurance. The Discretionary Actions may require the SFPUC or Wholesale Customers to prepare environmental documents in accordance with CEOA prior to the SFPUC or the Wholesale Customers determining whether to proceed with any of the Discretionary Actions. Accordingly, and notwithstanding any provision of this Agreement to the contrary, nothing in this Agreement commits the SFPUC or the Wholesale Customers to approve or carry out any Discretionary Actions that are subject to CEOA. Furthermore, the SFPUC's or Wholesale Customers' decisions to approve any of these Discretionary Actions are subject to the requirement that San Francisco and each Wholesale Customer, as either a "Lead Agency" (as defined in Section 21067 of CEOA and Section 15367 of the CEOA Guidelines) or a "Responsible Agency" (as' defined in Section 21099 of CEOA and Section 15381 of the CEOA Guidelrnes) shall have completed any CEOA-required environmental review prior to approving a proposed Discretionary Action. B. In considering any proposed Discretionary Actions, the SFPUC and Wholesale Customers retain absolute discretion to: (1) make such modifications to any of the proposed Discretionary Actions as may be necessary to mitigate significant environmental impacts; (2) select feasible alternatives to the proposed Discretionary Actions that avoid significant adverse impacts; (3) require the implementation of specific measures to mitigate the significant adverse environmental impacts as part of the decision to approve the Discretionary Actions; (4) balance the benefits of the proposed Discretionary Actions against any significant environmental impacts before taking final actions to approve the proposed Discretionary Actions if such significant impacts cannot otherwise be avoided; or (5) determine not to proceed with the proposed Discretionary Actions. -33- 1840795.8