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Page 6 of 19 <br />21418818.2 <br />Program (“WSIP”), including the level of service goal to “meet dry-year delivery needs while <br />limiting drought rationing to a maximum 20 percent system-wide reduction water service during <br />extended droughts” (2023 Amended and Updated LOS Goals and Objectives, SFPUC <br />Resolution No. 23-0210, adopted November 28, 2023, updating the Resolution No. 08-0200, <br />adopted October 30, 2008). Should conditions occur that result in system-wide shortages <br />greater than 20%, the provisions in WSA Section 3.11(C) apply. The Tier 2 Plan calculations <br />may be used during discussions with the SFPUC on how to implement reductions above 20% <br />with the Wholesale Customers and for planning purposes only to estimate potential Wholesale <br />Customer allocations for system-wide shortages greater than 20% (e.g., to inform efforts such <br />as Urban Water Management Plans). <br />BAWSCA Role in Plan Implementation <br />In accordance with the WSA, upon the SFPUC’s declaration or reconfirmation of a water <br />shortage emergency, BAWSCA will calculate and provide the SFPUC with each Wholesale <br />Customer’s individual percentage share of the amount of water allocated to the Wholesale <br />Customers collectively. <br />In the event that shortage conditions change and the SFPUC takes action to declare an <br />increase or decrease to the system-wide shortage level, BAWSCA will recalculate the Tier 2 <br />Plan and submit new Allocation Factors to the SFPUC. When rerunning the Tier 2 calculations, <br />the Base Period will not change to provide predictability (Policy Principle #3). The only inputs <br />that will change are the Overall Wholesale Customer Allocation and population, if a more recent <br />Annual Survey has been published. <br />If the appropriate base period data, as specified in this Plan, are not available when BAWSCA <br />initially calculates the Tier 2 Allocation Factors, the Base Period may be updated. However, <br />BAWSCA may only provide the SFPUC with updated Allocation Factors if the Commission <br />takes action to declare or reconfirm a shortage condition. <br />Each year, BAWSCA will provide the Wholesale Customers with a review of the Tier 2 Plan. <br />The annual review will include: <br />•Calculation of each Wholesale Customer’s Allocation Factor for regional shortages of <br />10% and 20% for the current Base Period, based upon the most recent published <br />BAWSCA Annual Survey; <br />•Review of Base Period data used to develop the calculations. <br />7.Plan Term <br />The term of the Tier 2 Plan will be the same as the WSA term and may be extended by the <br />written agreement of all the Wholesale Customers. The Tier 2 Plan negotiators chose to <br />coordinate the Plan term with WSA term in order to avoid simultaneous renegotiation of these <br />related agreements. Pursuant to WSA Section 2, the WSA expires on June 30, 2034. In <br />December 2031, the SFPUC may provide written notice to the Wholesale Customers that it is <br />willing to extend the WSA for five years, through June 30, 2039. Between January 1, 2032 and <br />June 30, 2032, any Wholesale Customer may accept the SFPUC's offer to extend the Term by <br />providing a written notice of extension to the SFPUC. If the WSA is extended, the Tier 2 Plan <br />ATTY/RESO.0092/CC RESO APPROVING TIER 2 DROUGHT RESPONSE IMPLEMENTATION PLAN (WATER SUPPLY AGREEMENT) - EXHIBIT A <br />REV: 08-18-25 MI <br /> <br />Page 8 of 21