80A - JOINT - SAFA - WATER SYS BONDS

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agencies to manage future challenges and changes in California's water conditions and to balance investments with water reliability benefits. The 2010 IRP Update provides an adaptive management approach to address future uncertainty, including uncertainty from climate change. It was formulated with input from member agencies, retail water agencies, and other stakeholders including water and wastewater managers, environmental and business interests and the community. The framework places an emphasis on regional collaboration. The 2010 IRP Update seeks to provide regional reliability through 2035 by stabilizing MWD's traditional imported water supplies and continuing to develop additional local resources, with an increased emphasis on regional collaboration. It also advances long -term planning for potential future contingency resources, such as storm water capture and large -scale seawater desalination, in close coordination with MWD's 26 member agencies and other utilities. The 2010 IRP Update is available on MWD's web site at http: / /www.mwdh2o.com/mwdh2o /pages /yourwater /irp /. Specific projects that may be developed by MWD in connection with the implementation of the IRP will be subject to future Board consideration and approval, as well as environmental and regulatory documentation and compliance. The information set forth on MWD's website is not incorporated by reference. State Water Project One of MWD's two major sources of water is the State Water Project, which is owned by the State and operated by DWR. This project transports Feather River water stored in and released from Oroville Dam and unregulated flows diverted directly from Bay -Delta south via the California Aqueduct to four delivery points near the northern and eastern boundaries of MWD's service area. The total length of the California Aqueduct is approximately 444 miles. In 1960, MWD signed a water supply contract (as amended, the "State Water Contract ") with DWR. MWD is one of 29 agencies that have long -term contracts for water service from DWR, and is the largest agency in terms of the number of people it serves (approximately 18.2 million), the share of State Water Project water that it has contracted to receive (approximately 46 percent), and the percentage of total annual payments made to DWR by agencies with State water contracts (approximately 53 percent for 2012). Colorado River Aqueduct The Colorado River was MWD's original source of water after MWD's establishment in 1928. MWD has a legal entitlement to receive water from the Colorado River under a permanent service contract with the Secretary of the Interior. Water from the Colorado River and its tributaries is also available to other users in California, as well as users in the states of Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming (the "Colorado River Basin States "), resulting in both competition and the need for cooperation among these holders of Colorado River entitlements. In addition, under a 1944 treaty, Mexico has an allotment of 1.5 million acre - feet of Colorado River water annually except in the event of extraordinary drought or serious accident to the delivery system in the United States, in which event the water allotted to Mexico would be curtailed. Mexico also can schedule delivery of an additional 200,000 acre -feet of Colorado River water per year if water is available in excess of the requirements in the United States and the 1.5 million acre -feet allotted to Mexico. The Colorado River Aqueduct, which is owned and operated by MWD, transports water from the Colorado River approximately 242 miles to its terminus at Lake Mathews in Riverside County. After deducting for conveyance losses and considering maintenance requirements, up to 1.25 million acre -feet of water a year may be conveyed through the Colorado River Aqueduct to MWD's member agencies, subject to availability of Colorado River water for delivery to MWD as described below. California is apportioned the use of 4.4 million acre -feet of water from the Colorado River each year plus one -half of any surplus that may be available for use collectively in Arizona, California and Nevada. In addition, California has historically been allowed to use Colorado River water apportioned to but not used by Arizona or Nevada when such supplies haveWiAdtit"or use in California. Under the 1931 priority 24