2009 Drought Water Bank Buyers Webinar September 17, 2008

1. 2009 Drought Water Bank Buyers Webinar September 17, 2008

5. 2009 Drought Water Bank DWR will facilitate water transfers from willing sellers to buyers that can take delivery of water from the Delta Water acquired by the Program will be available for purchase by public and private water providers based on critical needs being met first Transfers will be made without injuring other legal water users and without unreasonably affecting fish, wildlife, or other instream beneficial uses Transfers and related actions need to be in compliance with state and federal laws as applicable and consistent with local ordinances

6. 4 Ways to Make Water Available for Transfer Reservoirs- releases above normal operations Groundwater substitution- using groundwater instead of surface water supplies that would normally be used Cropland idling- not growing a crop that would have normally been grown (above normal fallowing practices) Crop substitution- growing a less water intensive crop

7. Participation in Drought Water Bank Buyers should express their interest in the Program no later than October 15, 2008 so they can have CEQA coverage through the Program Buyers are expected to make a deposit of $75 per acre foot once they commit to the program by executing a buyers agreement in early December 2008 Buyers will be required to commit to the program and to pay full amount of the water transfer before DWR executes purchase agreements with sellers Buyers are required to pay all their conveyance costs

8. Information from Buyers Amount of water desired by buyer Buyer needs to work with DWR to identify how and where water will be delivered Time periods for water delivery Potential power needs Potential critical water needs

9. Critical Needs Criteria Health and Safety needs including indoor residential, institutional, and emergency uses Any water not needed for critical needs will be available to participating buyers above their critical needs

10. Environmental Compliance Coordination with federal agencies Existing EIS/EIR environmental documentation will be used for environmental compliance Participation in the Drought Water Bank program will ensure the sellers and buyers will have environmental coverage Provides environmental compliance for Water Transfers resulting from cropland idling, crop substitution, and groundwater substitution Potential buyers will need to notify DWR by October 15, 2008

12. How to Buy Water from the Water Bank Interested buyers notify DWR by October 15, 2008 for inclusion in program CEQA document Develop buyer agreements (including conveyance) expected to be executed in early December 2008 Buyer agrees to pay full transfer amount, conveyance from the Delta to the point of delivery, and other applicable costs Buyer provides initial $75 per acre-foot cost when buyer agreement is executed Buyer receives water and makes final payment as specified in final agreement