EXHIBIT 17-A

DRAFT

GWR Criteria

The Monterey Peninsula Water Management District desires the Groundwater Replenishment (GWR) project to proceed as a component of the Monterey Peninsula Water Supply Project if substantial completion is demonstrated on the following criteria:

1. Permit and CEQA status is consistent with the project schedule.

2. Source water is secured for recommended project.

3. Low end of the range of estimates of revenue requirement for GWR plus 6.4 MGD desalination plant shall be less than or equal to the high end of the range of estimates of revenue requirement for 9.6 MGD desalination plant (alternately: within XX% of)

4. Costs/benefits of environmental and policy “externalities” identified and included in evaluation.

5. At a point that is (i) no earlier than the date Cal-Am accepts the 30% Design from the contractor retained for the design of the Desalination Infrastructure, and (ii) no later than that date upon which Cal-Am is prepared to issue a notice to proceed to a contractor to commence construction of the Desalination Infrastructure, the time estimate for GWR project start-up is no later than the then current desal project start-up estimated date. However, if the public agencies determine GWR is ready to proceed prior to the 30% Design date, the decision to proceed can be made. (alternatively: SWRCB has signaled acceptance of later project start-up date for GWR)

6. Level of comfort with CDPH as to the treatment process, injection, and overall permitting

7. Completion of preliminary design.

8. Project funding plan in place.

9. Draft water purchase agreement approved.

Revised 5-3-13

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