ITEM:		ACTION ITEM
13.	CONSIDER ADOPTING RESOLUTION NO. 2022-09 MODIFYING RULE 160 TO INCORPORATE ALL WATER RESOURCES PROJECTS TO TABLES XV-1, XV-2 AND XV-3 AND MODIFY TABLE XV-2 TO REPORT YIELD FROM WATER SUPPLY PROJECTS INSTEAD OF PRODUCTION FROM SATELLITE SYSTEMS
Meeting Date:			March 21, 2022	Budgeted:	No
From:			David J. Stoldt	Program/	Water Supply Projects
			General Manager	Line Item:	1-2-1 2a
Prepared By:			Jonathan Lear	Cost Estimate:	None
General Counsel Review: N/A
Committee Recommendation: N/A
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines section 15378.

SUMMARY: Pure Water Monterey startup in WY 2021 and the Cease and Desist Order (CDO) regulatory limits beginning in Calendar Year 2022 have changed the water supply portfolio for the Monterey Peninsula. In subsequent water years, due to the CDO and the Seaside Adjudication the amount of water legally allowed to be produced out of the Monterey Peninsula Water Resource System (MPWRS) will be limited to 4,850 acre feet per year (3,376 from Carmel Valley and 1,474 from the Seaside Basin). The remainder of annual system demand will be met through water supply projects consisting of Pure Water Monterey (PWM), Aquifer Storage and Recovery (ASR), and Sand City Desalination. To better represent the annual water supply, Rule 160 should be modified to reflect the water supplied from the MPWRS and water supply projects. With this change, production tracking against Rule 160 monthly limits can again be utilized as rationing triggers for Rules 162 to 165.

Additionally, the current version of Rule 160 uses Table XV-2 Regulatory water production targets for California American Water Satellite Systems from sources within the Monterey Peninsula Water Resource System. Because of the tri-anneal production ramp downs imposed by the Seaside Adjudication, the water allocation for the Laguna Seca Sub-Area has been reduced to zero. Physical interties between the Main System and the Ryan Ranch and Bishop Systems have been constructed. Table XV-2 no longer provides a function to Rule 160.

To better represent the annual supply and demand, the methodology for Tables XV-1 and XV-2 should be modified to take into account the water resources projects and regulatory changes. Table XV-1 should be modified to account for the MPWRS and the water supply projects. The breakdown of the source of the water can be footnoted on the table. This modification will return the functionality of the Rule 160 rationing triggers. Table XV-2 should be modified from reporting on the Satellite Systems to reporting on the water supply projects. This change will restore the structure of the values in Table XV-1 representing the total water supply by adding the monthly values of Tables XV-2 and XV-3.

RECOMMENDATION: Adopt Resolution 2022-09 adding the monthly and year-to-date at month-end values for all operational water resources projects to Tables XV-1, XV-2, and XV-3 for District Rule 160 and change Table XV-2 to report water supply from water projects and not production from the Satellite Systems.

BACKGROUND: The District established Rule 160 by Ordinance 92 on 1/29/99 and has been modified several times over the years. The Rule establishes the monthly distribution of water production form all sources in the MPWRS, which is described as the Seaside Groundwater Basin and the Carmel Valley Alluvial Aquifer. The monthly limits are tied to the District Rationing Rules set forth in MPWMD Rules 162 to 165.

EXHIBIT

13-A Draft Resolution No. 2022-09 - A Resolution of the Board of Directors of the Monterey Peninsula Water Management District Modifying Rule 160 – Regulatory Production Targets for California American Water.

U:\staff\Boardpacket\2022\20220321\Action Items\13\Item-13.docx