Exhibit 2-A

Conceptual Revisions to WDS Regulations Proposed by MPWMD Staff

Prepared for October 28, 2013 Rules and Regulations Review Committee Meeting

The Pre-Application step is deleted (Rule 21-A) and necessary maps and guidance information shall be posted on the MPWMD website.

The Water Distribution System (WDS) Application must attach a MCEHB Well Construction Permit, DWR Well Completion Report, well testing results, MCEHB water quality and quantity certification form, and deed to the property at a minimum.

Focus is on whether the WDS is within or outside of the Monterey Peninsula Water Resources System (MPWRS) which is comprised of the Carmel Valley Alluvial Aquifer (CVAA) and the Seaside Groundwater Basin (SGB). Systems outside of the MPWRS will have less regulation.

Four types of regulatory action would occur, depending on the situation (see pg. 3 for description):

Type A= basic exemption (standard verbiage including conditions of approval)

Type B= enhanced exemption (possible additional work due to location or other issues)

Type C= basic WDS Permit without system limits (certain Seaside Basin or non-MPWRS wells)

Type D= full WDS Permit with system limits

Staff wishes to have physical access to all Wells to potentially monitor groundwater levels; this requirement is part of all conditions of approval. Wells already need to be registered, metered, inspected and report production annually.

Rules 20, 21 and 22 would be amended to reflect these changes.

Table 1— Basic Questions

SETTING QUESTIONS	YES	NO	NOTES
Q1= Is this a Carmel Valley Alluvial Aquifer (CVAA) Well?	Go to Table 2	Go to Q2	CVAA defined in MPWMD Rule 11
Q2= Is this a Seaside Groundwater Basin (SGB) Well?	Go to Table 3	Go to Q3	SGB defined in MPWMD Rule 11
Q3= Is this a Non-MPWRS Well (aka Fractured Rock Well)	Go to Table 4	Go to Q4	MPWRS and FRW defined in MPWMD Rule 11
Q4= Is this a Non-Well Situation?	Go to Table 5	n/a	Includes onsite and offsite rainwater collection; non-potable natural springs; non-potable mobile WDS; reclamation, desal plants; dams etc

Table 2-- Matrix for CARMEL VALLEY ALLUVIAL AQUIFER WELLS

SYSTEM TYPE
All Single and Multiple-Parcel Connection Systems	Type D, Full WDS Permit

Table 3—Matrix for SEASIDE GROUNDWATER BASIN WELLS

SYSTEM TYPE	PRODUCTION		NOTES
	< 5.0 AFY	5.0+ AFY	5 AFY based on Adjudication trigger
Single-Parcel Connection System (SPCS) with overlying right = “alternative producer”	Type A Basic Exemption	Type B Enhanced Exemption	SPCS= well(s) are located on, overly and serve one Legal Parcel. If 5.0+ AFY, need Watermaster OK if not on list in Court Decision
Multiple-Parcel Connection System serving 2 or 3 Parcels with appropriative rights= “standard producer”	Type C Basic WDS Permit	Type D Full WDS Permit	All standard producers need Watermaster OK if not already on list in Court Decision
Multiple-Parcel Connection System serving 4 or more Parcels with appropriative rights= “standard producer”	Type C Basic WDS Permit	Type D Full WDS Permit	All standard producers need Watermaster OK if not already on list in Court Decision
Other considerations			Staff may consider a buffer area (distance yet to be determined) for Wells near SGB.

Table 4—Matrix for NON-MPWRS WELLS (aka “Fractured Rock” or Other Geology)

SYSTEM TYPE	LOCATION		NOTES
	>1,000 feet * from SER	<1,000 feet * from SER	SER= Sensitive Environmental Receptors (see MPWMD rules, but only includes Carmel Valley)
Single Parcel Connection System (SPCS)	Type A Basic Exemption	Type B Enhanced Exemption	SPCS= well(s) are located on, overly and serve one Legal Parcel
Multiple-Parcel Connection System serving 2 or 3 Parcels	Type A Basic Exemption	Type B Enhanced Exemption	District law does not require WDS permit if less than 4 connections
Multiple-Parcel Connection System serving 4 or more Parcels	Type C Basic WDS Permit	Type D Full WDS Permit	District law requires WDS permit if 4 or more connections
Other Considerations	* A value other than 1,000 ft. is possible	* A value other than 1,000 ft. is possible

Table 5—Matrix for “NON-WELL” SITUATIONS

SYSTEM TYPE	PROCESS	NOTES
Onsite rainwater collection	Type A Exemption	Standard verbiage would be different for that for Wells
Offsite rainwater collection and delivery	Type B Exemption	Entails 2 or more Parcels
Non-potable Fractured Rock Spring	Type A Exemption	Inspect to confirm it is a naturally occurring seep
Non-potable Mobile WDS	Type B Exemption	Confirm lawful supply source
Any type of stream direct diversion	Type D WDS Permit
Desal plant, reclamation, any major project needing EIR	Type D WDS Permit
Other ???

PERMIT PROCESSING TYPES (referred to in tables above)

A. Type A, Basic Exemption-- MPWMD staff would prepare a Confirmation of Exemption report for the WDS including (as applicable) the MCEHB Well Construction Permit number, DWR Well Completion Report number, certification of adequate water quality or quantity form or other MCEHB documentation. (Note that MCEHB Permit entailed initial screening for impact to other wells or a stream). No System Limits are imposed by MPWMD. Standard exemption language would include Findings statements with evidence. Conditions of Approval would include no unauthorized changes, no water waste as defined, enable access for MPWMD to occasionally monitor the well etc). For non-MPWRS Wells, text would states that Fractured Rock Wells are inherently unreliable as compared to other sources, and water supply is not guaranteed. Text would also state that future regulation by MPWMD is possible if monitoring or other evidence shows substantive changes to setting, water resource conditions, overdraft etc. Applicant would sign and notarize a deed restriction that would attach the Confirmation of Exemption package along with a form for acceptance of exemption conditions of approval. Staff does not believe an Indemnification Agreement is needed for exemptions.

Regarding CEQA, the County or other jurisdiction is the lead agency for any project on the Parcel (use permit or building permits). MPWMD typically does not file CEQA Notice of Exemption for ministerial exemptions. A CEQA Notice of Exemption (categorical) would be filed if there is a discretionary approval. An Initial Study and Negative Declaration may apply to certain multi-Parcel situations, but it is expected that the jurisdiction would be the CEQA lead in such situations. Coordination with County agencies is needed to ensure consistent direction to applicants.

B. Type B, Exemption-- This is similar to Type A, except MPWMD staff would assess (based on well logs and other submitted information) if there is potential for adverse impact to CVAA or Seaside Basin or potential to induce seawater intrusion. If not, then the Exemption language would be the same as Type A. If there would be a potential (calculated) adverse effect, then staff would have the authority to require additional testing and possibly set a production limit. Also applicant needs Watermaster signoff if 5.0+ AFY in Seaside Basin.

C. Type C, WDS Permit-- This is for non-MPWRS situations greater than 1,000 feet but for which there are 4 or more Parcels involved (hence need for WDS Permit per District Law). Testing above and beyond MCEHB testing and signoff is not needed as MCEHB has more rigorous standards for a 4+ parcel system, and includes review for impacts to other wells. CEQA exemption is unlikely; assume jurisdiction is lead agency for any development project. MPWMD can rely on jurisdiction CEQA document or perform Initial Study in certain situations. No production limit imposed by MPWMD (except for reiterating <5.0 AFY imposed by Watermaster/Court for Seaside Basin wells) and refer to any limits imposed by MCEHB in Conditions. Permit package would be similar to today’s version, but without System Limits imposed by MPWMD.

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D. Type D, WDS-- This entails the maximum testing that we would require, similar to current procedures. The Water Resources Manager is responsible for amending the testing procedures based on the experience of the past several years. Testing may or may not be the same as what MCEHB requires, depending on the situation. For example, for CVAA wells, impact to the CVAA rather than the ability to produce adequate supply is the issue. Production limitations would be CEQA-based (impacts). The WDS Permit would have System Limits imposed by MPWMD.

OTHER ISSUES—

Monitor Wells: In Rules 11 and 20, staff would codify the current MPWMD procedure to determine whether a well slated for destruction could be kept as an MPWMD Monitor Well.

Well Testing Expiration: Rule 20-C refers to three-years from date of Pre-Application. This should change to match MCEHB standard (no expiration so long as previous test meets current standards, well is physically viable and no substantive change to water resource setting.

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