Key Environmental Considerations for Cadiz Project

1. CADIZ VALLEY WATER CONSERVATION, RECOVERY AND STORAGE PROJECTENVIRONMENTAL REVIEWUrban Water Institute 2014 ConferenceFebruary 19, 2014Leslie Moulton, Senior Vice Project, ESA

2. Key Environmental Considerations for Cadiz Project • Effective Groundwater Management • Project operations designed to avoid significant impacts • Groundwater Management, Monitoring and Mitigation Plan (GMMMP) provides rigorous oversight of project operations • Reducing Reliance on Imported Water • State policies on water, energy, and environmental management all highlight reduced water imports

3. Effective Groundwater Management

4. Project Location

5. Fenner, Bristol, and Cadiz Watersheds 2,700 square mile closed watersheds Water drains from Fenner Valley to Bristol and Cadiz Dry Lakes Groundwater basin holds 17-34 million acre feet (MAF) of water in storage Groundwater flows through Fenner Gap where it merges with brackish groundwater and evaporates from dry lakes

6. How It Works

7. brine fresh water Conceptual Cross Section Showing Groundwater Flow brine fresh water brine fresh water brine fresh water

8. Groundwater Modeling • USGS Groundwater models were used • INFIL3.0 • MODFLOW • CH2MHill and Geosciences conducted modeling efforts • EIR evaluates a broad range of groundwater recharge estimates to assess potential effects of lower-than-expected natural recharge • 32,000 AFY • 16,000 AFY • 5,000 AFY

9. Groundwater Impact Analysis • EIR evaluated effects of groundwater drawdown to: • Third party wells • Saline water migration • Subsidence • Springs • Vegetation • Dust generation

10. Model-Predicted Regional Drawdown

11. Model-Predicted Regional Drawdown • 80 ft drawdown after 50 years, centered on wellfield / Cadiz property • GMMMP establishes 80 foot drawdown as floor • 20-ft drawdown occurs • 5 miles north • 15 miles west • 5 miles south • Essex – 16 mi north • Goffs – 33 mi north

12. Key Groundwater Impact Issues Addressed • Third-party well impacts from drawdown • None identified within area of significant drawdown • GMMMMP includes • County set 80-foot drawdown floor • Deepen or replace wells • Third-party well impacts from saline migration • None identified within area of predicted saline migration • GMMMP includes • Replace/relocate wells • Modify proposed Project operation • Subsidence • Model-predicted findings indicate no significant impact to aquifer storage capacity or railroad tolerance levels • GMMMP includes monitoring and operation modification

13. Springs • Occur in higher elevations and are fed from above • Are not hydrologically connected to alluvial aquifer • Nearest spring – Bonanza is 11 miles north • No impacts to Springs would occur • GMMMP includes monitoring and response protocol to ensure Project does not affect springs • Periodic visual, non-invasive monitoring of spring flows at Bonanza, Whiskey, and Vontrigger Springs • Quarterly monitoring of Bonanza Spring as an “indicator spring”

15. Dust and Vegetation Concerns • Potential for Dust Emissions from Dry Lakes • Studies conducted to evaluate potential for groundwater drawdown to result in dust emissions off the Dry Lakes • Studies conclude that surface soils on Dry Lakes are not susceptible to wind erosion due to soil chemistry that results in crusting • Desert Vegetation • Existing depth to groundwater well below plant roots • Where groundwater approaches surface elevation at the Dry Lakes, it is highly saline and no vegetation exists on the ground surface

16. Cadiz Groundwater Management, Monitoring and Mitigation Plan Defines authority and menu of corrective actions that ultimately can reduce or stop Project pumping Both SMWD and the County have authority to implement corrective actions and stop pumping Sets pump floor of 80 feet below existing groundwater levels to be conservative (EIR evaluates up to 270 feet) Adopted as part of County MOU approval and as part of CEQA Mitigation program

17. Cadiz GMMMP Critical Resources Monitored by GMMMP Groundwater Aquifer Natural Springs Brine Resources Air Quality / Dust Vegetation Adjacent Watersheds Monitoring Features Groundwater Monitoring Wells (water levels and quality) Springs Observations Land Subsidence Extensometers Dust Monitoring Nephelometers

18. Cadiz GMMMP continued Impact Avoidance Measures • Action Criteria clearly established for each resource and potential impact • set below impact significance threshold • Decision Making Process defined when action criteria are triggered • Corrective Measures clearly outlined to avoid significant impacts

19. Effective Groundwater Management • Baseline condition information collected • Modeling tools tailored to this aquifer • Validated and ready for active use and refinement • Project designed to avoid/minimize impacts • GMMMP provides for rigorous oversight of project operations and response if needed, including stop pumping • New Era: Cadiz Project will operate under new, higher standards set for effective groundwater management

20. Reduce Reliance on Water Imports Cadiz Project Water is Local to Southern California Insert graphic with SWP and CRA and LAA showing imported water sources

22. Cadiz Project Key Objectives • Maximize beneficial uses of groundwater in the Fenner, Bristol, and Cadiz Valleys • Save substantial quantities of water that are presently wasted and lost to evaporation • Improve water supply reliability for Southern California Project Participants • Reduce Southern California dependence on water imported from the Colorado River and Sacramento River Delta

23. Project Description • PROJECT PARTICIPANTS • SMWD • Three Valleys Municipal Water District • Golden State Water Company • Suburban Water Systems • Jurupa Community Services District • Arizona and Calirfornia Railroad Company • Phase I – Groundwater Conservation and Recovery Component (project level EIR review) • 50,000 AFY average annual groundwater captured before it evaporates; delivered to participating water suppliers within the southern California region • Wellfield – network of wells • 43-mile pipeline to Colorado River Aqueduct (CRA) • Groundwater Management, Monitoring, and Mitigation Plan (GMMMP) guides project operations • Phase II – Imported Water Storage Component (program level EIR review) • Potential future project element • Not under consideration for approval now

24. Project Location

25. PROJECT PARTICIPANTS Santa Margarita Water District (CEQA Lead Agency) Three Valleys Municipal Water District Golden State Water Company Suburban Water Systems Jurupa Community Services District California Water Service Company Arizona and California Railroad Company PROJECT OPERATOR Fenner Valley Mutual Water Company

26. Geographic Context of Project Assessment

27. Project Participants

28. Regional Monitoring Facilities (Wells, Nephelometer Station)

29. EIR Process • PUBLIC SCOPING: Notice of Preparation • 30-day public review (through March 30, 2011) • Public scoping meetings (March 16 and 24, 2011) • DRAFT ENVIRONMENTAL IMPACT REPORT • Notice of Availability of Draft EIR Posted (December 5, 2011) • 70-day public review (through February 13, 2012) • Community Workshop (January 11, 2012) • Public Meetings (January 24, 2012 and February 1, 2012) • RESPONSE TO COMMENTS/FINAL EIR • CERTIFICATION of FINAL EIR