Letter Agreement Between DWR and Valley Water approving Valley Water's 2025 and/or 2026 CVP Water Exchange with State Water Supplies

The Agreement provides DWR's approval for Valley Water's requested operations as described in the CPOU petition and approved by the SWRCB which temporarily amends the authorized places of use associated with Reclamation and DWR's water rights permits. The exchange of Valley Water's CVP water with SWP water will increase Valley Water's operational flexibility by allowing SWP water supplies to be conveyed to Valley Water through the South Bay Aqueduct to compensate for constraints on the San Felipe Division due to scheduled maintenance and unscheduled outages. It also provides Valley Water the ability to efficiently balance the management of its SWP and CVP water supplies within its service area. The Agreement provides for DWR to deliver of up to 75,000 acre-feet of SWP water supplies from the Banks Pump Plant to the South Bay Aqueduct in exchange for an equal amount of Valley Water's CVP water made available to DWR by Reclamation at the O'Neill Forebay. The Agreement is for the period from July 2025 through July 2026. All water exchanged under this Agreement would be conveyed using existing SWP and CVP facilities. The total quantity of water delivered under the Agreement and all other water deliveries to Valley Water will not exceed Valley Water's maximum allowable capacity in the South Bay Aqueduct of the California Aqueduct.