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<br />regardless of the scope of unexpected environmental costs. Absent state or federal legislation <br />covering these unexpected costs, the QSA will need to include an early termination provision if <br />the parties cannot find a funding source for unexpected environmental costs. <br /> <br />What is the Coachella Valley Water District doing without a QSA? <br />In that the Coachella Valley did not see immediate increases in its water supply under the <br />QSA, failure of the QSA does therefore not have any immediate impacts on the Valley. <br />However, the long-term the future of the Coachella Valley is dependent on importing more water <br />into the Coachella Valley and thus on the success of the QSA. <br /> <br />The Coachella Valley groundwater basins are currently overdrafted. Continuing overdraft <br />will eventually result in substantial and irreversible degradation of water quality in the Valley's <br />groundwater basin and may also result in land subsidence. CVWD is charged with providing a <br />reliable, safe water supply to its customers in the Coachella Valley and must take action to <br />prevent the continuing decline in groundwater levels and related degradation of water quality. <br /> <br />To address the continuing overdraft, in 2002, CVWD adopted the Coachella Valley Water <br />Management Plan to address the long-term water needs of the valley. While much of the plan is <br />dependent on importing additional water into the valley, the plan also includes substantial <br />conservation and recycling elements. CVWD will continue to implement all conservation and <br />recycling elements of its water management plan regardless of the status of the QSA. However, <br />without a QSA, Coachella will be forced to pursue actions to protect its Colorado River rights <br />against the ongoing waste of water by Imperial. <br /> <br />In conclusion Mr. Chairman, the Coachella Valley Water District is and has always been <br />committed to completing the QSA. We will meet whenever and wherever required to complete <br />the process. . Thank you for the opportunity to appear before you. We would be happy to answer <br />any questions that you may have. <br /> <br />9 <br />