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No later than September 30 of each calendar year, PARTICIPATING AGENCIES will determine which projects will be included in the authorization requests for the following calendar year and will create a list of those projects. The list will include any recycled water project located within the nine - county Bay Area where the public agency project sponsor is a PARTICIPATING AGENCY. V. DETERMINATION OF PROJECTS FOR APPROPRIATION REQUESTS 1. No later than September 30 of each calendar year, PARTICIPATING AGENCIES shall review the status of all AUTHORIZED PROJECTS to determine those projects that will meet both the following criteria: (1) Project has completed or is in the process of completing the Title XVI Feasibility Determination process administered by the United States Bureau of Reclamation; and (2) the funded phase of the project will be completed no later than the end of the federal fiscal year of the appropriation request (i.e. 2009 appropriation requests must be for work that will be completed by September 30, 2009); and project otherwise meets all eligibility requirements for funding under Public Law 102 -575 as amended. Projects meeting these criteria will be eligible for inclusion in the list of projects for which a federal funding allocation will be sought. 2. No later than September 30 of each calendar year, PARTICIPATING AGENCIES will determine the final list of projects; the associated project cost for which a federal funding allocation will be sought through the Congressional budget process for the subsequent federal fiscal year; and the percentage share each agency would receive of the total requested appropriation. This list shall be the "Appropriation Request List. 3. Projects contemplated for federal fiscal year (FY) 2009 and FY 2010 appropriation requests are listed in Attachment 2. No later than September 30 of each year, beginning September 30, 2008, the PARTICIPATING AGENCIES will modify Attachment 2 as necessary to select projects meeting the above criteria for future year appropriations requests beginning with the calendar years 2009 and 2010 appropriation requests. VI. COST SHARING 1. Annually commencing in 2009, PARTICIPATING AGENCIES will pay their pro rata share per project of the cost to carry out PARTICIPATING AGENCY efforts to secure federal funding through Title XVI; this shall consist of the reimbursement of BACWA Administrative and Outside Agency Costs as defined in Section III above. The pro rata cost share attributable to a project for a given year will be determined by dividing the total cost for PARTICIPATING AGENCY efforts by the total number of projects for which authorization and /or appropriation will be sought in the subsequent calendar year. A PARTICIPATING AGENCY that is unable or unwilling to pay federal advocacy costs may request that its pro rata share per project be used for other consultant or administrative costs and, if the PARTICIPATING AGENCY has a lobbyist on retainer in Washington D.C., may direct its Washington D.C. lobbyist to assist in the federal advocacy program; notwithstanding however, that each PARTICIPATING AGENCY shall pay its full pro rata share of the total cost as calculated above. 2. No later than September 30 of each calendar year, the PARTIES will determine the total cost for PARTICIPATING AGENCY efforts for the next calendar year and the pro rata cost share attributable to each project. No later than November 30 of each calendar year, each PARTICIPATING AGENCY will obtain the necessary Board /City Council approval for funding of the next year's costs for its respective project(s). 7/21/2008 Page 4