Tunnel, traverses the Hayward Fault, and the maximum credible earthquake along the fault could sever the tunnel, which was originally built in 1929. Some of the major projects included in SIP were the Southern Loop Pipeline, a new seismically-reinforced alternate route which would allow restoration of water service; and seismic upgrades to the Claremont Tunnel. The expected benefit of SIP was avoiding a potential $1.2 billion in lost revenue and damage resulting from a major earthquake. In May 2008, EBMUD announced severe drought and austerity measures for its customers. With the easing of the drought, these measures were rescinded in 2010. EBMUD announced mandatory water rationing again in August 2014. The emergency regulations imposed during this prolonged drought were relaxed effective July 1, 2016, after the drought was declared officially ended. EBMUD announced mandatory water rationing again in April 2022, following a bleak California snow survey and the driest January to March period on record. Finances As with other public entities, the District has significantly underfunded liabilities for legacy costs. These include $535 million for retirement and $89 million for retiree health. EBMUD has several sources of revenue for both water and sewage treatment enterprises. These sources include the sale of water, hydroelectric power, system capacity charges, sewage treatment charges, connection fees, wet weather facilities charges, interest and property tax increments. In 2007, the water system was anticipated to generate a total of $375.5 million in revenue. Water sales account for approximately 76 percent of the revenue, with System Capacity Charges generating an additional 7 percent in revenue. Property Tax Revenue is expected to generate an additional 5 percent of revenues, with interest, electric energy sales, reimbursements and other sources making up the remaining 12 percent of revenues. Water rights Historically, 90 percent of the water used by EBMUD comes from the 577 square mile protected Mokelumne River watershed. EBMUD has water rights for up to 325 million U.S. gallons per day (MGD) (997 acre-feet) or a total of 364,000 acre-feet per year. In normal years, EBMUD reservoirs in the East Bay receive an additional 30,000 acre-feet of local water from runoff annually. In dry years, evaporation and other losses can total more than the local runoff. Runoff from the Mokelumne watershed is not sufficient to meet EBMUD customer needs in times of severe drought. In February 2020, 75 project customers, including the East Bay Municipal Utility District, received permanent