BILL ANALYSIS Ó ----------------------------------------------------------------- | | | SENATE COMMITTEE ON NATURAL RESOURCES AND WATER | | Senator Fran Pavley, Chair | | 2013-2014 Regular Session | | | ----------------------------------------------------------------- BILL NO: SB 1345 HEARING DATE: April 22, 2014 AUTHOR: Senate Natural Resources and WaterURGENCY: No VERSION: February 21, 2014 CONSULTANT: Toni Lee DUAL REFERRAL: No FISCAL: Yes SUBJECT: Committee on Natural Resources and Water: Natural Resources BACKGROUND AND EXISTING LAW Periodically, state entities within the jurisdiction of the Senate Committee on Natural Resources and Water identify noncontroversial technical and clarifying changes necessary to correct and refine existing law. This omnibus committee bill contains three sections to amend the Public Resources (PRC) and Water Codes (WAT). Section 1 In 2013, AB 904 (Chesbro, Ch. 648, Stats. 2013) amended provisions of the Z'berg-Nejedly Forest Practice Act (PRC §4511 et seq.) and added PRC §4597.22, which exempts the Southern Subdistrict of the Coast Forest District from having to file a working forest harvest notice, as specified, before harvesting timber. PRC §4597.22 requires a technical non-substantive change to correct a referential error to the section of the California Code of Regulations defining the "Southern Subdistrict of the Coast Forest District." Section 2 In 2013, SB 753 (Steinberg, Ch. 639, Stats. 2013) added §8704.2 to the Water Code, which grants the Central Valley Flood Protection Board (CVFPB) the authority to record a lien (a legal claim on collateral to ensure the fulfillment of an obligation) if a person or public agency fails to correct a violation for which CVFPB has issued a cease and desist order. SB 753 contained an error that granted CVFPB the authority to record the lien with the County Clerk. According to the California State Association of Counties, however, recording liens is a 1 duty performed by the County Recorder. Section 3 The Wholesale Regional Water System Security and Reliability Act (Act) (WAT §73500 et seq., AB 1823, Papan, Ch. 841, Stats. 2002), requires the City and County of San Francisco to adopt capital improvement projects to ensure the reliability and quality of the Bay area regional water system in the face of age-related or seismic stress. In order to facilitate state oversight of the projects, the City and County must submit a report on or before September 1 of each year to the Joint Legislative Audit Committee, the Seismic Safety Commission, and the State Department of Public Health detailing the progress made since the previous fiscal year. In 2008 AB 2437 (Ruskin, Ch. 99, Stats. 2008), extended, among other provisions, the Act's original 2010 sunset date to 2015. The San Francisco Public Utilities Commission (SFPUC) provides drinking water to approximately 2.6 million customers in the greater San Francisco Bay area either directly or through wholesalers. SFPUC's $4.6 billion dollar Water System Improvement Program (WSIP) to provide a clean and reliable source of drinking water to its customers is subject to the Act. WSIP is funded by a bond measure approved by San Francisco votes in November 2002, which will be paid back by its customers in San Francisco, Alameda, San Mateo and Santa Clara counties. WSIP projects include the construction of seismically-engineered conduits installed where the Hetch Hetchy Regional Water System crosses three of the nation's most active earthquake faults (the Calaveras, San Andreas, and Hayward) and the replacement of the Calaveras Dam. (The SFPUC's water supply is primarily from the Hetch Hetchy reservoir on the Tuolumne River in Yosemite National Park.) Projects related to the seismic retrofit of San Francisco's Regional Water System have fallen behind schedule. These include the Calaveras Dam Replacement and Alameda Creek Recapture projects, which will remain uncompleted by mid-2016. The Calaveras Dam project has faced delays due to adverse weather conditions, geologic constraints, and construction material supply shortages. The Alameda Creek Recapture project delays are associated with an extensive pilot study that must occur before completing the planning, environmental, and design phases. PROPOSED LAW This bill would: 2 Correct the referential error in PRC §4597.22. Authorize the CVFPB to record a lien with the county recorder. Extend the sunset date for the Wholesale Regional Water System Security and Reliability Act to 2022. ARGUMENTS IN SUPPORT The County Recorders Association of California supports SB 1345 as it clarifies in statute that liens are properly recorded in the County Recorder office and not that of the County Clerk. The Bay Area Water Supply & Conservation Agency (BAWSCA) contends that this bill will preserve statutory state oversight of the City and County of San Francisco's capital improvement program to restore and improve the 100-year old San Francisco Regional Water System. BAWSCA argues that the program supports the health, safety, and economic wellbeing of 1.7 million residents, 30,000 businesses, and thousands of community agencies in the Bay Area dependent on water provided by the regional system. They also assert that jobs and businesses in the counties served by the San Francisco Regional Water System provide a major part of California's economic activity and income for residents. BAWSCA notes that state oversight provided by the Act has proven very valuable to BAWSCA's member agencies and customers. Extension of this oversight would ensure water users that the San Francisco Regional Water System will be reliable in the future. Mayor Edwin M. Lee of the City of San Francisco reports that WSIP has created more than 10,000 jobs, over 5 million craft hours, and more than $335 million in wages. He states, "[i]n the early construction phase of the Calaveras Dam Replacement Project, one of the major projects within the WSIP, unexpected geological issues arose. The project is now expected to be completed by December 2017, two years later than the original projected completion date." ARGUMENTS IN OPPOSITION None received COMMENTS 1.Projects crucial to the reliability of water supply to the San Francisco Bay Area have fallen behind due to unanticipated conditions. This bill provides for continuing oversight and the necessary flexibility to compensate for these setbacks. 3 According to the SFPUC, 33 of the 47 WSIP projects will be completed, and the remaining 14 are scheduled to be completed by 2019, well within the new sunset date. 2.The Calaveras Dam Replacement project carries the greatest level of risk for future delays. These risks include impacts associated with high levels of naturally occurring asbestos, lack of rock for dam construction, the potential need for over-excavation of landslide remnants below the spillway, and weather related obstacles. The 2012-13 WSIP report estimates that the project will reach completion date on November 20th, 2017. Extending the sunset date of the Act to 2022 would provide five buffer years of state oversight if the project encounters future delays. SUPPORT Alameda County Water District Bay Area Water Supply & Conservation Agency California Water Service Company City of Brisbane City Council of the City of Burlingame City of Daly City City of Foster City City of Hayward City of Menlo Park City of Millbrae City of Mountain View City of Palo Alto City of Redwood City City of San Bruno City Council City of Santa Clara City of Sunnyvale Coastside County Water District County Recorders Association of California Edwin M. Lee, Mayor, City of San Francisco Estero Municipal Improvement District International Union of Operating Engineers Jess E. Benton, Mayor, Town of Hillsborough Purissima Hills Water District Ray Mueller, Mayor, City of Menlo Park Stanford University Westborough Water District OPPOSITION None Received 4 5