BILL ANALYSIS                                                                                                                                                                                                    Ó





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2013-2014 Regular Session                    |
          |                                                                 |
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          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  
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          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: 
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                 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.  
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            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


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