BILL ANALYSIS
SENATE LOCAL GOVERNMENT COMMITTEE
Senator Dave Cox, Chair
BILL NO: AB 2488 HEARING: 6/16/10
AUTHOR: Ruskin FISCAL: No
VERSION: 4/8/10 CONSULTANT: Detwiler
BAY AREA WATER SYSTEMS
Background
Although owned and operated by the City and County of San
Francisco, the Hetch Hetchy system is a regional asset that
delivers water to millions of Bay Area residents. When the
suburban water purveyors wanted to help finance
improvements to the Hetch Hetchy system, the Legislature
created the San Francisco Bay Area Regional Water System
Financing Authority (SB 1870, Speier, 2002). To coordinate
the suburban purveyors' efforts, the Legislature created
the Bay Area Water Supply and Conservation Agency (AB 2058,
Papan, 2002).
Proposed Law
I. Governance . The Authority's 28-member board of
directors is composed of representatives from the City and
County of San Francisco, 16 cities, nine water districts,
and two public members. The 27 members on the Agency's
board represent the suburban water purveyors: the 16
cities, nine water districts, and two private entities. On
some issues, the Agency's board members cast weighted votes
based on their historic water deliveries under a 1984
Master Water Sales Contract with San Francisco.
The Skyline County Water District sold its water system to
the California Water Service Company and then dissolved in
2009. Also in 2009, the water purveyors signed a new Water
Supply Agreement. Local officials want to update their
statutes to reflect these changed conditions.
Assembly Bill 2488 removes the Skyline County Water
District from the boards of the Bay Area Water Reliability
Financing Authority and the Bay Area Water Supply and
Conservation Agency. In the statutory table that assigns
the Agency's voting power based on water deliveries, AB
2488 deletes the Skyline County Water District and shifts
AB 2488 -- 4/8/10 -- Page 2
its 266-acre foot allotment to the California Water Service
Company. The bill declares that if an existing entity
succeeds to another entity's water rights and obligations,
the successor entity's quantity of water increases
accordingly, without the need for statutory changes. AB
2488 also substitutes the July 2009 Water Supply Agreement
or any subsequent water supply contract for the Master
Water Sales Agreement. [See 1, 5, & 6 of the bill.]
II. Water conservation . In 2008, the Legislature passed
the Integrated Water Management Planning Act (SB 1xx,
Perata, 2008). In 2009, the Legislature set water
conservation targets of 10% by 2015 and 20% by 2020 (SB
7xxxxxxx, Steinberg, 2009). Assembly Bill 2488 allows the
Bay Area Water Supply and Conservation Agency to help its
water purveyors meet these urban water use targets as an
authorized regional water management group. If requested
by the water purveyors, AB 2488 allows the Agency to
develop and administer a regional conservation program and
receive financial assistance for that purpose. The bill
also declares that the Agency is a local agency for the
purposes of the 2008 Integrated Water Management Planning
Act. [4]
III. Water bonds . The Bay Area Water Supply and
Conservation Agency can apply for and receive state and
federal funds. The voters have approved water bonds that
make capital available for water supply and water quality
projects:
Proposition 204 (1996).
Proposition 13 (2000).
Proposition 50 (2002).
Proposition 84 (2006).
Assembly Bill 2488 creates a nonexclusive list of the state
bonds that the Agency may receive, including any future
financing for water management. [3]
IV. Oaths of office . The directors of the Authority and
the Agency must take oaths of office in order to serve.
Because the directors' appointing authorities are
geographically spread out, officials say that it would be
easier to swear-in new members at their own meetings.
Assembly Bill 2488 allows the chairperson, vice
chairperson, or secretary of the San Francisco Bay Area
Regional Water System Financing Authority and the Bay Area
AB 2488 -- 4/8/10 -- Page 3
Water Supply and Conservation Agency to administer the
oaths of office to their respective board members. [2 &
7]
Comment
Shaping up . AB 2488 brings the statutes for the San
Francisco Bay Area Regional Water System Financing
Authority and the Bay Area Water Supply and Conservation
Agency into line with recent changes. With these
amendments, the law reflects the dissolution of the Skyline
County Water District, the challenges posed by water
conservation targets, and the availability of water bond
funds.
Assembly Actions
Assembly Local Government Committee: 9-0
Assembly Floor: 74-0
Support and Opposition (6/10/10)
Support : Bay Area Water Supply and Conservation Agency,
Association of California Water Agencies, San Francisco
Mayor Gavin Newsom.
Opposition : Unknown.