BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 1345 (Senate Natural Resources and Water Committee) - Natural  
          Resources.
          
          Amended: As introduced          Policy Vote: NR&W 9-0
          Urgency: No                     Mandate: Yes (see staff comment)
          Hearing Date: May 5, 2014       Consultant: Marie Liu
          
          This bill does not meet the criteria for referral to the  
          Suspense File.
          
          
          Bill Summary: SB 1345 would extend the sunset date of the  
          Wholesale Regional Water System Security and Reliability Act  
          from 2015 until 2022 and would make technical amendments to the  
          Public Resources and Water Codes.

          Fiscal Impact: Ongoing costs in the low to mid-tens of thousands  
          of dollars of reimbursed costs to the Department of Public  
          Health (DPH) and the Seismic Safety Commission (commission).

          Background: The Wholesale Regional Water System Security and  
          Reliability Act (Act) (Water code �73500 et seq.), requires the  
          City and County of San Francisco to adopt a program of capital  
          improvement projects to restore and improve the Bay Area  
          regional water system that includes a schedule for completion of  
          the projects. The act requires that the program be completed by  
          2015. The program is referred to as the Water System Improvement  
          Program (WSIP). If there is to be a delay in completion dates,  
          the city is required to notify the public and specified parties.  
          DPH and the commission are required to submit written comments  
          to the proposed change as to the significance of that change on  
          public health and safety.

          By September 1 of each year, the city is required to report to  
          the Legislature, the commission, and DPH on its progress made  
          the previous year on the WSIP. 

          By February 1 of each year, the San Francisco Public Utilities  
          Commission (SF PUC), as the regional wholesale water supplier,  
          is required to report to the Legislature and DPH on its progress  
          during the previous year on securing supplemental sources of  
          water during dry years. 








          SB 1345 (Senate Comm. on Natural Resources and Water)
          Page 1



          DPH is required to ensure that the Bay Area regional water  
          system is operated in compliance with the California Safe  
          Drinking Water Act and applicable federal law.

          The SF PUC is required to reimburse the state for all costs  
          incurred by DPH and the commission in carrying out duties under  
          this act.

          This act sunsets on January 1, 2015.

          Proposed Law: This bill would extend the sunset of act until  
          January 1, 2022.

          This bill would also make two technical and clarifying changes  
          in the Public Resources and Water Codes.

          Related Legislation: AB 1823 (Papan) Chapter 841, Statutes of  
          2002 established the Act, which was set to sunset in 2010. AB  
          2437 (Ruskin) Chapter 99, Statutes of 2008 extended the Act  
          until 2015.

          Staff Comments: San Francisco has recently amended the schedule  
          for completion of the WSIP so that the anticipated completion  
          date is now 2019. Stakeholders are interested in extending the  
          act until the program is completed to aid continued public  
          oversight.

          Between 2006 and January 2012, the commission has invoiced, and  
          the SF PUC has paid, a total of about $63,000 for WSIP related  
          activities. These costs are associated with staff time to attend  
          meetings, review plans, and touring facilities. DPH has  
          indicated that it has also has received requested reimbursements  
          for its activities related to the WSIP, although the actual  
          amounts are unknown because these activities are billed as part  
          of DPH's general oversight of the SF PUC's program. Assuming  
          that DPH's costs are similar to the commission's, staff  
          estimates that the state incurs annual costs in the low to  
          mid-tens of thousands of dollars of reimbursed costs.

          While this bill extends a state mandate on San Francisco and the  
          SF PUC, it is not reimbursable because both entities have the  
          ability to recover costs through fees on its users. 









          SB 1345 (Senate Comm. on Natural Resources and Water)
          Page 2