BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1345
                                                                  Page  1

          Date of Hearing:  June 25, 2014

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                           K.H. "Katcho" Achadjian, Chair
               SB 1345 (Committee on Natural Resources and Water) - As  
                               Amended:  June 17, 2014

           SENATE VOTE  :  36-0
           
          SUBJECT  :  Natural resources.

           SUMMARY  :  Extends the sunset date of the Wholesale Regional  
          Water System Security and Reliability Act from 2015 until 2022,  
          and makes several other technical and clarifying changes to the  
          Public Resources and Water Codes.  Specifically,  this bill  :   

          1)Amends the working forest management plan (WFMP) by  
            referencing the correct regulation in the Forest Practice  
            Rules that describes the Southern Subdistrict of the Coast  
            Forest District (Southern Subdistrict)

          2)Makes technical, non-substantive changes to the statute  
            governing the Central Valley Floor Protection Board (CVFPB)  
            liens.

          3)Extends the Wholesale Regional Water System Security and  
            Reliability Act (WRWSSR Act) sunset date to January 1, 2022.

          4)Extends the comment period to 120 days for the California  
            Seismic Safety Commission (CSSC) and the Department of Public  
            Health (DPH) to comment to the Joint Legislative Audit  
            Committee (JLAC) regarding changes or delays to the capital  
            improvement projects program required pursuant to the WRWSSR  
            Act.

           EXISTING LAW  :

          1)Excludes the Southern Subdistrict from the WFMP program  
            (however, there is an incorrect reference to the regulations  
            in the Forest Practice Rules describing the Southern  
            Subdistrict). 

          2)Authorizes the CVFPB to record a lien with a county in  
            response to an uncorrected violation.









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          3)Requires, pursuant to the WRWSSR Act, 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, and sunsets the WRWSSR Act on January 1, 2015.

          4)Requires, pursuant to the WRWSSR Act, the CSSC and DPH to  
            provide comments to JLAC within 90 days of receiving notice of  
            a change or delay in the capital improvement project program,  
            as specified.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, there are ongoing costs in the low to mid-tens of  
          thousands of dollars of reimbursed costs to DPH and the CSSC.

           
          COMMENTS  :   

           1)Purpose of this bill  .  This bill is the Senate Natural  
            Resources and Water Committee omnibus bill and contains a  
            number of technical and clarifying changes, a sunset date  
            extension, and a noncontroversial change to a reporting  
            requirement.  This bill includes the following changes:

              a)   Southern Subdistrict  .  AB 904 (Chesbro), Chapter 648,  
               Statutes of 2013, created the WMFP.  The Southern  
               Subdistrict, which includes the counties of Santa Cruz,  
               Santa Clara, San Mateo, San Francisco, and Marin, is  
               excluded from the WFMP.  The WFMP statute references the  
               wrong regulation to describe the Southern Subdistrict.   
               This bill fixes this drafting error.

              b)   CVFPB Liens  .  SB 753 (Steinberg), Chapter 639, Statutes  
               of 2013, granted the CVFPB authority to record a lien in  
               response to certain violation. The language contained an  
               error by granting CVFPB the authority to record the lien  
               with the county clerk instead of the county recorder.  This  
               bill fixes this drafting error.
                
               c)   The WRWSSR Act's Sunset  . The WRWSSR Act provides that  
               the City and County of San Francisco shall adopt capital  
               improvement projects to restore and improve the Bay Area  
               regional water system.  These projects are executed under  
               the San Francisco Public Utilities Commission's (SFPUC)  
               Water System Improvement Program (WSIP).  Although the  








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               WRWSSR Act sunsets in 2015, projects related to the seismic  
               retrofit of San Francisco's Regional Water System have  
               fallen behind schedule as documented in the September 2013,  
               WSIP Annual Report to the state.  Delays have occurred due  
               to unforeseen factors, including weather conditions, the  
               discovery of naturally occurring asbestos, and construction  
               material shortages.  The SFPUC estimates that 33 out of 47  
               projects will conclude at the end of 2014 with all projects  
               reaching completion in 2019.  The water transmission system  
               improved under WSIP serves 27 retail distribution systems  
               (including San Francisco) that provide water to  
               approximately 2.5 million users and 30,000 businesses,  
               including Stanford University and Facebook. This bill would  
               extend the sunset date to 2022.  Should this bill not pass,  
               the entire WRWSSR Act will be become ineffective on January  
               1, 2015.  WSIP projects would lose state oversight and the  
               City and County of San Francisco would no longer be  
               statutorily required to complete crucial projects,  
               including the replacement of the Calaveras Dam and  
               construction of seismically-engineered conduits installed  
               where the Hetch Hetchy Regional Water System crosses three  
               of the nation's most active earthquake faults.  This bill  
               addresses this issue by extending the 2015 sunset date to  
               2022.

              d)   The WRWSSR Act Comment Period  .  Under WRWSSR Act, the  
               CSSC and DPH must provide comments on public health and  
               safety to JLAC within 90 days of receiving notice of a WSIP  
               delay from SFPUC.  Due to staffing constraints, CSSC has  
               requested an extension of the commenting period to 120  
               days.  This bill makes this change.

           2)Arguments in support.   Supporters argue that extending the  
            sunset date would ensure that state oversight would continue  
            until all improvements to San Francisco's regional water  
            system are completed.  
             
           3)Arguments in opposition  .  None on file.
           4)Double-referral  .  This bill was heard by the Natural Resources  
            Committee on June 16, 2014, where it passed with a 9-0 vote.
           
          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           








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            Alameda County Water District
          Association of California Water Agencies
          Bay Area Water Supply and Conservation Agency 
          California Water Service Company
          Cities of Brisbane, Burlingame, Foster City, Hayward, Menlo  
          Park, Millbrae, Milpitas, Mountain  View, Palo Alto, Redwood  
          City, San Bruno, Santa Clara, and Sunnyvale
          City and County of San Francisco
            Coastside County Water District
          County Recorders Association of California
          International Union of Operating Engineers
          Jess E. Benton, Mayor, Town of Hillsborough
          Edwin M. Lee, Mayor, City of San Francisco
          Estero Municipal Improvement District
            Mid-Peninsula Water District
          North Coast County Water District
          Purissima Hills Water District
          Stanford University
          Town of Hillsborough
            Westborough Water District
           
            Opposition 
           
          None on file

           Analysis Prepared by  :    Debbie Michel / L. GOV. / (916)  
          319-3958