San Francisco Bay Area regional water system.

Under existing law, the City and County of San Francisco operates the Hetch Hetchy Project as a regional water system, supplying water to persons and entities in San Francisco and the Counties of Alameda, San Mateo, and Santa Clara. Existing law, the San Francisco Bay Area Regional Water System Financing Authority Act, creates the San Francisco Bay Area Regional Water System Financing Authority, composed as prescribed. The act authorizes the authority to issue revenue bonds until December 31, 2020, as specified, to improve the reliability of the regional water system and requires the bond proceeds to be made available upon terms and conditions that include the City and County of San Francisco entering into contracts with the authority that, among other things, require the City and County of San Francisco, on behalf of the authority, to impose a surcharge to generate revenue to pay the debt service on the revenue bonds issued by the authority and the operating expenses of the authority, as specified. The act requires the authority to dissolve upon the repayment of all revenue bonds issued by the authority and the satisfaction of all other debts and obligations of the authority. This bill would authorize the authority to issue revenue bonds until December 31, 2030. By extending the operation of the requirements for local public entities in connection with the operation of the authority, this bill would impose a state-mandated local program. Existing law, the Wholesale Regional Water System Security and Reliability Act, requires the City and County of San Francisco to adopt a specified program of capital improvement projects designed to restore and improve the bay area regional water system, as defined. Existing law makes the act inoperative and repeals these provisions on January 1, 2022. This bill would extend the repeal date of the act to January 1, 2026. By extending the period of time during which certain requirements would apply to regional wholesale water suppliers and the City and County of San Francisco, the bill would impose a state-mandated local program. This bill would make legislative findings and declarations as to the necessity of a special statute for the City and County of San Francisco and the regional water system. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.