1155 Market St., 11th Floor, San Francisco, CA 94103 • Tel.

(415) 554-3155 • Fax (415) 554-3161 • TTY (415) 554.3488

October 24, 2009

The Honorable Darrell Steinberg

Senate President Pro Tempore
GAVIN NEWSOM State Capitol, Room 205
MAYOR

ANN MOLLER CAEN

Sacramento, California 95814
PRESIDENT

F.X. CROWLEY Dear Senator Steinberg:

VICE PRESIDENT

FRANCESCA VIETOR I applaud your continued leadership on legislative proposals to address ecosystem and
COMMISSIONER

JULIET ELLIS
water supply problems in the Bay Delta. It is vital that we restore the economic
COMMISSIONER health of the Central Valley and begin the process of restoring the environmental
ANSON B. MORAN
COMMISSIONER
health of the Delta.
ED HARRINGTON
GENERAL MANAGER We believe it is in the best long-term interests of San Francisco and the Bay Area’s
water reliability to achieve a statewide solution to the Delta crisis.

Our agency and others opposed the package that emerged at the end of session on
September 11, because we believed the bill created a new state regulatory authority
over our local water system, asking Bay Area water customers to finance a state water
system that does not benefit them, after having paid for the repair and safety of their
own system. We are proud of the extraordinary work being done at the local and
regional level to finance and support our recent Water System Improvement Program
(WSIP), a $4.3 billion seismic retrofit of a system that delivers 265 million gallons of
water per day to 2.5 million people in five counties.

In this context of responsible stewardship, we were heartened that legislators, who a

month ago had expressed strong arguments that the legislation would not affect San
Francisco Bay Area water supply or rights, began to sit down with San Francisco to
discuss our concerns and incorporate changes that can be a part of the overall Delta
crisis solution. San Francisco has always been willing to contribute funding or water
to aid the failing Delta ecosystem, but costs and contributions should be assessed
equitably, transparently and in proportion to a city’s impact on the Delta and the
benefits it receives from any new infrastructure.

Mayor Gavin Newsom and his staff, with the SF Public Utilities Commission, have
worked closely with legislators, legislative staff and environmental interests in
Sacramento to support an amended bill that addresses San Francisco’s concerns with
the original bill. Those negotiations have now concluded and we believe, based on the
new proposed language, that we have achieved a fair solution to the issues raised.
We now remove our opposition of SB 68 and support the legislation.
Language has been added or amended that addresses our most important concerns.
Specifically:

1. The original bill failed to protect Northern California’s water supply and
rights. New language has been added to clarify that our water rights are intact.

2. The original bill directed the SWRCB to establish in-stream flow criteria for
Delta flows without adequate procedural process and safeguards. New
language has been added clarifying and ensuring a more substantive process
and limiting the effect of the findings.

3. The Delta bill created uncertainty about the existing statutory priorities for
domestic and municipal water use. New language has been added to the bill
reiterating current law.

4. The Delta Watermaster was granted extraordinary powers that were overly
broad and extended far beyond the Delta. The bill has been amended to clarify
that the Delta Watermaster’s authority is limited to impacts on the Delta and is
further limited to enforcement of SWRCB actions.

5. The Delta Bill would have significantly expanded the SWRCB’s enforcement
authority and administrative remedies. Significant changes have been made to
ensure that important procedural rights are not eroded.

Thank you again for your leadership in this vital area and for your commitment to a
close collaboration over the past few weeks. If we have learned anything through the
many generations of water law discussions it is that we fare better when the legitimate
concerns of all parties are recognized and addressed.

Sincerely,

Ed Harrington
General Manager