Services of the San Francisco Public Utilities Commission
OUR MISSION: To provide our customers with high-quality, efficient and reliable water, power and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care.
525 Golden Gate Avenue, 13th Floor
San Francisco, CA 94102
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TTY 415.554.3488
January 27, 2022
Ms. Sue Parker Ms. Erika Contreras
Chief Clerk of the Assembly Secretary of Senate
California Legislature California Legislature
State Capitol, Room 3196 State Capitol, Room 3044
Sacramento, CA 95814 Sacramento, CA 95814
Darrin Polhemus
Division of Drinking Water
State Water Resources Control Board
1001 I St., 24
th Floor
Sacramento, CA 95814
Dr. Tomás J. Aragón, M.D., Dr.PH
Director and State Public Health Officer
California Department of Public Health
P.O. Box 997377, MS 0500
Sacramento, CA 95899-7377
Dear Madams and Sirs:
In accordance with Assembly Bill 1823, a bill codified in Chapter 841 of the California Water Code, Section 73504(a), the San Francisco Public Utilities Commission (SFPUC) is herewith reporting on the progress it has made during 2021 on securing supplemental sources of water to augment existing supplies during dry years.
This past year, the SFPUC has continued the implementation of its water supply projects in the Water System Improvement Program (WSIP).
Additionally, the agency has continued planning that was initiated in 2020 for additional water supply under the Alternative Water Supply Program to meet future dry and normal year water needs in the SFPUC service area. The first section of this report includes updates on dry year projects included in WSIP and the second section describes alternative water supply projects outside of WSIP that are currently in the planning phase.
I. P ROGRESS ON DRY YEAR SUPPLY PROJECTS INCLUDED IN WSIP
The elements of WSIP adopted by the SFPUC related to securing dry year supply for its customer base include:
• Calaveras Dam Replacement Project – Calaveras Reservoir was operated at 39 percent of its capacity as a result of a California Division of Safety of Dams (DSOD) order between 2001 and 2018. The reduced capacity significantly affected the ability of the SFPUC to carry over dry- year water supplies from one year to the next and, therefore, impacted the
SFPUC’s dry-year water supplies. In 2011, the SFPUC began construction of this project, but discovered previously unknown large ancient landslides that led to an increase of excavation quantity of over 1.5 million cubic yards along with a schedule extension and budget increase for the project.
Construction of the embankment dam was completed in Fall 2018; at that time, the SFPUC began impounding water behind the new dam in accordance with DSOD guidance. During the winter season of 2018-2019, the reservoir reached a maximum elevation of 733.6 feet and the first hold point requirements were met. As of June 1, 2021, reservoir storage had not yet filled sufficiently to reach the next hold point due to the drought. Daily inspections were performed during the 2018-2019, 2019-2020, and 2020- 2021 wet seasons, and the new Calaveras Dam has performed in accordance with the design. The Calaveras Dam Project has been in closeout phase since April 2019 without the Calaveras Reservoir reaching sufficient level to fulfill Initial Fill Plan inspections. The project team continues to monitor and is ready to resume reservoir initial fill inspections during the upcoming winter season of 2021-2022. After the construction project is closed out, any remaining Initial Fill inspections will be performed by SFPUC Operations staff.
• Regional Groundwater Storage and Recovery (RGSR) Project – The RGSR Project is a strategic partnership between the SFPUC and three partner agencies: the City of Daly City, the City of San Bruno and the California Water Service Company (serving South San Francisco and Colma). The project sustainably manages groundwater and surface water resources in a way that provides supplies during times of drought. During years of normal or heavy rainfall, the project would provide additional surface water to the partner agencies in San Mateo County, allowing them to reduce the amount of groundwater that they pump from the South Westside Groundwater Basin. Over time, the reduced pumping would allow the aquifer to naturally recharge and result in increased groundwater storage of up to 20 billion gallons of new water supply available during dry years. Phase 1 of this project consists of construction of thirteen well sites and is over 98 percent complete. Construction of Phase 1 is expected to be complete in March 2022.
The work has been separated into two contracts. Phase 2A consists of installation of cathodic protection, variable frequency drives, flowmeters for water accounting, and valve modifications. Phase 2B consists of work at SSF Main Well and pipeline installation to connect the well to Cal Water's treatment facility. The bid package for Phase 2A was advertised in September 2021. Completion of Phase 2B work will be deferred to a later date until all right of way permits and easements are obtained. The 100% design package is progressing, and permits are being obtained.
The Regional Groundwater Treatment Improvements Project was initiated in 2021 as part of the Water Enterprise Capital Improvement Program and includes treatment facilities for several of the wells to address groundwater quality issues that have emerged since the wells were constructed. This project will perform planning, design and construction of appropriate treatment facilities for the regional wells
• Modesto and Turlock Irrigation Districts’ Dry Year Water Transfer – WSIP included a water transfer between the SFPUC and its partners on the Tuolumne River. In 2012, staff of the SFPUC and Modesto Irrigation District (MID) developed a term sheet for a 2 million gallon per day (mgd) dry-year water supply transfer for approval by their governing boards. The SFPUC and MID were ultimately unable to reach agreement on mutually beneficial terms and the water transfer negotiations were terminated. Subsequently, the SFPUC began discussions with the Oakdale Irrigation District (OID) for a one-year transfer agreement with the SFPUC for 2 mgd. In 2021, transfers continued to be pursued in conjunction with voluntary settlement agreement discussions associated with the implementation of the Bay Delta Water Quality Control Plan (Bay Delta Plan), which is described below.
• Improvements to Lower Crystal Springs Dam (LCSD) - The LCSD Improvements were completed in May 2012. The joint San Mateo County/SFPUC Bridge Replacement Project to replace the bridge across the dam was completed in January 2019. A WSIP follow up project to modify the LCSD Stilling Basin for fish habitat and upgrade the fish water release and other valves started in April 2019 construction of this facility was completed in 2021. While the main improvements to the dam have been completed, environmental permitting issues for reservoir operation remain significant. When the reservoir elevation was lowered due to DSOD restrictions, habitat for Fountain Thistle, an endangered plant species, was discovered. Raising the reservoir elevation now requires that new plant populations be reinstated incrementally before the reservoir elevation is restored. The result is that it may be several years before pre-project water storage volumes can be restored.
The dry-year water supply projects included in WSIP were designed to allow the SFPUC to meet at least 80 percent of its customer demand during droughts assuming current system supplies and operation and rationing up to no more than 20 percent in any one year of a drought. However, the SFPUC’s ability to meet its customer demand during dry years may be complicated by the State Water Resources Control Board’s Bay Delta Plan, which was adopted in December 2018. The Bay Delta Plan calls for the release of 40% of the unimpaired flow in the Tuolumne River from Don Pedro Reservoir. The SFPUC
staff analysis of the Bay Delta Plan shows that its implementation could cause a significant reduction in available water supply and an associated need to increase rationing to up to 50% during droughts in SFPUC’s service area.
SFPUC staff continue to engage in negotiations with other parties and the State to reach a voluntary settlement agreement. Meanwhile, planning for new, alternative water supplies is ongoing. These efforts are described below.
II. N EW WATER SUPPLY PROJECTS IN THE PLANNING PHASE
The SFPUC is evaluating new storage and supply opportunities throughout the service area to meet anticipated future needs. The projects outlined below are regional projects that could contribute to increasing SFPUC’s water supplies for dry years. Each of the projects described remains in the planning and feasibility study stage, requiring additional analysis and resources.
• Daly City Recycled Water Expansion - This is a recycled water project that will produce approximately 1.25 mgd of recycled water on an average annual basis. The primary purpose of the project is to provide recycled water to 13 cemeteries and other smaller irrigation customers, offsetting existing groundwater pumping from the South Westside Groundwater Basin (Basin); this will free up groundwater, enhancing the reliability of the Basin.
The project is a regional partnership between the SFPUC and Daly City, and the irrigation customers are located largely within California Water Service Company's (Cal Water) service area. SFPUC customers will benefit from the increased reliability of the South Westside Groundwater Basin for additional drinking water supply during droughts. In this way, this project supports the RGSR Project described in Section I, which is under construction. An alternatives analysis is ongoing to determine if there are other scenarios that could increase water supply or other benefits from the project. Simultaneously, the team has initiated work on updating the cemetery demands on their existing expansion plans, which would help clarify whether there is sufficient recycled water supply to meet future demands as well as potential effects on groundwater basin storage.
Evaluation of siting and design alternatives for a storage tank are also underway.
• Alameda County Water District-Union Sanitary District Purified Water - This project can provide a new purified water supply utilizing Union Sanitary District’s treated wastewater and further treating it through a multi-barrier advanced treatment process to meet or exceed drinking water standards.
Purified water produced by Union Sanitary District will be transmitted to the Quarry Lakes Groundwater Recharge Area to supplement recharge into the Niles Cone Groundwater Basin or for other uses in Alameda County Water District's (ACWD's) service area. With the additional water supply to
ACWD, an in lieu exchange with the SFPUC would result in more water left in the SFPUC's Regional Water System. Additional water supply could also be directly transmitted to the SFPUC through a new intertie between ACWD and SFPUC. The project team finalized the updated work plan based on the alternatives that were identified in Spring 2021. The alternatives include purified water concepts that could recharge the groundwater basin through Quarry Lakes as a first phase and provide water supply to ACWD or SFPUC directly as a second phase. Two variations of this phased approach are currently being analyzed to determine the project’s technical feasibility.
• Crystal Springs Purified Water - This purified water project could provide 6-12 mgd of water supply through reservoir water augmentation at Crystal Springs Reservoir in San Mateo County, within the SFPUC's Regional Water System. Treated wastewater from Silicon Valley Clean Water and/or the City of San Mateo would go through a water purification process that uses multi-barrier treatment technology to meet state and federal drinking water quality standards. The purified water would then be transmitted 10-20 miles (depending on the alignment) to Crystal Springs Reservoir, blended with regional surface water supplies and treated again at Harry Tracy Treatment Plant. In addition to the SFPUC and the wastewater agencies, Cal Water, Redwood City and the Bay Area Water Supply & Conservation Agency (BAWSCA) are also participating directly in the project. The SFPUC, partner agencies and the consultant team continued to make progress on the Phase 3 feasibility study in 2021 by identifying and prioritizing various alternatives. Both indirect and direct potable reuse options are being considered as the partners plan for next steps at the planned conclusion of the feasibility analysis in 2022.
• Los Vaqueros Reservoir Expansion - The Los Vaqueros Reservoir Expansion Project is a storage project that will enlarge the existing reservoir located in northeastern Contra Costa County from 160,000 acre-feet to 275,000 acre-feet. The main objectives of the expansion include increasing water supply reliability for municipal, industrial and agricultural customers as well as ecosystem benefits to south-of-Delta wildlife refuges and Delta fisheries. While the existing reservoir is owned and operated by Contra Costa Water District (CCWD), the expansion will have regional benefits and will be managed by a Joint Powers Authority (JPA), which was established in October 2021 that will be set up prior to construction. Storage in the expanded reservoir can provide a dry year water supply benefit to the SFPUC's Regional Water System. Currently, the SFPUC is evaluating the feasibility of storing up to 40,000 acre-feet and delivering that supply over two drought years to the SFPUC service area either directly or by exchange through the South Bay Aqueduct. Alongside this analysis, the SFPUC staff are also considering feasible conveyance alternatives and water supply
options for storage. In 2021, the SFPUC concluded a water quality study to evaluate the potential impacts of introducing a new water supply source to the Regional Water System. Other project activities continued to advance through Multi-Party Agreements. A number of permit applications (e.g., U.S.
Fish and Wildlife Service incidental take permit) were submitted and are awaiting approval in early 2022. The 90% design for expansion of the dam was sent to the DSOD for review. Other project components also continued to move forward in the design phase including the Transfer-Bethany Pipeline Turn-in to the California Aqueduct. In 2021, the project also reached a financial milestone with the California Water Commission deeming the project eligible for $470 million in Proposition 1 funding.
• Bay Area Brackish Water Desalination (Regional Desalination) - The Bay Area Brackish Water Desalination Regional Desalination Project is a partnership between CCWD, SFPUC, Valley Water, and Zone 7 Water Agency. The East Bay Municipal Utility District (EBMUD) may also be involved. The project could provide 5 mgd of new drinking water supply to the region by treating brackish water from CCWD's existing Mallard Slough intake in Contra Costa County. The project relies primarily on available capacity in an extensive network of existing pipelines and interties that already connect the agencies, as well as existing wastewater outfalls and pump stations. The SFPUC would not directly receive desalinated water but would take delivery of water through a series of exchanges. If developed in conjunction with the Los Vaqueros Reservoir Expansion project, it can provide a dry year benefit. Current evaluation will depend on exchange opportunities and constraints with CCWD that are being evaluated as part of the Los Vaqueros Reservoir Expansion Project.
• Calaveras Reservoir Expansion - This storage project envisions the expansion of Calaveras Reservoir to store excess Regional Water System supplies or other source water in wet and normal years. No expansion of water rights from the local watershed is anticipated. With the Calaveras Dam Replacement project in place, Calaveras Dam holds a capacity of 96,850 acre-feet, or 31 billion gallons of water. Through an expansion, up to an additional 289,000 acre-feet, or 94 billion gallons of storage could be realized. The expansion of Calaveras Reservoir would provide storage for additional water that can be available in all water year types. The proposed project would include raising the dam, increasing the capacity of the outlet structures and the spillway, and the addition of any transmission and pumping needed to bring water to Calaveras Reservoir. The feasibility analysis of four potential dam elevations completed in early 2021 indicated that expansion of the dam at various elevations is technically feasible.
Conveyance alternatives to bring water upcountry to Calaveras Reservoir are currently being evaluated.
In addition to the above projects that are in the planning and feasibility study stage, the SFPUC is engaged in conversations on various other projects, including new interconnections, water transfers and exchanges through the Bay Area Regional Reliability (BARR) Partnership. BARR completed a Drought Contingency Plan in 2017, and subsequently received a grant award by the Bureau of Reclamation to pursue piloting efforts aimed at better informing water transfer and exchange opportunities. These pilot studies are currently underway.
The SFPUC and its Wholesale Customers also continue to advance conservation within our service areas. Both Retail and Wholesale demand continued to be low following the 2013-2016 drought. Though demand has started to rebound, it may take a number of years to reach previous levels. In addition, beginning in March of 2020, retail demand was impacted by COVID- 19 related business shutdowns, further reducing water use. COVID-19 impacts on retail water demand continued into 2021. Further, in 2021 the SFPUC declared a water shortage emergency and called for a 10 percent voluntary reduction in water usage across the service area. Customers are continuing to respond. Achieving close to 10 percent in demand reduction is particularly impressive given the low per capita consumption in San Francisco and the service areas of many of SFPUC's Wholesale Customers. In addition to demand reduction measures, the SFPUC is simultaneously pursuing studies to evaluate the potential for additional recycled water and purified water in San Francisco and investing in innovation that can result in further demand reduction or supply increases, such as atmospheric water generation technology.
Implementation of the WSIP dry year projects and the pursuit of alternative water supplies to meet future needs are necessary to ensure sufficient water during droughts for our Retail and Wholesale Customers. These efforts will continue to carry the upmost importance to the SFPUC into the future.
Cordially,
Steven R. Ritchie
Assistant General Manager, Water
CC:
SFPUC: Dennis J. Herrera, General Manager; Michael Carlin, Deputy General Manager, SFPUC Commissioners
BAWSCA: Nicole Sandkulla, CEO; Tom Francis, Water Resources Manager