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Water Enterprise Environmental Stewardship Policy Report

CleanPowerSF Sfpuc Commission
December 13, 2022

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Water Enterprise Environmental Stewardship Policy Report
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December 13, 2022
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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
T 415.554.3155
F 415.554.3161
TTY 415.554.3488

December 13, 2022

TO: Commissioner Newsha Ajami, President
Commissioner Sophie Maxwell, Vice President
Commissioner Tim Paulson
Commissioner Tony Rivera
Commissioner Kate Stacy

THRU: Dennis Herrera, General Manager

FROM: Steven R. Ritchie, Assistant General Manager, Water Tim Ramirez, Division Manager, Natural Resources and Lands Management (NRLM)

SUBJECT: Water Enterprise Environmental Stewardship Policy Implementation Report 2022

The Water Enterprise Environmental Stewardship Policy (WEESP) was adopted by the Commission in June 2006, and the first report focused on its implementation was submitted to the Commission in March 2017, with the intent of providing updates every two years. The second report was submitted to the Commission in June 2020, and this third report includes updates for FY19-20, FY20-21, and FY21-22, as well as some preliminary information for FY22-23.

The purpose of the WEESP is to establish long-term management direction for SFPUC-owned lands and natural resources that affect or are affected by operation of the SFPUC Regional Water System (RWS) within the Tuolumne River, Alameda Creek, San Mateo Creek, and Pilarcitos Creek watersheds. The SFPUC is a large Bay Area landowner and has a large obligation to manage our lands and facilities in a manner that protects and restores viable populations of native species and maintains the integrity of the ecosystems that support them for current and future generations.

These efforts support our ability to continue providing high quality drinking water to our 2.7 million customers as described in our Level of Service Goals and Objectives. There are four objectives under the Environmental Stewardship goal from the Draft Updated San Francisco Water System Level of Service (LOS) Goals and Objectives, and these provide the structure for this report. These Draft Updated LOS Goals and Objectives were as presented to the Commission at its October 24, 2017 meeting and further described at the budget workshop in January 2022.

We hope this report provides an overview of our work, and increasingly a measure of our progress.

1 Water Enterprise
Environmental Stewardship Policy
Implementation Report

December 13, 2022

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

2 Introduction
The Water Enterprise Environmental Stewardship Policy (WEESP) was adopted by the Commission in June 2006, and the first report focused on its implementation was submitted to the Commission in March 2017, with the intent of providing updates every two years. The second report was submitted to the Commission in June 2020, and this third report includes updates for FY19-20, FY20-21, and FY21-22, as well as some preliminary information for FY22-23.

The Natural Resources and Lands Management Division (NRLM) previously reported annually on the Watershed and Environmental Improvement Program (WEIP) investments, and these updates continue to be included in this report. The WEIP was developed in parallel to the Water System Improvement Program (WSIP), which included $20 million of WSIP funding as part of the initial commitment of $50 million over the first 10 years of WEIP implementation. The WEIP is now in its 18th year of implementation, with over $54 million invested. The WEIP is part of the WEESP implementation strategy and investments by watershed are shown in the table on the final page of this report.

The purpose of the WEESP is to establish long-term management direction for SFPUC-owned lands and natural resources that affect or are affected by operation of the SFPUC Regional Water System (RWS) within the Tuolumne River, Alameda Creek, San Mateo Creek, and Pilarcitos Creek watersheds. The SFPUC is committed to responsible natural resources management of its lands and facilities that protects and restores viable populations of native species and maintains the integrity of the ecosystems that support them for current and future generations. This report summarizes how the WEESP is being implemented, and is organized by objectives from the Environmental Stewardship goal from the Draft Updated San Francisco Water System Level of Service Goals and Objectives as presented to the Commission at its October 24, 2017 meeting and further described at the budget workshop in January 2022:

Environmental Stewardship – maintain high environmental performance standards • Meet all current and anticipated environmental legal requirements. • Manage natural resources and physical systems to protect watershed lands and their ecosystems.
• Provide the public with appropriate educational opportunities by maintaining active education programs and recreational opportunities (where appropriate) in cooperation with other federal, state, and local agencies. • Manage and operate the Water Enterprise assets consistent with the Water Enterprise Environmental Stewardship Policy.

Environmental stewardship is a fundamental component of the Water Enterprise mission, and a responsibility of all Water Enterprise employees. All Water Enterprise Divisions – Hetch Hetchy Water and Power, Water Supply and Treatment, City Distribution, Water Quality, Water Resources, and Natural Resources and Lands

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

3 Management – contribute to meeting these objectives. This report will continue to be updated every two years to track and measure progress towards ensuring the WEESP is implemented as envisioned.

Meet all current and anticipated environmental legal requirements The WEESP states the SFPUC will proactively manage the watersheds under its responsibility in a manner that maintains the integrity of natural resources, restores habitats for native species, and enhances ecosystem function. Compliance with current and anticipated federal and state environmental regulatory laws and policies is a fundamental requirement to support these efforts. Environmental compliance increases regulatory certainty, and therefore helps support regional water delivery reliability level of service objectives. The Water Enterprise has clarified and assigned environmental regulatory compliance roles and responsibilities to ensure this objective is achieved while conducting operations and maintenance activities throughout the RWS, including SFPUC watershed and rights-of-way (ROW) lands. The Planning and Compliance group within NRLM is the hub of environmental compliance within the Water Enterprise, and environmental compliance is achieved in collaboration with all Water Enterprise Divisions.

The Water Enterprise’s environmental compliance starts with impact avoidance.

SFPUC activities are reviewed and modified as needed to incorporate best management practices and environmental impact avoidance measures whenever feasible. When impacts cannot be fully avoided, permits are obtained to comply with environmental laws and regulations such as the California Fish and Game Code, the federal Clean Water Act, and the California and federal Endangered Species Acts. If a project triggers actions to comply with federal regulations, the SFPUC works with the federal lead agency to prepare any required National Environmental Policy Act documents. If Water Enterprise work needs review under the California Environmental Quality Act (CEQA), then San Francisco’s Planning Department, in coordination with the SFPUC, develops the appropriate documentation. In accordance with permits and CEQA documents, the SFPUC implements mitigation to minimize and offset any unavoidable impacts.

The Water Enterprise regularly evaluates environmental compliance procedures and protocols to streamline the processes and ensure they are consistent across all Water Enterprise operations and maintenance activities. In addition to the permitting and CEQA documentation described above, compliance is also documented through: 1) the asset management system MAXIMO, in coordination with Water Enterprise maintenance planning teams, 2) the Project Review process, 3) monitoring documentation required by CEQA documents, and 4) notification, monitoring, and reporting as required by federal and state environmental regulatory agencies.

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

4 Project Review
The SFPUC’s process for reviewing its own projects, as well as proposals from other agencies, organizations, and individuals to use watershed and ROW lands for construction, maintenance, vegetation management, and other purposes is Project Review. All projects on the SFPUC’s Bay Area watershed and ROW lands are reviewed by the SFPUC’s Project Review Committee (Committee), which is convened by NRLM and includes representation from Water Supply and Treatment, Water Quality, and Real Estate Services. The charge of the Committee is to vet proposed projects for consistency with SFPUC plans and policies, including its Watershed Management Plans and Environmental Stewardship Policy. During Project Review, the Committee may recommend modifications to the project and/or measures to avoid and minimize impacts. Once the project is determined by the Committee to conform to SFPUC policies, it is recommended for approval through appropriate SFPUC processes, which may include Commission review and approval. The Committee’s recommendation is in the form of a Certificate of Completion of the Project Review Process, which includes a project description and required measures to modify the project so that it conforms to SFPUC plans and policies and is in compliance with applicable federal and state environmental laws and regulations.

Water System Improvement Program Mitigation Requirements The SFPUC is implementing three major programs to mitigate for habitat and species impacts related to construction activities under the WSIP. The WSIP is a $4.8 billion multi-year capital program to upgrade the SFPUC's regional and local water systems.

In order to construct the WSIP projects, the SFPUC committed, through federal and state permits, to perform on-site and off-site mitigation.

The three major programs required by the federal and state regulatory permits for WSIP are: 1) Vegetation Restoration of WSIP Construction Sites; 2) the Bioregional Habitat Reserve Program (BHR); and 3) fisheries monitoring and habitat restoration in the Alameda and Peninsula watersheds.

Vegetation Restoration of WSIP Construction Sites involves restoring temporarily disturbed areas from WSIP construction sites and is overseen by the SFPUC’s Infrastructure Bureau. The BHR and fisheries monitoring and habitat restoration are the responsibility of the Water Enterprise, and the federal and state permits require these activities in perpetuity.

The BHR employs a unique approach to compensation by using a portfolio of restoration projects designed to work together at the landscape level to offset combined impacts across multiple WSIP construction projects. The BHR currently includes habitat restoration and enhancements totaling over 2000 acres on property owned by the SFPUC in the Alameda and Peninsula watersheds.

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

5 The BHR is comprised of two categories of mitigation: restoration areas where degraded habitats are rehabilitated and natural habitats are established or reestablished; and enhancement areas where existing habitats are managed and protected. BHR establishment activities include actions such as constructing wetlands and planting native species. BHR enhancement activities include grazing management, invasive species control, and protection of naturally recruiting native trees from herbivory.

The specific success criteria for the BHR program were established by the environmental permits for WSIP projects. Depending on the habitat type, the SFPUC is required to initiate a 5 or 10-year performance monitoring period. During this initial period, extensive habitat management, monitoring, and reporting efforts are required to ensure that these mitigation efforts meet the permit obligations. After reaching performance requirements, the SFPUC will maintain and monitor these areas in perpetuity. Some of the habitats in BHR sites have met the final performance goals, and so the SFPUC is shifting to long-term monitoring and maintenance activities at these locations. Long term BHR monitoring and maintenance activities are required to be supported by an endowment, and conservation easements must be recorded to protect these habitats in perpetuity. The endowment, conservation easements, and long-term management plan which determine these specifics will be finalized with the federal and state resource agencies in 2023 and brought to the Commission for consideration.

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

6 Adobe Gulch Creek BHR Site: Oak Woodland Establishment Note the evolution of vegetation growth over a six-year time frame.

Year 1: 05/20/2015 Year 3: 05/11/2017

Year 5: 05/22/2019 Year 7: 05/11/2021

Fisheries monitoring and habitat restoration are integral components of the federal and state permits associated with the Calaveras Dam Replacement and Lower Crystal Springs Dam Improvement Projects (CDRP and LCSDIP, respectively), and obtaining these permits in a timely manner to allow construction to start on schedule was a major accomplishment. The Water Enterprise led these negotiations in close coordination with the WSIP project teams, and the WEESP provides specific policy direction that established the foundation upon which these commitments were developed.

Per the WEESP, it is the policy of the SFPUC to operate the RWS in a manner that protects and restores native fish and wildlife downstream of dams and water diversions, within reservoirs, and on watershed lands. Specifically, consistent with the SFPUC’s mission, releases from SFPUC reservoirs will mimic the variation of the seasonal hydrology (e.g., magnitude, timing, duration, and frequency) of their corresponding watersheds in order to sustain the aquatic and riparian ecosystems upon which these native fish and wildlife species depend.

Accordingly, the Water Enterprise developed proposals for consideration by the federal and state agencies – National Marine Fisheries Service, US Fish and Wildlife Service,

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

7 and California Department of Fish and Wildlife – that are consistent with the WEESP.

These proposals were informed by years of hydrologic and biologic monitoring conducted by Water Enterprise staff, and in coordination with the federal and state resource agencies and local community groups in an open and transparent manner. In particular, the CDRP federal and state permit conditions were developed in coordination with the Alameda Creek Fisheries Restoration Workgroup and focused on steelhead. These proposals are based on water year types and vary by season to support different life stages of the key species downstream of the dams. Agreements were reached in 2010 with the federal and state resource agencies, releases from Lower Crystal Springs Dam started in January 2015, and releases from Calaveras Dam and bypasses from and operation of the new fish ladder at the Alameda Creek Diversion Dam started in January 2019.

Water released from Calaveras Dam downstream to Calaveras Creek

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

8 Although it’s too early to draw conclusions regarding the effect of the releases from Calaveras Dam, it is worth noting some of the preliminary results. Prior to the releases starting in January 2019, Calaveras Creek downstream of the dam was a series of warm water (70-75 degrees Fahrenheit) pools hosting mostly non-native fish species.

After the releases started, temperatures plunged (52-57 degrees Fahrenheit) and the fish distribution shifted, as illustrated by the chart below which was generated by NRLM annual snorkel surveys. Prior to the releases starting, rainbow trout, the freshwater component of the steelhead population which was one of the main species that drove development of the release schedule, were not found at all in Calaveras Creek. Based on limited data, they now are the dominant species, and the canyon below Calaveras Dam provides a cold water refugia for these fish during the hot summer months.

Calaveras Creek Snorkel Survey Data 2015-2021
(red line marks start of releases from Calaveras Dam; O. mykiss includes steelhead and rainbow trout)

Another component of Alameda Creek fisheries monitoring is tracking the juvenile steelhead as they move downstream towards San Francisco Bay. The NRLM staff use rotary screw traps (RST) and fyke nets for this purpose, and data from 2018 provided the first real evidence that as the juvenile steelhead migrate out of the watershed they are preparing to enter salt water environments. While this is common in other similar watersheds in central California, it confirms that the resident rainbow trout already in the watershed will contribute to steelhead recovery.

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

9 When the juvenile fish are caught in the RSTs and fyke nets, NRLM staff insert passive integrated transponder (PIT) tags, which are small radio transponders that contain a specific code which allows individual fish to be assigned a unique identification so they can be tracked at other locations in the watershed as juveniles, or even as adults returning from San Francisco Bay and the Pacific Ocean years later. The Alameda Creek Diversion Dam fish ladder includes PIT tag readers, and in March 2020 one of these readers recorded the first juvenile fish tagged earlier by NRLM staff. This same technology has been deployed along San Mateo Creek, and recently one of these PIT tag readers picked up an adult that was tagged years before by NRLM staff as it returned to the area below Lower Crystal Spring Dam. PIT tag readers have also recently been installed on Pilarcitos Creek below Stone Dam. This monitoring provides very encouraging and important results, and over time the data collected will illustrate the benefit of investments made to support steelhead recovery in Bay Area creeks, and also direct future investments that may be necessary.

PIT tag arrays on Pilarcitos Creek

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

10 Consistent with the WEESP, and as required by the BHR and fisheries-related permit requirements as well as Watershed Management Plans and associated EIRs, the Water Enterprise develops annual reports that include more detail than the summary of information provided above to the federal and state resource agencies that describe these efforts to monitor the health of terrestrial and aquatic habitats and key species these habitats support.

Juvenile Rainbow Trout (Oncorhynchus mykiss)

Operations and Maintenance Activities
There are two other important areas where the WEESP provides guidance to the operation of SFPUC dams – O’Shaughnessy Dam (OSD) and Pilarcitos Dam.

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

11 Tuolumne River below O’Shaughnessy Dam

Releases from OSD are governed by stipulations with the U.S. Department of Interior under the Raker Act, and the Water Enterprise works closely with National Park Service, US Fish and Wildlife Service, and the U.S. Forest Service regarding their

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

12 implementation. Although there are no WSIP projects related to OSD, the WSIP Programmatic Environmental Impact Report (2008) includes a project-level analysis on meeting future water supply reliability objectives. This triggered a discussion with the federal agencies and other interested parties focused on updating the operational criteria for OSD which are based on agreements from the 1980s. The Water Enterprise convened the Upper Tuolumne River Stakeholders Group and worked within this collaborative forum to develop the OSD Instream Flow Management Plan (2014), which will be submitted for federal and state environmental review before these proposed changes can be fully implemented. In the interim, annual spring releases from OSD targeted on specific ecological objectives downstream continue to be developed in coordination with this group, which meets twice annually to ensure ongoing coordination with all parties. The SFPUC is currently updating the OSD Instream Flow Management Plan in preparation for environmental review in collaboration with Yosemite National Park.

Since October 2006, the Water Enterprise has operated Pilarcitos and Stone Dams to ensure that at a minimum approximately 1-2 cfs are released continuously below Stone Dam to support steelhead in Pilarcitos Creek. This work was included in the Pilarcitos Integrated Watershed Management Plan (2008), developed by the Pilarcitos Creek Restoration Workgroup under a State Water Resources Control Board grant to the SFPUC and administered in coordination with the San Mateo County Resource Conservation District. The Water Enterprise continues to operate this part of the RWS to meet this target and conducts annual monitoring along the creek. All of this work will inform a potential future rehabilitation project at Pilarcitos Dam and permit conditions similar to what now exist at Calaveras and Lower Crystal Springs Dams.

Water Enterprise environmental permitting and compliance efforts related to operations and maintenance also include:

• Routine Maintenance Agreements and Lake and Streambed Alteration Agreements with the California Department of Fish and Wildlife for the Alameda and Peninsula Watersheds;
• Permits for compliance with Sections 401, 402, and 404 of the Clean Water Act; • Alameda and Peninsula Watershed Management Plans and associated EIRs; • California Air Resources Board permits;
• Compliance with hazardous materials regulations; and
• Federal special use permits with the Yosemite National Park Service, the Stanislaus Forest Service, and the Bureau of Land Management.

Training and communication are fundamental to ensuring environmental compliance, and Water Enterprise staff are required annually to attend tailgates and other regular meetings to ensure work order conditions are being met and that environmental stewardship principles are integrated into daily operations and maintenance activities.

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

13 Lake Merced Water Level Restoration Project
Lake Merced is an emergency water source for the SFPUC, and as a result of groundwater pumping and efforts in the 20th century to disconnect the lake from its watershed (to protect its quality as a drinking water source at the time), the water level was severely reduced in the early 1990s. Since then, the SFPUC has been working to bring recycled water to surrounding entities that previously relied on groundwater, and to reconnect the lake to storm water sources. The Vista Grande Drainage Basin Improvement Project is a key project to bring storm water from portions of Daly City to Lake Merced, and the SFPUC is working closely with Daly City to implement this project. The SFPUC also monitors water quality quarterly throughout the water column at four separate locations in Lake Merced. Parameters such as pH, dissolved oxygen, water temperature, nutrients, metals, bacteria, and phytoplankton are monitored and tracked. The SFPUC conducts monthly harmful algal bloom (HAB) by-product analysis as part of the lake water quality monitoring program. Results are compared to the California Environmental Protection Agency’s HAB voluntary screening levels and appropriate notifications are posted around the lake if sampling results indicate algal toxin concentrations exceed these thresholds.

Water Resources Division
The SFPUC provide s a comprehensive water conservation program to all customers, and constantly strives to diversify the SFPUC water supply portfolio to ensure regional and in-City delivery reliability level of service objectives are met. Diversifying our sources of water also reduces our reliance on surface water so urces to meet current and future demands. For more information, please see the Water Resources Division FY21 -22 Annual Report.

Manage natural resources and physical systems to protect watershed lands and their ecosystems

The RWS relies on 428,116 acres of watershed lands draining to SFPUC reservoirs in 5 different counties to provide high quality source water for our customers. Watershed land management across the RWS is described generally in the SFPUC Framework for Land Management and Use Policy, adopted by the Commission in March 2012. The “watershed” system map below was created as part of our Alameda Creek Watershed Center interpretive program work and provides this context.

The Watershed and Environmental Improvement Program (WEIP) was initiated in FY05/06 as a 10-year, $50 million program to proactively manage, protect and restore environmental resources that affect or are affected by operation of the RWS. The intent of this program is to supplement existing efforts to manage and protect watershed lands, and the purpose of this funding commitment was to bring additional resources required to ensure that these ecosystems are being managed in a sustainable manner to support native plant and animal species. The WEIP spans the Tuolumne, Alameda, San Mateo, and Pilarcitos watersheds, as well as SFPUC lands in San Francisco. The funding has been appropriated and tracked from multiple fund

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

14 sources, and NRLM staff will continue to track WEIP investments as part of annual WEESP reports. The FY19-20, FY20-21, FY21-22, and estimates for FY22-23 are included in this report (See “WEIP Projects by Watershed” table, last page).

15 16

Tuolumne River watershed
The vast majority of the Hetch Hetchy watershed (293,760 acres) is designated as federal wilderness and is managed by the National Park Service (NPS) in Yosemite National Park under a multi-year agreement with the SFPUC. This agreement includes provisions to address water quality, environmental stewardship, and security issues – and is required to ensure Hetch Hetchy source water maintains its filtration avoidance status. Cherry and Eleanor watersheds are permitted as standby drinking water sources. The Eleanor watershed is part of Yosemite National Park, and its management is also governed by the multi-year agreement with the NPS and its wilderness designation. The Cherry watershed is managed under a multi-year agreement with the U.S. Forest Service in Stanislaus National Forest.

The Tuolumne River is also designated under the federal Wild and Scenic Rivers Act and is managed by the NPS in Yosemite National Park and by the U.S. Forest Service in Stanislaus National Forest, accordingly.

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

17 Tuolumne River science symposium, Parsons Lodge, Tuolumne Meadows

In the spring of each year, the NPS and NRLM staff co-host an annual science symposium where researchers working in the watershed describe their water quality and environmental stewardship projects and present findings based on their field work.

This event has expanded each year, and now includes Water Enterprise staff from multiple divisions, the U.S. Fish and Wildlife Service, the U.S. Forest Service, and university researchers. This forum has allowed researchers to learn from each other, and increasingly focus collective efforts to prioritize future investments.

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

18 Restoration project field tour on the lower Tuolumne River (January 2022)

While not immediately below SFPUC facilities, the Lower Tuolumne River is a significant resource that is the subject of collaboration with the Turlock and Modesto Irrigation Districts (“The Districts”). In 2021 The Districts, together with the San Francisco Public Utilities Commission (SFPUC) and the United States Fish and Wildlife Service (USFWS) (collectively, “MOU Partners”) executed a Memorandum of Understanding titled Pilot Project to Improve Habitat on the Lower Tuolumne River (“MOU”).

The MOU outlines the intention of the MOU Partners to engage in habitat improvement work on the Lower Tuolumne River prior to issuance of a new license by the Federal Energy Regulatory Commission (FERC) to the Districts for the Don Pedro Project and an original license for the La Grange Project.

Planning is currently underway for a large-scale habitat restoration project to benefit fall-run Chinook spawning. Objectives of the Old La Grange Bridge Project include restoration of approximately 9 acres of salmonid spawning riffles within the Lower Tuolumne River mainstem and 2 acres of adjacent floodplain habitat. Additional projects are being studied.

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

19 The State Water Resources Control Board is in the process of updating its legally required Bay-Delta Water Quality Control Plan to protect native fish, wildlife and other “beneficial uses” of water, including municipal, domestic and agricultural water supplies.

In November of 2022, the SFPUC and The Districts signed an MOU committing to work with the state to develop enforceable agreements with actions and funding to integrate additional water flows with the physical landscape to help improve habitat for native fish in the Sacramento-San Joaquin River Delta watershed.

The MOU seeks to meet Bay-Delta Plan objectives through an integrated program that restores habitat, secures new flows for the environment above existing regulatory requirements, expands funding for environmental improvements and water purchases, and establishes a new, collaborative science program to monitor environmental conditions and adapt management over time.

Bay Area watershed and ROW lands
In the Bay Area, approximately 40% of the Upper Alameda Creek watershed (89,408 acres) above San Antonio and Calaveras Reservoirs is protected by public ownership and/or conservation easements. The SFPUC owns 38,983 acres in the watershed, and some of this is downstream of the two reservoirs. On the Peninsula watershed, the SFPUC owns 22,854 acres, which protects 98% of the San Mateo Creek and Pilarcitos Creek watersheds that deliver water to Pilarcitos, San Andreas, and Crystal Springs Reservoirs. The Alameda Creek watershed is managed under the Alameda Watershed Management Plan, adopted by the Commission in September 2000. The San Mateo and Pilarcitos Creek watersheds are managed under the Peninsula Watershed Management Plan, adopted by the Commission in June 2001. The goals and objectives of both watershed management plans are identical – the primary goal is to maintain and improve source water quality to protect public health and safety. There are six secondary goals, and one of these is to preserve and enhance the ecological and cultural resources of the watersheds. NRLM manages the Bay Area watershed and ROW lands and is responsible for operations and maintenance of the Water Enterprise’s land management assets (fuel breaks, roads, fences, culverts). The SFPUC manages approximately 150 miles of ROW lands in Alameda, Santa Clara, and San Mateo Counties.

Another secondary goal from the watershed plans is to protect the watersheds, adjacent urban areas, and the public from fire and other hazards. In May of each year Water Enterprise staff from the Alameda and Peninsula watersheds each host First Responder Liaison meetings and invite all first responders, including local CALFIRE staff, County Sheriff’s offices, and other local fire protection and law enforcement, to gather and share information related to fire protection and other emergency response measures so we can minimize our risk to catastrophic fires.

In the same manner that the Alameda Creek Watershed Historical Ecology Study (February 2013) supports land management activities and planning in the Alameda

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

20 Watershed, the recently completed Peninsula Historical Ecology Study (August 2021) provides important information regarding how the Peninsula Watershed landscape has changed over time. This information provides useful context and insight for land management and restoration efforts.

On the eastern boundary of the Peninsula Watershed, as in many other parts of California, native grasslands have been lost to development. The undeveloped remnants of native grassland here are highly biodiverse and support numerous special status species. However, the historical ecology study demonstrates that development is not the only threat to these habitats. Over the course of many decades, these grasslands have also been gradually displaced by non-native trees. These same trees increase the wildfire risk to the adjacent homes, utilities, and other infrastructure in the area. Working with CALFIRE, the SFPUC is removing these non-native trees to restore native watershed ecosystems and reduce the risk of wildfire.

The SFPUC is also working with CALFIRE to conduct prescribed burns on the Peninsula Watershed. Prescribed burns are implemented annually at San Andreas and Pilarcitos Dams as conditions and staff availability allow. Starting in 2022, prescribed burns can also be conducted in other areas on the Peninsula Watershed based on a new agreement with CALFIRE. SFPUC staff are preparing two additional agreements with CALFIRE to implement prescribed burns on the Peninsula Watershed in 2023, including a BHR mitigation site. Prescribed fires not only reduce the risk of catastrophic wildfires, but also reintroduce a type of natural disturbance with which many native plant species have evolved. NRLM staff are conducting studies to evaluate the conditions before and after prescribed fires to determine the effects of prescribed fire in watershed ecosystems. This monitoring is performed in collaboration with CALFIRE and will contribute to the understanding about the effects of prescribed fire on habitats in other parts of California as well as the Bay Area.

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

21 Prescribed burn on the Peninsula Watershed (October 2022)

NRLM staff are also overseeing monitoring related to the effects of the SCU Lightning Complex fire, which burned almost 400,000 acres in the Diablo Range, including over 10,000 acres of the SFPUC Alameda Watershed. Although the post-fire monitoring confirmed most of the area burned at a low intensity, approximately 60 miles of watershed fencing was damaged or destroyed and is still being replaced. The SFPUC is seeking federal and state reimbursement for this work, based on disaster declaration. NRLM staff are also closely monitoring for the introduction of non-native invasive species that may have been unintentionally introduced during the fire- fighting response.

The SFPUC is the second largest landowner in both Alameda and San Mateo Counties and managing the watershed and ROW lands owned by the SFPUC is a high priority for the Water Enterprise. The SFPUC relies heavily on our public agency partners for many aspects of land management, including fire protection, public access, and public

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

22 safety. We have agreements with and/or have provided easements to the East Bay Regional Park District (EBRPD), San Mateo County Parks, and the Golden Gate National Recreation Area and meet regularly with these groups. We are also part of several collaborative forums which provide opportunities for coordinated operation and environmental stewardship activities. These forums include:

• Together Bay Area, formerly the Bay Area Open Space Council, is a regional coalition of nonprofits, public agencies, and local Native governments working together for climate resilient lands in the 10 county Bay Area region. TBA connects, convenes, and catalyzes action for a just and equitable society where Bay Area residents live in relationship with the land that sustains these communities now and will sustain future generations.

• The East Bay Stewardship Network (EBSN), which includes California State Parks, East Bay Municipal Utility District, Contra Costa Water District, and EBRPD. The ESBN recently developed a science-based, landscape-scale assessment of the ecological health of native wildlife within EBSN lands in Alameda and Contra Costa Counties (NatureCheck: A report on the health of wildlife in the East Bay.)

• The Golden Gate Biosphere Network (GGBN), a voluntary partnership of federal, state, and local government agencies, nonprofit organizations, universities, and private partners located within the Golden Gate Biosphere Region along the western portion of the San Francisco Bay Area. The Network has been part of the United Nation’s UNESCO Biosphere Programme since 1988 and has been recognized by UNESCO due to the significant biodiversity of the region, as well as the GGBN's efforts to conserve its natural resources and demonstrate a balanced relationship between humans and the biosphere. The GGBN has most recently begun to develop a climate change vulnerability assessment, which will include voluntary climate-informed adaptation strategies for high-priority habitats and species within the Golden Gate Biosphere region.

• The Upper Alameda Creek Watershed Partnership (Partnership) includes The Nature Conservancy, California Rangeland Trust, Trust for Public Land, Alameda County Resource Conservation District, and the Natural Resources Conservation Service. The goal of the Partnership is to coordinate watershed protection projects in the Mount Hamilton area of the Diablo Range, including the upper Alameda Creek watershed. The Partnership helps present a unified and cohesive vision to private landowners and provides them with a clear understanding of land protection options in the watershed and helps facilitate discussions with potential funders in order to leverage existing land protection funds. The SFPUC land acquisitions projects in the Alameda Watershed emerge from this forum, and the most recent example is the 654-acre Section 21 property (see map below).

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

23 Section 21 Acquisition

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

24 Protected Lands in Alameda Watershed

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

25 NRLM and Water Quality staff conduct all of the sampling and analysis of SFPUC reservoirs to inform Water Supply and Treatment system operations, including water treatment at the Sunol Valley and Harry Tracy Water Treatment Plants and the Hypolimnetic Oxygenation Systems (HOS) in Calaveras and San Antonio Reservoirs.

The operation of HOS facilities improves water quality conditions by increasing the oxygen concentration in the deepest part of the reservoirs, thus limiting nutrient release from the sediments to the water column, which reduces the risk of algal blooms and the unpleasant taste and odors associated with these events. The increased oxygen concentration also helps maintain the cold-water habitat in the reservoirs for the landlocked rainbow trout populations.

Non-native invasive species management
The inadvertent and sometimes illegal introduction of new species into a water body or terrestrial habitats can have devastating effects on ecosystems and/or the SFPUC infrastructure.

In response to the discovery of aquatic non-native invasive species in the Bay Area and new state requirements in 2007 (amendments to California Fish and Game Code related to aquatic invasive species), the NRLM developed a decontamination for aquatic surveys protocol that all SFPUC staff, consultations, and access permit holders must comply with to prevent the introduction or spread of organisms that might negatively impact aquatic resources.

One of the most recently discovered aquatic nuisance species to threaten waters of the Western United States, the quagga mussel (Dreissena bugensis), can alter aquatic food webs and foul water intake structures, but it has not been observed on SFPUC watershed lands or reservoirs. Another aquatic nuisance species, the New Zealand mudsnail (Potamopyrgus antipodarum), has been documented on SFPUC watershed lands in portions of Alameda Creek in Alameda County and Polhemus Creek in San Mateo County. Other species that could threaten our aquatic ecosystems include:
chytrid fungus (Batrachochytrium dendrobatidis), whirling disease (Myxobolus cerebralis), didymo or rocksnot (Didymosphenia geminate), zebra mussels (Dreissena polymorpha), Eurasian watermilfoil (Myriophyllum spicatum), water hyacinth (Eichhornia crassipes), and Brazilian waterweed (Egeria densa). While this is by no means a comprehensive list, it serves to illustrate that aquatic nuisance species have a range of forms, sizes, and types of impact. These species can cling to wading equipment and hiking sticks or attach to boats and trailers. Some species capable of living in moist environments near the edges of aquatic habitats (including muddy areas) can also be moved in the mud on boots or other gear. The decontamination protocol is the first line of defense to protect native species in the Alameda and Peninsula Watersheds and SFPUC regional water system infrastructure.

As part of our efforts to collaborate with other Bay Area open space agencies and nonprofits, and to better inform our operations and maintenance, we developed an initial agreement with the U.S. Forest Service (January 2008) to collect the insight of

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

26 university researchers and other experts with experience in plant pathogens (e.g., Sudden Oak Death). The Commission authorized a new agreement (Sustaining Plant Health for Restoration and Management of Vegetation on SFPUC lands) with the U.S.

Forest Service (August 2017) to continue this work, which has expanded in scope to include additional partners, to address emerging concerns with new plant pathogens, and develop educational material that can be used by SFPUC staff to minimize the risk of additional damage done by plant pathogens to SFPUC watersheds. The SFPUC has been participating in the Phytophthoras in Native Habitats Work Group, a diverse multi-stakeholder group that aims to protect native vegetation in California wildlands from introduced plant pathogens, and with input from this work group, the SFPUC developed a standard operating procedure for decontamination of non-aquatic tools, vehicles, and attire to minimize risk of introduction and spread of invasive plants, and plant pests and pathogens.

NRLM staff decontaminate their boots as part of a standard protocol for preventing the spread of plant pathogens

Invasive species management is also being performed throughout the Alameda and Peninsula Watersheds in areas where invasive plants are threatening critical ecosystems and species. Current Peninsula Watershed initiatives include controlling

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

27 jubata grass, broom, yellow star thistle, Acacia, medusa head and other high rated invasive species in California. This work is being driven by the findings and recommendations in the 2020 Non-native Invasive Plant Mapping and Recommendation Report.

Native species restoration
The WEESP provides direction for the Water Enterprise to proactively restore native species and their habitats, which means taking actions that are not otherwise required by federal or state regulations. An example from the Peninsula watershed is the work being done to protect and restore Hillsborough chocolate lily, a rare plant which is not currently protected by federal or state laws. The Hillsborough chocolate lily efforts have included seed banking, non-native tree removal around the plants, deer fencing installation to reduce plant herbivory, rotational weed whipping to remove thatch, and propagation efforts at the Sunol Native Plant Nursery. We also work in partnership with the federal and state resource agencies to protect and restore native plants on our lands that are protected by laws and regulations when there is not a permit requirement for our participation. An example of this work is the effort to protect San Mateo thornmint where SFPUC staff introduced the species via seeding to the Peninsula Watershed. The most recent census of that effort identified 1,142 individual plants.

Hillsborough chocolate lily San Mateo thornmint

NRLM is also collaborating with US Fish and Wildlife Service, California Department of Fish and Wildlife, GGNRA, San Mateo County Parks, and other local agencies and landowners to jointly conserve species that exist across political and management boundaries in San Mateo and San Francisco counties, specifically Mission blue butterfly, San Francisco Garter snake and California red-legged frog.

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

28 Sunol Native Plant Nursery
Healthy, resilient watersheds produce high-quality water, and in the fall of 2018, SFPUC's commitment to environmental stewardship led to the construction of the Sunol Native Plant Nursery. This one-of-a-kind facility uses strict, laboratory-like procedures to produce healthy, disease-free stock, and shortly after opening, the nursery grew over 30,000 plants that were planted at the Sunol Yard landscaping and in habitat restoration projects on SFPUC managed lands. An additional 25,000 plants were propagated for the Alameda Creek Watershed Center garden and planted in Spring 2022. The Nursery is also growing plants for habitat restoration and conservation projects related to Marin flax, Peninsula onion, San Francisco collinsia, Hillsborough chocolate lily, and summer lupine, the host species for Mission Blue Butterfly. NRLM staff have collected over 100,000 seeds from more than 100 different species of plants on SFPUC lands in support of these projects. Since the start of the FY19-20 the Nursery provided 12 public tours and presentations with a total of 289 participants ranging from San Francisco Public Works Department staff, Fremont high school students, and East Bay Regional Parks District staff.

Native Grasses growing at the Sunol Native Plant Nursery

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

29 San Francisco lands
The SFPUC is also contributing to the improved management of our natural landscapes in San Francisco. The San Francisco Recreation and Parks Department (RPD) has an interdepartmental work order with the City Distribution Division to assist with management of SFPUC properties in San Francisco. This includes Lake Merced, which is now managed under an MOU between the SFPUC and RPD approved by the Commission in July 2013. Specific to environmental stewardship, NRLM staff in San Francisco work with RPD Natural Resource Division controlling French broom on steep slopes on Twin Peaks and hazardous and invasive trees impacting seasonal wetlands and coastal scrub communities at Laguna Honda. SFPUC has also been supporting environmental outreach and stewardship efforts at Hummingbird Farm at Crocker Amazon Park.

Provide the public with appropriate educational opportunities by maintaining active education programs and recreational opportunities (where appropriate) in cooperation with other federal, state, and local agencies

Given the large and diverse landscapes spanned by the RWS – from the Sierra Nevada, through the Central Valley, across the Alameda watershed, around and under San Francisco Bay and along the Peninsula watershed, and into San Francisco – the Water Enterprise strives to provide education opportunities related to environmental stewardship. Specific to the Bay Area watersheds, another secondary goal of the watershed management plans is to continue existing compatible uses and provide opportunities for potential compatible uses on watershed lands, including education, recreational, and scientific uses. Existing and new public access to trails on the watersheds presents opportunities to deliver and expand education programs related to environmental stewardship. These opportunities need to be weighed against the implications of potential new impacts associated with recreational access.

There is some level of recreational access to all of the source watersheds. Yosemite National Park manages access in the upper Tuolumne River watershed, including the High Sierra back country which allows permitted access to the wilderness areas. East Bay Regional Park District (EBRPD) leases SFPUC lands as part of their Sunol Regional Park and the Ohlone Trail. San Mateo County Parks manages the Crystal Springs Regional Trail on the Peninsula watershed which is used by over 300,000 visitors annually. The examples provided below highlight some of the SFPUC environmental stewardship education efforts.

Yosemite National Park and Interpretive Programs
The Water Enterprise works closely with Yosemite National Park staff to develop water quality and environmental stewardship messaging to incorporate into their interpretive programs for the public. A Resource Guide was developed to assist Yosemite National Park staff in delivering water quality messaging to diverse audiences, and new signage has also been developed and strategically placed to inform the public about potential

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

30 water quality impacts resulting from visitor activities and about mercury-contaminated fish in lakes and reservoirs.

Sunol AgPark
The Alameda County Resource Conservation District (ACRCD) continues to manage the Sunol AgPark, a unique urban edge farm that integrates sustainable agriculture, natural resource stewardship, as well as public education focused on the agricultural, natural, and cultural resources of the Sunol Valley. The ACRCD continues to implement the “Farming in the Watershed” 4th- 8th grade curriculum, developed by Sustainable Agriculture Education (SAGE) and the SFPUC. Construction of the new Sunol Yard and Alameda Creek Watershed Center during the last few years, and the pandemic, made bringing schools to the Sunol AgPark more difficult, but even with reduced site access over 2,000 students participated in Sunol AgPark programs in FY19-20, FY20-21, and FY21-22.

Sunol AgPark, Alameda Creek Watershed Center, Sumol Temple, and Sunol Native Plant Nursery

Alameda Creek Watershed Center
The SFPUC approved the construction contract for the Alameda Creek Watershed Center (Center) in December 2019 as part of the Sunol Yard Long Term Improvements

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31 Project, and the Center is scheduled for completion in 2023. The Center will include an interpretive exhibit hall, a watershed discovery lab to support public education programs, a community gathering space, staff office space, and a watershed discovery garden and trail. The Interpretive Master Plan for the Center was finalized in February 2014, which led to the design of the Center interpretive displays. Since 2014, the SFPUC has been working with the Muwekma Ohlone tribe on the development of interpretive exhibits and programming for the Center. In May 2017, the SFPUC completed an Education Master Plan (Plan) for the Center. The Plan will guide the development of new education programs at the Center and AgPark, including field trips, classes, workshops, and seminars.

Alameda Creek Watershed Center and native plant garden

Vargas Plateau Trail
The SFPUC is working with EBRPD to develop a trail from the newly opened Vargas Plateau Regional Park to the Center. The approximately 6-mile multi-modal trail will provide access to hikers, bikers, and equestrians and need to cross Alameda Creek.

The SFPUC and EBRPD staff are currently developing a conceptual alignment.

Niles Canyon Trail
The SFPUC partnered with EBRPD, Alameda County Public Works Agency and the Alameda County Water District to conduct a feasibility and preliminary engineering study for a proposed EBRPD trail traversing Niles Canyon in Alameda County. This trail will provide important transportation and recreational amenities for the local communities. The goal of the project is to develop a paved, non-motorized trail through Niles Canyon from Mission Boulevard to the town of Sunol. The most recent Niles Stroll and Roll was held on May 1, 2022. This biennial event gives walkers and cyclists

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

32 a chance to enjoy Niles Canyon Road free of vehicular traffic and is an opportunity to update local residents on the status of the planning process for the trail. Planning for the trail is moving forward with the development of more refined plans which will provide key information for the Environmental Impact Report.

SFPUC Peninsula Bay Area Ridge Trail
The proposed Southern Skyline Boulevard Ridge Trail Extension (SSBRTE) project includes: (1) construction of a new 6-mile trail from Highway 92 south to the Golden Gate National Recreation Area (GGNRA) Phleger Estate along the east side of Upper Skyline Boulevard State Highway 35; (2) acquiring an easement from the Bay Area Ridge Trial Council for the existing section of trail on the Skylawn Cemetery; (3) operation of the entire Bay Area Ridge Trail on the SFPUC Peninsula Watershed; (4) trailhead construction at the intersection of Highways 92 and 35 to support the new 6- mile trail, and also trailhead improvements just south and around Cemetery Gate north of Skylawn Cemetery; (5) a new “universal access” loop trail (ADA loop) that will be ADA-accessible and accommodate school programs starting at Cemetery Gate; and (6) development and installation of interpretive signs along the ADA loop, Fifield/Cahill Ridge Trail, and the new SSBRTE.

Since it opened in 2003, approximately 15,200 hikers, mountain bikers and equestrians have used the Fifield/Cahill Ridge Trail under the docent program. The SSBRTE Final Environmental Impact Report was certified by the SF Planning Commission and adopted by the Commission in 2021. Construction is scheduled to start in 2023.

Fifield-Cahill Ridge Trail looking north

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

33 While planning, design, and environmental review for the SSBRTE project has been ongoing, the Peninsula Trail Interpretive Master Plan (Trail Plan) (which covers the existing Fifield-Cahill Ridge Trail and the new SSBRTE) was developed. The Trail Plan builds on the existing docent program, and includes themes, key concepts and interpretive goals for the Bay Area Ridge Trail on the Peninsula watershed. The final Trail Plan was completed in 2019 and has informed the design of the interpretive panels that are part of the SSBRTE project and will inform new docent program training materials to support the operation of the public education and access program.

San Francisco Bay Area Ridge Trail
The SFPUC and RPD staff, under the interdepartmental work order with the City Distribution Division, have been working with the Bay Area Ridge Trail Council to re- align the Bay Area Ridge Trail near Twin Peaks and Summit Reservoirs. The conceptual alignment is still under development and has been discussed in two community meetings hosted by RPD and the SFPUC. Once finalized the SFPUC and RPD staff will organize additional meetings to get further input from the surrounding communities. This is a significant opportunity to provide education regarding Water Enterprise operation of the drinking water and high-pressure fire-fighting water systems.

Manage and operate the Water Enterprise assets consistent with the Water Enterprise Environmental Stewardship Policy

Water Enterprise assets include the traditional “hard” infrastructure assets that are part of the RWS, and also the “natural” assets that are important components of the SFPUC-owned watershed and ROW lands. These natural assets include all of the native plants and animals that are part of these ecosystems. The watershed assets include these natural assets, and also hard assets necessary to manage the land such as the roads, fences, fuel breaks, and culverts.

An important element of proactive stewardship of watershed lands is collecting and maintaining information on the status of watershed assets. As described in the 2022 State of the Regional Water System Report, NRLM has initiated an effort to improve watershed asset tracking and maintenance planning in the Bay Area. The hard assets are increasingly getting mapped and assessed for proactive routine maintenance.

Natural assets are also being tracked through a variety of efforts that generally take the form of ecological monitoring and study.

Ecological monitoring and study on SFPUC watershed lands provides vital information to watershed managers. For example, maintaining up to date location information for rare plants, rare butterfly host plants, wetlands, and other sensitive resources allows the SFPUC to plan project and maintenance activities in a manner that avoids environmental impacts, with a secondary benefit of minimizing regulatory risk and reducing the need for permits and reporting. Mapping and monitoring information for

Water Enterprise Environmental Stewardship Policy Implementation Report – December 2022

34 invasive species allows the SFPUC to strategically deploy control efforts to maximize efficacy and benefits to watershed ecosystems. A geographic database of selected plant species also allows the SFPUC to plan seed collections to supply restoration projects with locally sourced native plants. This same database also provides the tracking necessary to prevent overcollection of these resources.

Conclusion
The effort to track the condition of watershed assets, supported by the specific project- level monitoring and maintenance activities, will continue to inform regional water system and watershed land and ROW operations. As the Water Enterprise Level of Service Goals and Objectives are refined and finalized, this framework will continue to be used as the context in which WEESP implementation is assessed.

The SFPUC is a large Bay Area landowner and has an equally large obligation to manage the regional water system and the natural resources the affect or are affected by its operation to support the native plants and animals that depend on them for future generations. These efforts also support our ability to continue providing high quality drinking water to our 2.7 million customers. We hope this report provides an overview of our work, and increasingly a measure of our progress.

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