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 Ave.
San Francisco, CA 94102
(415) 554 -3155
sfpuc.gov
E
rika Contreras
Secretary of Senate
California Legislature
State Capitol, Room 3044
Sacramento, CA 95814
Dr
. Erica Pan
Director and State Public Health Officer
California Department of Public Health
P.O. Box 997377, MS 0500
Sacramento, CA 95899-7377
January 28, 2026
Sue Parker
Chief Clerk of the Assembly
California Legislature
State Capitol, Room 3196
Sacramento, CA 95814
Darrin Polhemus
Division of Drinking Water, Director
State Water Resources Control Board
1001 I St., 24th Floor
Sacramento, CA 95814
Dear Madams and Sir:
I
n 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 2025 in securing additional water supplies to supplement its Hetch Hetchy Regional Water System supply during dry years.
T
his past year, the SFPUC has continued the implementation of its water supply projects in the Water System Improvement Program (WSIP). The projects are either complete or close to completion. 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 affected by the State Water Resources Control Board’s amendment to the Water Quality Control Plan for the San Francisco Bay / Sacramento-San Joaquin Delta Estuary (Bay-Delta Plan Amendment), which was adopted in December 2018. The Bay-Delta Plan Amendment 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 Amendment 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 agreement on an alternate plan referred to as the Healthy Rivers and Landscapes program. Meanwhile, planning for new, alternative water supplies is ongoing and is described below.
The SFPUC has continued planning that was initiated in 2020 for additional water supply under the Alternative Water Supply Program to meet future dry-year water needs in its service area. The planning efforts involve evaluating new storage and supply opportunities in the region to meet anticipated future needs based on technical, financial, and institutional feasibility. As assessment of these projects has progressed, several projects that were under review have been deemed infeasible for institutional or financial feasibility and are not being pursued at this time.
The remaining projects being developed include those outlined below.
• 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 consisted of construction of thirteen well sites and was completed in 2016. Phase 2 has been separated into two contracts. Phase 2A consists of inspection and service of each well and existing well pumps, addition of variable frequency drives to improve efficiency, and installation of cathodic protection to address potential corrosion. The Phase 2A work achieved substantial completion in December 2025. Phase 2B consists of work at SSF Main Well and pipeline installation to connect the well to Cal Water's pump station and treatment facility.
• PureWater Peninsula Project - This purified water project could provide 6 mgd of water supply through reservoir water augmentation at Crystal Springs Reservoir in San Mateo County. Treated wastewater from Silicon Valley Clean Water 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 could then be transmitted to Crystal Springs Reservoir as indirect potable reuse. The SFPUC is currently preparing a Needs Assessment Report for the project and developing an implementation plan.
• South Bay Purified Water Project - Valley Water, the City of San Jose, and the City of Santa Clara are in the early planning stage of developing a joint purified water project that would serve the local demands of San Jose and Santa Clara during all types of water years, while also supplementing the water supply provided through the SFPUC’s Regional Water System in dry years. An initial concept for an advanced water treatment facility (i.e., purified water facility) using source water from the San Jose-Santa Clara Regional Wastewater Facility was studied with the SFPUC, prior to Valley Water joining the partnership. The project is currently being revised maximize utility and ensure the critical needs of all partners are met.
The SFPUC remains engaged with the Cities of San Jose and Santa Clara, and the Bay Area Water Conservation and Supply Agency, to determine water supply benefits for the Regional Water System.
The SFPUC and its Wholesale Customers also continue to advance conservation within our service areas. 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. Following the completion of the 2025 Urban Water Management Plan by July 1, 2026, the SFPUC also intends to update the Alternative Water Supply Plan originally published in February 2024.
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
Ron Flynn, Deputy General Manager
SFPUC Commissioners
BAWSCA: Tom Smegal, CEO/General Manager
Tom Francis, Water Resources Manager