Request for Analysis of Ballot Initiative Entitled Water and Environment Plan for November 6, 2012 Election

Transcription

1 525 Glden Gate Avenue, 13th Flr San Francisc, CA T F TTY July 27, 2012 Mr. Jhn Arntz Directr Department f Electins 1 Dr. Carltn B. Gdlett Place, Rm 48 San Francisc, CA RE: Request fr Analysis f Ballt Initiative Entitled Water and Envirnment Plan fr Nvember 6, 2012 Electin Dear Mr. Arntz, I am writing in respnse t yur letter dated July 9, 2012, regarding the prpsed initiative measure titled Water and Envirnment Plan fr the Nvember 6, 2012 electin ballt. If this initiative measure is ratified by the vters, and fully implemented by the City and Cunty f San Francisc, it culd have serius negative impacts n the Hetch Hetchy Water and Pwer System, and the 2.6 millin residents and businesses served acrss fur cunties in the San Francisc Bay Area. The prpsed ballt measure wuld require the City and Cunty f San Francisc t prepare a tw-phase plan that wuld: 1) identify alternative lcal water and renewable energy surces; and 2) develp a plan t remve Hetch Hetchy Reservir. The prpsed ballt measure states that the planning effrt shuld be cmpleted by 2015, s that a charter amendment culd be placed n the 2016 ballt calling fr the remval f Hetch Hetchy Reservir, which stres 85% f the water delivered t San Francisc. Our analysis f the prpsed ballt measure finds that: 1. Numerus cmpleted studies illustrate that remving Hetch Hetchy Reservir wuld have significant negative impacts n the effective, efficient, affrdable, and envirnmentally sustainable peratin f San Francisc s water and pwer system. These impacts include: Significant increases in water rates; Reduced water reliability and greater vulnerability during drughts; Energy intensive and expensive filtering and pumping f ur water supply; A 42% reductin in the generatin f clean hydrpwer that fuels city services; and At least $41 millin in additinal annual csts t the city due t lss in hydrpwer sales and increased energy expenditures. 2. The prpsed ballt measure calls fr the City and Cunty f San Francisc t undertake planning n issues that have already been studied in-depth. In many cases, implementatin prjects are well underway.

2 3. The $8 millin dllars in prpsed funding wuld be insufficient t undertake the prpsed planning activities. 4. The ballt measure includes a number f findings abut the Hetch Hetchy Water and Pwer System that are misleading r factually inaccurate. Attachment A prvides infrmatin t crrect the inaccuracies. The remainder f this dcument prvides additinal detail abut these cnclusins, as d the accmpanying attachments. Numerus cmpleted studies illustrate that remving Hetch Hetchy Reservir wuld have significant negative impacts n the effective, efficient, affrdable, and envirnmentally sustainable peratin f San Francisc s water and pwer system. The end gal f the Water and Envirnment Plan is the draining f Hetch Hetchy Reservir, where 85% f water delivered t the SFPUC s service area is stred. Specifically, the ballt measure calls fr a planning prcess and the develpment f cst estimates t cnslidate the nine reservirs n which San Francisc relies fr water strage int eight and return the Hetch Hetchy Valley in Ysemite Natinal Park t the Natinal Park Service s it may be restred. A number f cmpleted studies have already illustrated that remving Hetch Hetchy Reservir will result in reduced water reliability and water quality; increased vulnerability during drught; a significant reductin in clean energy generatin; and increased csts t San Francisc taxpayers and ratepayers fr new water infrastructure, new system peratins and maintenance requirements, and replacement pwer fr municipal services. (Attachments G and H prvide tw f these studies, including the Califrnia Department f Water Resurces analysis, as well as ne cnducted by the City and Cunty f San Francisc.) Significant Increases in Water Rates In 2005, an independent study by the Califrnia Department f Water Resurces estimated that the csts t build new infrastructure and restre Hetch Hetchy Valley wuld be apprximately $3 t 10 billin (in 2005 dllars). The impact f these csts culd dramatically impact ratepayers and affrdability. The average custmer wuld pay $709 t $2,777 mre each year. Over a 30-year perid f bnd repayment, the average San Francisc custmer wuld end up paying $21,300 t $83,300 in higher water bills. Reduced Water Reliability and Greater Vulnerability During Drughts Hetch Hetchy Reservir stres mre water than all ther SFPUC drinking water reservirs cmbined. [1] This water strage is invaluable in its ability t capture snwmelt and stre the water fr reliable water delivery thrughut the year and acrss multiple years. In mst mnths, the SFPUC needs t take water frm the Hetch Hetchy Reservir because there is nt enugh rain r snwmelt t meet ur needs. [1] There are 9 principal water reservirs in the reginal water system, nly 6 f which prvide drinking water (Hetch Hetchy, Calaveras, San Antni, Crystal Springs, San Andreas, and Pilarcits).

3 Strage at Hetch Hetchy is even mre imprtant in times f drught. San Francisc s last majr drught was between , and residents in San Francisc endured ratining f ver 30%. Withut Hetch Hetchy, in such a drught, ratining wuld increase an additinal 20%, with billins f dllars in negative ecnmic impact n the reginal ecnmy. (Please see Attachment C fr reprts that shw the ecnmic effects f drughts.) Energy Intensive and Expensive Filtering and Pumping Of Our Water Supply Hetch Hetchy Reservir cllects and stres pristine snwmelt in a granite basin within the prtected Ysemite Natinal Park wilderness area. Any new water supply wuld mstly likely be f lwer water quality and require cstly filtratin. Given these unique characteristics, San Francisc s water cnsistently meets and exceeds federal and state standards fr safe drinking water. The SFPUC is ne f nly five large water utilities in the United States nt required t filter water due t the pristine Hetch Hetchy watershed. Additinally, given the high elevatin f Hetch Hetchy Reservir and the existing water delivery system, the SFPUC is able t mve water frm its surce, acrss the state, and t its custmers using little mre than gravity. Withut the gravity-driven system, water wuld have t be pumped acrss the state, which wuld use large amunts f energy and cst millins f dllars. 42% Reductin in the Generatin f Clean Hydrpwer That Fuels City Services Remving the Hetch Hetchy Reservir wuld reduce the system s clean hydrpwer generatin capacity by 42%, which equates t a lss f 726 millin kilwatt hurs annually. This is enugh energy t pwer 178,000 San Francisc hmes fr a year. (Please see Attachment E fr mre infrmatin abut hw this lss in generatin capacity was calculated.) On average, the Hetch Hetchy prject generates 1.7 billin kilwatt hurs f clean, cst-effective hydrelectricity each year. This 100% greenhuse gas-free energy meets all f San Francisc s municipal pwer requirements, as well as energy t the Mdest and Turlck Irrigatin Districts. This pwer is prvided in accrdance with the Federal Raker Act f Examples f San Francisc municipal custmers that use Hetch Hetchy pwer t prvide critical City functins include: San Francisc Internatinal Airprt; San Francisc General Hspital and Laguna Hnda Hspital; Prt f San Francisc; San Francisc Unified Schl District and City Cllege f San Francisc; San Francisc Municipal Transprtatin Agency (SFMTA) ; Plice and fire facilities; and Mre than 40,000 streetlights and traffic signals. At least $41 millin in Additinal Annual Csts t the City Due t Lss In Hydrpwer Sales and Increased Energy Expenditures The 42% lss in hydrpwer generatin wuld result in lst revenues fr the San Francisc Public Utilities Cmmissin. Additinally, the SFPUC wuld need t purchase pwer n the pen market in rder t meet the pwer needs f its custmers. The additinal expenditures fr energy cmbined with the lss f revenue will cst the City apprximately $41 millin.

4 City General Fund custmers such as the Schl District, and the Fire and Plice Departments, wuld see their electricity rates increase by almst 200%. (Please see Attachment F fr mre infrmatin abut hw this was calculated.) It shuld be nted that the $41 millin cst figure crrespnds t purchasing enugh pwer t satisfy the City s minimum bligatins. It des nt replace the lss f clean, hydrelectric energy prvided t the City s whlesale custmers and the resulting envirnmental benefits and cst savings fr Califrnia mre bradly. The lst supplies will need t be replaced with either fssil-fired generatin, increasing GHG emissins statewide, r will be replaced with renewable r ther lw-ghg supplies at significantly higher csts. The prpsed ballt measure calls fr the City and Cunty f San Francisc t undertake planning n issues that have already been studied in-depth. In many cases, implementatin prjects are well underway. It is unclear what additinal, new infrmatin wuld result frm the planning activities utlined in the prpsed ballt measure. Over the past tw decades, the City and Cunty f San Francisc has undertaken indepth planning studies t imprve seismic and water supply reliability, ensure high water quality, and diversify its lcal water supplies. These planning effrts culminated in the 2008 adptin f the $4.6 billin Water System Imprvement Prgram (WSIP). 1 The City and Cunty f San Francisc als undertakes nging capital imprvement prgrams and water supply planning effrts t ensure we maintain reliable, sustainable water supplies. The City als has a strng track recrd f planning and implementing prjects t develp alternative renewable energy surces. In 2002, the SFPUC and the San Francisc Department f the Envirnment develped, and the Bard f Supervisrs adpted, the Electricity Resurce Plan a radmap fr reducing greenhuse gas emissins in San Francisc and develping mre renewable energy surces t meet the City s energy needs. The Electricity Resurce Plan was updated in 2011 and utlines a city-wide strategy t meet San Francisc s zer-ghg gal by The SFPUC has already implemented 15 megawatts f in-city slar prjects in San Francisc, including the 5 megawatt prject n Sunset Reservir, ne f the largest municipal prjects in Califrnia. (Please see Attachment B fr a list f existing plans that have already been cnducted arund water and pwer issues.) The $8 millin dllars in prpsed funding wuld be insufficient t undertake the prpsed planning activities. The ballt measure culd result in a scenari where vters wuld cnsider a charter amendment in 2016 that wuld remve Hetch Hetchy Reservir and jepardize the City s water and municipal pwer supply based n an inadequately funded and incmplete planning prcess. The prpsed ballt measure states that up t 0.5% f funds previusly authrized by vters fr the Water System Imprvement Prgram which equates t $8 millin can be utilized fr the planning effrt. A budget f $8 millin wuld be insufficient t 1 Scheduled fr cmpletin in 2016, the WSIP cnsists f ver 80 active and cmpleted cnstructin prjects thrughut the reginal water system that includes water cnservatin, recycled water and grundwater prjects.

5 undertake the in-depth planning t the pint f being prepared fr envirnmental review n the large number f issues laid ut in the Water and Envirnment Plan. 2 The Califrnia Department f Water Resurces independent study in 2005 estimated that such a plan wuld cst apprximately $65 millin. 3 The prpsed ballt measure is silent n what wuld happen if additinal resurces were required fr planning. Attachments The fllwing attachments ffer additinal infrmatin n the analysis presented in this letter. Specifically: Attachment A: Factual Infrmatin Related t Select Findings and Declaratins Attachment B: Select List f Existing Water and Pwer Plans Attachment C: Impact n Water Rates Attachment D: Impacts f Drughts and Water Supply Reductins Attachment E: Lss f Clean Hydrpwer Generatin Attachment F: Additinal Annual Csts t San Francisc Due t Lss In Hydrpwer Generatin Attachment G: Califrnia Resurces Agency, Department f Water Resurces and Department f Parks and Recreatin. Hetch Hetchy Restratin Study Attachment H: City and Cunty f San Francisc. Prtecting the Hetch Hetchy Water System: Reliable High Quality Water fr the San Francisc Bay Area. July Please let me knw if we can prvide yu with any additinal infrmatin. A representative frm the San Francisc Public Utilities Cmmissin will attend the Ballt Simplificatin Cmmittee t answer any questins the Cmmittee may have. Sincerely, Ed Harringtn General Manager San Francisc Public Utilities Cmmissin 2 The ballt measure states that each phase f the planning shall prvide sufficient detail t initiate prgrammatic and prject review under the Califrnia Envirnmental Quality Act and the Natinal Envirnmental Prtectin Act. 3 Califrnia Resurces Agency, Department f Water Resurces and Department f Parks and Recreatin. Hetch Hetchy Restratin Study