hundred and 20 legislators it is not la county god knows how many members but fortunately over the years the representation has been very, very smart and probable many of them coming from the board of supervisors they're a step ahead of the colleagues in sacramento recognizing there are 3 in the last couple of years we've worked with the management to expand the footprint of allies in sacramento for example the bosco there's a lot of identity of interests by focusing on san mateo county legislators that's been extremely successful a lot of the legislators over the years and now have worked in collaboration with us and the

san francisco delegation to help make us successful in many areas and, of course we work and represent you before the legislative leadership and the staff in san francisco and the government agencies and so on and relationships with other stakeholders, other municipal utilities waste of time agencies water per varies and son and associations we work with all of them only your on behalf of i was asked to say a few words about the political climate in sacramento but briefly i'd like one the main issues two issues particularly permeating sacramento the governor is fiscally mind there is surplus money in the budget he's reticent to spend money on going

on programs the democrats control the legislator by and large they want to spend money on some ongoing programs to help the needy we're experimenting the attention as the state budget comes through and particularly gefrm is the drought the drought is dominating the discussion in sacramento a lot of legislation coming from the governor's office and legislators themselves and other stakeholders and it is flying out there face and not also well-thought-out and opportunities that provides for sfpuc but a lot of the legislation provides a lot of risks and is of concern so i'll get into in a minute working hard to make sure you're not in

potential problems sometimes on our own and other water agencies that have similar concerns i thought i'd like give a few examples of issues we've worked on in 2014 and working on now that might be helping out in 2014 one of the big successful had to do with kicker wood hydro electric you have a up the hill related to renewable portfolio stated eligibility those there are 3 units below 40 megawatts they should be considered eligible renewals under state law you get credit and the puc power enterprise submitted the applications to the california

migration for whatever reason it was clear that they should be codified those 3 units and for whatever reason the c e.c. took if one or two years and dragged its feet and propagated guidelines it seem to retroactively deny the legislation at the end of last year in a budget trailer bill the type of legislation it didn't deal with policy the c e correction sneakly dropped in language it changed the statute to retroactively make those unite not qualified as an eligible renewable we worked closely with staff and worked closely with senator leno to bring this issue to the

attendance of the governor's office and the cu c after a week of tense tense discussions we are working everyone together able to agree on language that enabled those 3 units to be certified and also enabled the sfpuc only no other pubically owned utilities to be able to sell up to hundred extra power to another pubs so both outcomes certifying the 3 units and be able to sell the extra powerful is quite a valuable for the power enterprise also a discussion about the community choice aggregation a bill sponsored last year by iuoe and pg&e and other independent iuoes to opponents po to cca and

trying to limit the ability of kraikzs and others to basically operate and really get off the ground and so we actually took a leading role work with advocates of cca and including clean caliber to oppose that bill and defeated that bill in the senate there of the an emergency drought legislation that made millions of dollars available to address the drought we would have liked to carve out in a perfect world a lower cherry aqueduct but no carve outs allowed in that bill we were

able to get language in the bill that recognized a prioritized projects like lower cherry that provides back up water and so on on the planning and construction if we get that language in the legislation i learned today assault of that in part sfpuc received $2 million in fund out of that legislation so was happy to report that this year i wanted to talk about we're working on numerous items i'll highlight 3 for your information current renewable portfolio standard we're operating under passed around 5 years ago 33 percent renewal goal and at a time we were able to get the language in the bill that recognizes the unique characterizations of hetch hetchy as an emergency as a

hydro power resource that helps the enterprise and new now we've you've heard in sacramento legislation that makes it 50 percent rp s empty 2030 we wanted to make sure we're basically trying to sure that language we got in 5 years ago in the current law that is the new rp s law we're watching that it will be fine but a high priority keep your eyes on the ball and new deduction earlier about the bio solids issue that was quite interesting we've been working on that to clean the energy i think if i understood it overlaps a little bit or parallel to the other project so unstuck sfpuc is one of the 19

wastewater the idea is to address the distinct possibly down the road it will be harder to export bio solids whether or not they have a bad odor for the land use applications it is unpopularity and so the idea here is to get to support cutting-edge technology that will help to convert those to clean power working with you with sfpuc and the rest of the coalition get state money to help fund what is the connecting probability situated and located in the east bay we've made the best headway and have a shot at getting fined we're hopeful and the last issue or item i'd like

to discuss is relates to the drought again governor has put forth water policy changes he wants to see adapted not a policy bill which is the normal way to do it but in trail bill language that follows the budget and not typically policy at least one the bills of great concern to sfpuc and other water agencies that will allow the state water control board to meant to make water agencies absorb other smaller district that are having issues delivering water and so on it's a problematic piece of legislation proving by sfpuc and outings others in sacramento again, it takes the local control away from you the

commission and the state saying you need to grow and it is vague and unclear about costs associated with forcing you to absorb another water agency there is the initial costs of consolidation and then the ongoing costs it is very unclear how and if those costs are repaid and numerous other problems that is a big bill this is something we're working with a large coalition of that to opposed oppose because basically because the process in which the governor and others i hope it gave us a sense of some of the things we're worked on we're privileged to usher or work with you and the folks at sfpuc i'll be happy to answer any questions. >> thank you so much i have a question about the governorers

new executive order on adoption and the i don't know if you know much about it but implementation for the puc to place that effort within the state agencies and it is going to mandate basically, the plans need to have adoption written into them are you tracking that. >> i'm tracking but don't know a lot about it is not something we've discussed extensively with staff i think i'm not sure but i think that is part of his trailer bill rang package so. >> i thought it was american people executive order they're trying to have the national resources agency. >> actually, it could be part of his executive order but i don't know a lot about it, it is something i could look into and talk with our staff about are

there particular concerns you have or issues you're interested. >> the implementations like the water restriction if we want to stay a staple ahead what it means for us. >> okay. we'll provide it to our staff. >> thank you. >> and also on that when we work with the mayors lobbyist it impacts every department. >> correct. >> so dpw and everyone else so one the things we're doing we're work with the rest the city about climatic change planning. >> i was at the meeting i think there is an opportunity for input so we might look at it if they haven't made a lot of decisions with the facilities only shoreline our treatment facilities to be able to say if

there's a mandate we want to stay ahead and build to scale so we don't get something down the road. >> there's a lot of discussion in sacramento relate to the need for state funding for many of the reactions to clooifks or sea level rise. >> mr. on the other hand, gwen's wednesday welcome. >> thank you madam president it is nice to be back and members as don said sometime and kwoon a brief word of introduction i spent 6 years in the senate that's our principle

jurisdiction and basically tracks the department of energy and the department of interior ass after leaving he went to work for the puc and represent i for the last 23 years commissioner moran was the gm of hetch hetchy with i started as the general manager of the commission i have 5 year pin i'd like that but i've been involved with the commission and great pleasure and an honor to represent you in washington the climate in washington is interesting the republicans ran the table one 14 senate seats they increased their majority in the house to 2 hundred and 45 stooets seats this puts them in control of everything they run

the committees and produce the legislation i use the words numbly they don't have function control they only had 54 senators on the republican side if you have instead of option in the democrats you need 60 in the house the mayor as a huge majority of 2 hundred and 50 plus members their tea partyers or often offshoot to the party and quick to jump ship from the initiatives 28 voted against him for speaker that was a gesture to demonstrate definition and what he and o'connell can't do anything of consequence without having democrats on board not enough republicans on board and

not counting on republicans this makes for these an interesting time in large measure numerous speakers that mentioned the drought the drought has received a lot of attention in washington scarcely a day don't go but we don't see a broadcast of drought there recent sympathy and concern and desire to help the strufr struggle we're going through is coming up with the what can we do to help focus on the drought is west wide but it tends to be sort of california central because of the sheer size and economic impact of the state but central valley project is unique and has such a heavy federal involvements they tend to focus on california and the drought

here senator feinstein put forward legislation to deal with the drought and typifies the challenge we face in coming up with the program in order to help the best we can do at the federal money of money to provide operational flexibility for the central valley project those often come at the expense of the environment therefore the growers in the central valley never thinking those guarantee go far enough i end up with enough of an overlap and no one gets that so therefore legislation on the drought has not advanced this year you've

observing get a different dynamic from gerardo hoffman for drought issues in the house and michael costing listen and i met back in washington a bill on the ground is funded oriented the perspectives are dim but a number the interesting provisions one of which maybe of assistance it provides operational flexibility to the core of engineers on the determination of flood control requirements the late words you have a rigid poor formula on such and such a date have to make this much room in the reservoir for run off this is unjustified you look at the mountains and know under is no snowpack but reservoirs

throughout the state are made to spill water for run off that may not come that makes little sense and congressman hoffman allows the flexibility not to go through this exercise you've heard steve mentions that we think that provision provides us terrific flexibility to increase our deposits into the water bank because we can take advantage of the run off and take advantage of the when otherwise is flood control space so this is a provision we make sure that congressman hoffman knew and we substantially met that senator finally to make sure they understood this provision was a hoffman bill we want to see advanced

that's an example of some of the things that will come our way even though we're not a central valley customer but as far as the drought is concerned can help our system further only the waterside we've been working with the two irrigation on the pedro relicensing the licenses holder but we're on the hook for 50 percent the money flow from any new left-hand side projects therefore we need to be present with them and previously accompanied p them, no the regulatory committee and will be back in a couple of weeks and spent minded making sure they understand where the relicensing programming project is and try to keep people abreast of the lawsuits we're facing on the

waterside most prop m the chavez and the restore hetch hetchy we're careful department of underground into the loop it is aimed at u.s.s. the formal defendant is the national parked we're working closely with the department of enjoying to stay abreast of the lawsuits think outside the box on the power side pg&e reconciliation one the interconnection agreements expires we've engaged with the staff and outdoor lawyers on the strategy to deal with that we have filed a proceedings and regulatory commission for new electric transition from penguin that's why mistake is here not barbara hale and on the prior to

filing that mr. kwrn and mr. kelly and i filed it to help them understand the unique nature of the system that encompassed on us obligations and the message was you have to be kothd of the federal law it gives us those rights and exposing pose those obligations as you determine our distribution services from pummeling and i certainly thought i think that commissioner moran and others thought that was a productive visit on the wastewater we've been engaged on the ocean beach facility as you undoubtedly know the patterns in the pacific is a result of dredge has exposed the

bluff to sharper wave parents and the bluff is exposed one the sewage tunnels that is a challenge to tale with that in washington, d.c. in the good ole days put money into the appropriation bail here's the money no one wants a sewer into the pacific ocean when i earmark you have a have a process where you work with allocation and the poor and send signals and we've been successful if getting that done it is taking a long period of time it looks like we may be in a position to sign a position project with the core a little bit later this year that results in 3 hundred 0,000 cubit yards of standing sand at ocean beach

to rehabilitate it for endesperations species but to protect the facility but we need two permits but for the most part that gets close to the conclusion and make sure the policy is there to implement it and finally you mentioned adoption we been working with the department of energy to help to facilitate forward planning under the guys of adoption what's happened we mustard all those grand logo plant models o so those are great but they're not terrible useful when evaluating precipitation and run off patterns or local sea levels

rising for the commission we've been working with the department energy they have most of super computers with the capacity to down scale those models to bring those down to a region level to be useful for us to or us for planning for the next 20 or thirty or 40 years for the things we need to do so that's something we're again we're a non-earmark environment we can't do is as quickly but slowly getting done that's it for the moment i'll be delighted to take any questions you may have. >> i have a question on the ocean beach so the fund and the effort seems is around the

nutrient piece of it. >> right. >> we've been working with spur to have a master plan to rebuild the area yes or no i can't imagine the ticket is that something that could be funded by the fed's. >> unlikely what we're looking at several pots of money you can assess through the core of engineers part of it threw the harbor maintenance trust fund that is outside inside and outside of the bridge one a beach initiate program and third a special section if you demonstrate you've survived harm as a result of dredging activities the fred's will fund hundred percent everything elegant is cost sharing thirty percent we had

long discussions michael and i with the appropriations committee staff how to solve that and long term if it becomes necessary what we hope to do from the thirty percent to the remaining trust fund and the program over to that third account this is hundred percent fund by the fred's with a 50-year lifespan those are the federal fund resources i don't think those will apply to what you're talking about but i know the park services is an issue the sand that used to come other bluff by ocean beach a blowing into the highway and covering the mravrtsdz we're trucking it from the bluff and dumping it, it is entirely possible if we

do the 3 hundred acre cubic yards of sand on the bluff at ocean beach it may not be as compelling to truck that sand off the parks service so the park may have an off affordable housing to fund federal fund it is too lighter late for the short answer. >> yeah. ocean beach it would be great to have a little bit of path forward even if the finance piece is not connected to figure out what that would be it is incumbent on us because of the assets on ocean beach to figure out something. >> the core things won we - they seem to think we can

undertake this program next year i think it can be accomplished in a single season but optimistic to it t think that project will complete itself in 2016 if we go being so 2017 we have a clear picture of what the realties for trucking the stand to the south of the park service property and what under the circumstances might be available to try to figure out you know how to maximize that whole stretch and i'd like to to get an update at some point you know. >> we can actually schedule an update of ocean beach where we are we have an idea what the solution would be this is the fund and working with all parties to identify you know where w