This law is officially named the Wholesale Regional Water System Security and Reliability Act. It's concerned with the security and reliability of regional water systems on a wholesale level.

This law section defines important terms related to water supply in the San Francisco Bay Area. It clarifies what entities and systems are involved in water storage, treatment, and transmission among counties like Tuolumne, Stanislaus, San Joaquin, Alameda, Santa Clara, and San Mateo. Key terms include the 'Association' which refers to the San Francisco Bay Area Water Users Association, 'regional water systems', and 'wholesale customers'. The 'city' is specified as San Francisco, and there's a mention of the agreement known as the 'Master Water Sales Contract' from 1984 that governs water sales. Finally, the section describes 'regional wholesale water suppliers' and 'wholesale customers' that facilitate water distribution in this region.

This law requires the city to adopt a plan by February 1, 2003, for improving the bay area regional water system, and submit it to the State Water Resources Control Board. The plan includes a timeline for design, contract awards, and construction, aiming to complete projects equaling half of the total cost by 2010 and all by 2015. Financing plans must also be included and updated as necessary.

Specific projects, including upgrades to tunnels and pipelines across various counties, must be part of this plan. The city must report annually on its progress and indicate any delays, alongside strategies to address them.

Alterations to project timelines or scope can be made, following public notice, input from regional stakeholders, and notification to relevant state bodies. If projects are removed or delayed, the State Water Resources Control Board and Seismic Safety Commission will comment on the public health and safety implications within 120 days.

This law requires the city, along with regional emergency services, to create an emergency plan for quickly restoring water service after a natural or manmade disaster, like an earthquake, disrupts the Bay Area's water supply.

If the water supply is interrupted, the regional water supplier must fairly distribute water to all customers, regardless of where they are located, as much as possible despite any damage.

Starting in 2003, regional wholesale water suppliers must report yearly by February 1 on the progress of finding additional water sources during dry years. This report goes to the Legislature and State Water Resources Control Board.

For reliable water supply, the city must manage reservoirs in Tuolumne and Stanislaus counties without harming water service due to hydroelectric power generation. Water delivery to the Bay Area should take precedence over generating electricity, unless told otherwise by the Secretary of the Interior, which relates to the Raker Act. The city must also make its reservoir operation plans available to the public.

Additionally, the city is classified as a local public agency for certain legal purposes.

The State Department of Health Services must audit or contract out an audit of the bay area regional water system's maintenance program before July 1, 2004. This audit should review how well the city identifies, plans, budgets, schedules, and records maintenance. Additionally, the audit will check the condition of major facilities to see if current maintenance is sufficient. A report with findings and recommendations will be sent to the city, the Joint Legislative Audit Committee, and the Seismic Safety Commission by January 1, 2005.

This law requires the State Department of Health Services to audit the regional water systems that are operated by regional wholesale water suppliers (not including city-operated systems). They need to complete this audit and submit a report to the Legislature by February 1, 2006.

If the city and public agencies that are wholesale customers in the Bay Area create a special district to manage the Bay Area regional water system, the new district will take over the city's responsibilities for the system. Once control is transferred, the city will no longer have any obligations related to it.

This section requires the State Water Resources Control Board to ensure the bay area regional water system follows both the California Safe Drinking Water Act and the U.S. EPA's guidelines for the federal Safe Drinking Water Act. The goal is to maintain safe and compliant drinking water standards.

This law allows a special district, made up of some or all wholesale water customers in the Bay Area, to receive state funding to strengthen the regional water system against earthquakes. It specifies that the eligibility for funds is independent of whether the city is part of the district.

This law requires that regional wholesale water suppliers pay back the state for any expenses the State Department of Public Health or the Seismic Safety Commission incurs when performing their duties under this law. Additionally, customers in the bay area who buy water wholesale must reimburse the city for their portion of these costs, as outlined in a master water sales contract. Other wholesale water customers must pay back their regional supplier for their share of these expenses through water charges.

This law section states that the division doesn't change or impact any existing rights or responsibilities that the city, Modesto Irrigation District, or Turlock Irrigation District have with each other. These rights and responsibilities are based on current laws or contracts they have in place.

This law will be in effect until January 1, 2036. On that date, it will be repealed unless a new law is passed before then to either change or extend this deadline.