Central San opposes state wildfire recovery limits, weighs federal cyber mandates

Central San opposes state wildfire recovery limits, weighs federal cyber mandatesThe California utility's board has voted to oppose the governor's wildfire recovery reform proposal over its reliance on depreciated infrastructure valuations, while keeping a wary eye on the newly introduced Water Cyber Shield Act of 2026.

The board voted 5-0 to oppose the state's wildfire recovery reform proposal unless amended, citing concerns over its reliance on FEMA and restrictive infrastructure replacement formulas.

Under the state proposal, destroyed infrastructure would be funded at replacement cost less depreciation, which staff warned would severely hinder community rebuilding efforts.

The board adopted a 'watch' position on the federal Water Cyber Shield Act of 2026, expressing hesitation over EPA requirements to disclose utility vulnerabilities.

Directors also raised public health and safety concerns regarding AB 1621, a state bill that will limit the utility to just two rounds of plan reviews for new housing developments.

Faced with a raft of state and federal policy shifts, the Central Contra Costa Sanitary District (Central San) board of directors adopted defensive legislative positions during its August 20, 2026, meeting, prioritizing the protection of utility funding and operational autonomy. The board voted 5-0 to oppose the California governor's wildfire recovery reform proposal unless amended. Legislative staff warned that the proposal relies heavily on the Federal Emergency Management Agency (FEMA) for recovery costs—a process characterized during the meeting as notoriously slow and difficult for special districts to navigate. More critically for the utility's capital planning, the state proposal would value destroyed infrastructure based on replacement cost less depreciation, rather than the full cost of replacing the asset. Citing the example of a water pipe installed in 1970, a staff member noted that the depreciated valuation model 'would make it very hard for a community to rebound from a wildfire.' On the federal front, the board voted 5-0 to place a 'watch' on the Water Cyber Shield Act of 2026. Introduced in early August, the federal bill would identify vulnerabilities and mandate cybersecurity evaluations for large utilities, granting the Environmental Protection Agency (EPA) authority to require remediation. While acknowledging the intent of the legislation, staff expressed caution regarding the mandated disclosure of system weaknesses to the federal government, noting, 'I don't think that's wisdom.' The board also reviewed incoming state housing legislation that will restrict how the utility reviews new infrastructure connections. AB 1621, which staff indicated is highly likely to pass, will limit agencies to no more than two plan reviews for housing development projects and prevent them from indefinitely extending review deadlines. Board members expressed concern that the arbitrary cap could force the district to accept flawed infrastructure designs, such as those with adverse slopes. While the bill includes potential exemptions for state and federal public health and safety laws, a board member speaking from a planning commission perspective warned that the legal bar for what constitutes a health and safety objection is 'extraordinarily high.' In separate procurement business on the consent calendar, the board officially rejected a bid protest from Precision Engineering, Inc. and awarded a $4,221,655 contract to California Trenchless, Inc. for Phase 9 of the South Orinda Sewer Renovations project.