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8.A. - Page 53 of 73 Attachment D Drought. On April 1, 2015, for the first time in California's history, Governor Edmund G. Brown directed the SWRCB to implement mandatory water reductions in cities and towns across California to reduce water usage by 25%, which in many cases led to declines in wastewater usage as well. Although most such the mandatory water reductions have since been lifted, the State has since enacted permanent restrictions on water usage. Belmont's wastewater system revenues are volume - based, while only the other Participating Members' rates for non-residential customers are volume - based. There can be no assurance that future drought conditions would not re -appear in the future, leading to decreased usage of each Member's wastewater system, and a potential decline in Net Revenues or Surplus Revenues available to the Participating Members with which to pay SBSA Bond Payments and Authority Bond Payments which represent the main source of Revenues under the Indenture for the payment of each Participating Members' share of principal and interest on the 2019 Notes. Additionally, there can be no assurance that the State's permanent water usage restrictions will not lead to decreased usage of each Participating Members' wastewater system resulting in lower collection of volumetric rates. Climate Change. Climate change caused by human activities may have adverse effects on the Participating Members' wastewater systems. Climate change can also result in more variable weather patterns throughout the State, which can lead to longer and more severe droughts as well as increased risk of flooding and a rise in sea levels. Certain of the Participating Members' wastewater system facilities are located adjacent to the San Francisco Bay and may be negatively impacted by flooding and a rise in sea levels. The Participating Members each consider the potential effects of climate change in their planning. Projections of the impacts of global climate change on the Participating Members are complex and depend on many factors that are outside the Participating Members' control. The various scientific studies that forecast the amount and timing of adverse impacts of climate change are based on assumptions contained in such studies, but actual events may vary materially. Also, the scientific understanding of climate change and its effects continues to evolve. Accordingly, the Participating Members are unable to forecast with certainty when adverse impacts of climate change will occur or the extent of such impacts. While the impacts of climate change may be mitigated by the Participating Members' past and future investment in adaptation strategies, the Participating Members can give no assurance about the net effects of those strategies and whether the Participating Members will be required to take additional adaptive mitigation measures. In accordance with the California Global Warming Solutions Act of 2006 (Assembly Bill No. 32), the State Attorney General's Office now requires that local governments examine local policies and large-scale planning efforts to determine how to reduce greenhouse gas emissions. Additionally, the State has enacted the California Global Warming Solutions Act of 2006 (Senate Bill No. 32), which established a revised statewide GHG emission reduction target of 40% below 1990 levels by 2030. Redwood City. Redwood City adopted a Climate Action Plan (the "Redwood City CAP") on April 22, 2013 that contained strategies to reduce emissions 15% below 2005 levels by 2020. Since the adoption of the Redwood City CAP, a majority of recommended strategies therein are on-going programs, have been completed by Redwood City, or have been superseded by subsequent reduction measures. Redwood City is in the process of updating the Redwood City CAP in order to identify greenhouse gas emission reduction targets through 2030, build on Redwood City's recent CAP implementation experiences, and add sea level rise and climate adaptation strategies to the Redwood City CAP. 567