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8.A. - Page 48 of 51 approximately 50 miles south of the Participating Members and caused strong ground shaking for about 20 seconds. The casualty and liability insurance of the Participating Members may not cover losses due to earthquake. San Carlos carries earthquake insurance, however Redwood City and West Bay do not. If there were to be an occurrence of severe seismic activity in the service areas of the Participating Members, there could be substantial damage to and interference with the operations of a Participating Member, which could impact the receipt of Net Revenues. Flooding. A portion of each of the Participating Members' service areas is mapped within the 100 -year flood plain and has potential for flooding if rain events exceed the floodplain capacity. Fire. Wildfires have occurred in recent years in different regions of the State and a number of fires were recently burning in California, damaging and threatening thousands of homes. There can be no assurance fires will not occur in the boundaries of the Participating Members in the future, leading to decreased usage of any of the Participating Members' wastewater system, and a decline in Net Revenues available to pay SBSA Bond Payments or Authority Bond Payments. 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 of such mandatory water reductions have since been lifted, the State has since enacted permanent restrictions on water usage. The 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 available to the Participating Members with which to pay SBSA Bond Payments and Authority Bond Payments. 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, while the Participating Members have considered climate change, including potential sea level rise in the San Francisco Bay, in their respective wastewater system facilities, 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 ATTY/AGR/2020.264/PRELI M I NARY OFFICIAL STATEMENT— WASTEWATER REV: 11-18-2020 EI Page 26 of 29 714