"This event has destroyed and caused serious damages to homes, infrastructure, and other public facilities in San Mateo County," Schwarzenegger said in a letter to President Obama. "The response and recovery costs for this event are estimated at nearly $10.4 million." Federal disaster status would free up federal money to cover the cost of repairing/rebuilding the neighborhood.
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CNN.com is reporting that "TURN [The Utility Reform Network] also said the utility asked for another $5 million for the same project in 2009 -- the year it should have completed the work it hasn't even started -- saying it wouldn't be completed until 2013."
Although the utility has stated that the section of pipeline underneath San Bruno had been identified as a high priority project, it rescheduled the project following an updated assessment in 2009, however the precise reasons for rescheduling were apparently not explained.