BILL ANALYSIS AB 224 Page 1 Date of Hearing: April 23, 2007 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Loni Hancock, Chair AB 224 (Wolk) - As Amended: April 17, 2007 SUBJECT : Climate change and water resources SUMMARY : Requires information on the potential effects impacts of climate change to be incorporated into existing state and local water planning efforts and requires Department of Water Resources (DWR) to prepare a report on peer-reviewed climate change studies to help local governments identify potential impacts to water supply. EXISTING LAW: 1)Requires DWR to prepare periodic reports on the state's water supply, groundwater, and other water resources and to provide local assistance to water agencies on water management. 2)Requires an urban water supplier (i.e., public or private entities serving more than 3,000 customers or supplying more than 3,000 acre-feet of water annually) to prepare and update an urban water management plan every five years. 3)Requires the State Water Resources Control Board (SWRCB) to regulate water rights and water quality, including certain permits for the use of recycled water. 4)Proposition 84 authorizes $65 million to DWR for "planning and feasibility studies related to the existing and potential future needs for California's water supply, conveyance and flood control systems." Eligible projects include the evaluation of climate change impacts on the state's water supply. THIS BILL : 1)Requires the DWR to include an analysis of the potential effects of climate change, to the extent applicable, into all reports or plans it is already required prepare including, but not limited to, the following: biennial report on overall delivery capability of the State Water Project, the California Water Plan, reports related to the Sacramento-San Joaquin AB 224 Page 2 River Delta, State Plan of Flood Control, and Bulletin 118 (regarding groundwater). 2)Prohibits DWR from approving an integrated regional water management planning grant after January 1, 2009 under certain conditions unless the applicant includes certain information regarding climate change. 3)Requires DWR to identify and update available peer-reviewed information or develop its own information on climate change and water resources for the state's hydrologic basins, and make such information available on its website. 4)Requires SWRCB, in cooperation with DWR, Air Resources Board, the California Energy Commission (CEC) and the Public Utilities Commission, to complete a study under specified scenarios on or before January 1, 2009 that quantifies energy savings and greenhouse gas emission reductions from water recycling and water conservation. 5)Requires SWRCB and the regional water quality boards when developing water quality control plans to consider a reasonable range of hydrological, temperature and sea-level rise scenarios resulting from climate change. 6)Directs water suppliers that are currently required prepare urban or agricultural water management plans to identify, to the extent practicable, the possible effects of climate change on water supply projections, and the reliability of its water supply and its water service to customers. If the DWR report described above is not available, these suppliers are exempt from this requirement. 7)Makes legislative findings and declarations regarding climate change and water resources. FISCAL EFFECT : Unknown COMMENTS : 1)Background This bill represents the first step to incorporate climate change information into state and local water resource planning efforts. This past February, the Assembly Water, Parks, and AB 224 Page 3 Wildlife Committee held a hearing on climate change and considered an increasing body of evidence demonstrating how climate change has and will affect the state's water resources. Climate change is expected to result in more frequent dry years, more persistent periods of drought, less stream flow in the spring and summer, and reduced water deliveries to the state's reservoirs. Other impacts are anticipated from sea water intrusion into the Delta due to sea-level rise, increased evaporation from surface storage, and increased groundwater overdraft. Despite these predictions, there are only a handful of places where major actions have been taken to improve our ability to adapt water systems to climate change. This bill addresses this problem by increasing the capacity of state and local water agencies to understand scientific information, translate it into practical information, and incorporate it into long-term planning efforts. 2)Water resources planning will rely on climate change information developed by the state This bill requires the potential effects of climate change to be considered in various statutory water planning requirements. Concerns were raised about the reliability of climate change projections and the whether this information incorporated with sufficient confidence into urban or agricultural water plans. In response, the bill requires DWR to identify the climate change information that local agencies should consider in their planning efforts. Alternatively, a water supplier may rely on other reliable information in its possession. If DWR does not identify such information, then local water suppliers are exempt from the bill's planning requirements. The author asserts that the use of state "sanctioned" information resolves concerns as to which information should be used. However, it's unclear whether information on the potential effects of climate change on specific hydrologic basins is available at this time or whether statewide information can be applied to individual basins. 3)Water conservation and recycling results in less greenhouse gas emissions This bill requires SWRCB to prepare a report that quantifies the energy savings and greenhouse gas emission reductions due to AB 224 Page 4 water conservation and the use of recycled water to offset the use of potable water for non-potable uses. According to CEC, water recycling and conservation may result in less greenhouse gas emissions compared to traditional forms of water supply, particularly for urban areas reliant on imported water. This is due to the fact that as much as 19% of electric energy load is related to the movement, treatment, and consumption of water and 39% of gas load is related to heating water. Although water use has a direct impact on energy consumption, CEC currently has no authority to consider water efficiency when it develops energy efficiency standards. AB 1560 (Huffman), introduced this session, would give the CEC this authority. Proposed amendments The author's office is proposing amendments that allow a local agency the option of relying on climate change information it develops on its own. The author intended to make these changes to the bill, as amended on April 17, 2007. 1)On page 4, line 15 (after "Section 10103"); page 5, line 37 (after "Section 10101"); and page 6, line 3 (after "Section 10101") insert: "or other relevant information if the supplier deems such information reasonably reliable." 2)On page 5, line 32: change "subdivision (d)" to "subdivision (b)." REGISTERED SUPPORT / OPPOSITION : Support East Bay Municipal Utility District Inland Empire Utilities Agency Marin Municipal Water District Natural Resources Defense Council (sponsor) Nature Conservancy Planning and Conservation League (sponsor) Sierra Club California Sonoma County Water Agency (sponsor) Water Reuse Association, California Section Opposition AB 224 Page 5 None on file Analysis Prepared by : Dan Chia / NAT. RES. / (916) 319-2092