BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 224
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          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  








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            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  








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          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  








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          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
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          None on file
           
          Analysis Prepared by  :    Dan Chia / NAT. RES. / (916) 319-2092