BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 224
                                                                  Page  1

          Date of Hearing:   May 9, 2007 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mark Leno, Chair

                     AB 224 (Wolk) - As Amended:  April 25, 2007 

          Policy Committee:                              Natural  
          ResourcesVote:6-1
                        Water, Parks & Wildlife               7-5

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires an analysis of the potential water-related  
          impacts of climate change (CC) to be integrated into state and  
          local water management plans.  

           FISCAL EFFECT  

          1)Moderate costs, in the range of $500,000 primarily in 2007-08  
            and 2008-09, to the Department of Water Resources (DWR) to  
            develop CC information and analyze CC impacts on various  
            aspects of state and regional water supply delivery systems.   
            To the extent the DWR is already developing this information  
            and performing these analyses, these costs will be reduced.   
            (GF or available bond proceeds)

          2)Moderate costs, about $300,000 primarily in 2008-09, to the  
            State Water Resources Control Board (SWRCB) to analyze energy  
            savings and greenhouse gas emission reductions related to  
            various water supply enhancement options, including greater  
            use of recycled water.  (GF or available bond proceeds)

          3)Moderate statewide costs, in the range of $350,000 starting in  
            2008-09, to urban water suppliers and agricultural water  
            suppliers to integrate CC information into their water  
            management plan updates.  These costs are covered by revenue  
            generated by user fees.

           SUMMARY CONTINUED
           
          Specifically, this bill:








                                                                  AB 224
                                                                  Page  2


          1)Requires the DWR to include a CC analysis in its biennial  
            report regarding State Water Project delivery capability, the  
            quintennially produced California Water Plan (Bulletin 160),  
            all Sacramento-San Joaquin Delta reports, the State Plan of  
            Flood Control, and California Groundwater (Bulletin 118).

          2)Requires the DWR, by July 1, 2008, to review or develop CC  
            information for the state and each hydrologic basin for use by  
            state and local agencies and to make this information  
            available on the DWR website.

          3)Prohibits the DWR, for plans submitted after January 1, 2009,  
            from providing grant funds to an applicant unless that  
            applicant's integrated regional water management plan  
            considers related CC impacts.

          4)Requires the SWRCB, by January 1, 2009, to report on statewide  
            and regional energy savings and greenhouse gas (GHG) emission  
            reductions associated with water supply development, including  
            expanded use of recycled water. 

          5)Requires the SWRCB and regional water boards, when updating  
            their water quality control plans, to consider related CC  
            impacts.

          6)Requires urban water suppliers and agricultural water  
            suppliers, when updating their water management plans, to  
            include information on potential CC impacts to their water  
            supply.

           COMMENTS  

           1)Rationale  .  The author believes that climate change will have  
            major impacts on the state's overall efforts to manage water  
            supply and water quality, and that these impacts will vary  
            significantly from region to region and basin to basin.  The  
            combined effect of changes to annual snow pack, the levels,  
            forms and timing of precipitation, the ability of current  
            water storage and flood control facilities to protect property  
            and public safety, and the options available to enhance water  
            supply and reduce water demand will require the state and each  
            local water supplier to integrate these potential impacts into  
            their water management plans.  









                                                                  AB 224
                                                                  Page  3

           2)Focus on Water Conservation and Recycling  .  This bill's  
            requirement to integrate CC impact information into water  
            management plans is coupled with requirements that would  
            result in a greater focus on using water conservation and  
            water recycling as preferred options for dealing with  
            long-term water supply and demand issues.  According to the  
            California Energy Commission, greater use of water  
            conservation and water recycling would extend water supply  
            with relatively less GHG emissions than other forms of  
            expanding water supply, particularly with regard to urban and  
            rural areas that depend largely on water imported from other  
            regions.

           3)SWRCB and Recycled Water  .  The state's expertise on recycled  
            water lies within the DWR, not the SWRCB.  Since recycled  
            water is not intended for human consumption but rather for  
            non-potable uses such as landscaping and parallel plumbing  
            systems for toilets, expanding use of recycled water is more a  
            water supply issue than a water quality issue.  It is not  
            clear why this bill puts the SWRCB, and not the DWR, in charge  
            of analyzing statewide and regional energy savings and GHG  
            emission reductions associated with water recycling and other  
            forms of water supply development.


           Analysis Prepared by  :    Steve Archibald / APPR. / (916)  
          319-2081