BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 224
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2007-2008 Regular Session
                                           
           BILL NO:    AB 224
           AUTHOR:     Wolk
           AMENDED:    July 5, 2007
           FISCAL:     Yes               HEARING DATE:     July 10, 2007
           URGENCY:    No                CONSULTANT:       Bruce Jennings
            
           SUBJECT  :    WATER SUPPLY PLANNING

            SUMMARY  :    
           
            Existing law  :

           1) Requires the state's various, specified sources of  
              greenhouse gas emissions to achieve reductions equivalent  
              to the statewide greenhouse gas emissions level calculated  
              to have existed in 1990 by 2020, pursuant to the California  
              Global Warming Solutions Act (Chapter 488, Statutes of  
              2006).

           2) Requires the Department of Water Resources (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.

           3) 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.

           4) Requires the State Water Resources Control Board (state  
              board) to regulate water rights and water quality,  
              including certain permits for the use of recycled water.

           5) 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.









                                                                AB 224
                                                                 Page 2





















































                                                                AB 224
                                                                 Page 3


            This bill  :

           1) Requires DWR to include an analysis of the potential  
              effects of climate change, to the extent applicable, into  
              all reports or plans it is required to prepare, including,  
              but not limited to, the following:  biennial report on  
              overall delivery capability for the State Water Project,  
              the California Water Plan, reports related to the  
              Sacramento-San Joaquin River Delta, State Plan of Flood  
              Control, and Bulletin 118, which refers to 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 DWR, in cooperation with the Air Resources Board,  
              the California Energy Commission, 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 the state board and the regional water quality  
              control 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 to  
              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 reports described above is not  
              available, these suppliers are exempt from this  
              requirement.









                                                                AB 224
                                                                 Page 4

           7) Makes legislative findings and declarations regarding  
              climate change and water resources.


            COMMENTS  :

            1) Purpose of Bill  .  AB 224, according the author's committee  
              (Assembly Water Parks and Wildlife), initiates the process  
              of incorporating climate change information into the water  
              resource planning efforts of state and local agencies.  The  
              Assembly Water, Parks and Wildlife Committee held a hearing  
              on the topic of climate change and water resources in  
              February, 2007, in which it heard about the mounting body  
              of evidence and scientific studies demonstrating how  
              climate change has and will affect water resources in  
              California.  The Assembly Committee also heard about the  
              efforts by state agencies, including DWR and the California  
              Energy Commission, to investigate how climate change will  
              affect water resources and vice versa - how water use  
              affects greenhouse gas production and climate change.  This  
              information, which is now available on the Committee's  
              webpage, demonstrates that climate change has already  
              occurred and affected water resources in California.  This  
              bill would take the next step of encouraging state and  
              local water agencies to incorporate climate change  
              information identified by DWR into their long-term planning  
              efforts.

            2) DWR Study of Greenhouse Gas Production  .  At the request of  
              the Sonoma County Water Agency, a sponsor of this bill, the  
              author added a provision requiring the DWR to complete a  
              study of the greenhouse gas effects/reductions arising out  
              of water recycling and conservation.  The Energy Commission  
              report on this topic also provides preliminary findings  
              indicating that recycling and water conservation may  
              produce less greenhouse gas than certain other forms of  
              water supply, particularly for urban areas reliant on  
              imported water.  This bill would require DWR to look at  
              this issue in greater detail, in coordination with certain  
              other relevant agencies.  This study will help California  
              learn more about the other side of the climate change/water  
              supply equation - the effect of water use on climate  
              change.









                                                                AB 224
                                                                 Page 5

            3) The Context of Climate Change Policies  .  On October 23,  
              2006, President Pro Tem Don Perata wrote to the Governor  
              expressing his strong disagreement regarding the initial  
              implementation of AB 32, including the following passage:

           "The EO [Executive Order] directs the ARB [Air Resources  
              Board] to work with the Secretary for Cal EPA to "bring  
              both regulatory measures and market-based mechanisms on a  
               concurrent  and expeditious schedule?"

           In contrast, the law requires the ARB adopt "early action"  
              emission reduction measures  prior to  the use of any  
              market-based compliance mechanisms [see Health and Safety  
              Code Section 38560.5].  It further specifies that  
              regulatory measures to reduce emissions  must  be adopted,  
              while market-based compliance mechanisms are left to the  
              discretion of the ARB, and may be adopted only after the  
              extensive evaluations and determinations by the board  
              through a public process."

           On June 29 the Chairman of the ARB, Dr. Sawyer, was dismissed  
              by Governor Schwarzenegger, the result of conflicts that  
              included differences regarding the implementation of AB 32.  
               In testimony before the Assembly on July 6, Dr. Sawyer  
              stated that the Governor's representatives directly  
              interfered with the adoption of a broader array of early  
              action measures for reducing greenhouse gas emissions.   
              Catherine Witherspoon, the Executive Officer for the ARB  
              who resigned her position subsequent to Dr. Sawyer's  
              removal, also referred to conflicts in which the Governor's  
              office sought to impose political considerations over  
              scientific ones with respect to the adoption of early  
              action measures.

           It is, therefore, appropriate for AB 224 be amended to provide  
              a more explicit direction with respect to climate change  
              and water policy.  To that end, the Committee may wish to  
              consider the adoption of a more specific amendment for AB  
              224 to provide greater clarity to the Administration, as  
              follows: 

            Amendment #1  :
           Section 10102 (d)  In making the quantification related to  
              water conservation, the report shall quantify statewide  








                                                                AB 224
                                                                 Page 6

              energy savings and greenhouse gas emission reductions  
              assuming the maximum potential water use efficiency  
              identified in the department's Bulletin 160 - 05.   The  
              report shall include recommendations as to emission  
              reduction measures that provide state agencies a way to  
              reduce greenhouse gas emissions from water use.
            
            Amendment #2  :
            Section 10103.  For the purpose of  preparing or revising a  
              state water quality control plan or a regional water  
              quality control plan relative to climate change,  the  
              triennial review of applicable water quality standards  
              pursuant to the Clean Water Act, Section 303 (c ) (1),  the  
              State Water Resources Control Board or the regional water  
              quality control board shall consider, as appropriate, a  
              reasonable range of plausible hydrological, temperature,  
              and sea-level rise scenarios resulting from climate change  
               based on information presented to or prepared by the state  
              board or regional board as part of that triennial review,  
              and any other climate change information that the state  
              board or regional board shall consider including the  
              information identified by the department pursuant to  
              Section 10101 and the report prepared pursuant to Section  
              10102.  This information and analysis may provide a basis  
              for revising water quality standards or water quality  
              regulations as needed to address changes anticipated to  
              result from climate change.  

            Amendment #3:  
           Because Section 10101(c ) (2) would eliminate requirements for  
              agencies that complete their plans by 2009 to have to  
              perform a climate analysis, this section of AB 224 should  
              be struck.  Additionally, DWR has indicated that it intends  
              to include climate change requirements in its new round of  
              guidelines for integrated regional water management funding  
              in response to a letter from the Pro Tem on the issue of  
              agencies needing to pursue early action measures.  
            
            SOURCE  :        Marin Municipal Water District, Natural  
                          Resources Defense Council, Planning and  
                          Conservation League, Sonoma County Water Agency  

           SUPPORT  :       Association of California Water Agencies,  
                          California Association of Sanitation Agencies,  








                                                                AB 224
                                                                 Page 7

                          California Coastal Coalition, California Native  
                          Plant Society, California Public Utilities  
                          Commission, Calleguas Municipal Water District,  
                          City of Los Angeles, Clean Water Action, East  
                          Bay Municipal Utility District, Inland Empire  
                          Utilities Agency, League of Women Voters of  
                          California, Metropolitan Water District of  
                          Southern California, Public Utilities  
                          Commission, San Diego County Water Authority,  
                          Santa Ana Watershed Project Authority, Santa  
                          Clara Valley Water District, Sierra Club  
                          California, Silicon Valley Leadership Group,  
                          Solano County Water Agency, The Nature  
                          Conservancy, Union of Concerned Scientists,  
                          WateReuse Association of California Section  

           OPPOSITION  :    Valley Ag Water Coalition