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 ofpreparing 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