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: May 28, 2008 FISCAL: Yes HEARING DATE: June 23, 2008 URGENCY: No CONSULTANT: Bruce Jennings SUBJECT : WATER SUPPLY PLANNING SUMMARY : Existing law : 1) Authorizes the Department of Water Resources (DWR)to conduct various activities to meet the water needs of the state. Individual water agencies, among other responsibilities, are responsible for planning to meet the needs of their current and future water users. 2) Requires the State Water Resources Control Board (state board), among other things, is responsible for protecting the state's waters from waste and unreasonable use and for protecting the state's water quality. Policies regarding the use of recycled water projects are generally the Board's responsibility. 3) Establishes a statewide program for reducing greenhouse gas emissions, including various efforts to ensure that activities undertaken to comply with the regulations do not disproportionately impact low-income communities, pursuant to Section 38562(b) (2) of The Global Warming Solutions Act (Chapter 488, statutes of 2006). 4) Requires state agencies to consider and implement measures and strategies under their authority to reduce their greenhouse gas emissions in furtherance of the targets in the Climate Action Team Report and the California Global Warming Solutions Act (also referred to as "State Agency Greenhouse Gas Reduction Report Card," Section 12890 et AB 224 Page 2 seq. of the Government Code). This bill : 1) Makes legislative findings and intent statements regarding climate change and water resources. 2) Requires DWR to include in any water facility feasibility study an analysis of the proposed facility's relationship to greenhouse gas emissions and climate change. 3) Require DWR to incorporate an analysis of the potential effects of climate change, to the extent applicable, into all reports or plans relating to water management or planning that DWR is required to complete, including: State Water Project Delivery Reliability Report California Water Plan Updates Reports related to the Sacramento-San Joaquin Delta State Plan of Flood Control California Groundwater Bulletin 4) Requires DWR, at the request of a local agency with water supply responsibilities, to assist the local agency in assessing the extent of greenhouse gas emissions arising out of water supply operations, estimating the impact of climate change on the agency's water resources, and identifying options for adapting to climate change. 5) Requires DWR to identify available peer reviewed scientific information, or in its absence, the best available scientific information regarding climate change and water resources, and make such information available on its web site. 6) Prohibits DWR from approving an integrated regional water management grant, for applications submitted after January 1, 2011, unless the underlying plan considers the climate change information identified by DWR or other climate change information. 7) Requires DWR, in collaboration with the state board, the Air Resources Board, the Energy Resources Conservation and AB 224 Page 3 Development Commission and the Public Utilities Commission, to complete a study that quantifies energy savings and greenhouse gas emission reductions from water recycling and water conservation. 8) Requires the state board and the regional water quality boards, for the purpose of the triennial review of applicable water quality standards, to consider the reasonably foreseeable effects of climate change on the water quality of the basin. 9) Require water suppliers that prepare urban or agricultural water management plans to obtain climate change information from DWR, identify the possible effects of climate change on water supply projections and consider such information when developing the conclusions of such plans. COMMENTS : 1)Purpose of Bill . According to the author, "In recent years, scientist, water mangers and the public at large have recognized the growing threat to California's water supply by global climate change. California already has witnessed some level of climate change, from increasing frequency of serious floods to higher average elevation of snowfall in the Sierras. Change will likely continue. The hydrological patterns on which we have relied to build our water infrastructure and economy will change. The when, where and how of our water supplies will change." 2)Background . Numerous scientific studies have documented the changes, established trends, and begun developing preliminary projections of the changes and effects on water supply. California's own Lawrence Livermore National Laboratory has estimated the effects of climate change on various aspects of California's rich environmental and water resources, from Sierra forests to Central Valley agriculture. In 2005, the Department of Water Resources (DWR) issued a preliminary report projecting dramatic effects on the management of California water resources. The California Energy Commission also recently examined the substantial energy costs related to water supply. AB 224 Page 4 3)Arguments in Support . The Planning and Conservation League notes, "Under current requirements of the Urban Water Management Planning Act, and SB 221 and SB 610, water agencies must use the best available information to estimate the amount of water that will be available to meet water demands in their regions. Recently, two water agencies have been challenged in court by groups alleging that those agencies had violated the law by failing to incorporate climate change information into the 2005 urban water management plans. AB 224 will help water agencies meet these legal requirements and limit liability from lawsuits by ensuring that the state identifies reliable information on climate change for each region. AB 224 specifies that an agency would be exempt from incorporating climate change impact into water plans if such information is not available." The Sierra Club observes, "The California Energy Commission has identified water as the single largest energy use in the state, responsible for 19% of electricity and over 30% of natural gas use. Water use therefore contributes to the state's greenhouse gas emissions. Accordingly, we must look to water management as the state seeks to reduce these emissions." 4)Background: Climate Action Team . The Governor has issued a series of executive orders (EOs) on global warming and related subjects during 2005 and 2006. EO S-3-05 and EO S-20-06 both relate to the CAT; with the first one directing the Secretary of Cal EPA to coordinate multi-agency efforts to meet the greenhouse gas emission reduction targets (also contained in this EO), and with the second EO formally naming the CAT and directing it to engage in a number of activities relating generally to measures for implementing AB 32. 5)Clarifying Relationships between AB 224 and the Climate Action Team . Consistent with the Governor's Executive Order S-3-05, committing state agencies to climate emission reduction targets, and the enactment of SB 85 - the State Agency Greenhouse Gas Reduction Report Card (Senate Committee on Budget and Fiscal Review, Chapter 178, Statutes of 2007), AB 224 Page 5 establishing a list of measures of measures to meet GHG emission reduction targets and any additional measures needed for further reductions, it is appropriate and necessary to explicitly link AB 224 in order to avoid potential conflicts and ambiguities concerning state activities to achieve emission reductions pursuant to AB 32. One option for achieving this linkage would be to amend Sections 10103(b) and 10104 (e) to include the concluding phrase: "including any reporting or other requirements pursuant to Section 12890 et seq. of the Government Code." SOURCE : Inland Empire Utilities Agency, Natural Resources Defense Council, Planning and Conservation League, Sonoma County Water Agency SUPPORT : Association of California Water Agencies, CA Association of Sanitation Agencies, CA Native Plant Society, CA Public Utilities Commission, CA Watershed Network, CalCoast, Calleguas Municipal Water District, City of Los Angeles, City of San Diego, Clean Water Action, East Bay Municipal Utility District, Eastern Municipal Water District, Marin Conservation League, Marin Municipal Water District, Metropolitan Water District of So. Cal., San Diego County Water Authority, San Francisco Public Utilities, Santa Ana Watershed Project Authority, Santa Clara Valley Water District, Sierra Club California, Silicon Valley Leadership Group, Solano County Water Agency, Sonoma County Water Agency, Southern California Water Committee, The Nature Conservancy, Union of Concerned Scientists, WateReuse Association (CA Section) OPPOSITION : None on file