BILL NUMBER: AB 1420	CHAPTERED
	BILL TEXT

	CHAPTER  628
	FILED WITH SECRETARY OF STATE  OCTOBER 13, 2007
	APPROVED BY GOVERNOR  OCTOBER 13, 2007
	PASSED THE SENATE  SEPTEMBER 11, 2007
	PASSED THE ASSEMBLY  SEPTEMBER 12, 2007
	AMENDED IN SENATE  SEPTEMBER 6, 2007
	AMENDED IN SENATE  AUGUST 31, 2007
	AMENDED IN SENATE  AUGUST 1, 2007
	AMENDED IN SENATE  JULY 17, 2007
	AMENDED IN SENATE  JULY 3, 2007
	AMENDED IN SENATE  JUNE 19, 2007
	AMENDED IN ASSEMBLY  APRIL 18, 2007

INTRODUCED BY   Assembly Member Laird

                        FEBRUARY 23, 2007

   An act to amend Sections 10631.5 and 10644 of, and to add Section
10631.7 to, the Water Code, relating to water.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1420, Laird. Water demand management measures: water management
grant or loan funds.
   (1) Existing law requires an urban water supplier to prepare and
adopt an urban water management plan that includes a description of
the supplier's water demand management measures that are currently
being implemented or scheduled for implementation. Existing law
requires the Department of Water Resources to take into consideration
whether the urban water supplier is implementing or has scheduled
for implementation the water demand management activities that the
supplier identified in its urban water management plan in evaluating
applications for grants and loans financed by specified bond funds.
   This bill would delete that provision relating to the evaluation
of grant or loan applications financed by those specified bond funds.
The bill, instead, would require the terms of, and eligibility for,
any water management grant or loan made to an urban water supplier
and awarded or administered by the department, the State Water
Resources Control Board, or the California Bay-Delta Authority, with
certain exceptions, to be conditioned on the implementation of the
water demand management measures described in the urban water
management plan, as determined by the department.
   The department would be required to convene an independent panel
to provide information and recommendations to the department and the
Legislature on new demand management measures, technologies, and
approaches. The department would be required to identify in a
specified report submitted to the Legislature water demand management
measures that achieve water savings significantly above the levels
established by the department to meet the requirements discussed
above.
   (2) This bill would incorporate additional changes to Section
10644 of the Water Code proposed by SB 862, to be operative only if
this bill and SB 862 are both enacted and become effective on or
before January 1, 2008, and this bill is enacted last.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Increased urban water conservation has the potential to result
in significant annual water savings statewide, and therefore can
play a fundamental role in promoting sustainable and reliable water
supplies statewide.
   (b) The California Water Plan as updated in 2005 supports water
use efficiency as a foundational action to ensure sustainable water
uses.
  SEC. 2.  Section 10631.5 of the Water Code is amended to read:
   10631.5.  (a) (1) Beginning January 1, 2009, the terms of, and
eligibility for, a water management grant or loan made to an urban
water supplier and awarded or administered by the department, state
board, or California Bay-Delta Authority or its successor agency
shall be conditioned on the implementation of the water demand
management measures described in Section 10631, as determined by the
department pursuant to subdivision (b).
   (2) For the purposes of this section, water management grants and
loans include funding for programs and projects for surface water or
groundwater storage, recycling, desalination, water conservation,
water supply reliability, and water supply augmentation. This funding
includes, but is not limited to, funds made available pursuant to
Section 75026 of the Public Resources Code.
   (3) Notwithstanding paragraph (1), the department shall determine
that an urban water supplier is eligible for a water management grant
or loan even though the supplier is not implementing all of the
water demand management measures described in Section 10631, if the
urban water supplier has submitted to the department for approval a
schedule, financing plan, and budget, to be included in the grant or
loan agreement, for implementation of the water demand management
measures. The supplier may request grant or loan funds to implement
the water demand management measures to the extent the request is
consistent with the eligibility requirements applicable to the water
management funds.
   (4) (A) Notwithstanding paragraph (1), the department shall
determine that an urban water supplier is eligible for a water
management grant or loan even though the supplier is not implementing
all of the water demand management measures described in Section
10631, if an urban water supplier submits to the department for
approval documentation demonstrating that a water demand management
measure is not locally cost effective. If the department determines
that the documentation submitted by the urban water supplier fails to
demonstrate that a water demand management measure is not locally
cost effective, the department shall notify the urban water supplier
and the agency administering the grant or loan program within 120
days that the documentation does not satisfy the requirements for an
exemption, and include in that notification a detailed statement to
support the determination.
   (B) For purposes of this paragraph, "not locally cost effective"
means that the present value of the local benefits of implementing a
water demand management measure is less than the present value of the
local costs of implementing that measure.
   (b) (1) The department, in consultation with the state board and
the California Bay-Delta Authority or its successor agency, and after
soliciting public comment regarding eligibility requirements, shall
develop eligibility requirements to implement the requirement of
paragraph (1) of subdivision (a). In establishing these eligibility
requirements, the department shall do both of the following:
   (A) Consider the conservation measures described in the Memorandum
of Understanding Regarding Urban Water Conservation in California,
and alternative conservation approaches that provide equal or greater
water savings.
   (B) Recognize the different legal, technical, fiscal, and
practical roles and responsibilities of wholesale water suppliers and
retail water suppliers.
   (2) (A) For the purposes of this section, the department shall
determine whether an urban water supplier is implementing all of the
water demand management measures described in Section 10631 based on
either, or a combination, of the following:
   (i) Compliance on an individual basis.
   (ii) Compliance on a regional basis. Regional compliance shall
require participation in a regional conservation program consisting
of two or more urban water suppliers that achieves the level of
conservation or water efficiency savings equivalent to the amount of
conservation or savings achieved if each of the participating urban
water suppliers implemented the water demand management measures. The
urban water supplier administering the regional program shall
provide participating urban water suppliers and the department with
data to demonstrate that the regional program is consistent with this
clause. The department shall review the data to determine whether
the urban water suppliers in the regional program are meeting the
eligibility requirements.
   (B) The department may require additional information for any
determination pursuant to this section.
   (3) The department shall not deny eligibility to an urban water
supplier in compliance with the requirements of this section that is
participating in a multiagency water project, or an integrated
regional water management plan, developed pursuant to Section 75026
of the Public Resources Code, solely on the basis that one or more of
the agencies participating in the project or plan is not
implementing all of the water demand management measures described in
Section 10631.
   (c) In establishing guidelines pursuant to the specific funding
authorization for any water management grant or loan program subject
to this section, the agency administering the grant or loan program
shall include in the guidelines the eligibility requirements
developed by the department pursuant to subdivision (b).
   (d) Upon receipt of a water management grant or loan application
by an agency administering a grant and loan program subject to this
section, the agency shall request an eligibility determination from
the department with respect to the requirements of this section. The
department shall respond to the request within 60 days of the
request.
   (e) The urban water supplier may submit to the department copies
of its annual reports and other relevant documents to assist the
department in determining whether the urban water supplier is
implementing or scheduling the implementation of water demand
management activities. In addition, for urban water suppliers that
are signatories to the Memorandum of Understanding Regarding Urban
Water Conservation in California and submit biennial reports to the
California Urban Water Conservation Council in accordance with the
memorandum, the department may use these reports to assist in
tracking the implementation of water demand management measures.
   SEC. 3.  Section 10631.7 is added to the Water Code, to read:
   10631.7.  The department, in consultation with the California
Urban Water Conservation Council, shall convene an independent
technical panel to provide information and recommendations to the
department and the Legislature on new demand management measures,
technologies, and approaches. The panel shall consist of no more than
seven members, who shall be selected by the department to reflect a
balanced representation of experts. The panel shall have at least
one, but no more than two, representatives from each of the
following: retail water suppliers, environmental organizations, the
business community, wholesale water suppliers, and academia. The
panel shall be convened by January 1, 2009, and shall report to the
Legislature no later than January 1, 2010, and every five years
thereafter. The department shall review the panel report and include
in the final report to the Legislature the department's
recommendations and comments regarding the panel process and the
panel's recommendations.
  SEC. 4.  Section 10644 of the Water Code is amended to read:
   10644.  (a) An urban water supplier shall submit to the
department, the California State Library, and any city or county
within which the supplier provides water supplies a copy of its plan
no later than 30 days after adoption. Copies of amendments or changes
to the plans shall be submitted to the department, the California
State Library, and any city or county within which the supplier
provides water supplies within 30 days after adoption.
   (b) The department shall prepare and submit to the Legislature, on
or before December 31, in the years ending in six and one, a report
summarizing the status of the plans adopted pursuant to this part.
The report prepared by the department shall identify the exemplary
elements of the individual plans. The department shall provide a copy
of the report to each urban water supplier that has submitted its
plan to the department. The department shall also prepare reports and
provide data for any legislative hearings designed to consider the
effectiveness of plans submitted pursuant to this part.
   (c) (1) For the purpose of identifying the exemplary elements of
the individual plans, the department shall identify in the report
those water demand management measures adopted and implemented by
specific urban water suppliers, and identified pursuant to Section
10631, that achieve water savings significantly above the levels
established by the department to meet the requirements of Section
10631.5.
   (2) The department shall distribute to the panel convened pursuant
to Section 10631.7 the results achieved by the implementation of
those water demand management measures described in paragraph (1).
   (3) The department shall make available to the public the standard
the department will use to identify exemplary water demand
management measures.
  SEC. 5.  Section 10644 of the Water Code is amended to read:
   10644.  (a) An urban water supplier shall submit to the entities
listed in subdivision (b) a copy of its plan no later than 30 days
after adoption. Copies of amendments or changes to the plans shall be
submitted to the entities listed in subdivision (b) within 30 days
after adoption.
   (b) An urban water supplier shall file a copy of its plan and
amendments or changes with each of the following entities:
   (1) The department.
   (2) Any city or county within which the urban water supplier
provides water supplies.
   (3) Any groundwater management entity within which the urban water
supplier extracts or provides water supplies.
   (4) Any agricultural water supplier within which district the
urban water supplier provides water supplies.
   (5) Any city or county library within which district the urban
water supplier provides water supplies.
   (6) The California State Library.
   (7) Any local agency formation commission within which county the
urban water supplier provides water supplies.
   (c) The department shall prepare and submit to the Legislature, on
or before December 31, in the years ending in six or one, a report
summarizing the status of the plans adopted pursuant to this part.
The report prepared by the department shall identify the exemplary
elements of the individual plans. The department shall provide a copy
of the report to each urban water supplier that has submitted its
plan to the department. The department shall also prepare reports and
provide data for any legislative hearings designed to consider the
effectiveness of plans submitted pursuant to this part.
   (d) (1) For the purpose of identifying the exemplary elements of
the individual plans, the department shall identify in the report
those water demand management measures adopted and implemented by
specific urban water suppliers, and identified pursuant to Section
10631, that achieve water savings significantly above the levels
established by the department to meet the requirements of Section
10631.5.
   (2) The department shall distribute to the panel convened pursuant
to Section 10631.7 the results achieved by the implementation of
those water demand management measures described in paragraph (1).
   (3) The department shall make available to the public the standard
the department will use to identify exemplary water demand
management measures.
  SEC. 6.  Section 5 of this bill incorporates amendments to Section
10644 of the Water Code proposed by both this bill and SB 862. It
shall only become operative if (1) both bills are enacted and become
effective on or before January 1, 2008, (2) each bill amends Section
10644 of the Water Code, and (3) this bill is enacted after SB 862,
in which case Section 4 of this bill shall not become operative.