BILL NUMBER: AB 2175	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 8, 2008

INTRODUCED BY   Assembly Members Laird and Feuer
    (   Coauthor:   Assembly Member  
Wolk   )

                        FEBRUARY 20, 2008

   An act to  amend Section 10631.5 of, and to  add Part
2.55 (commencing with Section 10608) to Division 6 of  , 
the Water Code, relating to water conservation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2175, as amended, Laird. Water conservation. 
   Existing 
    (1)    Existing  law requires the
Department of Water Resources to convene an independent technical
panel to provide information to the department and the Legislature on
new demand management measures, technologies, and approaches.
"Demand management measures" means those water conservation measures,
programs, and incentives that prevent the waste of water and promote
the reasonable and efficient use and reuse of available supplies.

   This bill would require the department to establish a statewide
target to achieve a 20% reduction in urban per capita water use in
California by December 31, 2020. By December 31, 2020, each urban
water supplier would be required to reduce its per capita water use
by 20%, except as provided. By December 31, 2010, and not less than
every 5 years thereafter, the department would be required to
establish and make available to the public a list of technically
feasible urban water conservation measures available to assist urban
water suppliers in meeting this requirement.  
   The bill would require the department, by December 31, 2009, to
establish a statewide numeric water conservation target for
agricultural water use that provides for a significant increase in
agricultural water conservation in California. By December 31, 2010,
and every 5 years thereafter, the department would be required to
establish and make available to the public a list of agricultural
water conservation practices available to meet the target. By
December 31, 2012, each agricultural water supplier would be required
to adopt numeric water conservation targets to be achieved by
December 31, 2015, and December 31, 2020.  
   This bill would require the department to establish a numeric
water conservation target for the state, initially for 2030, that
provides for the maximum feasible and cost-effective increase in
water conservation. The department would be required, on or before
December 31, 2012, and not less than every 5 years thereafter, to
review and increase that water conservation target based on specified
information. The department would be required to establish interim
urban and agricultural water conservation targets for each hydrologic
region of the state.  
   The department would be required to establish and make available
to the public, on or before December 31, 2010, and every 5 years
thereafter, a list of technically feasible urban water conservation
measures. Urban water suppliers would be required to adopt those
water conservation measures that are locally cost effective or to
implement alternative measures that achieve equal or greater water
savings.  
   The department would be required to establish and make available
to the public, on or before December 31, 2012, and every 5 years
thereafter, a list of efficient agricultural water management
practices. Agricultural water suppliers would be required to adopt
those water management practices that are technically feasible and
cost effective for the local area or to implement alternative
measures that achieve equal or greater water savings. 
   The bill would authorize the department to  require
additional water conservation measures or water management practices
  adopt a plan of action to meet the state targets
described above under certain circumstances. The bill would make
related legislative findings and declarations and  a
statement   statements  of legislative intent. 

   (2) Existing law makes 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 conditioned on the
implementation of specified water demand management measures. 

   This bill would make this provision only apply until December 31,
2012, and beginning January 1, 2013, would instead condition these
grants or loans made to urban or agricultural water suppliers on the
implementation of the requirements of paragraph (1), above. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Part 2.55 (commencing with Section 10608) is added to
Division 6 of the Water Code, to read:

      PART 2.55.  WATER CONSERVATION


      CHAPTER 1.  GENERAL DECLARATIONS AND POLICY


   10608.  The Legislature finds and declares all of the following:
   (a) Water is a public trust resource in California that should be
protected against waste and unreasonable use.
   (b) Growing population, climate change, and the need to protect
California's fish and wildlife make it essential that the state
manage its water resources as efficiently as possible. 
   (c) In 2000, total water use in California was approximately 83
million acre-feet per year, based on an average water year. This
total water use consists of urban water use in the amount of 9
million acre-feet, agricultural water use in the amount of 34 million
acre-feet, and environmental water use in the amount of 40 million
acre-feet.  
   (c) 
    (d)  Reduced water use through conservation provides
significant energy and environmental benefits, can help protect water
quality, and reduces greenhouse gas emissions. 
   (d) 
    (e)  Improvements in technology and management practices
offer the potential for increasing water conservation in California
over time, providing an essential water management tool to meet the
need for water for urban, agricultural, and environmental uses.

   (e) The California Water Plan projects that urban water
conservation can reduce water demand by between 2 and 3 million
acre-feet of water per year by the year 2030 through feasible and
cost-effective measures. The plan also projects that agricultural
water conservation has the potential to provide up to 1 million
acre-feet of water per year by 2030 in additional water savings.
 
   (f) The California Water Plan, updated in 2005, includes planning
scenarios that indicate that by 2030 urban water conservation can
reduce water demand by up to 3.1 million acre-feet per year and
agricultural water conservation can reduce net water use by up to
800,000 acre-feet of water per year.  
   (g) The Governor has called for a 20 percent per capita reduction
in urban water use statewide by 2020. 
   10608.1.  It is the intent of the Legislature, by the enactment of
this part, to require all water suppliers to identify, adopt, and
implement  the maximum feasible and cost-effective 
water conservation measures to avoid waste and unreasonable use of
this essential resource.
      CHAPTER 2.  DEFINITIONS


   10608.2.  The following definitions apply to this part: 
   (a) "Base per capita water use" means the average of three water
years, which include a normal, dry, and wet water year, as identified
by the department and which most accurately reflects current water
use in 2009.  
   (b) "High per capita water use" means water use in an urban water
supplier's service area that is ____ gallons per capita per day or
higher.  
   (a) 
    (c)  "Locally cost effective" means that the present
value of the local benefits of implementing a water conservation
measure are greater than or equal to the present value of the local
costs of implementing that measure. 
   (d) "Low per capita water use" means water use in an urban water
supplier's service area that is ___ gallons per capita per day or
lower.  
   (e) "Per capita water use" means the daily per person urban water
use, which includes residential, municipal, industrial, and
commercial water use and system water losses.  
   (b) 
    (f)  "Water conservation" means those measures,
programs, and incentives that result in reduced demand, prevent the
waste of water, and promote the efficient use of available supplies.

   (c) 
    (g)  Except as otherwise indicated, "water supplier"
includes both of the following:
   (1) An urban water supplier, as defined in Section 106l7.
   (2) An agricultural water supplier, as defined in subdivision (b)
of Section 531.
      CHAPTER 3.  WATER CONSERVATION TARGETS


   10608.4.  (a) The department shall establish a numeric water
conservation target for California that provides for the maximum
feasible and cost-effective increase in water conservation. The
initial target shall be for the year 2030 and shall be not less than
a 3 million acre-feet of water reduction from current projected
demand in the absence of additional urban water conservation measures
and agricultural water management practices.
   (b) On or before December 31, 2012, and not less than every five
years thereafter, the department shall review and may increase the
water conservation target, based on consideration of all relevant
information, including, but not limited to, estimates of maximum
feasible and locally cost-effective water conservation potential
determined pursuant to Sections 10608.8 and 10608.10. 

   10608.6.  On or before December 31, 2012, the department shall
establish interim urban and agricultural water conservation targets
for the years 2015, 2020, and 2025, and every five years thereafter,
based on the information identified pursuant to Section 10608.4, for
each hydrologic region of the state, that reflect the unique
conditions of each region and include consideration of relative per
capita water consumption, agricultural economics, and conservation
and water use efficiency measures adopted prior to the establishment
of state and regional water conservation targets. The regional
targets shall be designed to cumulatively achieve the statewide water
conservation target established and updated pursuant to Section
10608.4.  
   10608.8.  (a) On or before December 31, 2010, and every five years
thereafter, the department shall establish and make available to the
public a list of technically feasible urban water conservation
measures available to meet the urban water conservation targets
established pursuant to Sections 10608.4 and 10608.6. In developing
the list, the department shall consider all relevant information,
including, but not limited to, information provided by the
independent technical panel established pursuant to Section 10631.7.
   (b) On or before December 31, 2012, and every five years
thereafter, an urban water supplier shall either adopt those water
conservation measures identified in subdivision (a) that are locally
cost effective, or implement alternative measures that achieve equal
or greater water savings. An urban water supplier shall adopt a
numeric water conservation target, based on the proposed water
conservation measures, for 2012 and every five years thereafter. An
urban water supplier shall submit documentation indicating that a
water conservation measure is not locally cost effective, as
applicable.
   (c) On or before December 31, 2014, and every two years
thereafter, an urban water supplier shall submit a report to the
department, confirmed by independent evaluation, that identifies the
basis for its adopted water conservation target and its progress in
reaching the target.
   (d) Based on its review of the report submitted pursuant to
subdivision (c) and the related independent evaluation, the
department may require additional water conservation measures if the
department determines the proposed target is not consistent with
subdivision (a) or there is insufficient progress in meeting the
target.  
   10608.10.  (a) On or before December 31, 2012, and every five
years thereafter, the department shall establish and make available
to the public a list of efficient agricultural water management
practices available to meet the agricultural water conservation
targets established pursuant to Sections 10608.4 and 10608.6.
   (b) On or before December 31, 2015, and every five years
thereafter, an agricultural water supplier shall either adopt those
water management practices established pursuant to subdivision (a)
that are both technically feasible and cost effective for the local
area, or implement alternative measures that achieve equal or greater
water savings. An agricultural water supplier shall adopt a numeric
water conservation target, based on the proposed water management
practices, for 2015 and every five years thereafter. An agricultural
water supplier shall submit documentation indicating that a water
management practice is not locally feasible or not locally cost
effective, as applicable.
   (c) On or before December 31, 2015, and every five years
thereafter, an agricultural water supplier shall submit a report to
the department, confirmed by independent evaluation, that identifies
the basis of its adopted water conservation target and its progress
in reaching the target.
   (d) Based on its review of the report submitted pursuant to
subdivision (c) and the related independent evaluation, the
department may require additional water management practices if the
department determines the proposed target is not consistent with
subdivision (a) or there is insufficient progress in meeting the
target.  
   10608.12.  To the extent that the aggregate of the water
conservation targets established pursuant to Sections 10608.8 and
10608.10 does not meet the state targets identified in Sections
10608.4 and 10608.6, the department shall propose and adopt a plan of
action to meet the state targets. This plan shall specify the
increased levels of water conservation that need to be implemented at
the state and local level, in addition to the locally cost-effective
water conservation measures or water management practices proposed
pursuant to Section 10608.8 or 10608.10.  
   10608.14.  Water suppliers may comply with Sections 10608.8 and
10608.10 individually or regionally and the requirements may be met
through the submission of an urban water management plan or
agricultural water management plan that is consistent with this part.
 
   10608.4.  (a) The department shall establish a statewide target to
achieve a 20 percent reduction in urban per capita water use in
California on or before December 31, 2020.
   (b) On or before December 31, 2013, and not less than every five
years thereafter, the department shall include in the update of the
California Water Plan pursuant to Section 10004, a status report on
the progress in meeting the statewide target established by
subdivision (a).
   (c) To the extent that the statewide target is not achieved on or
before December 31, 2020, the department shall propose and adopt a
plan of action to meet the statewide target. This plan shall specify
the increased levels of water conservation that need to be
implemented at the state and local levels. This increased level of
conservation shall be supported by state funding or federal funding,
if provided, because of the broad public benefits.  
   10608.6.  (a) On or before December 31, 2020, each urban water
supplier shall reduce its per capita water use by 20 percent, except
as otherwise provided in subdivision (b). The 20 percent reduction
shall be applied against the base per capita water use of the urban
water supplier. Each urban water supplier shall make incremental
progress by reducing per capita water use by at least 5 percent on or
before December 31, 2012, and by 10 percent on or before December
31, 2015.
   (b) The department and the state board shall develop criteria to
create both of the following:
   (1) Alternative conservation targets, less than the 20 percent
reduction required by subdivision (a), to be applied to urban water
suppliers that have and maintain low per capita water use.
   (2) Additional conservation targets, beyond the 20 percent
reduction required by subdivision (a), to be applied to urban water
suppliers that have high per capita water use.  
   10608.8.  (a) On or before December 31, 2010, and every two years
thereafter, an urban water supplier shall report to the department
and the state board, using a standardized form developed by the
department, all of the following information:
   (1) Base per capita water use.
   (2) Current per capita water use.
   (3) Current population served by the urban water supplier.
   (4) Acre-foot water savings attributed to the per capita water use
reductions.
   (b) On or before December 31, 2010, and not less than every five
years thereafter, the department shall establish and make available
to the public a list of technically feasible urban water conservation
measures available to assist urban water suppliers in meeting the
requirements of Section 10608.6. In developing the list, the
department shall consult with the California Urban Water Conservation
Council and consider all relevant information, including, but not
limited to, information provided by the independent technical panel
established pursuant to Section 10631.7.
   (c) Based on its review of the information submitted pursuant to
subdivision (a), the department may require urban water suppliers to
adopt specific water conservation measures if the reductions required
by Section 10608.6 are not achieved.  
   10608.10.  (a) On or before December 31, 2009, the department
shall establish a statewide numeric water conservation target for
agricultural water use that provides for a significant increase in
agricultural water conservation in California. The initial target
shall be for December 31, 2020, and shall be not less than 500,000
acre-feet of net water reduction from projected demand in the absence
of additional agricultural water conservation practices, not
otherwise attributed to land use changes. On or before December 31,
2012, and not less than every five years thereafter, the department
shall review and may increase the water conservation target, based on
consideration of all relevant information including, but not limited
to, information received pursuant to this section.
   (b) On or before December 31, 2010, and every five years
thereafter, the department shall establish and make available to the
public a list of agricultural water conservation practices available
to meet the target established pursuant to subdivision (a). In
developing the list, the department shall consult with the
Agricultural Water Management Council.
   (c) On or before December 31, 2012, each agricultural water
supplier shall adopt numeric water conservation targets to be
achieved by December 31, 2015, and December 31, 2020, and report to
the department on those targets. An agricultural water supplier shall
review and update the targets every five years thereafter. The
target shall be based on reductions that can be achieved by either
implementation of those water management practices established
pursuant to subdivision (b) that are both technically feasible and
locally cost effective, or implementation of alternative measures
that achieve equal or greater water savings.
   (d) On or before December 31, 2015, and every five years
thereafter, an agricultural water supplier shall submit a report to
the department, confirmed by independent evaluation, that identifies
the basis of its adopted water conservation targets and its progress
in reaching the targets. If an agricultural water supplier determines
that a water conservation practice identified in subdivision (b) is
not locally cost effective or technically feasible, the supplier
shall submit information documenting that determination.
   (e) Based on its review of the report submitted pursuant to
subdivision (d) and the related independent evaluation and other
relevant information, the department may require an agricultural
water supplier to revise its targets if the department determines the
proposed targets are not consistent with this part, or to adopt
additional water management practices, if there is insufficient
progress in meeting the targets.  
   10608.12.  To the extent that the aggregate of the agricultural
water conservation targets established by agricultural water
suppliers pursuant to subdivision (c) of Section 10608.10 do not meet
the statewide target established pursuant to subdivision (a) of
Section 10608.10, the department shall propose and adopt a plan of
action to meet the statewide target. This plan shall specify the
increased levels of water conservation that need to be implemented at
the state and local levels, in addition to the locally cost
effective water conservation measures or water management practices
proposed pursuant to 10608.10. This increased level of conservation
shall be supported by state funding or federal funding, if provided,
because of the broad public benefits.  
   10608.14.  (a) Water suppliers may comply with this part
individually or regionally.
   (b) Agricultural water supplier reporting requirements may be met
through the submission of an agricultural water management plan
developed for the Agricultural Water Management Council or the United
States Bureau of Reclamation that is consistent with this part.

   10608.16.  (a) The department shall develop methodologies and
guidelines as necessary to implement this part.
   (b) All state water conservation targets, methodologies, and
guidelines, and lists of feasible water conservation measures or
water management practices established pursuant to this part, shall
be established only after the department, or at the department's
request, the California Water Commission, conducts a series of public
hearings and workshops to allow participation of the diverse
geographical areas and interest of the state. 
   10608.17.  Beginning January 1, 2013, the terms of, and
eligibility for, a water management grant or loan made to urban or
agricultural water suppliers 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 this
part. 
   10608.18.  (a) The Legislature hereby finds and declares that the
development, adoption, and implementation of water conservation
targets as provided in this part is an issue of statewide
significance that is critical to the effective implementation of
integrated regional water management in California.
   (b) It is the intent of the Legislature that funds made available
by Section 75026 of the Public Resources Code should be expended,
consistent with Division 43 (commencing with Section 75001) of the
Public Resources Code and upon appropriation by the Legislature, for
grants  and direct expenditures  to implement this
part.  In the allocation of funding, it is the intent of the
Legislature that the department give consideration to disadvantaged
communities to assist in implementing the requirements of this part.
 
   (c) It is the intent of the Legislature that funds made available
by Section 75041 of the Public Resources Code should be expended,
consistent with Division 43 (commencing with Section 75001) of the
Public Resources Code and upon appropriation by the Legislature, for
direct expenditures to implement this part.
   SEC. 2.    Section 10631.5 of the   Water
Code   is amended to read: 
   10631.5.  (a) (1) Beginning January 1, 2009  , until December
31, 2012  , 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.