BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2175
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          ASSEMBLY THIRD READING
          AB 2175 (Laird)
          As Amended May 23, 2008
          Majority vote 

           WATER, PARKS & WILDLIFE        8-2                   
          APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Wolk, Caballero, Eng,     |Ayes:|Leno, Caballero, Davis,   |
          |     |Furutani, Huffman, Lieu,  |     |DeSaulnier, Eng, Huffman, |
          |     |Mullin, Salas             |     |Berg, Krekorian, Lieu,    |
          |     |                          |     |Ma, Nava, Solorio         |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Maze, Anderson            |Nays:|Walters, Emmerson, La     |
          |     |                          |     |Malfa, Nakanishi, Sharon  |
          |     |                          |     |Runner                    |
           ----------------------------------------------------------------- 

           SUMMARY  :  Sets numeric water conservation targets for urban and  
          agricultural water use and conditions water management grant  
          funding on local agency implementation of conservation.     
          Specifically,  this bill  :  

          1)Defines certain terms, including "high per capita water use"  
            and "low per capita water use" without identifying specific  
            numeric standards.

          2)Requires the Department of Water Resources (DWR) to establish  
            a statewide target to achieve a 20% reduction in urban per  
            capita water use on or before December 31, 2020:

             a)   Requires DWR to report on the progress in meeting the  
               target in the California Water Plan beginning in 2013;

             b)   Requires DWR, if the target is not achieved by 2020, to  
               develop an action plan to achieve the target conservation;  
               and,

             c)   Requires DWR and the State Water Resources Control Board  
               (SWRCB) to develop criteria that describe:

               i)     Alternative conservation targets for urban water  








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                 suppliers that currently achieve a "low per capita water  
                 use rate;" and,

               ii)    Additional conservation targets or actions for urban  
                 water suppliers that have a "high per capita water rate"

          3)Requires urban water suppliers to reduce per capita water use  
            by 20% by December 31, 2020.

             a)   Requires each urban water supplier to report its per  
               capita water use and other information to DWR every two  
               years beginning in 2010; and,

             b)   Authorizes DWR to require urban water suppliers that do  
               not achieve the 2020 target to adopt specific water  
               conservation measures.

          4)Requires DWR to adopt, by 2010, a statewide agricultural water  
            conservation target of not less than 500,000 acre-feet to be  
            achieved by 2020.  Beginning in 2012, and every five years  
            thereafter, DWR shall review and may increase such  
            conservation target:

             a)   Requires each agricultural water supplier to adopt, by  
               December 31, 2012, its own numeric water conservation  
               targets for 2015 and 2020, using water conservation  
               practices that are technically feasible and locally  
               cost-effective for the agency;

             b)   Requires each agricultural water supplier to submit,  
               every five years beginning in 2015, a report that, based on  
               an independent evaluation, identifies the basis of its  
               water conservation targets and its progress in achieving  
               those targets; 

             c)   Authorizes DWR to require an agricultural water supplier  
               to revise its targets if such targets are not consistent  
               with the statewide target, or to adopt additional measures  
               if the supplier does not achieve its targets;

             d)   Requires DWR to adopt a plan of action if the statewide  
               target is not achieved; and,

             e)   Allows agricultural water suppliers to comply through  








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               submission of a plan to either the Agricultural Water  
               Management Council or the United States (U.S.) Bureau of  
               Reclamation.

          5)Allows water suppliers to meet the targets on an individual or  
            regional basis.

          6)Requires DWR or the California Water Commission to hold public  
            hearings on water conservation targets, guidelines and  
            methodologies. 

          7)Conditions water management grant funding on compliance with  
            conservation requirements.

          8)Makes legislative findings regarding water conservation and  
            expresses legislative intent, including consideration of the  
            needs of disadvantaged communities.

          9)Repeals existing water conservation implementation conditions  
            on water management grants to local agencies on December 31,  
            2012.

           EXISTING LAW  conditions state water management grant funding for  
          urban water agencies on implementation of "best management  
          practices" (BMPs) for water conservation, arising out of a  
          voluntary agreement on those BMPs.

           FISCAL EFFECT  :  Assembly Appropriations Committee estimates  
          annual costs in the range of $1 million.

           COMMENTS  :   AB 2175 reflects another step in the State's  
          progress of promoting greater water conservation throughout  
          California.  Water conservation efforts started making  
          substantial progress in the early 1990's during the last major  
          drought.  Urban water agencies agreed to adopt certain BMPs and  
          agricultural water agencies served by the federal Central Valley  
          Project were required to submit water conservation plans for  
          approval by the U.S. Bureau of Reclamation.  In March, Governor  
          Schwarzenegger called on all Californians to conserve water and  
          reduce per capita consumption by 20% by 2020.  This bill now  
          reflects the Governor's call and adds a statewide target for  
          agricultural water conservation of 500,000 acre-feet.

          Last year, this same author obtained the Governor's approval for  








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          conditioning State water management grants on water agency  
          implementation of the voluntary BMPs under the "Memorandum of  
          Understanding (MOU) Regarding Urban Water Conservation in  
          California."
          (AB 1420, Chapter 628.)  As introduced, the bill called for DWR  
          to set conservation targets for achievement by 2030.  After the  
          Governor set the 20% conservation target by 2020, the bill was  
          amended to reflect the Governor's call.  Once reporting on those  
          targets is in place in 2012, this bill repeals the AB 1420  
          conditions on water management grants.

          This conservation bill has a policy connection to the current  
          crisis in the Sacramento-San Joaquin Delta.  The Governor called  
          the 2nd Extraordinary Session on water policy partly in response  
          to a federal judge's decision reducing water exports from the  
          Delta.  These reductions, which started in December, also  
          impaired water supply reliability for Southern California, San  
          Joaquin Valley and the San Francisco Bay Area.  In response,  
          local agencies have called for additional water conservation in  
          those areas relying on Delta water.  The Governor's call for  
          more conservation appeared in a letter responding to Senate  
          concerns about the Administration's intentions in the Delta.   
          Recent studies also have connected water conservation and the  
          Delta crisis, suggesting that areas relying on Delta exports  
          will enjoy greater stability if they can reduce their reliance  
          on imports from the Delta.  Reducing reliance on the Delta can  
          arise from improving local water supplies, including expanded  
          conservation.

          Southern California has shown that conservation works.  In the  
          last 30 years, the region has grown by about one-third but its  
          water demands have remained essentially flat.  Metropolitan  
          Water District of Southern California (MWD) estimates that  
          nearly half of its region's water supplies come from local  
          sources, including MWD's aggressive water conservation programs.  
           MWD was a leader in crafting the original Conservation MOU and  
          remains a leading force within the water community for greater  
          water conservation.

          AB 2175 does not set the baseline for achieving the 20% target,  
          but allows for agencies with different histories of water  
          conservation to respond differently.  Its provisions for  
          agencies with "high per capita water use" or "low per capita  
          water use" allow for differing standards and responses for such  








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          agencies.  These terms, however, have not been defined, leaving  
          blank spaces for setting numeric standards that would define  
          what is high and low per capita use.  These terms and the  
          associated provisions will provide agencies with a history of  
          aggressive water conservation (i.e., resulting in "low per  
          capita water use") the option to meet alternative conservation  
          targets.  Conversely, agencies with little conservation (i.e.,  
          "high per capita water use") may be required to implement  
          additional measures.  These terms and other provisions allow  
          flexibility for agencies that already have achieved high  
          conservation or, alternatively, have low conservation requiring  
          additional conservation measures.  This flexibility may provide  
          greater equity for agencies that already have low per capita  
          water usage.  In order to accomplish this flexibility, however,  
          these terms will need to be defined in the Senate.  


           Analysis Prepared by  :    Alf W. Brandt / W., P. & W. / (916)  
          319-2096 


                                                                FN: 0005161