BILL ANALYSIS AB 2175 Page 1 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 AB 2175 Page 2 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 AB 2175 Page 3 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 AB 2175 Page 4 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 AB 2175 Page 5 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