BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Tom Torlakson, Chairman 2175 (Laird) Hearing Date: 8/7/08 Amended: 8/4/08 Consultant: Miriam Barcellona IngenitoPolicy Vote: NR&W 6-2 Page 2 AB 2175 (Laird) _________________________________________________________________ ____ BILL SUMMARY: AB 2175 would (1) until December 31, 2009, delete the requirement that the California Water Commission be presented with and approve the Department of Water Resources' (DWR's) regulations related to the model water efficient landscape ordinance; (2) add a new part to the Water Code pertaining to water conservation that would include legislative findings and declarations, definitions, provisions pertaining to urban water conservation, provisions pertaining to agricultural water conservation, quantifying agricultural water use efficiently, and general provisions; (3) starting January 1, 2016, amend the eligibility for water management grants or loans made to urban water suppliers and awarded or administered by DWR, State Water Resources Control Board (SWRCB), or the California Bay-Delta Authority, or its successor agency on the implementation of conservation provisions required in this bill; and (4) repeal the existing Agricultural Water Management Planning Act and establish a new act by the same name. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2008-09 2009-10 2010-11 Fund DWR implementation $65 $1,300 $90 General SWRCB: water rights hearings costs incurred in 2015-16 at earliest Special* ______ *Water Rights Fund _________________________________________________________________ ____ STAFF COMMENTS: Suspense File. DWR estimates it would require an additional five and a half position years and $1.3 million in the first year and about $90,000 ongoing thereafter as a result of AB 2175. Specifically, DWR estimates it would need to develop criteria for certification of compliance with specified demand management measures and certify over 300 agencies; consider agency applications for adjustments to target percentages and adjustments to base years; develop standardized forms for submittal of water use and savings information; update best management practices, develop methodology for quantifying agricultural efficiency; develop preliminary conservation Page 3 AB 2175 (Laird) report; and prepare various legislative reports. SWRCB has not yet completed its analysis of the August 4th amendments but preliminarily estimates its costs would be between $130,000 and $260,000 assuming two to four additional water rights hearings a year occur to determine if there has been a waste or unreasonable use of water and determine weather a water right should be adjusted. Currently, SWRCB conducts five to six water rights hearings per year at a cost up to $64,000 per hearing. Staff notes that the author's amendments adopted August 4, 2008 significantly rewrite AB 2175; should the bill be considered favorably, staff recommends it be re-referred to Rules Committee for subsequent referral back to policy committee, if it deems it appropriate.