BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 300
                                                                  Page  1

          Date of Hearing:   April 15, 2009

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                             Anna Marie Caballero, Chair
                   AB 300 (Caballero) - As Amended:  April 2, 2009
           
          SUBJECT  :  Subdivisions: water supply.

           SUMMARY  :  Requires, until January 1, 2020, if a project  
          applicant elects to include voluntary demand management  
          measures, any city, county, or public water system preparing a  
          water supply assessment for a development project, as defined,  
          to reduce the anticipated water demand for the project based on  
          the project applicant's voluntary water demand management  
          measures.    Specifically,  this bill  :  

          1)Requires, if a project applicant elects to include voluntary  
            demand management measures, any city, county, or public water  
            system preparing a water supply assessment for a development  
            project, as defined, to reduce the anticipated water demand  
            for the project based on the project applicant's voluntary  
            water demand management measures that are permanently fixed to  
            residential, commercial, industrial, or other real property  
            that will reduce the subdivision's water demand beyond  
            existing statutory, regulatory, and local-ordinance  
            requirements.

          2)Requires that the water savings projection attributable to  
            voluntary demand management measures be contained in the  
            written verification of the availability of a sufficient water  
            supply that must be obtained from the applicable public water  
            system by the subdivision applicant or local government in  
            order to meet the requirements of existing law.

          3)Requires that the water savings projection attributable to  
            voluntary demand management measures also be verified for  
            accuracy by the public water system, or if there is no public  
            water system, the local agency. 

          4)Provides that the public water agency may collect fees  
            necessary to provide additional analysis of voluntary demand  
            management measurers. 

          5)Defines "voluntary demand management measures" to mean water  
            use efficiency measures that are permanently fixed to  








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            residential, commercial, industrial, or other real property  
            that will reduce the subdivision's water demand below the  
            applicable statutory and regulatory requirements for water  
            conservation, and may include, but are not limited to, all of  
            the following:

             a)   Smart irrigation controllers;

             b)   Waterless urinals;

             c)   Ultra low flow and dual flow toilets;

             d)   Recycled water facilities;


             e)   Rainwater capture and reuse facilities;

             f)   Voluntary mitigation measures (as defined); or,

             g)   Any other measure that will prevent the waste of water  
               or promote the reasonable and efficient use and reuse of  
               available water supplies by the subdivision or the public.

          6)Specifies that voluntary mitigation measures may include, at  
            the applicant's sole discretion, water demand mitigation  
            measures that minimize a percentage, as determined by the  
            applicant, of a project's impact to the public water system. 

          7)Specifies that the applicant may enter into an agreement with  
            the public water system to mitigate water demand associated  
            with a proposed subdivision by depositing funds into a  
            "Voluntary Water Demand Mitigation Fund"

          8)Defines the "Voluntary Water Demand Mitigation Fund" (Fund) as  
            the fund used to finance water conservation and water supply  
            augmentation measures by the public water system that mitigate  
            an agreed upon percentage of the projected water demand  
            impacts from the subdivision, at the discretion of the  
            applicant. 

          9)Prohibits the fees paid into the Fund from exceeding an amount  
            necessary to offset the actual or percentage of actual water  
            demand impacts agreed upon in the agreement between the  
            applicant and the public water system. 









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          10)Prohibits the fees paid into the Fund from exceeding the  
            amount of all capacity charges and other water service fees  
            applicable to the subdivision. 

          11)Provides that all applicable capacity charges and other water  
            service fees shall be reduced to the extent possible that  
            contributions are made to the Fund.

          12)Requires the public water system to expend all monies from  
            the Fund on water conservation measures that will reduce the  
            projected demand associated with the subdivision.

          13)Specifies that the expenditure of monies from the Fund may be  
            made within the subdivision or elsewhere within the service  
            area of the public water supplier, at its discretion. 

          14)Prohibits monies from the Fund from being used to supplant  
            funding for water conservation programs already required under  
            existing law or paid for by existing rates and surcharges.

          15)Authorizes water savings projections to be calculated using  
            the water savings projections adopted by the California Urban  
            Water Conservation Council (CUWCC).  

          16)Specifies that if the CUWCC does not have projections for a  
            measure, then the water supplier must base its estimate on  
            substantial evidence in the record.

          17)Specifies that if a project applicant proposes to use a new  
            voluntary water reduction demand management measure that is  
            not based on water savings projections adopted by the CUWCC, 


          the city or county must impose a requirement that the applicant  
            enter an agreement with the water supplier to implement and  
            monitor the actual water savings over time through conditions  
            of approval.

          18)Requires the public water system to prepare a written report  
            of the projected demand and actual water use five years after  
            the project has been fully developed.

          19)Requires copies of the report to be provided to the project  
            applicant, the city or county that approved the subdivision  
            map, the CUWCC, and the Department of Water Resources. 








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          20)Requires at the time of final inspection, a manual providing  
            directions to the owner or occupant on the proper use of water  
            conservation devices and systems to be placed in the dwelling.  


          21) Provides that these provisions automatically terminate on  
            January 1, 2020.

           EXISTING LAW  :

          1)Prohibits approval of a tentative map, or a parcel map for  
            which a tentative map was not required, or a development  
            agreement for a subdivision of property of more than 500  
            dwelling units, except as specified, including the design of  
            the subdivision or the type of improvement, unless the  
            legislative body of a city or county or the designated  
            advisory agency provides written verification from the  
            applicable public water system that a sufficient water supply  
            is available or, in addition, a specified finding is made by  
            the local agency that sufficient water supplies are, or will  
            be, available prior to completion of the project.

          2)Provides that whenever a city or county determines that a  
            project, as defined, is subject to the California  
            Environmental Quality Act (CEQA), the project must comply with  
            the provisions of law that evaluate the sufficiency of water  
            supplies.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  

          1)The Subdivision Map Act prohibits approval of a tentative map  
            for a subdivision of property of more than 500 dwelling units,  
            unless the legislative body of a city or county provides  
            written verification from the applicable public water system  
            that a sufficient water supply is available or, in addition, a  
            specified finding is made by the local agency that sufficient  
            water supplies are, or will be, available prior to completion  
            of the project.  This requirement was placed into law by SB  
            221 (Kuehl), Chapter 642, Statutes of 2001.  This bill  
            requires the public water system, or the local agency if there  
            is no public water system, to verify the subdivider's water  
            savings projections attributable to voluntary demand  








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            management measures. 

          2)Existing law further provides that whenever a city or county  
            determines that a development project is subject to CEQA, the  
            project must comply with the provisions of law that evaluate  
            the sufficiency of water supplies. This requirement was placed  
            into law by SB 610 (Costa), Chapter 643, Statutes of 2001.   
            This bill requires a city, county, or public water system that  
            is 

          evaluating the sufficiency of water supplies for a project to  
            reduce the anticipated water demand for the project based on  
            the water service provider's voluntary water demand management  
            measures.

          3)According to the sponsors, the California Building Industry  
            Association homebuilders, for years, have been employing  
            systems and technologies to save water, but they have not  
            regularly received adequate credit from water agencies during  
            the entitlement process.  Under current law, California  
            homebuilders who propose large scale development projects must  
            complete an analysis during the entitlement process which  
            substantiates that adequate water supplies exist to support  
            the project.  However, when local water agencies analyze the  
            projected water demand for a proposed housing development they  
            do not always take into consideration the existence and use of  
            voluntary water saving devices, and therefore, subject  
            homebuilders to inaccurate water demand assessments.  Instead,  
            current water demand projections often rely on out-dated  
            consumption models that do not reflect actual water use in  
            proposed subdivisions. As California's water situation  
            worsens, it has become increasingly difficult to ensure  
            reliable water supplies for new housing.  

          4)The author believes that AB 300 will encourage innovative  
            approaches to reduce water consumption in new homes by  
            accounting for voluntary water conservation measures when a  
            local agency quantifies a project's water demand.  The bill  
            would establish a voluntary program to allow homebuilders to  
            introduce new information about water saving strategies they  
            are employing in an effort to get a more accurate report on  
            water use.  In doing so, 
          AB 300 will assist water agencies and the state in documenting  
            the potential water savings from new water use efficiency  
            projects and programs in a manner that will promote successful  








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            water conservation strategies and discourage ineffective ones.  
             Most importantly, by creating an incentive based conservation  
            program, AB 300 will achieve reductions in water consumption  
            without any additional cost to state or local governments.  

          5)In its "Support, if amended" letter, the Association of  
            California Water Agencies (ACWA) states that they have been  
            working closely with the author on amendments but would like  
            to continue to work on a few more areas including "limiting  
            the bill's provisions to one stage in the process."  ACWA  
            believes that there is a redundancy created by requiring the  
            water supplier to assess water savings in both the water  
            supply assessment stage and water verification stage. ACWA  
            also reports that they would like to "continue discussing how  
            to ensure that the voluntary measures which are part of the  
            property are lasting.  Because a water supplier will be  
            counting on the water savings attributable to the devices  
            installed on the property, ACWA believes there has to be a  
            mechanism that notifies the property owner of their duty to  
            [keep] the device on the property."  

          6)This measure is very similar to AB 2219 (Parra, 2008) that was  
            held in the Senate Natural Resources and Water Committee. 

           7)TECHNICAL AMENDMENTS  :

             a)   On page 6 line 9 after "applicable" strike "statutory"  
               insert:

                 "statutory, regulatory, and local ordinance"



             b)   On page 6 line 10 strike "regulatory"

             c)   On page 18 line 32 after "current" strike "statutory and  
               regulatory" insert:

                 "statutory, regulatory, and local ordinance"

             d)   Add in language specifying that the public water agency  
               has to approve or disapprove the water savings projections.  


          8)This bill is double-referred to the Committee on Water, Parks  








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            and Wildlife.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          CA Building Industry Association [SPONSOR]
          American Council of Engineering Companies CA
          Associated General Contractors
          Association of CA Water Agencies (if amended) 
          CA Alliance for Jobs
          CA Apartment Association
          CA Association of Realtors
          CA Business Properties Association
          CA Chamber of Commerce
          CA Manufacturing and Technology Association

           Concerns
           
          Sierra Club of CA

           Opposition 
           
          East Bay Municipal Utility District (unless amended)

           
          Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916)  
          319-3958