BILL ANALYSIS
AB 1408
Page 1
Date of Hearing: April 22, 2009
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Anna Marie Caballero, Chair
AB 1408 (Krekorian) - As Introduced: February 27, 2009
SUBJECT : Subdivisions: Water Conservation Mitigation Fund.
SUMMARY : Establishes a Water Conservation Mitigation Fund
(Fund) that a public water system may authorize a subdivision
project applicant to voluntarily contribute to in order to
offset at least 100% of the projected water demand associated
with the subdivision, and requires all monies in the Fund to be
expended on water conservation measures that will offset at
least 100% of the subdivision's projected water demand.
Specifically, this bill :
1)Defines "projected water demand associated with the
subdivision" as the projected water demand associated with the
subdivision based on physical characteristics of the
subdivision, including, but not limited to, lot size and use,
water using fixtures, current local ordinances, statutory and
regulatory requirements, and permanently fixed extraordinary
water conservation measures, as determined by the public water
system.
2)Defines "Water Conservation Mitigation Fund" as the fund used
to finance conservation measures that would achieve water
savings equivalent to the projected water demand associated
with the subdivision, as determined by the public water
system.
3)States that a legislative body of city or county or advisory
agency, to the extent that it is authorized by local ordinance
to approve, conditionally approve, or disapprove a tentative
map, would be required to include as a condition in any
tentative map that includes a subdivision a requirement that a
sufficient water supply be available or that sufficient water
supplies will be available through a Fund held by the public
water system.
4)Requires the amount of funding needed for voluntary
participation by the subdivision applicant in the Fund be
based on offsetting at least 100% of the projected water
demand associated with the subdivision, as determined by the
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public water system.
5)States that proof of the availability of a sufficient water
supply, and where applicable, participation in the Fund shall
be requested by the subdivision applicant or local agency, at
the discretion of the local agency, and shall be based on
written verification form the public water system.
6)Require the public water system to include in the written
verification of its assessment of the projected demand
associated with the subdivision its ability or inability to
provide sufficient water supply.
7)Provides that if the public water system bases its assessment
of the projected water demand associated with the subdivision
on inclusion of permanently fixed extraordinary water
conservation measures, the assessment shall be conditioned
with appropriate measures to ensure that the extraordinary
water conservation measures will be retained and that actual
long-term water demand associated with the subdivision will be
consistent with the water demand projection.
8)Requires that the conditions include adoption of legally
enforceable mechanisms, such as inclusion in covenants,
conditions, and restrictions.
9)Authorizes water savings projections to be calculated using
the water savings projections adopted by the California Urban
Water Conservation Council (CUWCC).
10)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.
11)Authorizes a public water system to impose a more stringent
requirement than provided for in this measure.
12)Requires that, when the written verification relies on
voluntary participation in the Fund held by the by the public
water system, the written verification include an assessment
by the public water system of funds needed for the public
water system to implement water conservation measures that
offset at least 100% of the projected water demand associated
with the subdivision and proof that the funds have been
voluntarily deposited in a Fund held by the public water
system.
AB 1408
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13)Requires the public water system's assessment of funds to
include identification and quantification of the water savings
resulting from the water conservation measures that the public
water system will implement to offset at least 100% of the
demand.
14)Requires the public water system to expend all monies from
the Fund on water conservation measures that will reduce 100%
of the projected demand associated with the subdivision.
15)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.
16)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.
17)Requires that not less than an undetermined percentage of the
proceeds from the Fund be directed to water conservation
programs in disadvantaged communities, as defined, with in the
public water system's service area.
18)Requires that actions for which the public water supplier may
use water conservation mitigation funding be quantifiable,
verifiable, have a planned completion date that is concurrent
with when the buildings within the subdivision will require
service, and have a life expectancy of at least 20 years.
19)Specifies the types of actions that can be taken by the
public water supplier to reduce water demand, which include:
a) High-efficiency toilet replacements;
b) Faucet aerators;
c) Pre-rinse spray valves;
d) High-efficiency washing machines;
e) Weather-based "smart" timers;
f) Rotator spray heads;
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g) Cash for grass programs;
h) Landscape rebates;
i) Single-family high water use notifications;
j) Home-leak detection kits;
aa) Water brooms;
bb) High-efficiency commercial dishwashers;
cc) Cooling tower conductivity controllers;
dd) X-ray film processor recirculation systems;
ee) Connectionless food steamers;
ff) Steam sterilizers;
gg) Dry vacuum pumps;
hh) Commercial ice machine;
ii) School toilet leak detection;
jj) Water recycling;
aaa) Advanced (automated) metering systems;
bbb) Stormwater capture, graywater systems, and groundwater
treatment; and
ccc) Other water efficiency measures for which substantial
evidence demonstrates the measure will achieve a
quantifiable reduction in demand.
20)Requires that the public water system document all
expenditures from the Fund in its Urban Water Management Plan
and confirm that the water conservation mitigation funding was
not used to supplant funding for water conservation programs
required by existing law, paid for by existing customers
through water rates and surcharges, or that are required for
participation in the California Urban Water Conservation
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Council.
21)Requires that the public water system document the measured
annual water use of each subdivision.
22)Requires that the public water system calculate the water
savings attributable to the water conservation measures
financed by the water conservation mitigation funding from
each subdivision.
23)Provides that in the event that the calculated water savings
do not equal or exceed the measured water demand over a
five-year period, the public water system shall include in its
Urban Water Management Plan a schedule of actions designed to
achieve the savings necessary to offset 100% of the actual
demand of the subdivision.
EXISTING LAW 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.
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
establishes a Water Conservation Mitigation Fund (Fund) that a
public water system may authorize a subdivision project
applicant to voluntarily contribute to in order to offset at
AB 1408
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least 100% of the projected water demand associated with the
subdivision, and requires all monies in the Fund to be
expended on water conservation measures that will offset at
least 100% of the subdivision's projected water demand.
2)According to the author AB 1408 would provide the framework
for an optional program that would allow developers to get
credit in the water supply assessment for implementing
conservation measures at the development that go beyond what
is required. This includes the use of a legally enforceable
mechanism, such as the CC&Rs, to notify the purchasers of the
homes that they are buying a special home with unique
requirements to conserve water. These legally enforceable
mechanisms will help ensure that the anticipated level of
conservation is achieved and remains durable over time. The
author states that AB 1408 also provides the framework for an
optional arrangement between developers and water suppliers
where developers can offset 100% or more of the projected
water demand of the development by paying into a water
conservation mitigation fund that is managed by the
water supplier. The author believes that for highly water
constrained areas, this optional program can provide water
suppliers with a way to provide a water supply assessment so
that developers can proceed with a development that might
otherwise be uncertain.
3)AB 1408 authorizes a subdivision applicant to offset at least
100% of the projected water demand for their project by paying
in to a Water Conservation Mitigation Fund. Furthermore, the
bill authorizes a public water system to purchase conservation
measures with these funds to offset the projected water demand
by 100%. However, what is not considered in the bill is how a
public agency will deal with actually achieving the 100%
offset if the conservation devices do not work at full
capacity. These devices are estimated to perform at specified
standards; however, certain conditions must exist in order to
ensure that a product performs at the estimated standard. How
will the public water system be able to ensure that every
device is going to be able to perform at the estimated
standard? These devices will be installed in homes and
businesses and the conditions will be different at each
location. The Committee may wish to consider whether the bill
should ensure that the public water system includes a degree
of error when determining how many devices will be necessary.
This is especially key to ensuring that a 100% conservation
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level is met since the public water system is not required to
consider a back up water source if 100% conservation is not
achieved.
4)Although AB 1408 requires the written verification regarding
water supply include an assessment by the public water system
of funds needed for the public water system to implement water
conservation measures that offset at least 100% of the
projected water demand, there is no specific methodology sited
in the bill to determine how those amount will be calculated.
The Committee may wish to consider requiring specific
methodology in the bill on how the financial costs of a
particular conservation measure will be determined so that
there is consistency across the state on how these costs are
calculated.
5)AB 1408 requires that the public water system calculate the
water savings attributable to the water conservation measures
financed by the water conservation mitigation funding from
each subdivision. However, the Committee may wish to consider
how the public water system is going to calculate the water
savings from water conservation measures put on existing
facilities that are not required to have a water meter?
Moreover, the Committee may also wish to place a limit on the
number of projects that a public water system can approve
using the 100% mitigation fund offset, because there may come
a point when a community can only conserve so much and an
actual water supply may be necessary.
6)TECHNICAL AMENDMENTS :
a) On page 5 line 19 after "section." insert:
"The public water supplier may collect fees necessary to
provide additional analysis of extraordinary water
conservation measures required by this section, pursuant to
Section 66014."
b) On page 11 strike lines 3 - 7 and insert:
"No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution
because a local agency or school district has the authority
to levy service charges, fees, or assessments sufficient to
pay for the program or level of service mandated by this
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act, within the meaning of Section 17556 of the Government
Code."
7)This bill is double-referred to the Committee on Water, Parks
and Wildlife.
REGISTERED SUPPORT / OPPOSITION :
Support
East Bay Municipal Utility District [CO-SPONSOR]
Planning & Conservation League [CO-SPONSOR]
Association of California Water Agencies (if amended)
Green CA
Opposition
American Council of Engineering Companies CA (unless amended)
CA Building Industry Association (unless amended)
CA Business Properties Association (unless amended)
CA Chamber of Commerce (unless amended)
CA Apartment Association (unless amended)
Western Electrical Contractors Association, Inc. (unless
amended)
Analysis Prepared by : Katie Kolitsos / L. GOV. / (916)
319-3958