BILL ANALYSIS
AB 1408
Page 1
ASSEMBLY THIRD READING
AB 1408 (Krekorian)
As Amended April 30, 2009
Majority vote
LOCAL GOVERNMENT 5-2 WATER, PARKS AND WILDLIFE
8-4
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|Ayes:|Caballero, Arambula, |Ayes:|Huffman, Arambula, |
| |Davis, Krekorian, Skinner | |Blumenfield, Caballero, |
| | | |Krekorian, Bonnie |
| | | |Lowenthal, John A. Perez, |
| | | |Salas |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Knight, Duvall |Nays:|Fuller, Anderson, Tom |
| | | |Berryhill, Fletcher |
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APPROPRIATIONS 10-5
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|Ayes:|De Leon, Ammiano, Davis, | | |
| |Fuentes, Hall, John A. Perez, | | |
| |Price, Skinner, Torlakson, | | |
| |Krekorian | | |
| | | | |
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|Nays:|Nielsen, Duvall, Harkey, | | |
| |Miller, Audra Strickland | | |
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SUMMARY : Establishes a Water Demand 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
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subdivision" as the anticipated water demand associated with
the subdivision that is determined by the public water system
and is based on physical characteristics of the subdivision,
including, but not limited to, lot size and use, current water
conservation standards required by local ordinance or state
regulation, and optional water conservation measures that
exceed all applicable local and state standards that are
agreed to by the public water system and the subdivision
applicant.
2)Defines "water conservation measures" as measures from which
substantial evidence in the record demonstrates that the
measures will result in water efficiency and have a life
expectancy of at least 20 years.
3)States that substantial evidence in relation to water
conservation measures may include, but is not limited to,
water efficiency projections calculated by the California
Urban Water Conservation Council (CUWCC) or data that
demonstrates that water efficiencies are quantifiable and
verifiable.
4)Defines "Water Demand Mitigation Fund" as the fund used to
finance conservation measures implemented by the public water
system and funded by the subdivision applicant in sufficient
amount to offset 100% of the projected water demand associated
with the subdivision.
5)States that participation in the Fund shall be at the mutual
agreement of the public water system and the subdivision
applicant.
6)States that a legislative body of a city, 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.
7)States that if the public water system and the subdivision
applicant mutually choose to demonstrate that a sufficient
water supply will be available through the use of water
conservation measures, then the subdivision applicant shall
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enter into an agreement with the public water system to
mitigate demand associated with the subdivision by depositing
monies in to the Fund.
8)Specifies that the amount of funding required for
participation by the subdivision applicant in the Fund shall
be determined by the public water system and be based on
offsetting at least 100% of the projected water demand
associated with the subdivision.
9)Prohibits the funding required for participation in the Fund
from exceeding the amount necessary to offset the actual water
demand impact of the subdivision.
10)Requires the public water system to include in the written
verification of its ability or inability to provide sufficient
water supply an assessment pf the projected water demand
associated with the subdivision.
11)Provides that if the public water system bases its assessment
of the projected water demand associated with the subdivision
on inclusion of optional water conservation measures that
exceed all applicable local and state standards, the
assessment shall be conditioned with appropriate measures to
ensure that the optional water conservation measures will be
retained by future homeowners and that actual long-term water
demand associated with the subdivision will be consistent with
the water demand projection.
12)Specifies that the conditions listed above shall be included
in the covenants, conditions, and restrictions (CC&Rs), or in
an equivalent legally enforceable mechanism that is associated
with the property and that the conditions may be enforced by
the imposition of financial penalties for any violations of
them.
13)Authorizes water savings projections to be calculated using
the water savings projections adopted by CUWCC, or data that
demonstrates that water efficiencies are quantifiable and
verifiable.
14)Authorizes a public water system to impose a more stringent
requirement than provided for in this measure.
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15)Requires that, when the written verification relies on
voluntary participation in the Fund held 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.
16)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.
17)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.
18)Requires that the water conservation measures chosen be the
least expensive and most cost-effective means to yield the
applicable amount of water.
19)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.
20)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.
21)Authorizes the public water system to use monies from the
Fund to expand existing water conservation programs beyond the
requirements of the CUWCC Memorandum of Understanding.
22)Requires that not less than 40% of the proceeds from the Fund
be directed to water conservation programs in disadvantaged
communities, as defined, within the public water system's
service area.
23)Requires that actions for which the public water supplier may
use water demand mitigation funding are conservation measures
that have a planned completion date that is concurrent with
when the buildings within the subdivision will require
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service.
24)Specifies the types of actions that can be taken by the
public water supplier to reduce water demand, which include,
but are not limited to, all of the following:
a) Water efficient appliances;
b) Water efficient landscapes and irrigation controllers;
c) Water recycling;
d) Stormwater capture, grey water systems, and groundwater
treatment; and,
e) Other water conservation measures for which substantial
evidence demonstrates the measure will achieve a
quantifiable reduction in demand.
25)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
Council.
26)Requires that the public water system document the measured
annual water use of each subdivision.
27)Requires that the public water system calculate the water
savings attributable to both of the following:
a) The water conservation measures financed by the water
conservation mitigation funding from each subdivision; and,
b) The water conservation measures implemented in the
subdivision that exceed all applicable local and state
standards in the absence of a Fund.
28)Provides that in the event that the calculated water savings
do not equal or exceed the measured water demand over a
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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 : According to the Assembly Appropriations
Committee, there are negligible costs, if any, to the Department
of Water Resources.
COMMENTS : 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
established the 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.
According to the author, this bill 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
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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 this bill 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.
This bill authorizes a subdivision applicant to offset at least
100% of the projected water demand for their project by paying
into the 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 Legislature 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 level is
met since the public water system is not required to consider a
back up water source if 100% conservation is not achieved.
Although this bill 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 amounts will be calculated. The
Legislature 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
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consistency across the state on how these costs are calculated.
This bill 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 Legislature 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
Legislature 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.
Analysis Prepared by : Katie Kolitsos / L. GOV. / (916)
319-3958
FN: 0001309