BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair 1834 (Solorio) Hearing Date: 08/02/2010 Amended: 07/15/2010 Consultant: Brendan McCarthy Policy Vote: NR&W 6-1, EQ 7-0 AB 1834 (Solorio), Page 2 _________________________________________________________________ ____ BILL SUMMARY: AB 1834 authorizes property owners in non-agricultural areas to install rainwater capture systems. The bill requires the State Water Resources Control Board to initiate a stakeholder process to develop recommendations for policies on a variety of issues relating to rainwater capture and authorizes the State Water Board to propose recommendations for updated building standards. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2010-11 2011-12 2012-13 Fund Water Board costs for $370 $270 General stakeholder process Dept. of Water Resources $100 $100 General consultation Dept. of Housing and $75 $75 Special * Community Development building standard adoption Building Standards Commission $40 Special * building standard adoption * Building Standards Administration Special Revolving Fund. _________________________________________________________________ ____ STAFF COMMENTS: This bill meets the criteria for referral to the Suspense File. Current law requires water to be put to a reasonable and beneficial use. While California statute and case law contain detailed requirements for the appropriate use of water, there is no definition of rainwater in the codes and the law is unclear as to a property owner's right to use rainwater that falls on his or her property. AB 1834 defines rainwater as "rain or snowmelt that has not entered an offsite storm drain system or channel, a flood AB 1834 (Solorio), Page 2 control channel, or any other stream channel, and has not previously been put to beneficial use". The bill authorizes property owners in non-agricultural areas to capture rainwater flowing off roofs or other manmade structures and use that water for nonpotable outdoor uses or infiltration into groundwater. The property owner is required to comply with any applicable local rainwater capture requirements. A property owner is authorized to finance the construction of a rainwater capture system through a property assessed clean energy bond (which is paid back through a voluntary assessment on the property tax bill). AB 1834 requires the State Water Resources Control Board to convene a stakeholder process to develop recommendations for policies to facilitate rainwater capture. The State Water Board is required to include all interested parties, including local, state, and federal agencies, to deliberate about specified issues relating to rainwater capture. The bill enumerates twelve specific issues to be considered in the stakeholder process, including water supply issues, effects on downstream users and wildlife, consistency with building standards, and financial and tax incentives to encourage increased capture of rainwater and stormwater runoff. The State Water Board is required to publish the results of the stakeholder process by December 2011. Because of the breadth of issues that must be addressed in the stakeholder process and the potentially large number of stakeholders that may be interested, the State Water Board indicates that there will be considerable costs to manage the process. The State Water Board estimates that it will need about $650,000 over two fiscal years, including both additional staff positions, contracting funds for specialized expertise, and administrative costs. In addition, the Department of Water Resources indicates that it will need about $200,000 in additional staff costs to participate in the stakeholder process and provide information and expertise on water use and water supply issues. If the stakeholder process results in recommendations for changes to building standards, the State Water Board is required to submit those recommendations to the Department of Housing and Community Development and the California Building Standards Commission, for their review and adoption. In order to review and adopt new building standards following the stakeholder process, the Department of Housing and Community AB 1834 (Solorio), Page 2 Development indicates that it will incur about $150,000 in additional staff costs over two years. Similarly, the California Building Standards Commission will incur costs of about $40,000 to review and adopt revised standards. The bill also authorizes the State Water Board to adopt its own standards and policies with regard to rainwater capture.