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.