BILL ANALYSIS                                                                                                                                                                                                    





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2009-2010 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 565                    HEARING DATE: April 14, 2009   

          AUTHOR: Pavley                     URGENCY: No  
          VERSION: April 13, 2009            CONSULTANT: Dennis O'Connor  
          DUAL REFERRAL: Environmental QualityFISCAL: Yes  
          SUBJECT: Water recycling.  
          
          BACKGROUND AND EXISTING LAW
          
          The Water Recycling Act of 1991 established a statewide goal to  
          recycle a total of 700,000 acre-feet of water per year by 2000,  
          and one million acre-feet of water by 2010.

          Subsequently, the Urban Water Management Planning Act was  
          amended to require urban water management plans to include, to  
          the extent available, information on recycled water and its  
          potential for use as a water source in the service area.

          Similarly, the law governing the California Water Plan was  
          amended to require the state plan to include current and  
          projected supplies of water provided by water recycling and  
          reuse. 

          In 2002, the Legislature passed, and the Governor signed AB 331  
          (Goldberg).  That bill required the Department of Water  
          Resources (DWR) to convene the 2002 Recycled Water Task Force.   
          The purpose of the Task Force was to advise DWR regarding  
          opportunities for using recycled water in industrial and  
          commercial applications and in identifying impediments and  
          constraints to increasing the industrial and commercial use of  
          recycled water.  

          The Task Force was chaired by a member of the State Water  
          Resources Control Board (SWRCB), with representatives from DWR  
          and the Department of Health Services serving as Co-Vice Chairs.

          The result of the Task Force was a 2003 report that included  
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          recommendations for additional state and federal funding for  
          recycling projects and research, public outreach and education,  
          changes in plumbing codes, and legislation to increase local  
          flexibility to regulate water softeners.

          On February 3, 2009, the SWRCB adopted a water recycling policy.  
           According to that policy, "The purpose of this Policy is to  
          provide direction to the Regional Water Quality Control Boards  
          (Regional Water Boards), proponents of recycled water projects,  
          and the public regarding the appropriate criteria to be used by  
          the State Water Board and the Regional Water Boards in issuing  
          permits for recycled water projects."




          PROPOSED LAW
          
          This bill would add a new part to the water code, titled Ocean  
          Discharge Recycling Plan.  Specifically, this bill would:

          1.Require the SWRCB, in collaboration with the Department of  
            Public Health (DPH) and DWR, to adopt a statewide plan to  
            ensure that at least 50 percent of the wastewater is annually  
            discharged directly into the ocean, as of the year 2009, is  
            recycled and put to beneficial use by the year 2030.
                 The plan would be required to:
               (1)           Identify all regulatory, financial,  
                 engineering, jurisdictional, and other impediments to  
                 meeting the statewide ocean discharge recycling goal.
               (2)           Identify all impediments to direct potable  
                 reuse of the water.
               (3)           Develop specific actions and strategies to  
                 remove those impediments.
                 In developing the plan, the SWRCB would be required to  
               seek input from wastewater dischargers, urban water  
               suppliers, local government agencies, and other interested  
               parties.  
                 The SWRCB would be authorized to appoint an advisory  
               committee, task force, or any other group or groups that  
               the board deems necessary or desirable to assist the board  
               in carrying out this part.
                 Upon adoption of the plan, the SWRCB would be required  
               to submit copies of the plan to the Governor and the  
               Legislature.

          1.Require the SWRCB, to impose an annual fee on discharges of  
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            wastewater into the ocean, to reimburse the SWRCB, DWR, and  
            DPH for the costs of developing the plan and any measures  
            implementing the plan subject to the following requirements:
                 The fee would be imposed on each person that discharges  
               wastewater directly into the ocean.
                 The fee shall be in addition to any other fees imposed  
               by the SWRCB.
                 The SWRCB would be required to adopt regulations to  
               implement the fee provisions.

          1.Make numerous findings and declarations regarding the  
            importance of water recycling.

          ARGUMENTS IN SUPPORT

          According to the Author, "Each year, urban California discharges  
          approximately 3 - 4 million acre-feet of wastewater into the  
          ocean.  Unlike discharges into rivers or streams that can be  
          recaptured downstream and then be reused, ocean discharges are  
          lost to additional use.  This water is truly wasted."

          "At the same time, urban California continues to grow.  The  
          California Department of Finance projects California's  
          population to reach almost 60 million people by 2050, adding  
          over 25 million since the 2000 decennial census.  These new  
          Californians are going to need water.  It is critical that  
          California finds new ways to accommodate growth, with its  
          resultant increase in water demand, in as an environmentally  
          benign as possible."

          Natural Resources Defense Council observes, "Water recycling is  
          an important element of California's water future, in light of  
          the likely impacts of climate change and the ecosystem collapse  
          in the Bay-Delta. The Delta Vision Strategic Plan recommended  
          substantial investment in water recycling as part of a package  
          to reduce the state's unsustainable reliance on water exports  
          from the Bay Delta. Orange County's existing water recycling  
          plant currently provides a "drought proof" source of water for  
          nearly 500,000 people, and the recently enacted Omnibus Public  
          Lands Act authorizes the federal Bureau of Reclamation to assist  
          in development of 7 water recycling projects in California."

          Heal the Bay notes, "Our founder and renowned water conservation  
          advocate, Dorothy Green, summed it up best by stating: 'Despite  
          the looming crisis in water, we have enough to live on, but not  
          enough to waste?' By implementing SB 565 and utilizing recycled  
          water technology, many California communities could make use of  
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          this lost water."

          ARGUMENTS IN OPPOSITION

          Most of the arguments in opposition focus on two issues - the  
          challenge of reaching the target under current law, and the  
          imposition of fees to cover the costs of developing and  
          implementing the plan.  The California Association of Sanitation  
          Districts' (CASD) comments are typical:

          "There are many reasons that we are not achieving our recycling  
          goals, the principle one being a lack of adequate funding for  
          treatment and distribution infrastructure.  The State cannot  
          reach the volumes of recycling called for in the bill through  
          irrigation, due to the seasonality of the demand plus the very  
          high cost of dual plumbing systems.  Approaching the ambitious  
          goal of recycling 50 percent of the water currently going to the  
          ocean will require that California expand eligible uses of  
          recycled water, to include reservoir augmentation and other  
          potable reuse options.  While these uses are being allowed  
          elsewhere in the world, including Australia, at present there  
          are no regulations that would allow these types of uses in  
          California.  Moreover, the California Department of Public  
          Health, rather than the State Water Board, would be tasked with  
          developing regulations to govern these uses.  We are also  
          concerned about the prospect of yet another regulatory fee being  
          imposed on local governments, which have already been hard hit  
          by the economic climate and are facing staffing decreases,  
          server budget cuts, and declining revenues."

          COMMENTS 
          
           Definition of "Person"  .  There has been some confusion regarding  
          the provision of this bill that would impose a fee on any  person   
          who discharges water into the ocean.  The Water Code defines  
          person as "any person, firm, association, organization,  
          partnership, business trust, corporation, limited liability  
          company, or company."  A review of persons with ocean discharge  
          permits shows no private individuals with discharge permits.

           Numerous Impediments.   CASD correctly identifies a number of  
          impediments to greater use of recycled water.  While some of  
          those impediments may be diminished some by the SWRCB's recently  
          adopted recycling policy, the vast majority are not.  In  
          addition, to the challenges described by CASD, another class of  
          major impediments are jurisdictional issues regarding  
          duplication of services among water treatment facilities and  
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          potable water suppliers.  
           
          SUGGESTED AMENDMENTS: None












































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          SUPPORT
          Planning & Conservation League (Sponsor)
          California Coastkeeper Alliance - if amended
          Heal the Bay
          Natural Resources Defense Council
          Sierra Club California
          Sonoma County Water Agency
          Private Citizen (1)

          OPPOSITION
          Association of California Water Agencies
          California Association of Sanitation Agencies
          Cal-Tax
          Sanitation Districts of Los Angeles County
































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