BILL ANALYSIS ----------------------------------------------------------------- | | | SENATE COMMITTEE ON NATURAL RESOURCES AND WATER | | Senator Fran Pavley, Chair | | 2009-2010 Regular Session | | | ----------------------------------------------------------------- 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 1 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 2 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 3 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 4 potable water suppliers. SUGGESTED AMENDMENTS: None 5 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 6