BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
565 (Pavley)
Hearing Date: 05/18/2009 Amended: 05/04/2009
Consultant: Brendan McCarthy Policy Vote: EQ 5-2
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BILL SUMMARY: SB 565 requires the State Water Board to develop
and implement a plan to ensure that 50 percent of the wastewater
currently discharged into the ocean is recycled. The bill
requires the State Water Board to impose fee on discharges of
wastewater into the ocean to pay for the costs of developing and
implementing the plan.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Plan development $1,500 $2,500 $2,500 Special
*
Plan implementation Unknown Special
**
* Ocean Discharge Recycling Fund (new fund). Ultimately offset
by fees.
** Ocean Discharge Recycling Fund (new fund). Possibly offset by
fees.
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense file.
SB 565 requires the State Water Board, in collaboration with
other state agencies and outside stakeholders, to develop a plan
to ensure that 50 percent of the wastewater currently discharged
into the ocean is recycled by 2030. The plan would identify any
regulatory, financial, engineering, or other impediment to
achieving the recycling goal. The plan would also include
specific actions to remove those impediments. The State Water
Board estimates the costs to develop the plan would be about $6
million over three years. While the bill requires that fees be
assessed to cover the costs of developing the plan, there may be
a gap between expenditures and the collection of fee revenues,
depending on how long it takes to adopt regulations to impose
the fee.
The bill requires the State Water Board to adopt measures to
implement the plan. It is not clear what the scope of
implementation activities would be under the bill.
The bill requires the State Water Board to impose an annual fee
on discharges of wastewater into the ocean in an amount
sufficient to pay for the costs to develop the plan and adopt
any measures implementing the plan.
In June 2003, a legislatively mandated taskforce on recycled
water estimated that it would cost about $400 million per year
to recycle about 1.5 million acre-feet of wastewater. The task
force indicated that it would require about $300 million in
state or federal financial assistance to achieve this level of
recycling. It is not clear whether wastewater dischargers would
be able to support fees sufficient to generate this level of
revenue.