BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 565| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 565 Author: Pavley (D) Amended: 6/3/09 Vote: 21 SENATE NATURAL RES. & WATER COMMITTEE : 7-3, 4/14/09 AYES: Pavley, Kehoe, Leno, Padilla, Simitian, Wiggins, Wolk NOES: Cogdill, Hollingsworth, Huff NO VOTE RECORDED: Benoit SENATE ENVIRONMENTAL QUALITY COMMITTEE : 5-2, 4/27/09 AYES: Simitian, Corbett, Hancock, Lowenthal, Pavley NOES: Runner, Ashburn SENATE APPROPRIATIONS COMMITTEE : 7-5, 5/28/09 AYES: Kehoe, Corbett, DeSaulnier, Hancock, Leno, Oropeza, Yee NOES: Cox, Denham, Runner, Walters, Wyland NO VOTE RECORDED: Wolk SUBJECT : Water recycling SOURCE : Planning and Conservation League DIGEST : This bill requires the State Water Resources Control Board, in collaboration with the Department of Public Health and the Department of Water Resources, to adopt a statewide plan to ensure that at least 50 percent of the wastewater is annually discharged directly into the CONTINUED SB 565 Page 2 ocean, as of the year 2009, is recycled and put to beneficial use by the year 2030. ANALYSIS : Existing Law 1.Establishes 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, pursuant to the Water Recycling Act of 1991. 2.Requires 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, pursuant to revisions of the Urban Water Management Planning Act. 3.Requires the state plan to include current and projected supplies of water provided by water recycling and reuse, pursuant to revisions of the California Water Plan. 4.Requires the Department of Water Resources (DWR) to advise DWR concerning 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, pursuant to AB 331 and the creation of the Recycled Water Task Force (2002). This bill: 1.Requires the State Water Resources Control Board (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 annually discharged into the ocean, as of the year 2009, is recycled and put to beneficial use by the year 2030. The plan requires the SWRCB to: A. Identify all regulatory, financial, engineering, jurisdictional, and other impediments to meeting the statewide ocean discharge recycling goal. SB 565 Page 3 B. Identify all impediments to direct potable reuse of the water. C. Develop specific actions and strategies to remove those impediments. In developing the plan, the SWRCB will be required to seek input from wastewater dischargers, urban water suppliers, local government agencies, and other interested parties, integrate research by the SWRCB regarding unregulated pollutants, and consult with the Office of Environmental Health Hazard Assessment (OEHHA), to evaluate the impact of unregulated pollutants and determine whether there is a practical method for eliminating unregulated pollutants from recycled water. D. Ensure that any action authorized pursuant to this chapter is consistent with the California Environmental Quality Act, and integrate research by the SWRCB regarding unregulated pollutants, as developed pursuant to Section 10 of the Recycled Water Policy adopted by the SWRCB. 2.Requires the SWRCB to impose an annual fee on discharges of 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: A. The fee will be imposed on each person who discharges wastewater directly into the ocean, the San Francisco Bay, or any other enclosed bay in the state. B. The fee shall be in addition to any other fees imposed by the SWRCB. The SWRCB will be required to adopt regulations to implement the fee provisions. C. The fee shall not be imposed on any person that discharges less than 10 million gallons of wastewater per day. 3.Makes various findings and declarations regarding the importance of water recycling. SB 565 Page 4 FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No Fiscal Impact (in thousands) Major Provisions 2009-10 2010-11 2011-12 Fund Plan development Fully offset by fees Special* *Ocean Discharge Recycling Fund (new fund). SUPPORT : (Verified 6/2/09) California Coastkeeper Alliance Heal the Bay Natural Resources Defense Council Sierra Club California Sonoma County Water Agency OPPOSITION : (Verified 6/2/09) Association of California Water Agencies California Association of Sanitation Agencies California Chamber of Commerce California Taxpayers' Association Sanitation Districts of Los Angeles County Southern California Water Committee ARGUMENTS IN SUPPORT : The natural Resources Defense Council observes, "Water recycling is an important element in 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 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 the development of seven water recycling projects in California." SB 565 Page 5 ARGUMENTS IN OPPOSITION : Opponents' comments include several issues; the challenge of reaching the target under current law, and the importance of fees to cover the costs of developing and implementing the plan, and the issues surrounding the use of recycled water. The California Association of Sanitation Districts' (CASD) states: "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 into the ocean will require that California expand eligible uses of recycled water, to include reservoir augmentation and other potable reuse options?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 hit hard by the economic climate and are facing staffing decreases, severe budget cuts, and declining revenues." CTW:cm 6/2/09 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****