BILL ANALYSIS SB 918 SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator S. Joseph Simitian, Chairman 2009-2010 Regular Session BILL NO: SB 918 AUTHOR: Pavley AMENDED: April 12, 2010 FISCAL: Yes HEARING DATE:April 19, 2010 URGENCY: No CONSULTANT: Rachel Machi Wagoner SUBJECT : WATER RECYCLING SUMMARY : Existing federal law : 1)Under the Safe Drinking Water Act (SDWA), sets public health regulatory standards for drinking water. 2)Under the Clean Water Act (CWA), regulates discharge of pollutants into the waters of the United States and sets quality standards for surface waters. Existing California law : 1)Requires the Department of Public Health (DPH) to enforce laws and regulations related to drinking water safety. 2)Requires the State Water Resources Control Board (SWRCB) and the Regional Water Quality Control Boards (RWQCBs) to enforce water quality laws and regulations for the state's waterways. 3)Requires the assessment of penalties for violations of water quality laws and requires the funds generated by these civil penalties to be deposited into the Waste Discharge Permit Fund, to be expended by SWRCB upon appropriation by the Legislature for the purpose of pollution abatement in the state's waters. 4)Establishes the Water Recycling Act of 1991, creating a SB 918 Page 2 statewide goal to recycle a total of 700,000 acre-feet of water per year by 2000 and 1,000,000 acre-feet of water per year by 2010. Requires each urban water supplier to prepare, and update every five years, an urban water management plan with specified components, including information on recycled water and its potential for use as a water source in the service area of the urban water supplier. 5)Requires DPH to establish uniform statewide recycling criteria for each type of use of recycled water use. This bill : 1) Makes various findings a declarations regarding the use and benefits of recycled water. 2) Defines "direct potable reuse," "indirect potable reuse for groundwater recharge" and "indirect potable reuse through reservoir augmentation". 3) Requires DPH to adopt uniform water recycling criteria for indirect potable reuse for groundwater recharge on or before December 31, 2013. 4) Requires DPH to develop and adopt uniform water recycling criteria for indirect potable reuse through reservoir augmentation on or before December 31, 2016. 5) Requires DPH to investigate and report to the Legislature on the feasibility of developing uniform water recycling criteria for direct potable reuse, and requires a public review draft report to the Legislature and public by June 30, 2016, and a final report by December 31, 2016. 6) Requires DPH to consider specified factors in developing both the uniform criteria and the feasibility study. 7) Requires DPH to convene an expert panel to advise on scientific and technical matters related to the development of the aforementioned criteria, comprised of specified experts. Allows DPH to also appoint an advisory group, task force, or other group comprised of representatives of SB 918 Page 3 water and wastewater agencies, local public health officers, and related public health and environmental organizations. 8) Provides that funds generated by civil penalties deposited in the Waste Discharge Permit Fund between July 1, 2011 and June 30, 2017 must be made available to DPH upon appropriation by the Legislature in an amount of up to $500,000 each fiscal year ($3 million dollars total), for the purpose of completing these uniform water recycling criteria requirements, and not to exceed specified amounts. COMMENTS : 1) Purpose of Bill . According to the author, each year, California discharges nearly 4 million acre feet of wastewater into the ocean - more than the State Water Project delivers to the Bay Area, the Central Valley and Southern Caliornia. Much of that water could be recylced. However, because the state has not adopted uniform safety standards, the permitting and design processes for building and operating water recycling facilities are unpredictable, discouraging local communities from tapping into this major water source. 2) State regulation . DPH regulates projects under the State Water Recycling Criteria (Title 22) and draft groundwater recharge regulations. The draft recharge regulations, which are used as guidance in evaluating projects, specifically address protection of public health. In January 2007, DPH posted a revised draft of the Groundwater Recharge Regulations on its website and formed an expanded Groundwater Recharge Regulations Working Group (advisory group) to discuss and revise the draft regulations. In August 2008, DPH posted a revised draft of the regulations on its website and asked for public comments to be submitted in October 2008. In 2009, DPH submitted the draft to DPH's legal services group for review. Once a final draft has been prepared based on the legal services input, the complete regulatory package must be prepared and the formal regulatory process SB 918 Page 4 can begin. 3) Surface Water Augmentation criteria verses regulations . Surface water augmentation, by the bill's definition, is the placement of recycled water into a reservoir used as a source of drinking water. This is a step closer to direct potable reuse of recycled water. While there have been successful surface water augmentation projects conducted in other states and countries, California has yet to embark on any surface water augmentation projects. San Diego is working towards initiating the first pilot project in the state, but it has not commenced yet. It is unclear why there is a need to rush into the development of uniform regulations by December 31, 2016, that would apply to any surface water augmentation project in the state prior to having any public health data from a first pilot project. This may be a case of putting the cart before the horse. It may make sense to conduct an analysis of the public health impacts of at least one pilot project in the state and have DPH develop the criteria prior to moving ahead with uniform regulations for any project in the state to ensure full caution and protection of public health. 4)Waste Discharge Permit Fund . The bill makes available, upon appropriation of the Legislature, up to $ 3 million from the Waste Discharge Permit Fund for 6 years. The Waste Discharge Permit Fund is designated for abatement projects. Is this the appropriate source of funding for regulatory development activities, what projects will this money be diverted from over the six years, and is $3 million dollars an appropriate amount for these activities? 5)Related Legislation . AB 1100 (Duvall) of 2009, would have defined potable reuse demonstration water and allowed it to be bottled for consumption, subject to distribution limits and labeling requirements, for educational purposes only. (Failed passage in Senate Environmental Quality Committee.) SB 918 Page 5 AB 410 (De la Torre) of 2009 would have set a statewide water recycling target to a total of 1,300,000 acre-feet of water per year by the year 2020, and 2,000,000 acre-feet of water per year by the year 2030, and would require the Department of Water Resources to assess progress toward meeting that target every five years, based on information provided in urban water management plans. (Pending in the Senate Appropriations Committee.) AB 2270 (Laird) of 2008 would have required additional reporting on recycled water and allow local limitations on salinity inputs. (Vetoed by Governor Schwarzenegger.) AB 921 (Wayne) Chapter 295, Statutes of 1998, prohibited DPH from issuing a permit to a public water system or from amending a valid existing permit for the use of a reservoir as a source of supply that is directly augmented with recycled water, unless certain requirements imposed on DPH are satisfied. 6)Suggested Amendments . a) The findings and declarations in the March 17, 2010 version of the bill better reflect the intent of the Legislature's public policy direction on recycled water. It may be more appropriate to revert back to those findings and declarations. b) The March 17, 2010 version of the bill defines "surface water augmentation." In the April 12, 2010 version of the bill, the term is changed to "indirect potable reuse through reservoir augmentation." Given that there is a definition for "indirect potable reuse for groundwater recharge" also in the bill, it may generate confusion between the two very different technologies. It is recommended that the bill be amended to go back to the March 17, 2010 term of "surface water augmentation." SOURCE : Watereuse, Planning and Conservation League SUPPORT : County Sanitation Districts of Los Angeles East Bay Municipal Utility District SB 918 Page 6 OPPOSITION : None on file