BILL ANALYSIS SB 918 Page 1 Date of Hearing: August 4, 2010 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair SB 918 (Pavley) - As Amended: June 1, 2010 Policy Committee: Environmental Safety and Toxic Materials Vote: 7-0 Water, Parks and Wildlife 10-2 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill requires the Department of Public Health (DPH) to adopt criteria for the use of recycled water. Specifically, this bill: 1)Directs DPH to adopt uniform water recycling criteria, as follows: a) for indirect potable reuse for groundwater recharge, by year's end, 2013. b) for surface water augmentation in a reservoir used as a source of drinking water, by year's end, 2016, which DPH must submit, prior to adoption, to the expert panel described below. 2)Requires DPH to report to the Legislature, by December 31, 2016, and following public review, on the feasibility of developing uniform water recycling criteria for direct potable reuse of recycled water. 3)Requires DPH to convene and administer an expert panel, as specified, that will a) advise DPH in development of criteria for surface water augmentation; b) determine whether DPH's proposed surface water augmentation criteria adequately protects public health; c) advise DPH in its investigation of the feasibility of developing criteria for direct potable reuse of recycled water. SB 918 Page 2 4)Authorizes DPH to appoint an advisory group of representatives of entities for water supply and water quality, public and environmental health, environmental justice, and business to counsel DPH in its development of criteria for direct potable reuse of recycled water. 5)Authorizes DPH to reimburse panel members and certain group members for travel expenses. 6)Redirects upon appropriation, from the State Water Resources Control Board (SWRCB) to DPH, all funds generated from civil liability for waste discharge violations, from July 1, 2011, to June 30, 2017, to implement the provisions of the bill. FISCAL EFFECT 1)Annual costs to DPH ranging from $170,000 to $300,000 (equivalent to a senior engineer fully dedicated to the project and a manager performing differing amounts of work in different years) from 2011-12 through 2016-17 to develop criteria for indirect potable reuse. (Waste Discharge Permit Fund (WDPF) 2)Annual costs to DPH ranging from $170,000 to $250,000 (equivalent to one senior engineer and one midlevel engineer providing assistance less than full time) from 2011-12 through 2016-17 to investigate and prepare report on direct potable reuse. (WDPF) 3)Annual costs to DPH of about $150,000 during 2011-12 and 2012-13 to convene expert panel and provide administrative support. (WDPF) 4)Annual reduction in fine revenue to SWRCB of an unknown amount, but likely in the range of approximately $500,000 to $700,000 (about equal to DPH's annual costs to implement this bill) from 2011-12 to 2016-17. This reduction results from the bill's dedication to DPH of civil penalty revenue from waste discharge violations. Absent this bill, those funds would be available to the board to clean up and abate water pollution. (WDPF) COMMENTS SB 918 Page 3 1)Rationale . According to the author, California discharges nearly 4 million acre feet of wastewater into the ocean each year, much of which could be recycled. The author contends, such water recycling does not occur because the state has not adopted uniform safety standards for the potable use of recycled water, creating uncertainty and thereby discouraging local communities from tapping into this major water source. The author intends this bill to provide uniform guidelines that provide greater certainty around the use of recycled water for potable use in order to encourage it. 2)Background-Recycled Water . Recycled water is former wastewater that has been treated to remove pollutants and pathogens. According to the policy committee analysis, uses of recycled water can be divided into three categories: a) Non-potable reuse , such as lawn, crop, or ornamental plant irrigation and industrial processes. This is the most common use for recycled water in California. b) Indirect potable reuse that is later, and after additional treatment, used to supply a drinking water system. This use has been practiced in Southern California since 1962 and has expanded recently. Examples of indirect potable reuse include groundwater recharge, in which recycled water typically percolates down to a groundwater basin, and surface water, in which recycled water is mixed with other water in a vessel such as a reservoir. c) Direct potable reuse , meaning the introduction of recycled water directly into a drinking water system, without additional dilution or filtration. Direct potable reuse is not practiced in California or the US. There is one operational direct potable use system in the world, in Windhoek, Namibia. Existing law requires DPH to establish uniform statewide recycling criteria for each type of use of recycled water where the use involves the protection of public health. 3)More Oversight of Progress Needed . The bill dedicates all funds generated from civil liability for waste discharge violations, from July 1, 2011, to June 30, 2017, to DPH, upon appropriation, to implement the provisions of the bill. While development criteria for use of recycled water may be a SB 918 Page 4 worthwhile use of these funds, it will nonetheless come at the expense another worthwhile activity currently funded by these penalty revenues-clean up and abatement of water pollution. For this reason, it is important the Legislature be able to carefully oversee DPH's progress towards development of the criteria to ensure the funds are put to good and efficient use and to make adjustments to DPH's appropriation accordingly. The committee may want to consider amending the bill to require DPH, in consultation with SWRCB, to report on its progress towards developing the criteria for recycled water use as part of the annual budget process. 4)Support . This bill is supported by the Planning and Conservation League and numerous water districts and local governments that seek to increase use of recycled water. 5)There is no registered opposition to this bill. Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081