BILL ANALYSIS Ó AB 2398 Page 1 ASSEMBLY THIRD READING AB 2398 (Hueso) As Amended May 21, 2012 Majority vote WATER, PARKS & WILDLIFE 9-1 ENVIRONMENTAL SAFETY 8-1 ----------------------------------------------------------------- |Ayes:|Huffman, Campos, Fong, |Ayes:|Wieckowski, Miller, | | |Gatto, Roger Hernández, | |Campos, Chesbro, Davis, | | |Hueso, Jones, Lara, | |Feuer, Bonnie Lowenthal, | | |Yamada | |Morrell | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Beth Gaines |Nays:|Donnelly | | | | | | ----------------------------------------------------------------- APPROPRIATIONS 12-5 ----------------------------------------------------------------- |Ayes:|Fuentes, Blumenfield, | | | | |Bradford, Charles | | | | |Calderon, Campos, Davis, | | | | |Gatto, Ammiano, Hill, | | | | |Lara, Mitchell, Solorio | | | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Harkey, Donnelly, | | | | |Nielsen, Norby, Wagner | | | | | | | | ----------------------------------------------------------------- SUMMARY : Makes major changes to the state's regulation of the use of recycled water. This bill deletes much of the existing statutory and regulatory language governing recycled water, and the Water Recycling Act of 2012 (WRA) consolidates similar, and in some cases identical, provisions into the WRA which is a new division of the Water Code. Generally, this bill defines highly treated recycled water as Advanced Treated Purified Water (ATPF) and subjects its use to regulation by the Department of Public Health (DPH), and defines less-treated, but still relatively clean recycled water, known as disinfected tertiary recycled water, as not waste water and subjects its use to regulation by the State Water Resources Control Board (SWRCB). This bill provides monitoring and enforcement authority to DPH and SWRCB AB 2398 Page 2 as well as fee authority to cover their permitting costs and other related responsibilities. EXISTING LAW : 1)Provides the State Board has the ultimate authority over state water rights and water quality policy under the Porter-Cologne Water Quality Control Act (Porter-Cologne). However, Porter-Cologne also establishes nine Regional Boards to oversee water quality on a day-to-day basis at the local and regional level. 2)Requires the Regional Boards, and sometimes the SWRCB, to prepare and periodically update Basin Plans (water quality control plans). Each Basin Plan establishes: a) Beneficial uses of water designated for each water body to be protected; b) Water quality standards, known as water quality objectives, for both surface water and groundwater; and, c) The actions necessary to maintain these standards in order to control point sources (end-of-pipe discharges) and non-point sources of pollution to the state's waters. 1)Mandates permits issued to control pollution (i.e., waste-discharge requirements and National Pollutant Discharge Elimination System (NPDES) permits) must implement Basin Plan requirements (i.e., water quality standards), taking into consideration beneficial uses to be protected. 2)Requires any person proposing to discharge waste within any region to file a report of waste discharge with the appropriate Regional Board. No discharge may take place until the Regional Board issues waste discharge requirements or a waiver of the waste discharge requirements. 3)Empowers the Water Boards, under the auspices of the U.S. Environmental Protection Agency, to grant Clean Water Act NPDES permits for certain point-source discharges. In practice, California routinely issues NPDES permits to selected point-source dischargers and either waste discharge AB 2398 Page 3 requirements or conditioned water quality certification for other discharges. 4)Requires any discretionary decision by a public agency with the potential for significant impacts of the environment to undergo environmental review pursuant to the California Environmental Quality Act (CEQA), unless otherwise exempt. FISCAL EFFECT : According to the Assembly Appropriations Committee: 1)Annual special fund costs to DPH to develop and implement a program to issue permits for raw water augmentation projects, including a) conducting engineering evaluations; b) establishing uniform water recycling criteria; c) reporting on the feasibility of developing drinking water criteria for potable reuse involving treated water augmentation; d) convening and administering an expert panel on public health issues and scientific and technical matter; e) appointing an advisory group; and, f) conducting studies and investigations. (Augmentation Permit Fund, created by this bill.) 2)Annual permitting fee revenue of an unknown amount sufficient to cover DPH's annual costs (Augmentation Permit Fund). 3)Annual special fund costs to SWRCB, in the range of $450,000 to $900,000 (approximately equivalent to three to seven staff members), to develop and implement a program for permitting tertiary treated recycled water projects, including a) reviewing monitoring reports; b) prescribing terms of permits and monitoring requirements; c) enforcing and evaluating compliance; d) analyzing laboratory samples; e) conducting water monitoring and modeling; f) reviewing documents; and, g) other administrative activities. (Water Recycling Permit Fund, created by this bill.) 4)Annual savings to SWRCB, in the range of $165,000 to $325,000 (equivalent to one to three staff members) resulting from transfer of certain recycled water projects permitting to DPH that, absent this bill, would be permitted by SWRCB (Waste Discharge Permit Fund.) COMMENTS : The 2009 update of the California Water Plan, also known as "Bulletin 160," projected that 0.9 million to 1.4 AB 2398 Page 4 million acre-feet of "new water" could be achieved by 2030 through the recycling of municipal wastewater that is currently discharged into the ocean or saline bays. An acre-foot is enough water to flood an acre of land a foot deep and supply, on average, five people for one year. In 2008, the Legislative Analyst's Office, in California's Water: An LAO Primer, found that using a "least cost, highest gain" criterion for long-term water supply options," investing in the long-term solution of recycled municipal water would be the first funding priority." This January, the National Water Research Institute (NWRI), in a white paper entitled Direct Potable Reuse: Benefits for Public Water Supplies, Agriculture, the Environment, and Energy Conservation, concluded that treating a significant fraction of the municipal wastewater now being discharged to the ocean to drinking water standards and introducing direct potable reuse of municipal wastewater could stabilize the water supply in Southern California by augmenting reduced State Water Project deliveries and ensuring against water supply interruptions due to unforeseen events, such as a natural or human-made disasters. The author of this bill states that recycled water is an important component of California's sustainable water future and economic strength and that this bill would expand the use of recycled water in California by improving and streamlining the existing regulatory and permitting process to reflect current scientific study and advances in treatment technology. The author concludes that by establishing a consistent and appropriate regulatory and permitting framework for this important alternative water supply, this bill will help secure California's water supply reliability and provide the foundation for California's future economic stability. Supporters state that while many of their member agencies participate in recycled water projects, the projects themselves can be difficult to get off of the ground because of the complicated and fragmented permitting processes that currently exist. Supporters believe that creating a streamlined process of clear regulations and permits will encourage local governments to pursue recycled water projects as a means of local water supply sustainability. Opponents are concerned that the changing the definition of waste in this bill to exclude certain types of recycled water could have negative impacts on the environment and human health. Opponents question how tertiary treatment is differentiated AB 2398 Page 5 from the most advanced technologies that supposedly produce purified water in some Southern California treatment systems and are concerned that incidental runoff will not be reported until 50,000 gallons has been spilled by each recycler. Opponents state that 100 gallons is the most that should be considered incidental and are also concerned about the negative impacts of low doses of endocrine disrupting chemicals in water and wastewater. Please see the Assembly Water, Parks and Wildlife Committee and the Assembly Environmental Safety and Toxic Materials policy analyses for a full discussion of this bill. Following those hearings, amendments were made to this bill on May 21, 2012, to strengthen DPH and SWRCB authorities to regulate recycled water, including adding additional enforcement and review provisions and making technical and clarifying corrections. Lastly, it should be noted that the 50,000 gallon reporting requirement for unauthorized discharges of tertiary disinfected recycled water is existing law under Porter-Cologne. Analysis Prepared by : Tina Cannon Leahy / W., P. & W. / (916) 319-2096 FN: 0003837