BILL ANALYSIS Ó AB 2595 Page 1 Date of Hearing: April 10, 2012 ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE Jared Huffman, Chair AB 2595 (Hall) - As Amended: April 9, 2012 SUBJECT : Desalination SUMMARY : Creates a task force to make recommendations on streamlining the current permitting processes required for the planning, design, construction, monitoring, and operation of seawater desalination facilities. Specifically, this bill : 1)Makes legislative findings and declarations regarding the need for efficient water resource management and the benefits of desalination projects. 2)Asserts that California desalination projects require up to 30 local, state and federal permits for approval and that the permitting process may be unclear and redundant. 3)Requires the Ocean Protection Council (OPC) convene a 21-member Seawater Desalination Permit Streamlining Task Force (Task Force) whose recommendations will be included in a report submitted to the Legislature by December 31, 2013. 4)Specifies the Task Force shall include: a) One representative each from the following: Department of Water Resources (DWR), State Water Resources Control Board (SWRCB), California Coastal Commission (CCC), State Lands Commission, State Department of Public Health, State Energy Resources Conservation and Development Commission, California Environmental Protection Agency, Natural Resources Agency, and the Department of Parks and Recreation. b) One representative, as determined by the OPC, from each of the following: the Commission for Economic Development, a coastal regional water quality control board, a recognized environmental advocacy group, two separate and broadly recognized environmental advocacy groups that focus on coastal protection, a public water purveyor that is developing or proposing to develop a seawater desalination facility, a wholesale water supplier, a nonprofit AB 2595 Page 2 association created to further the use of seawater desalination, an environmental justice advocacy group, a business advocacy group, an organization representing public unions, an organization representing private unions. 1)Requires the report to the Legislature include recommendations for: a) Establishing clear pathways for obtaining state permits; b) Defining the regulatory scope for each permitting agency; c) Eliminating redundant requirements between California permitting agencies; d) Describing the data needed to complete each permit; e) Developing best practices for communication among regulatory agencies and the regulated community; and f) Ensuring that any recommended changes maintain the current regulatory protections. 1)Appropriates $250,000 from grant funds in the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006 (Proposition 84) that are made available to DWR to assist local agencies in meeting the long term water needs of the State and requires DWR use those funds to pay the costs of convening the Task Force and preparing the report. EXISTING LAW 1)Charges DWR with finding economic and efficient methods of desalination to meet the growing water requirement of the state of California. 2)Requires that any project subject to a discretionary approval by a public agency which could have potentially significant impacts on the environment must undergo environmental review. 3)Empowers various local, state and federal agencies with jurisdictions including, but not limited to, land use decisions, threatened and endangered species, state lands, public health and welfare, transportation, and utilities to require permits or agreements from projects that could adversely affect those resources. AB 2595 Page 3 4)Requires the SWRCB to formulate and adopt a water quality control plan for ocean waters through the development of the California Ocean Plan. The plan is currently being updated with environmentally protective, science-based regulations, specifically for desalination projects. 5)Required a Water Desalination Task Force convened by DWR and comprised of 27 public and private stakeholder groups to deliver a report to the legislature in 2003. The task force looked into potential opportunities and impediments for using brackish water and seawater desalination in California, and examined what role, if any, the State should play in furthering the use of desalination technology. FISCAL EFFECT : unknown COMMENTS : Because much of California is arid, water supply and reliability are major concerns and have long driven an ongoing need to assess and utilize all available sources of water. Over 45 years ago, in 1965, the Legislature passed the Cobey-Porter Saline Water Conversion Law calling for development of economical saline water conversion processes which could eliminate the necessity for additional facilities to transport water over long distances. More recently, in September of 2002, the Legislature passed AB 2717 (Hertzberg). AB 2717 directed DWR to convene the California Water Desalination Task Force (2003 Task Force), to report to the Legislature on potential opportunities and impediments for using seawater and brackish water desalination, and to examine what role, if any, the state should play in furthering the use of desalination technologies. That same year, the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002 (Proposition 50) passed. DWR used $50 million of Prop. 50 funds to establish a desalination grant program aimed at assisting agencies with the development of new local potable water supplies through the construction of feasible brackish water and seawater desalination projects. In 2003, the 2003 Task Force released its findings ahead of schedule. In their report, the 2003 Task Force stated that the "overarching recommendation considered critical to the advancement of desalination is that desalination projects should be evaluated on a case-by-case basis. Because each facility is essentially unique, given local water supply and reliability needs, site-specific environmental conditions, AB 2595 Page 4 project objectives, and proposed technology, case-by-case analyses are essential." Supporting Arguments : The author states that ocean desalination is an important option "for local and regional water manager(s) to consider in meeting their ratepayer's future water supply needs" and that "it is important to design a more workable permit approval process." Supporters advise it is important to give all water supply options an equal footing and that one of the bigger impediments to siting, constructing, and operating a seawater desalination facility is the lengthy permitting process. Supporters assert that it takes years to go through the process of designing and building a plant and that "the sheer number of agencies that have to review and approve the plans is overwhelming" concluding that this bill "will provide a much-needed review of the permitting process through and open and inclusive dialogue." Opposing Arguments : Opponents to this bill state that California is already in the process of developing a statewide desalination policy. They maintain that "until California has fully developed its sustainable water supply options and created a statewide regulatory framework to shape desalination policy, the Legislature should not be appropriating money and fast-tracking desalination." Additionally, opponents state that "the construction of ocean desalination facilities in California has proceeded slowly, not because of permitting obstacles, but because desalinated ocean water represents an expensive and energy intensive water supply option?Where project applicants consult early with the agencies that have permit authority and when they provide the necessary information the agencies have requested, the regulatory process works. The permit process stalls when the project applicants refuse to produce the information requested." Although the California Coastal Commission has not taken a formal position on the bill, Coastal Commission staff recommend the Commission oppose this bill as duplicative of past and current efforts regarding desalination. Staff find that most of the 29 recommendations from the 2003 Task Force have not yet been implemented and that many of the issues raised in this bill could be addressed by implementing existing recommendations without further legislative authorization or mandate. In addition, staff point out that many of the agencies in the new proposed Task Force, including DWR, are already involved in AB 2595 Page 5 developing policies, regulations, and resolutions related to desalination with a projected policy completion date of early 2013. Commission staff maintain that many of these policies are likely to address several concerns about the desalination permitting process without the need for legislation and that most of the bill's direction to the proposed Task Force is to make recommendations to the Legislature on components of the permitting process for which procedures already exist. Some of the recommendations from the 2003 Task Force included working in conjunction with local governments to assess the availability of land and facilities for environmentally and economically acceptable seawater desalination; sharing monitoring at desalination projects and reporting it widely for the broadest public benefits; creating a database and repository for storing and disseminating information; ensuring seawater desalination projects are designed and operated to avoid, reduce or minimize impingement, entrainment, brine discharge and other environmental impacts; and tasking regulators, in consultation with the public, to seek coordinated mechanisms to mitigate unavoidable environmental impacts. Eleven of the specific recommendations from the 2003 Task Force relate to permitting and ranged from suggesting that all new water supply strategies, including desalination, should be based upon adopted community General Plans, Urban Water Management Plans, Local Coastal Plans, and other approved plans that integrate regional planning, growth and water supply/demand projections to requiring private desalination projects, and private developers and plant operators, to fully disclose the same information as publicly owned and operated facilities. REGISTERED SUPPORT / OPPOSITION : Support CalDesal (Sponsor) Association of California Water Agencies Avista Technologies, Inc. BIOCOM California Chamber of Commerce California Special Districts Association Mesa Consolidated Water District Metropolitan Water District of Southern California Orange County Water District AB 2595 Page 6 San Diego County Water Authority San Gabriel County Water District Southern California Water Committee Three Valleys Municipal Water District WateReuse West Basin Municipal Water District Opposition California Coastal Protection Network California Coastkeeper Alliance Clean Water Action California Coastal Environmental Rights Foundation Democracy for America - Marin Desal Response Group Food and Water Watch Heal the Bay Marin Water Coalition Natural Resources Defense Council Orange County Coastkeeper Our City SF Planning and Conservation League Residents for Responsible Desalination Sierra Club California Southern California Watershed Alliance Surfrider Foundation Analysis Prepared by : Tina Cannon Leahy and Mandy Arens / W., P. & W. / (916) 319-2096