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 








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               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.









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          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, 








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          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 








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          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








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          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