BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair AB 2282 (Gatto) - Building standards: recycled water systems. Amended: August 5, 2014 Policy Vote: T&H 11-0; EQ 6-0 Urgency: No Mandate: No Hearing Date: August 11, 2014 Consultant: Mark McKenzie This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 2282 would provide for the development and adoption of mandatory building standards during the 2016 Intervening Code Adoption Cycle for the installation of recycled water systems for newly constructed residential, commercial, and public buildings. Fiscal Impact: Department of Housing and Community Development (HCD) staff costs of up to $125,000 annually in 2015-16 and 2016-17 to research, develop, and propose mandatory building standards for recycled water systems for residential buildings. (Building Standards Administration Special Revolving Fund) Building Standards Commission (BSC) staff costs of $176,000 annually in 2015-16 and 2016-17 to research, develop, and adopt mandatory building standards for recycled water systems for commercial and public buildings. (Building Standards Administration Special Revolving Fund) Additional BSC costs in 2015-16 to conduct a study related to the expansion of specified plastic pipe in the built environment under the California Environmental Quality Act (CEQA). Costs would be at least $175,000 if the study results in a negative declaration or mitigated negative declaration, and would be at least $275,000 if a CEQA study necessitates an environmental impact report. These costs could escalate if any CEQA determinations are challenged in court. (Building Standards Administration Special Revolving Fund) Background: The California Building Standards Law establishes the BSC and the process for adopting state building codes. The law requires the BSC to adopt a new version of the California AB 2282 (Gatto) Page 1 Building Code (CBC) every three years. The next revision of the CBC will be adopted by the BSC in 2016. Existing law requires HCD to propose the adoption, amendment, or repeal of building standards for hotels, motels, lodging houses, apartment houses, and residential dwellings. Although the building standards for most local buildings, such as commercial, industrial, and manufacturing facilities, are determined by local agencies, the BSC has the authority to adopt green building standards for these local buildings. Existing law defines "recycled water" as water which, as a result of treatment of waste, is suitable for a direct beneficial use or a controlled use that would not otherwise occur. Existing law require the State Water Resources Control Board (SWRCB) to adopt regulations regarding groundwater replenishment and surface water augmentation with recycled water, and report to the Legislature on the feasibility of developing uniform water recycling criteria for direct potable reuse. Recycled water is commonly used for nonpotable purposes such as agriculture, landscape, public parks, and golf course irrigation, and may also be used for cooling water in power plants, industrial applications, toilet flushing, dust control, and construction activities. Nonpotable recycled water must be carried in separate plumbing that is colored purple, otherwise known as "purple pipes." Proposed Law: AB 2282 would provide for the development and adoption of mandatory building standards during the 2016 code adoption cycle for the installation of recycled water systems for newly constructed residential, commercial, and public buildings. Specifically, this bill would: Require HCD to conduct research, in consultation with the SWRCB, the Department of Public Health (DPH), and other specified parties, to propose building standards for the installation of recycled water systems for newly constructed residential buildings, including applications for both indoor and outdoor uses, as specified. Require HCD to submit mandatory building standards for the installation of recycled water systems for newly constructed single-family and multifamily residential buildings for adoption by the BSC in the 2016 code adoption cycle, and authorize amendments to these standards in the future, as specified. Require BSC to conduct research, in consultation with AB 2282 (Gatto) Page 2 the SWRCB, the DPH, and other specified parties, to develop building standards for the installation of recycled water systems for newly constructed commercial and public buildings, including applications for both indoor and outdoor uses, as specified. Require BSC to adopt mandatory building standards for the installation of recycled water systems for newly constructed commercial and public buildings, and consider the proposed standards in the 2016 code adoption cycle. BSC would be authorized to amend these standards in the future, as specified. Require HCD and BSC to limit the mandate to install recycled water systems to those areas that have feasible and cost-efficient access to a water recycling facility or that a public water system has identified in its most recent urban water management plan for the provision of recycled water with a specific implementation timeline. Specify that the mandate to install recycled water piping shall not apply to areas in which recycled water is used only for potable purposes, or in which nonpotable deliveries are expected to remain level or decrease as a result of potable reuse. Authorize cities and counties to further reduce the area in which the mandate to install recycled water piping applies, if the local public water system or recycled water producer finds that providing recycled water to an area is not feasible or cost effective. Authorize HCD and BSC, upon appropriation, to expend funds from the Building Standards Administration Special Revolving Fund for these purposes. Staff Comments: Some local agencies have been using recycled water for nonpotable purposes for many years, typically for outdoor and landscaping purposes. Several local agencies are using recycled water for indirect, potable groundwater supply augmentation by pumping recycled water into aquifers. This bill is intended to ensure that future residential, commercial, and public buildings are constructed to provide for recycled water use, particularly in local jurisdictions that have access to, or plan to construct recycled water facilities. Recommended Amendments: Staff recommends the following technical amendments: Page 6, line 16, strike out "department" and insert: AB 2282 (Gatto) Page 3 commission Page 6, line 33, strike out "residential" and insert: commercial and public