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  








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          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  








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               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:   








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               commission
                 Page 6, line 33, strike out "residential" and insert:   
               commercial and public