BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          SB 322 (Hueso) - Water recycling.
          
          Amended: May 8, 2013            Policy Vote: EQ 9-0
          Urgency: No                     Mandate: No
          Hearing Date: May 20, 2013      Consultant: Marie Liu
          
          This bill does not meet the criteria for referral to the  
          Suspense File.
          
          
          Bill Summary: SB 322 would add additional requirements regarding  
          the development uniform water recycling criteria by the  
          Department of Public Health (DPH) with consultation with the  
          State Water Resources Control Board (SWRCB).

          Fiscal Impact: Unknown, but likely in the thousands to low tens  
          of thousands of dollars from the Waste Discharge Permit Fund  
          (special) or nonstate donations for additional requirements for  
          the development of uniform water recycling criteria.

          Background: Existing law requires DPH take several actions  
          regarding water recycling. Specifically, DPH is required to: 
           Report to the Legislature regarding the feasibility of  
            developing uniform water recycling criteria for direct potable  
            reuse by December 31, 2016. DPH is authorized to convene and  
            advisory group, task force, or other group to advise DPH  
            regarding the development of this criteria.
           Develop and adopt uniform water recycling criteria for surface  
            water augmentation. In developing these criteria, DPH is  
            required to consider specified reports and research. DPH is  
            required to convene and administer an expert panel for the  
            purposes of advising DPH regarding developing these criteria.
           Adopt uniform water recycling criteria for indirect potable  
            reuse for groundwater recharge.

          Existing law requires that civil penalties deposited in the  
          Waste Discharge Permit Fund be available to DPH, upon  
          appropriation by the Legislature, in an amount of up to $500,000  
          per FY for a total of $3 million, for the purposes of completing  
          uniform water recycling criteria requirements for direct and  
          indirect potable use (WC §13350(k)).









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          Proposed Law: This bill would require that DPH consult with the  
          SWRCB in its investigation on the feasibility of developing  
          uniform water recycling criteria for direct potable reuse.

          This bill would expand the information that DPH must consider in  
          developing uniform water recycling criteria for surface water  
          augmentation to include a report by the National Research  
          Council of the National Academies.

          This bill would require that DPH convene the expert panel on the  
          development of criteria for surface water augmentation by  
          January 30, 2014 and would additionally require the panel to  
          assess what, if any, additional areas of research are needed to  
          establish uniform regulatory criteria for indirect potable reuse  
          and recommend an approach for accomplishing that research. This  
          bill would expand the membership to include a limnologist and  
          would require DPH to consult with the National Water Research  
          Institute and the SWRCB to select panel members. DPH would be  
          required to prepare a draft report by June 30, 2016 that  
          summarizes the recommendations of the expert panel.

          This bill would allow the expert panel, advisory group, and  
          resulting report to be directly funded through nonstate  
          donations. DPH would be required to use state funds for staff  
          time, the expert panel, and the report to the extent that state  
          funds are available. DPH would be allowed to accept funds from  
          any source and to expend these funds for the purpose of  
          completing its responsibilities in this chapter. 

          Related Legislation: SB 918 (Pavley) Chapter 700/2010 required  
          DPH to establish standards and regulations for various types of  
          water recycling.

          Staff Comments: In the FY 2012-13 budget, DPH was appropriated  
          $700,000 for the development of the groundwater recharge  
          criteria. In the Governor's proposed budget for FY 2013-14, an  
          additional $700,000 is being requested for the development of  
          the surface water criteria. No funding source has been  
          identified for the development of criteria direct potable reuse.  


          DPH has indicated that the expert panel members have not yet  
          been selected yet and will likely not be selected unless this  
          year BCP for an additional $700,000 is approved. 








          SB 322 (Hueso)
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          Staff believes that because development of the criteria on using  
          recycled water for surface water augmentation and direct potable  
          reuse has not yet begun, the additional workload required by  
          this bill will likely be minimal. At most, staff anticipates the  
          costs being in the low tens of thousands. These costs can be  
          covered either by future appropriations from the Waste Discharge  
          Permit Fund or by nonstate funds received by DPH for this  
          purpose.

          Existing law allows DPH to receive nonstate funds to develop  
          uniform water recycling criteria, subject to appropriation by  
          the Legislature (WC §13569). This bill would create a new  
          section that would also DPH, the expert panel, advisory group,  
          and report preparation to be funded directly by nonstate  
          donations, that is without an appropriation from the  
          Legislature. Staff believes that combining these two sections  
          would provide more clarity on the use of nonstate funds.

          Recommended Amendments: Staff recommends that section 4 of the  
          bill regarding use of nonstate funds be combined with WC §13569.