BILL ANALYSIS                                                                                                                                                                                                    Ó





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2013-2014 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 449                    HEARING DATE: April 23, 2013
          AUTHOR: Galgiani                   URGENCY: No
          VERSION: April 18, 2013            CONSULTANT: Dennis O'Connor
          DUAL REFERRAL: No                  FISCAL: Yes
          SUBJECT: Urban and Agricultural Water Suppliers: Funding
          
          BACKGROUND AND EXISTING LAW

          1.One of the bills in the 2009 water package, SBX7 1 (Simitian),  
            enacted the Sacramento-San Joaquin Delta Reform Act of 2009.   
            One of the provisions of that Act established that "the policy  
            of the State of California is to reduce reliance on the Delta  
            in meeting California's future water supply needs through a  
            statewide strategy of investing in improved regional supplies,  
            conservation, and water use efficiency. Each region that  
            depends on water from the Delta watershed shall improve its  
            regional self-reliance for water through investment in water  
            use efficiency, water recycling, advanced water technologies,  
            local and regional water supply projects, and improved  
            regional coordination of local and regional water supply  
            efforts."

          2.Another of the bills in the 2009 water package was SBX7 7  
            (Steinberg).  That bill, sometimes known as the 20x2020 bill,  
            requires the state to achieve 20% reduction in urban per  
            capita water use by December 31, 2020.  The bill provided  
            specific methods for urban water suppliers to meet the 20%  
            reduction goal.

          SBX7 7 (Steinberg) also required agricultural water suppliers to  
            adopt a volumetric water pricing system and to implement  
            locally cost effective and technically feasible water use  
            efficiency measures, as specified.

          3.The Urban Water Management Act requires urban water suppliers  
            to produce an urban water management plan in years ending in 0  
            and 5.  Among other requirements, urban water management plans  
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            are to describe and evaluate sources of supply, reasonable and  
            practical efficient uses, reclamation, and demand management  
            activities. Plans are also to include a strategy and time  
            schedule for implementation of the plan.  An urban water  
            supplier that does not comply with the act is ineligible to  
            receive funding from Propositions 204 or 13, or receive  
            drought assistance from the state until the urban water  
            supplier complies with the Act.

          4.The Agricultural Water Management Act requires agricultural  
            water suppliers to produce an agricultural water management  
            plan in years ending in 0 and 5.  Among other requirements,  
            agricultural water management plans are required to describe  
            and evaluate sources of supply, evaluate various efficient  
            water management practices as specified in SBX7 7, and include  
            a time schedule for implementation of the plan.  An  
            agricultural water supplier that does not comply with the act  
            is ineligible for a water grant or loan awarded or  
            administered by the state unless the supplier complies with  
            the Act.

          PROPOSED LAW
          This bill would prohibit the Department of Water Resources (DWR)  
          from providing loans, grants, or direct expenditure, for  
          programs or projects within the service area of or otherwise  
          directly benefiting an urban or agricultural water supplier that  
          receives water from, transferred through, or used in the Delta  
          watershed, unless DWR determines that the water supplier is  
          reducing its dependence on the Delta pursuant to this bill.

          DWR would deem an urban or agricultural water supplier to be  
          reducing its dependence on the Delta if all of the following  
          conditions are met:
           DWR determines that the water supplier fully complies with the  
            SBX7 7 requirements and the urban or agricultural water  
            management planning act, as appropriate.
           The water agency demonstrates, to DWR's satisfaction, that the  
            water supplier is complying with the implementation schedule  
            set forth in the relevant water management plan, all programs  
            and projects included in the plan that are locally cost  
            effective and technically feasible which reduce reliance on  
            the Delta.
           Beginning in 2015, the water agency includes in its relevant  
            water management plan, the expected outcome for measurable  
            reduction in Delta reliance and improvement in regional  
            self-reliance.

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          ARGUMENTS IN SUPPORT
          According to the author, "The Sacramento-San Joaquin Delta  
          Reform Act of 2009 established as state policy is to reduce  
          reliance on the Delta in meeting California's future water  
          supply needs.  This is perhaps the most important provision in  
          that Act.  Unfortunately, the Delta Reform Act provided no  
          guidance to water agencies on how they were to comply with that  
          policy, nor any consequences for failing to comply.  This bill  
          does both."

          ARGUMENTS IN OPPOSITION: None

          COMMENTS 
          
           Why not require following the law?   It is the policy of the  
          state that each region that depends on water from the Delta  
          watershed is to improve its regional self-reliance for water  
          through investments in efficient water management practices.   
          The 20x2020 bill, Urban Water Management Act, and the  
          Agricultural Water Management Act are three of the principle  
          legal mechanisms the legislature has put in place to ensure  
          urban and agricultural water suppliers identify and implement  
          such efficient water practices.  It is not clear why the state  
          should reward water suppliers by providing limited state funds,  
          when those water suppliers don't follow state policy by simply  
          complying with established law.

          SUGGESTED AMENDMENTS: None 

          SUPPORT: None Received
          
          OPPOSITION: None Received















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