BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair SB 1036 (Pavley) - Urban water management plans. Amended: April 7, 2014 Policy Vote: NR&W 9-0 Urgency: No Mandate: No Hearing Date: May 23, 2014 Consultant: Marie Liu SUSPENSE FILE. AS AMENDED. Bill Summary: SB 1036 would require the Department of Water Resources (DWR) to develop a methodology to allow for the voluntary reporting of the energy intensity of water systems in an urban water management plan. Fiscal Impact (as approved on May 23, 2014): One-time costs of $50,000 from the General Fund to DWR for the development of the methodology. Background: The Urban Water Management Planning Act (act) requires all urban water suppliers to prepare and adopt an urban water management plan. These plans must be updated every year ending in 5 and 0 (i.e. every 5 years) and include specified information such as a description of the service area of the supplier, identification and quantity of water resources, and water use projections. Under WAT§16031.5, an urban water supplier, in order to be eligible for a water management grant or loan from the state, must be implementing the water demand management measures in its urban water management plan. Proposed Law: This bill would allow an urban water management plan to include information regarding the energy intensity of its water systems, such as, estimates for the amount of energy used to extract or divert water supplies, convey and distribute water supplies, treat water supplies, and store water. This bill would require DWR to develop a methodology to guide the reporting of energy intensity of urban water systems. This methodology would be included in DWR's guidance for the preparation of urban water management plans. Related Legislation: AB 2067 (Weber) would change the reporting requirements for demand management measures in urban water SB 1036 (Pavley) Page 1 management plans. AB 2725 (Brown) would require the description of the water demand management measure in urban water management plans to include a description of an urban waterway restoration program. SB 1420 (Wolk) would require urban water management plans (UWMPs) to include quantification of water loss in the distribution system and would allow UWMPs to include projected water savings if specified information is included. Staff Comments: This bill would require DWR to develop the methodology to determine energy use in the water system. To develop the methodology, DWR anticipates having stakeholder outreach and meetings and working with the California Public Utilities Commission, who has also conducted studies and programs regarding the "Water/Energy Nexus." DWR anticipates that developing this methodology and incorporating it into its guidebook would cost $50,000. Author Amendments: Specify that DWR may consider studies and calculations conducted by the California Public Utilities Commission in developing the required methodology.