BILL ANALYSIS Ó SB 1036 Page 1 Date of Hearing: June 17, 2014 ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE Anthony Rendon, Chair SB 1036 (Pavley) - As Amended: May 27, 2014 SENATE VOTE : 34-0 SUBJECT : Urban water management plans SUMMARY : Requires the Department of Water Resources (DWR) to include in its guidance for preparing an urban water management plan (UWMP) a methodology that would help any urban water supplier that wants to make a calculation or estimate of the energy intensity of its water system. Allows DWR to consider Public Utilities Commission studies and calculations when developing the methodology. EXISTING LAW: 1)Requires all urban water suppliers to prepare and adopt UWMPs and update them every five years. Among other requirements, UWMPs must: a) Provide a description of the service area of the supplier; b) Identify and quantify water resources; and, c) Make water use projections. 2)Specifies that compliance with the Urban Water Management Planning Act is a prerequisite to receiving state funding for water projects and programs. FISCAL EFFECT : According to the Senate Appropriations Committee analysis there would be one-time costs of $50,000 from the General Fund to DWR for the development of the methodology. COMMENTS : This bill would implement another one of the recommendations of an Independent Technical Panel (ITP) that was convened to improve UWMPs. UWMPs are a primary tool for local water suppliers to make thoughtful projections and orderly plans for meeting the needs of water users in their service area. They are also the basis for making water availability determinations under SB 610 (Costa/2001) and SB 221 (Kuehl/2001), which are frequently referenced as the "show me SB 1036 Page 2 the water" statutes. AB 1420 (Laird/2007), among other things, required DWR to convene the ITP to provide recommendations to the department and the Legislature on new demand management measures, technologies, and approaches. In February 2014, the ITP issued its Report to the Legislature on Urban Water Management Plan Demand Management Measures Reporting and Requirements. The Report made five recommendations for improving UWMPs including, but not limited to, a recommendation encouraging the voluntary reporting of information about the energy intensity of water delivered to customers. The Report noted that California's water supply is highly energy intensive with the average electric intensity level of supply two to five times greater than national averages and that water utilities are among the largest energy users in their communities. This bill would help achieve that recommendation. Related Measures : AB 2067 (Weber) would streamline the reporting requirements for demand management measures in UWMPs. AB 2067 was heard as a consent item in this Committee on March 25, 2014. SB 1420 (Wolk) requires an urban water supplier to quantify and report distribution system water losses. Both bills implement recommendations from the ITP Report. Supporting arguments : The author advises that understanding California's water-energy relationship is an increasingly difficult task. The author states that the American Council for an Energy-Efficient Economy found in 2013 that a lack of energy use data and inadequate funding were major hurdles to joint water-energy efficiency programs and that establishing baseline energy use estimates would allow utilities to identify targets for conservation programs. Other supporters advise that providing a mechanism that allows urban water suppliers to voluntarily report energy-related information could lead to future funding opportunities for water efficiency measures that save energy. REGISTERED SUPPORT / OPPOSITION : Support Association of California Water Agencies California Coastkeeper Alliance California Municipal Utilities Association California Public Utilities Commission Office of Ratepayer SB 1036 Page 3 Advocates City of Pasadena East Bay Municipal Utilities District Metropolitan Water District of Southern California Natural Resources Defense Council Opposition None on file. Analysis Prepared by : Tina Cannon Leahy / W., P. & W. / (916) 319-2096