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
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          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  








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          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