BILL ANALYSIS Ó SB 1036 Page 1 SENATE THIRD READING SB 1036 (Pavley) As Amended May 27, 2014 Majority vote SENATE VOTE :34-0 WATER, PARKS & WILDLIFE 13-0APPROPRIATIONS 13-4 ----------------------------------------------------------------- |Ayes:|Rendon, Allen, Bocanegra, |Ayes:|Gatto, Bocanegra, | | |Dahle, Fong, Frazier, | |Bradford, | | |Gatto, Gomez, Gonzalez, | |Ian Calderon, Campos, | | |Bloom, Patterson, | |Eggman, Gomez, Holden, | | |Rodriguez, Yamada | |Linder, Pan, Quirk, | | | | |Ridley-Thomas, Weber | |-----+--------------------------+-----+--------------------------| | | |Nays:|Bigelow, Donnelly, Jones, | | | | |Wagner | ----------------------------------------------------------------- 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 SB 1036 Page 2 water projects and programs. FISCAL EFFECT : According to the Assembly Appropriations Committee, there would be minor, absorbable costs for DWR to include this methodology in their UWMP Planning Guidebook. COMMENTS : This bill would partially implement recommendations from 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. UWMPs are also the basis for making water availability determinations under SB 610 (Costa), Chapter 643, Statutes of 2001, and SB 221 (Kuehl), Chapter 642, Statutes of 2001, which are frequently referenced collectively as the "show me the water" statutes. AB 1420 (Laird), Chapter 628, Statutes of 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 (Report). 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. There are two other pending bills being considered this session that also implement recommendations from the ITP Report: AB 2067 (Weber) of the current legislative session, would streamline the reporting requirements for demand management measures in UWMPs. And SB 1420 (Wolk) of the current legislative session, requires an urban water supplier to quantify and report distribution system water losses. According to the author, understanding California's water-energy relationship is an increasingly difficult task. The author states that the American Council for an Energy-Efficient Economy SB 1036 Page 3 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 of this bill 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. Analysis Prepared by : Tina Canon Leahy / W., P. & W. / (916) 319-2096 FN: 0004472