BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1036
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          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  








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            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  








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          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


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