BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
                              Senator Mark Leno, Chair
                                2015 - 2016  Regular 

          Bill No:            AB 115          Hearing Date:    June 18,  
          2015
           ----------------------------------------------------------------- 
          |Author:   |Committee on Budget                                   |
          |----------+------------------------------------------------------|
          |Version:  |January 9, 2015    Introduced                         |
           ----------------------------------------------------------------- 
           ---------------------------------------------------------------- 
          |Urgency:  |Yes                    |Fiscal:    |Yes              |
           ---------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |Consultant|Catherine  Freeman                                    |
          |:         |                                                      |
           ----------------------------------------------------------------- 
          

                        Subject: Drought Budget Act of 2015.


          Summary: This bill makes various changes to implement drought budget  
          actions adopted as part of the 2015-16 budget package.

          Background:  As part of the 2015-16 budget package, AB 115 makes various  
          statutory changes, related to drought, to implement the budget  
          act.

          Proposed  
          Law:  This bill includes the following key changes.
          
           Drought Water System Consolidation  .  Authorizes the State Water  
          Resources Control Board (State Water Board) to require water  
          systems that are serving disadvantaged communities with  
          unreliable and unsafe drinking water to consolidate with or  
          receive service from public water systems with safe, reliable,  
          and adequate drinking water. 

           Recycled Water Projects CEQA Exemption.   Provides a narrowly  
          tailored California Environmental Quality Act (CEQA) exemption  
          during a drought state of emergency proclaimed by the Governor  
          for a public agency to mitigate drought conditions by building  
          or expanding a recycled water pipeline and related groundwater  
          replenishment infrastructure if it is within existing rights of  
          way, does not impact wetlands or sensitive habitat, and where  
          the construction impacts are fully mitigated.  Authority sunsets  
          on January 1, 2017.







          AB 115 (Committee on Budget)                            Page 2  
          of ?
          
          

           Recycled Water Codes CEQA Exemption.  Exempts the development of  
          new building codes related to dual plumbing from certain CEQA  
          provisions for one code update cycle.

           Well Ordinances CEQA Exemption.   Includes legislative findings  
          clarifying that local governments may regulate groundwater  
          pursuant to their police power and provides a limited CEQA  
          exemption for adopting a groundwater protection ordinance.  That  
          exemption would expire within two years, or upon the cessation  
          of the current Drought State of Emergency, whichever is later.  

           Drought Expanded Local Enforcement Authority.   Allows local  
          water agencies to issue penalties for violations of local and  
          state water conservation requirements but limits penalties to   
          up to $1,000 for the first violation (increasing for continuing  
          violations) unless the violator has shown intent and the nature  
          of the violation is substantial.

           Drought Penalties.  Requires the State Water Resources Control  
          Board to separately account for penalties assessed for  
          violations of emergency conservation regulations and deposit  
          such funds into the Water Rights Fund for appropriation by the  
          Legislature to support water conservation activities.

           Drought Monitoring and Reporting.  Requires that diversions in  
          excess of ten acre feet of water per year, with some exceptions,  
          must have a measuring device or a method of measurement for  
          diversions. Authorizes the State Water Board to adopt emergency  
          regulations to implement the measuring device requirement and  
          increases the frequency of water diversion reporting to be at  
          least annually.  Consideration is given for cost feasibility and  
          a one-year exemption is included for parties in voluntary  
          settlement with the State Water Board regarding water  
          curtailments.

           Proposition 1 Clarifications and Accountability.  Requires the  
          Natural Resources Agency to provide specific information on  
          projects funded by Proposition 1 and requires state agencies to  
          provide outcomes and metrics for projects funded.

          Water Efficiency Revolving Fund Appropriation.  Appropriates $10  
          million of Proposition 1 to the CalConserve Revolving Fund for  
          low-interest loans for water efficiency upgrades.








          AB 115 (Committee on Budget)                            Page 3  
          of ?
          
          


          Fiscal  
          Effect:  This bill should not result in any changes to the budget act  
          or related budget actions.
          
          Support:   Unknown
          
          Opposed:  Unknown
          
          Comments:  This bill provides the necessary statutory references to enact  
          the 2015-16 budget related to drought.
          
          
                                      -- END --