BILL ANALYSIS Ó AB 956 Page 1 Date of Hearing: April 27, 2015 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Das Williams, Chair AB 956 (Mathis) - As Amended April 13, 2015 SUBJECT: California Environmental Quality Act: exemption SUMMARY: Establishes an exemption from the California Environmental Quality Act (CEQA) for water recycling projects for specific communities during a drought. EXISTING LAW: 1)Requires lead agencies with the principal responsibility for carrying out or approving a proposed project to prepare a negative declaration, mitigated negative declaration, or environmental impact report (EIR) for this action, unless the project is exempt from CEQA (CEQA includes various statutory exemptions, as well as categorical exemptions in the CEQA Guidelines). 2)Pursuant to Executive Order B-29-15, suspends CEQA for actions taken by state agencies to carry out specified drought relief directives. 3)Defines "recycled water" as water which, as a result of AB 956 Page 2 treatment of waste, is suitable for a direct beneficial use or a controlled use that would not otherwise occur and is therefore considered a valuable resource. THIS BILL: Exempts from review under CEQA water recycling projects undertaken by a local agency in response to a drought. Projects must provide water for drinking and sanitation purposes to individuals and communities whose groundwater wells have run dry or exceed primary or secondary drinking water standards. FISCAL EFFECT: Unknown COMMENTS: 1)Background. CEQA provides a process for evaluating the environmental effects of applicable projects undertaken or approved by public agencies. If a project is not exempt from CEQA, an initial study is prepared to determine whether the project may have a significant effect on the environment. If the initial study shows that there would not be a significant effect on the environment, the lead agency must prepare a negative declaration. If the initial study shows that the project may have a significant effect on the environment, the lead agency must prepare an EIR. Generally, an EIR must accurately describe the proposed project, identify and analyze each significant environmental impact expected to result from the proposed project, identify mitigation measures to reduce those impacts to the extent feasible, and evaluate a range of reasonable alternatives to the proposed project. Prior to approving any project that has received environmental review, an agency must make certain findings. If mitigation measures are required or incorporated into a project, the agency must adopt a reporting or monitoring program to ensure compliance with those measures. AB 956 Page 3 CEQA includes limited exemptions for relatively small-scale pipeline maintenance and installation projects. CEQA exemptions under the Governor's Executive Order B-29-15 include investment into new technologies such as integrated on-site reuse systems, and prioritizing safe drinking water permits issued by the State Water Resources Control Board. Although the Executive Order and existing CEQA exemptions could apply for portions of a water recycling project, neither would exempt an entire project. 2)Purpose of the bill. According to the author, this bill will expedite water to communities and individuals whose groundwater wells have run dry, or where the only available groundwater is contaminated, by eliminating delays and potential litigation related to CEQA. The author states that projects undertaken to provide safe and reliable water supplies could be delayed or killed by CEQA's lengthy environmental review processes or litigation. 3)Infrastructure footprint, scale, and feasibility. Typically, wastewater is treated in municipal water treatment facilities by separating larger solid material with screens, skimming off smaller solids in settling tanks, breaking down waste with microbes in aeration tanks, and treating the clarified water with ultraviolet light, chemicals, and other processes. Although technology currently exists to treat wastewater for direct human consumption, treated wastewater is typically first deposited into reservoirs, rivers, or aquifers before being extracted and treated again. This is largely due to peoples' strong aversion to consuming wastewater directly. New technologies are currently being developed such as anaerobic membrane bioreactors, microbial fuel cells, and using light and electricity to clean water that have the potential to reduce the cost of wastewater treatment and its environmental impact. AB 956 Page 4 It is unclear in this bill as to what the infrastructure requirements and related environmental effects could potentially be for the numerous types of projects that provide water recycling services. The reference in this bill to communities whose groundwater is depleted or contaminated implies that these water recycling projects would be primarily for smaller rural communities, who are largely dependent on groundwater sources. According to the National Environmental Services Center, there are currently not any examples of small system wastewater to drinking water plants for smaller communities in the US, which the EPA classifies as less than 10,000 people. The smallest wastewater to drinking water treatment facility identified was found in Texas, serving a population of approximately 250,000 people. Although the technology for treating wastewater for drinking purposes is well-established, the different types of membrane filters that are required probably make it economically infeasible for smaller communities. It is likely that water recycling projects that serve smaller rural communities will have to originate at a larger water treatment facility and then use pipelines for conveyance. Although adding more treatment ponds or infrastructure to an existing water treatment facility might not have detrimental environmental impacts, depending on the scale of the project, building extensive recycled water pipelines could. 4)Prior legislation. This bill has some similarities to AB 2417 (Nazarian) introduced last year which exempted recycled water pipelines from CEQA. AB 956 is much broader than AB 2417, as an entire recycled water project is seeking to be exempted here rather than just the construction of pipelines. AB 2417 died in the Senate Environmental Quality Committee. AB 956 Page 5 REGISTERED SUPPORT / OPPOSITION: Support None on file. Opposition California Native Plant Society NRDC Sierra Club Analysis Prepared by:Paul Jacobs / NAT. RES. / (916) 319-2092 AB 956 Page 6