BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1925


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          Date of Hearing:  April 12, 2016


                  ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE


                                 Marc Levine, Chair


          AB 1925  
          (Chang) - As Amended March 16, 2016


          SUBJECT:  Desalination: statewide goal


          SUMMARY:  Establishes a statewide goal to desalinate 300,000  
          acre-feet of water a year by 2025 and 500,000 acre-feet a year  
          by 2030.  Specifically, this bill:  


          Makes findings that water supplies are diminishing, that there  
          is a need for greater certainty in access to high quality water,  
          and that desalinated water can meet a portion of future water  
          demands. 


          EXISTING LAW:  


          1)Declares interest in desalination to assist in meeting future  
            water needs. 


          2)Establishes a statewide goal to recycle 700,000 acre-feet of  
            water annually by the year 2000 and 1,000,000 acre-feet by the  
            year 2010.










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          3)Requires all urban water suppliers to prepare and adopt an  
            urban water management plan and update them every five years.   
            Among other requirements, urban water management plans must  
            identify and quantify water resources, including desalination.

          4)Appropriates $50 million for oceanwater desalination and $784  
            million for groundwater cleanup. 

          FISCAL EFFECT:  Unknown.


          COMMENTS:  The bill establishes a statewide goal to desalinate  
          water.


          1)Authors Statement: Establishing goals for the production of  
            water through ocean desalination will steer the entire state  
            in the direction of providing significant amounts of potable  
            water on a daily basis regardless of rainfall.  There is no  
            one water source California can depend on, we need an "all of  
            the above" approach that includes drought-proof sources like  
            desalination.


          2)Background: This bill presumes that desalination is a  
            desirable option at the local level across the state.   
            However, the role of desalination in local water needs is  
            inherently a local decision. Questions about the ability to  
            meet water needs through conservation, stormwater capture, and  
            recycling water must be put into context with the relative  
            environmental and economic cost of desalination.


            There is broad agreement that the state's water management  
            system is currently unable to satisfactorily meet both  
            ecological and human needs.  Under current water use, demands  
            surpass supply.  This is especially true  in times of drought.  
             The State has taken action through the Water Action Plan to  
            lay out a path to sustainable water management.   This and  








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            other documents put all options on the table to improve the  
            water management system.  Those options include but are not  
            limited to conservation, efficiency, stormwater capture,  
            groundwater replenishment, recycled water, and desalination.   
            Due to limited resources it is important that the state invest  
            first in actions of the highest value to create the greatest  
            improvements in water reliability for human and natural  
            requirements.


          3) State in the State of Ocean Water Desalination:  The State  
            Water Resources Control Board (State Water Board) in May 2015  
            adopted an amendment to its Water Quality Control Plan for  
            Ocean Waters providing for the first time a uniform and  
            consistent guideline for ocean water desalination facilities.


            The factsheet on the amendment states "There is broad  
            agreement that the state's water management system is  
            currently unable to satisfactorily meet both ecological and  
            human needs, too exposed to wet and dry climate cycles and  
            natural disasters, and inadequate to handle additional  
            pressures of future population growth and climate change.  
            Solutions are complex and expensive, and they require the  
            cooperation and sustained commitment of all Californians  
            working together. To be sustainable, solutions must strike a  
            balance between the need to provide for public health and  
            safety, protect the environment and support a stable economy.  
            Desalination is no exception."





            Desalinating ocean water typically requires pulling in  
            oceanwater through intake pipes using energy to push that  
            ocean water through membranes which leaves behind equal parts  
            fresh water and a dense brine that is twice as salty as the  
            ocean.  The technology to desalinate oceanwater through this  








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            process was largely developed in the 1950's and first utilized  
            on a large scale in the United States in 1977.  Fundamentally,  
            the technology has changed very little over the last 50 years,  
            though there has been improvement in energy needs.  


            There is both an environmental and economic cost to  
            desalinating oceanwater.  The construction of a plant will  
            have impacts.  The intake can have significant impact on sea  
            life if it is directly in the ocean.  The source of power can  
            have impacts on greenhouse gas emissions. How the brine is  
            disposed of can have significant impacts on sea life and ocean  
            water quality. 





            Recognizing the costs of traditional water sources are going  
            up and will continue to rise.  However, oceanwater  
            desalination remains relatively expensive today.  The large  
            facilities constructed or planned in California cost in the  
            range of $1 billion.  The fresh water produced will likely  
            cost in the range of $2,000 per acre-foot.  About half of the  
            cost of desalination comes from energy requirements. In  
            comparison, higher priced sources of urban fresh water today  
            cost in the range of $1,000 per acre-foot.  The cost of  
            conserving an acre-foot of urban water is in the $100-200  
            range.    





            While there has been extensive evaluation of oceanwater  
            desalination for decades there has been limited adoption  
            because of cost and environmental considerations.  There are  
            just over a dozen facilities around the state that have been,  
            will be, or may be constructed.  At this time there is  








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            approximately 55,000 annual acre-feet of oceanwater  
            desalination in production with an estimated additional 80,000  
            annual acre-feet likely to be desalinated in the next 5 to 10  
            years.  The total projected volume of currently known ocean  
            desalination sites, existing and under evaluation, are  
            projected to be 380,000 acre-feet annually.   





            The state has set other water use goals:  The State Water  
            Board by resolution has set the goal of increasing the use of  
            recycled water in the state over 2002 levels by at least  
            1,000,000 acre-feet per year by 2020 and by at least 2,000,000  
            acre-feet per year by 2030.  That resolution builds on law  
            that set a goal to recycle 700,000 acre-feet per year by the  
            year 2000 and 1,000,000 acre-feet per year by the year 2010.    
            As of 2012 there was an estimated 670,000 acre-feet of  
            recycled water used annually.





            Existing law requires that urban water per capita use be  
            reduced by 20 percent over 2011 levels by 2020.  This last  
            year, largely in response to drought, urban water use was  
            reduced by approximately 25%.





            The state has taken steps to advance desalination: The  
            administration through the Water Action Plan has taken an "all  
            of the above" approach to improving water management in the  
            state.  The Water Action Plan lays out a multi-action agenda  
            that includes conservation, stormwater capture, recycled  








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            water, and desalination.  The Water Action Plan coordinates  
            and directs the states approach to water management.





            Executive Order B-29-15 from April of 2015 directs permitting  
            agencies to prioritize approval of infrastructure projects  
            that increase local water supplies.  Included in those  
            infrastructure projects are desalination plants. 


            


            Existing law requires urban water suppliers through urban  
            water management plans to consider the role of desalination in  
            their water portfolio.





            The Legislature appropriated $50 million of Proposition 50  
            (2002) for oceanwater and brackish water desalination.  The  
            Legislature has appropriated $50 million, to date, out of a  
            total of $100 million of Proposition 1 bond funds directed  
            toward oceanwater desalination.  Additionally, some of the  
            appropriated $784 million of Proposition 1 bond funds for  
            ground water cleanup could be used for brackish water  
            desalination.





            Right level of Emphasis: While the state has clearly taken an  
            active role in promoting desalination it has not gone further  








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            than making it a viable option.  The determination of the  
            viability of that option has, to date, been left up to local  
            decision making.





            The ultimate effect of this legislation is to drive greater  
            state funding toward desalination.





            The committee may wish to consider whether desalination should  
            be elevated to a higher funding priority which may ultimately  
            serve to reduce prioritization of and spending on other  
            options such as conservation, efficiency, stormwater capture,  
            and recycled water.  This may be appropriate for various local  
            levels, but the committee may wish to consider whether this is  
            appropriate as a statewide goal.





          4)Prior and Related Legislation: 



               a)     AB 2717 (Hertzberg) Chapter 957, Statues of 2002,  
                 convenes the California Water Desalination Task Force to  
                 look into potential opportunities and impediments for  
                 using oceanwater and brackish water desalination.



               b)     AB 541 (Ducheny), Chapter 833, Statues of 1997,  








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                 establishes a statewide recycled water goal.



               c)     SB7 x 7 (Steinberg), Chapter 4, Statues of 2009,  
                 establishes a 20 percent urban water conservation over  
                 2011 levels by 2020.



               d)     AB 1471 (Rendon), Chapter 188, Statutes of 2014,  
                 placed Proposition 1, a $7.545 billion general obligation  
                 bond for water-related projects and programs on the  
                 November 4, 2014, ballot where it passed with 67% of the  
                 vote.  


          5)Supporting Arguments:


               AB 1925 would help advance desalination for both ocean  
               water and brackish groundwater cleanup in California as it  
               establishes goals for future development of desalinated  
               water.  Local water managers throughout the state must be  
               given the flexibility to consider several options to  
               diversify their water supply portfolio in order to assure  
               their customers a safe, reliable water supply.   
               Desalination is an excellent option to help provide  
               California's clean, safe, and reliable drinking water. AB  
               1925 highlights the importance of desalinated water, and  
               emphasizes the need to prioritize desalinated water as a  
               resource.





          6)Opposing Arguments: 









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               Setting a statewide desalination goal inappropriately  
               prioritizes development of desalination projects, which  
               have significant environmental impacts, as well as high  
               costs to the public.  California should not waste funds on  
               this type of investment at this time.  Desalination is more  
               expensive than conservation, efficiency, stormwater  
               capture, and wastewater recycling.  The State of California  
               should prioritize less environmentally harmful, less  
               expensive water resources and only pursue ocean water or  
               groundwater desalination when more cost-effective and less  
               environmentally damaging water resource options have been  
               exhausted.  AB 1925 diverts resources to the most expensive  
               source of water on the planet.


               





          REGISTERED SUPPORT / OPPOSITION:




          Support


          Association of California Water Agencies (and amend)


          CalDesal


          California Chamber of Commerce









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          Eastern Municipal Water District


          Mesa Water District


          Poseidon Water


          South Coast Water District




          Opposition


          California Coastkeeper Alliance


          California League of Conservation Voters


          Natural Resources Defense Council


          Sierra Club California







          Analysis Prepared by:Ryan Ojakian / W., P., & W. / (916)  
          319-2096










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