Amended in Assembly March 30, 2016

Amended in Assembly March 14, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1989

Introduced by Assembly Member Jones

February 16, 2016

An act begin delete to amend Section 39719 of the Health and Safety Code, and end delete to add Section 189.7 to the Water Code, relating to begin delete water, and making an appropriation therefor. end delete begin insert water. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1989, as amended, Jones. Water, energy, and reduction of greenhouse gas emissions.

Existing law, the California Global Warming Solutions Act of 2006, designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. begin delete Existing law requires all moneys, except for fines and penalties, collected by the State Air Resources Board from the auction or sale of allowances as part of a market-based compliance mechanism relative to the reduction of greenhouse gas emissions to be deposited in the Greenhouse Gas Reduction Fund and to be used, upon appropriation by the Legislature, for specified purposes, including the reduction of greenhouse gas emissions associated with water use and supply. end delete begin insert end insert begin insert The state board is required to adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020. end insert

This bill would require the State Water Resources Control Board, in coordination with the State Energy Resources Conservation and Development Commission, the Public Utilities Commission, and the Department of Water Resources, to develop and implement a grant and low-interest loan program for water projects that result in the net reduction of water-related greenhouse gas emissions. begin delete The bill would continuously appropriate $200,000,000 annually from the Greenhouse Gas Reduction Fund to the State Water Resources Control Board to develop and implement the grant and low-interest loan program. end delete

Vote: majority. Appropriation:  begin delete yes end delete begin insert no end insert . Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature finds and declares all of the
following:

(a) (1) Water and energy resources are inextricably connected.
This relationship is known as the water-energy nexus.

(2) The energy used to drive California’s water system,
including, but not limited to, the fuels used to power groundwater
pumps, transportation, treatment and disposal systems for water
and wastewater, heating and cooling of water in buildings and
other facilities, the delivery of water, and end uses, accounts for
nearly 20 percent of the total electricity usage and 30 percent of
nonpower-related natural gas consumed, and there are known gaps
in quantifying greenhouse gas emissions associated with that
energy use.

(3) Consequently, saving water saves energy and vice versa.

(4) Because the production of energy often results in the
emissions of greenhouse gases, there is substantial potential for
emission reductions in the water system.

(b) While energy use has historically been a fundamental
element in the planning and development of California’s water
supply systems, there are new opportunities for improving this
linkage to reduce water-related greenhouse gas emissions. New
projects that best serve water and energy investments can maximize
greenhouse gas emissions reductions.

begin delete

SEC. 2.  

Section 39719 of the Health and Safety Code is
amended to read:

39719.  

(a) The Legislature shall appropriate the annual
proceeds of the fund for the purpose of reducing greenhouse gas
emissions in this state in accordance with the requirements of
Section 39712.

(b) To carry out a portion of the requirements of subdivision
(a), annual proceeds are continuously appropriated for the
following:

(1) Beginning in the 2015-16 fiscal year, and notwithstanding
Section 13340 of the Government Code, 35 percent of annual
proceeds are continuously appropriated, without regard to fiscal
years, for transit, affordable housing, and sustainable communities
programs as following:

(A) Ten percent of the annual proceeds of the fund is hereby
continuously appropriated to the Transportation Agency for the
Transit and Intercity Rail Capital Program created by Part 2
(commencing with Section 75220) of Division 44 of the Public
Resources Code.

(B) Five percent of the annual proceeds of the fund is hereby
continuously appropriated to the Low Carbon Transit Operations
Program created by Part 3 (commencing with Section 75230) of
Division 44 of the Public Resources Code. Funds shall be allocated
by the Controller, according to requirements of the program, and
pursuant to the distribution formula in subdivision (b) or (c) of
Section 99312 of, and Sections 99313 and 99314 of, the Public
Utilities Code.

(C) Twenty percent of the annual proceeds of the fund is hereby
continuously appropriated to the Strategic Growth Council for the
Affordable Housing and Sustainable Communities Program created
by Part 1 (commencing with Section 75200) of Division 44 of the
Public Resources Code. Of the amount appropriated in this
subparagraph, no less than 10 percent of the annual proceeds, shall
be expended for affordable housing, consistent with the provisions
of that program.

(2) Beginning in the 2015-16 fiscal year, notwithstanding
Section 13340 of the Government Code, 25 percent of the annual
proceeds of the fund is hereby continuously appropriated to the
High-Speed Rail Authority for the following components of the
initial operating segment and Phase I Blended System as described
in the 2012 business plan adopted pursuant to Section 185033 of
the Public Utilities Code:

(A) Acquisition and construction costs of the project.

(B) Environmental review and design costs of the project.

(C) Other capital costs of the project.

(D) Repayment of any loans made to the authority to fund the
project.

(3) Beginning in the 2017-18 fiscal year, notwithstanding
Section 13340 of the Government Code, the sum of two hundred
million dollars ($200,000,000) annually is hereby continuously
appropriated from the fund to the State Water Resources Control
Board to develop and implement the grant and low-interest loan
program for water projects that result in the net reduction of
water-related greenhouse gas emissions pursuant to Section 189.7
of the Water Code.

(c) In determining the amount of annual proceeds of the fund
for purposes of the calculation in subdivision (b), the funds subject
to Section 39719.1 shall not be included.

end delete

begin delete SEC. 3. end delete

begin insert SEC. 2. end insert   

Section 189.7 is added to the Water Code, to read:

189.7.  

(a) The board, in coordination with the State Energy
Resources Conservation and Development Commission, the Public
Utilities Commission, and the department, shall develop and
implement a grant and low-interest loan program for water projects
that result in the net reduction of water-related greenhouse gas
emissions.

(b) Project categories eligible for funding under the program
include, but need not be limited to, the following:

(1) Local water projects, including, but not limited to, water
recycling, stormwater capture and reuse, groundwater cleanup,
seawater and brackish water desalination, and water conservation.

(2) Precision or water efficient irrigation and control
technologies.

(3) Clean energy generation by water and wastewater treatment
plants.

(4) Replacement of existing water pumps with more
energy-efficient water pumps.

(5) Leak detection in water distribution pipelines and associated
repairs.

(6) Water appliance efficiency.

(c) In order to be eligible for funding under the program, projects
shall result in the net reduction of water-related greenhouse gas
emissions, including, but not limited to, the emissions associated
with pumping or transporting water.

(d) In awarding grants or low-interest loans, the board shall
consider whether the proposed project helps achieve the state policy
established in Section 85021 by reducing reliance on the Delta in
meeting California’s future water supply needs.

(e) Any public moneys made available for the program to private
water companies regulated by the Public Utilities Commission
shall be used for the benefit of the ratepayers or the public, and
not the investors of the companies, and shall be subject to oversight
by the Public Utilities Commission.

(f) The board may adopt guidelines it determines are necessary
to implement this section. A guideline adopted pursuant to this
subdivision is not subject to the rulemaking requirements of
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
3 of Title 2 of the Government Code.