BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  April 13, 2016


                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT


                           Susan Talamantes Eggman, Chair


          AB 2525  
          (Holden) - As Amended April 5, 2016


          SUBJECT:  Water-efficient landscaping.


          SUMMARY:  Requires the Department of Water Resources to create  
          the California Water Efficient Landscaping Program.   
          Specifically, this bill:  


          1)Requires the Department of Water Resources (DWR) to create the  
            California Water Efficient Landscaping Program (Program) for  
            the purpose of encouraging local agencies and water purveyors  
            to use economic incentives that promote the efficient use of  
            water, promote greenhouse gas emissions reduction and  
            sequestration, promote the benefits of consistent landscape  
            ordinances, as specified, and support and enhance water  
            inefficient grass replacement.


          2)Defines "water inefficient grass replacement" to mean either  
            of the following improvements that substantially increases  
            water efficiency of outdoor landscapes:


             a)   The installation of a water efficient irrigation system,  
               including, but not limited to, the following:









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               i)     Low-energy, high-efficiency drip irrigation;


               ii)    Rain harvesting technology to prevent stormwater  
                 runoff and promote water infiltration and supplemental  
                 irrigation;


               iii)   Low-energy graywater infrastructure to supplement  
                 outdoor irrigation supplies; and,


               iv)    Use of water efficiency application and monitoring  
                 systems;


             b)   The installation of water efficient and climate friendly  
               landscape, including, but not limited to, the following:


               i)     The use of water efficient landscape design to  
                 promote stormwater capture and water infiltration while  
                 mitigating erosion;


               ii)    The installation of native plant species and other  
                 drought tolerant plants;


               iii)   The installation of shade trees;


               iv)    The installation of edible plants and fruit trees;


               v)     The generous use of organic soil, compost and mulch;  
                 and,









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               vi)    The lowest impact method of carbon water inefficient  
                 grass replacement such as sheet mulching.


          3)Requires the Program to contain the following three elements:


             a)   A residential water inefficient grass replacement rebate  
               program that provides financial incentives for the  
               installation of water efficient landscape improvements;


             b)   A jobs program; and,


             c)   A public education for landscaping with the watershed  
               approach in collaboration with local agencies.


          4)Establishes the Water Efficient Landscaping Fund (Fund) in the  
            State Treasury, and requires money in the Fund, upon  
            appropriation by the Legislature to DWR, to be made available  
            for the following purposes:


             a)   Water inefficient grass replacement of up to $2 per  
               square foot;


             b)   The purchase of tools, plants, soil, mulch, water  
               efficient irrigation technologies, and materials necessary  
               to install water-efficient landscapes and irrigation  
               systems;


             c)   Grants to local conservation corps certified by the  
               California Conservation Corps for projects that promote the  
               use of recycled organics, compost, and mulch, including,  








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               but not limited to, the following:


               i)     Projects that protect green spaces and urban  
                 canopies in disadvantaged and low-income communities from  
                 the threat of drought, including, but not limited to,  
                 those communities identified by the California  
                 Environmental Protection Agency's screening tool,  
                 CalEnviroScreen 2.0;


               ii)    Projects that include water efficient landscape  
                 improvements and projects that develop drought-resistant  
                 or rain garden plantscapes for families that qualify for  
                 the state Low-Income Home Energy Assistance Program; and,


               iii)   Projects that develop community health food gardens  
                 and landscapes.


             d)   Administration of this part.


          5)Requires DWR, in creating the Program, to consider the  
            following:


             a)   That landscapes be designed for capture and infiltration  
               capacity that is sufficient to prevent runoff to impervious  
               surfaces and help prevent flooding;


             b)   The grading of impervious surfaces such as driveways  
               during construction to drain to vegetated areas;


             c)   That the area of impervious surfaces, including, but not  
               limited to, paved areas, roofs, and concrete driveways, be  








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               minimized;


             d)   Incorporation of pervious and porous surfaces that  
               minimize runoff, including, but not limited to, permeable  
               pavers or blocks, or pervious or porous concrete;


             e)   Directing runoff from paved surfaces and roof areas into  
               planting beds and landscaped areas to maximize site water  
               capture and reuse;


             f)   Incorporation of rain gardens, cisterns, and other rain  
               harvesting or catchment systems;


             g)   Incorporation of infiltration beds, swales, basins, and  
               dry wells to capture stormwater and dry weather runoff and  
               to increase percolation in the soil;


             h)   Encouraging the use of constructed wetlands and ponds  
               that retain water, equalize excess flow, and filter  
               pollutants;


             i)   Education as a critical component to promote the  
               efficient use of water in landscapes;


             j)   Encouraging the use of appropriate principles of design,  
               installation, management, and maintenance that save water;


             aa)  Incentivizing the participation in water inefficient  
               grass replacement programs by disadvantaged communities in  
               drought relief areas;









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             bb)  Prioritizing the participation in water inefficient  
               grass replacement programs for families that qualify for  
               the Low-Income Home Energy Assistance Program;


             cc)  Equity and fairness statewide in reimbursement rates for  
               water inefficient grass replacement programs;


             dd)  Program design that maximizes greenhouse gas emissions  
               reductions of the water inefficient grass replacement  
               projects; and,


             ee)  Incentivizing installation of graywater systems that  
               conform with the California Plumbing Code, as specified.


          6)Allows DWR, in carrying out the Program, to use the services  
            of the California Conservation Corps or certified community  
            conservation corps.


          7)Specifies the following requirements to apply to a project  
            that receives a grant:


             a)   The project shall use compost and mulch from recycled  
               organic materials that maximize greenhouse gas emissions  
               reductions; 


             b)   The project shall leverage local, state, and federal  
               funds; and,


             c)   DWR shall give priority to projects that would aid  
               community green spaces and urban canopies at the greatest  








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               risk from drought and climate impacts.


          8)Makes a number of findings and declarations, including the  
            intent of the Legislature that the Program furthers and  
            accomplishes water conservation, energy efficiency, and  
            greenhouse gas emissions reduction and climate adaptation.


          EXISTING LAW:  


          1)Prohibits a city or county from imposing a fine for a brown  
            lawn or failure to water a lawn during a period for which the  
            Governor has issued a state of emergency due to drought  
            conditions.  


          2)Prohibits cities and counties from enacting or enforcing any  
            ordinance or regulation that prohibits the installation of  
            drought tolerant landscaping, synthetic grass or artificial  
            turf on residential property.


          3)Requires local agencies to have a water efficient landscape  
            ordinance or use the DWR model water efficient landscape  
            ordinance.


          FISCAL EFFECT:  This bill is keyed fiscal.


          COMMENTS:  


          1)Bill Summary.  This bill requires DWR to create the California  
            Water Efficient Landscaping Program for the purpose of  
            encouraging local agencies and water purveyors to use economic  
            incentives that promote the efficient use of water, promote  








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            greenhouse gas emissions reduction and sequestration, promote  
            the benefits of consistent landscape ordinances, and support  
            and enhance water inefficient grass replacement.


            This bill is sponsored by the California Association of Local  
            Conservation Corps.


          2)Author's Statement.  According to the author, "On average  
            Californians use over 50% of their water on landscaping and  
            other outdoor uses.  With many existing techniques and  
            improvements available to increase water efficiency and  
            conservation, California landscapes present a great and  
            largely untapped opportunity for reducing water use throughout  
            the state.  Additionally, landscaping improvements provide  
            many co-benefits, including greenhouse gas emission  
            reductions, improved stormwater management, decreased energy  
            use, recycling and material reuse, increased water capture,  
            air quality improvements, and increased opportunities for  
            workforce training and job development."


          3)Background. Governor Brown issued two proclamations of a State  
            of Emergency in early 2014 due to severe and ongoing drought  
            conditions.  In light of the impacts of the drought on water  
            supply, the Governor issued Executive Order B-29-15 on April  
            1, 2015, which included orders to save water, increase  
            enforcement against water waste, invest in new technologies,  
            and streamline government response, as specified.  Among its  
            provisions, the Executive Order required the State Water  
            Resources Control Board to impose restrictions to achieve a  
            statewide 25 percent reduction in potable urban water usage  
            through February 28, 2016, and required DWR to lead a  
            statewide initiative, in partnership with local agencies, to  
            replace 50 million square feet of lawns and ornamental turf  
            with drought tolerant landscapes.  DWR is directed to provide  
            funding to allow for lawn replacement programs in underserved  
            communities to complement existing local programs.








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            In response to the directive in the Executive Order, DWR has  
            developed the Turf Replacement Initiative, consisting of three  
            integrated program components:

             a)   A Residential Turf Rebate Program, which provides  
               customer rebates and contractor direct rebates for  
               residential turf removal and replacement efforts;


             b)   A Commercial, Industrial and Institutional Turf  
               Replacement Program targeting turf removal and replacement  
               on government and commercial sites in underserved  
               communities of the San Joaquin Valley; and,


             c)   A Statewide Campaign to Promote Drought Tolerant  
               Landscapes, which is a DWR partnership with state,  
               regional, local, and nonprofit entities to publicize the  
               rebate initiative and communicate the benefits of  
               converting lawns to drought tolerant landscapes, including  
               outreach, community engagement, and technical support.


            The 2015 Budget Act included $25 million in Proposition 1  
            general obligation bond funds designated for water use  
            efficiency to fund DWR's Turf Replacement Initiative.  This  
            level of funding was expected to support the conversion of  
            over 10 million square feet of turf.  The guidelines for the  
            Residential Turf Rebate Program specify the state program  
            rebate amount was $2 per square foot of turf removed with a  
            maximum rebate of $2,000 per household.  The guidelines  
            required rebated portions of converted landscapes to only  
            include low water use, drought tolerant, or California native  
            plants, and prohibit the use of rebates for live or synthetic  
            turf on converted landscapes.










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          4)Prior Legislation: 


             a)   AB 1881 (Laird), Chapter 559, Statues of 2006, required  
               the development and compliance with the model water  
               efficient landscape ordinance.


             b)   AB 1 (Brown), Chapter 62, Statues of 2015, prohibited a  
               city or county from imposing a fine for a brown lawn or  
               failure to water a lawn during a period for which the  
               Governor has issued a state of emergency due to drought  
               conditions.  


             c)   AB 1164 (Gatto), Chapter 671, Statutes of 2015,  
               prohibited cities and counties from enacting or enforcing  
               any ordinance or regulation that prohibits the installation  
               of drought tolerant landscaping, synthetic grass or  
               artificial turf on residential property.


          5)Funding.  The Committee may wish to ask the author to discuss  
            how the Program will be funded and whether funding is  
            anticipated to be ongoing or one-time revenues.


          6)Committee Amendments.  The committee may wish to consider the  
            following amendments:


             a)   No Funding Identified.  Given that there is no funding  
               source specified in the bill, the Committee may wish to  
               consider adding an amendment into the bill that makes the  
               creation of the program by DWR contingent upon  
               identification of a funding source either through  
               legislative enactment or in the State Budget.










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             b)   Drafting Error.  The author has indicated that there was  
               a drafting error in the most recent set of amendments.  The  
               author would like correct Part 2.13, Section 10960 (b) of  
               the Water Code, as follows:


                 (b) As used in this part, "water inefficient grass  
                 replacement" means  either   both  of the following  
                 improvements that substantially increases water  
                 efficiency of outdoor landscapes:


          7)Arguments in Support.  Supporters argue that this bill will  
            promote water conversation in urban landscapes through  
            economic incentives, and will conserve precious natural  
            resources by promoting more water efficient landscapes in  
            California.


          8)Arguments in Opposition.  None on file.


          9)Double-Referral.  This bill was heard by the Water, Parks and  
            Wildlife Committee on March 29, 2016, where it passed with a  
            10-3 vote.  


          REGISTERED SUPPORT / OPPOSITION:




          Support


          Association of Professional Landscape Designers - California  
          Chapter 
          Bay-Friendly Landscaping & Gardening Coalition
          Building Owners & Managers Association of California








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          California Association of Local Conservation Corps
          California Building Industry Association
          California Business Properties Association
          California League of Conservation Voters
          California Retailers Association
          California Urban Water Conservation Council
          Californians Against Waste
          G3, Green Gardens Group
          International Council of Shopping Centers
          Mono Lake Committee
          NAOIP, Commercial Real Estate Association
          Nexus eWater
          Sacramento Tree Foundation
          Surfrider Foundation
          Trust for Public Land
          Yisrael Family Farm 


          Opposition


          None on file




          Analysis Prepared by:Debbie Michel / L. GOV. / (916) 319-3958




















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