BILL ANALYSIS Ó
AB 2525
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Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2525 (Holden) - As Amended April 18, 2016
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| |Local Government | |8 - 1 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the Department of Water Resources (DWR) to
create the California Water Efficient Landscaping Program
(Program), upon identification of a funding source.
Specifically, this bill:
1)Requires the Program to contain the following three elements:
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a) A residential water inefficient grass replacement rebate
program to provide financial incentives for the
installation of water efficient landscape improvements.
b) A jobs program; and
c) A public education program for landscaping using the
watershed approach in collaboration with local agencies.
2)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 specified purposes.
3)Allows DWR, in carrying out the Program, to use the services
of the California Conservation Corps or certified community
conservation corps.
FISCAL EFFECT:
1)Increased cost pressures, in the tens of millions of dollars
range, for a funding source to establish the grass replacement
rebate program. Increased DWR administrative costs of
approximately 5% of the annual rebate program. For example,
DWR currently runs a $25 million program with operating costs
of $1.4 million (GF or special fund).
2)Increased DWR contract costs of between $2 million and $6
million depending on the scope of the jobs program (GF or
special fund.)
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3)Increased DWR costs of in the $5 million to $8 million range
for public outreach (GF or special fund). This figure is
based on the "Save Our Water" campaign funded at approximately
$5 million.
COMMENTS:
1)Purpose. According to the author, 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 and increased opportunities for
workforce training and job development. This bill requires
DWR to develop a Program to encourage local agencies and water
purveyors to use economic incentives to promote the efficient
use of water.
2)Background. Executive Order B-29-15 from April of 2015
directed: 1) the California Energy Commission (CEC) to fund
emerging water saving technologies; 2) the State Water
Resources Control Board (SWRCB) to impose a 25% reduction in
urban water use over 2013 levels; and 3) DWR to update the
state model water efficient landscape ordinance to
specifically increase water efficiency through more efficient
irrigation standards.
In response to the directive in the Executive Order, DWR
developed the Turf Replacement Initiative, consisting of three
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integrated program components: 1) a Residential Turf Rebate
Program; 2) A Commercial, Industrial and Institutional Turf
Replacement Program; and 3) a statewide campaign to promote
drought tolerant landscapes.
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.
3)Related Legislation. AB 2617 requires the CEC to develop a
water efficiency cost-benefit analysis draft report by
December 1, 2017, solicit comments, and finalize the report by
July 1, 2018. This bill will be heard today in this Committee.
AB 1928 (Campos) requires CEC to adopt landscape irrigation
equipment performance standards and labeling requirements.
This bill is on this Committee 's Suspense file.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081
AB 2525
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