BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 2561|
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THIRD READING
Bill No: AB 2561
Author: Irwin (D)
Amended: 8/31/16 in Senate
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
SENATE NATURAL RES. & WATER COMMITTEE: 8-0, 8/31/16
AYES: Pavley, Stone, Allen, Hertzberg, Jackson, Monning, Vidak,
Wolk
NO VOTE RECORDED: Hueso
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: Water supply planning: projects: photovoltaic or
wind energy generation facility
SOURCE: California Wind Energy Association
Independent Energy Producers
Large-scale Solar Association
DIGEST: This bill extends, by one year, a January 1, 2017
sunset that exempts proposed photovoltaic or wind energy
generation facilities that demands no more than 75 acre feet of
water annually from having to do a water supply assessment.
Senate Floor Amendments of 8/19/16 delete the prior bill
language regarding veterans cemeteries and replace it with
language removing a January 1, 2017 sunset that exempts proposed
photovoltaic or wind energy generation facilities from having to
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conduct a water supply assessment.
ANALYSIS:
Existing law:
1)Requires a "water supply assessment" (WSA) whenever a city or
county determines a proposed "project" is subject to the
California Environmental Quality Act (CEQA). The WSA must be
included in any CEQA document prepared for the project. In
turn, a provision of CEQA requires compliance with the SB 610
(Costa, Chapter 643, Statutes of 2001) requirements.
2)Defines a "project" requiring a WSA is any of the following:
a) A proposed residential development of more than 500
dwelling units.
b) A proposed shopping center or business establishment
employing more than 1,000 persons or having more than
500,000 square feet of floor space.
c) A proposed commercial office building employing more
than 1,000 persons or having more than 250,000 square feet
of floor space.
d) A proposed hotel or motel, or both, having more than 500
rooms.
e) A proposed industrial, manufacturing, or processing
plant, or industrial park planned to house more than 1,000
persons, occupying more than 40 acres of land, or having
more than 650,000 square feet of floor area.
Until 1/1/17, a proposed photovoltaic or wind energy
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generation facility is not a project if the facility would
demand no more than 75 acre-feet of water annually.
f) A mixed-use project that includes one or more of the
projects specified in this subdivision.
g) A project that would demand an amount of water
equivalent to, or greater than, the amount of water
required by a 500-dwelling unit project.
3)Specifies that the WSA is prepared by the public water system
that may provide water for the project, or, if the city or
county identifies no such public water system, the city or
county prepares the WSA.
4)Requires the WSA to include a discussion regarding whether the
total projected water supplies (during normal, single dry, and
multiple dry water years) over the next 20 years will meet the
projected water demand associated with the proposed project,
over and above that required for existing and planned future
uses. Further, when a water supply for a proposed project
includes groundwater, the WSA must include additional
information about the sufficiency of the groundwater supply.
This bill extends for one year the current exclusion of proposed
photovoltaic or wind energy facilities from the definition of a
"project" required to have a WSA.
Background
In 2001, the Legislature passed, and the Governor signed SB 610
(Costa) and SB 221 (Kuehl, Chapter 642). Collectively, these
two bills are also known as the "show us the water" bills. The
purpose of these bills, as noted in the findings for SB 610, was
"to strengthen the process pursuant to which local agencies
determine the adequacy of existing and planned future water
supplies to meet existing and planned future demands on those
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water supplies."
In establishing the definition of a "project," the authors
strove to develop criteria that were easily identifiable to city
and county planning staff - such staff typically don't have the
background necessary to determine the water demand for a
project, but could easily determine the square footage of an
industrial park, for example.
In 2011, then Senator Rubio introduced SB 267 (Chapter 588). As
heard in the Senate Natural Resources and Water Committee, that
bill would have revised the definition of "project" to exclude a
renewable energy plant that would not demand an amount of water
equivalent to, or greater than, the amount of water required by
a 500-dwelling unit project.
As noted in the Senate Natural Resources and Water Committee
analysis, supporters offer at least three reasons for SB 267.
1)Avoiding litigation. In the aftermath of an appellate court
decision clarifying the application of the 40 acre definition
of a "project" under SB 610, opponents of solar projects in
San Diego County and San Bernardino County are challenging the
projects on the basis that the projects do not comply with
CEQA because there was no WSA.
2)Expediting Process. WSA's can be complex, particularly where
groundwater is used and no urban water management plan has
been prepared (typically the case because renewable energy
projects are usually in rural locales.) In addition to higher
costs, preparing a WSA can add several months to getting final
approval for a project.
3)Expiring Tax Credits. To qualify for the Production Tax
Credit for Renewable Energy, wind projects must be placed in
service by 12/1/2012.
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The Senate Natural Resources and Water Committee analysis also
noted that "[w]hile an initial review of available studies
suggest that at least some photovoltaic and wind energy
facilities do indeed seem to use little water, industry specific
exemptions have not been tried in the context of SB 610
requirements. Consequently, it might make sense to impose a
sunset on the exemption."
Comments
Buys time. In the absence of this bill, the exemption would
expire. By extending the exemption one year, this bill will
allow for the reasoned analysis.
Positions Uncertain. The committee has a number of letters of
opposition to the August 19, 2016 version of the bill. Staff
has heard that many, but not all, of those oppose intend to
remove their opposition with the proposed amendments.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
SUPPORT: (Verified8/31/16)
California Wind Energy Association (co-source)
Independent Energy Producers Association (co-source)
Large Scale Solar Association (co-source)
OPPOSITION: (Verified8/31/16)
California Farm Bureau Federation
California Special Districts Association
Center for Biological Diversity
Clean Water Action
Community Water Center
Defenders of Wildlife
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East Bay Municipal Utility District
Eastern Municipal Water District
Food and Water Watch
Leadership Counsel for Justice and Accountability
Sierra Club California
ARGUMENTS IN SUPPORT: According to the author, "AB 2561 will
extend, by one year, an exclusion from water supply assessments
for large solar and wind projects. These projects require very
little water and thus were exempted from the assessments through
previous legislation. A one year continuation of this exclusion
will help ensure that California is not delayed in reaching its
renewable goals and will allow a full vetting of this policy in
the subsequent legislative session."
ARGUMENTS IN OPPOSITION: The Sierra Club writes, "Water
supply availability assessments are tools to ensure that
projects have access to water, and should they need secondary
sources, they can get that water without significant impacts.
This is an important tool to prevent waterless development, a
tragedy that we have faces repeatedly during this current
drought. We should not drop this tool for renewable energy, but
instead ensure that renewable energy is sited in places where
there is adequate water to service it. This will allow for a
smoother increase in renewable energy without causing water
supply problems."
Prepared by:Dennis O'Connor / N.R. & W. / (916) 651-4116
8/31/16 22:09:07
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