BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2561


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          (Without Reference to File)





          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          2561 (Irwin)


          As Amended  August 31, 2016


          Majority vote


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          |ASSEMBLY:  | 76-0 |(April 28,     |SENATE: | 38-0 |(August 31,      |
          |           |      |2016)          |        |      |2016)            |
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          Original Committee Reference:  W., P., & W.


          SUMMARY:  Extends the existing sunset in law which excludes  
          photovoltaic or wind energy generation if the facility would  
          demand no more than 75 acre-feet of water annually from a water  
          supply assessment (WSA) for one year.  Specifically, this bill:


          Extends the sunset exemption from a WSA for photovoltaic and  
          wind energy in existing law from January 1, 2017, to January 1,  
          2018.


          The Senate amendments:  Remove provisions of this bill  








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          pertaining to the establishment of the California Central Coast  
          Veterans Cemetery (CCCSVC) Project Donation Fund, and instead  
          extend the sunset for one year for photovoltaic or wind energy  
          generation that demand no more than 75 acre-feet annually from a  
          WSA and add an urgency clause.


          EXISTING LAW:  


          1)Requires a 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.  


          2)Specifies what constitutes a project that would be subject to  
            a WSA, generally, as having the scale of 500 new residential  
            connections and among other specific definitions, includes:


               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.


          3)Until January 1, 2017, exempts from the definition of a  
            project a proposed photovoltaic or wind energy generation  
            facility if the facility would demand no more than 75  
            acre-feet of water annually.


          4)Requires a WSA to: 


               a)     Identify any existing water supply entitlements,  
                 water rights, or water service contracts relevant to the  
                 identified water supply for the proposed project.  


               b)     Discuss the water systems total projected water  








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                 supplies available during normal, single dry, and  
                 multiple dry water years during a 20-year projection will  
                 meet the projected water demand associated with the  
                 proposed project, in addition to the public water  
                 system's existing and planned future uses.


               c)     If the project relies in whole or in part on  
                 groundwater, requires additional information, including a  
                 description of any groundwater basins that will supply  
                 the project; the court or State Water Resources Control  
                 Board (SWRCB) order if the basin is adjudicated; and an  
                 analysis of the sufficiency of the groundwater from the  
                 basin or basins.


          5)Requires, under the Subdivision Map Act, cities and counties  
            to demonstrate that a sufficient water supply is available as  
            a condition of their approval of a tentative map for a  
            subdivision with more than 500 dwelling units.  Specifically  
            requires:


             a)   Sufficient water supply is defined as the total water  
               supplies available during normal, single-dry, and  
               multiple-dry years within a 20-year projection that will  
               meet the projected demand associated with the proposed  
               subdivision, in addition to existing and planned future  
               uses. 


             b)   Proof of sufficient water must be based on a written  
               verification from the applicable public water system.  In  
               order to be sufficient, the water supply must be able to  
               meet the demands of existing and future planned uses in  
               addition to the subdivision's demand over the next 20  
               years.  


             c)   The public water system's written verification of its  
               ability or inability to provide a sufficient water supply  
               to meet the projected demand associated with the proposed  








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               subdivision must be supported by substantial evidence.


          FISCAL EFFECT:  Unknown.  Similar previous legislation from 2011  
          had negligible state costs, if any, according to the Assembly  
          Appropriations Committee.


          COMMENTS:  In 2001, the Legislature passed SB 610 (Costa),  
          Chapter 643, Statutes of 2001, and SB 221 (Kuehl), Chapter 642,  
          Statutes of 2001.  Collectively, these two bills are also known  
          as the "show me 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 water supplies."


          To assist local governments in deciding whether to approve  
          projects, SB 610 required a WSA whenever a city or county  
          determines a proposed project, as defined, is subject to 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 requirements.  


          The WSA is required 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.  
          Projects may be challenged in court for failure to prepare an  
          adequate water supply assessment.


          SB 267 (Rubio), Chapter 588, Statutes of 2011, specifically  
          exempts from a WSA a photovoltaic or wind energy generation  
          project if the facility demands no more than 75 acre-feet of  
          water annually until January 1, 2017.  Typically, because  








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          photovoltaic and wind energy generation projects occupy more  
          than 40 acres, they would have been subject to a WSA prior to  
          this exemption.


          This bill came into print as a sunset elimination on August 19,  
          2016.  This is now a one year sunset extension likely leading to  
          a similar measure in the 2017 legislative year.  SB 267 included  
          a sunset to provide the Legislature with the opportunity to  
          re-evaluate the exemption and determine an appropriate path  
          forward.


          What constitutes a significant use of water and a reliable water  
          supply has dramatically changed since the "show me the water"  
          legislation passed in 2001 and since photovoltaic and wind  
          energy generation was exempt in 2011.  


          Since 2011, the state has experienced the worst drought on  
          record and has begun regulation of groundwater.  This, combined  
          with advancements in water efficiency, makes for a very  
          different evaluation of how each acre-foot is to be used  
          compared to just 5 years ago.  Moving forward how the "show me  
          the water" policies are implemented will likely receive greater  
          attention as to when a WSA will be triggered.  


          Questions remain about the appropriate metric that truly  
          indicates that a project uses little water, and if specific  
          local conditions should be considered.  There are questions  
          about the self-certification for using no more than 75 acre-feet  
          under existing law and if there should be greater accountability  
          in demonstrating total use.  With 15 years having passed since  
          the passage of the "show me the water" package of legislation  
          there are questions of whether the time has come to reevaluate  
          when and how a WSA should apply.  All of these questions should  
          be examined if and when future legislation to amend the "show me  
          the water" comes forward.


          Analysis Prepared by:                                             








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                          Ryan Ojakian / W., P., & W. / (916) 319-2096   
          FN: 0005048