BILL ANALYSIS Ó AB 2594 Page 1 Date of Hearing: April 19, 2016 ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE Marc Levine, Chair AB 2594 (Gordon) - As Amended March 17, 2016 SUBJECT: Stormwater resources: use of captured water SUMMARY: Permits a public entity that captures stormwater before the water reaches a natural channel to use the water. Specifically, this bill: Requires the capture to be in accordance with a stormwater resource plan. EXISTING LAW: 1) Authorizes local agencies to develop Stormwater Resource Plans. Requires Stormwater Resources Plans, to among other things, be compliant with the California Environmental Quality Act (CEQA) 2) Requires the State Water Resources Control Board (State Water Board) to provide guidance for stormwater resource planning to identify opportunities for stormwater capture. 3) Recognizes that property owners may capture rainwater that has not entered any offsite drainage. AB 2594 Page 2 4) The Federal Clean Water Act requires stormwater discharged to a body of water to receive a National Pollution Discharge Elimination System (NPDES) permit. FISCAL EFFECT: Unknown. COMMENTS: This bill permits a public entity that has a stormwater resource plan, and captures stormwater before it reaches a natural channel in accordance with that plan, to use the captured water. 1) Author's statement: Climate change models predict more frequent storms and more floods in California; at the same time, our state's infrastructure treats stormwater as a waste product rather than a natural resource that can help mitigate drought. The Stormwater Resources Planning Act encourages local watersheds to develop plans to beneficially use stormwater. Compliance with a Stormwater Resource Plan does not entitle public entities to use the stormwater or to use it for water supply or water quality purposes. This means that billions of gallons of relatively clean water flows into the ocean every year. This bill will make clear that public entities can capture stormwater and can use it. This will encourage more stormwater capture and will provide additional options to finance stormwater systems. 2) Background: Numerous things have come together over the last several years to highlight stormwater as a water source opportunity where it had traditionally been treated as a water quality problem. The historic drought, reduced reliability of AB 2594 Page 3 imported water, new laws promoting stormwater, and regions looking to develop local water supply have underscored a change in how stormwater is viewed. Statewide, it has been estimated that stormwater capture could produce 630,000 acre-feet of new water. Much attention has been paid to how the Los Angeles area could benefit from greater stormwater capture. It has been estimated that 30-45 percent of Los Angeles water needs could be met through stormwater capture, producing over 250,000 acre-feet of new water. For the most part, infrastructure in coastal cities has been developed to funnel stormwater to the ocean. 50 percent of the rain falling in the Los Angeles watershed flows to the ocean. The Clean Water Act includes stormwater in NPDES requirements, this dictates cities reduce stormwater discharges. Cities or regions have a municipal separate stormwater sewer system (MS4) permit to comply with the Clean Water Act. Stormwater that winds up in the MS4 system is unused and flushed out to a body of water, typically the ocean. There are numerous agencies that could have responsibility for stormwater capture. Until recently, many of those agencies viewed managing stormwater as a burden with a significant cost. That view has changed with many agencies now wanting to capture stormwater and use it; the big missing piece to the picture is financing. Implementing stormwater capture projects will require a very different approach to stormwater infrastructure as new or reconfigured infrastructure has a significant price tag. In Los Angeles that price tag is estimated to be $20 billion over the next 25 years. AB 2594 Page 4 Proposition 1 included $200 million for multibenefit stormwater management projects and specifically made rainwater and stormwater capture eligible for funding. In 2004 Los Angeles Measure O authorized $500 million in general obligation bonds that funded some watershed improvement projects. This bill could provide help with the financing challenge by recognizing that an agency who appropriately captures stormwater has an entitlement to use that water. Existing infrastructure, especially MS4s, catch stormwater that is oftentimes not being used. How stormwater that is otherwise not being used is identified, quantified and attributed under this bill is still being developed. There are stakeholder conversations on how to address these issues currently underway. The prospect that those conversations are productive is high. There is clearly a quantity of stormwater that is not being used today. There will be a benefit from defining an entitlement to stormwater. The question remains how to define the scope of the entitlement that covers all, but not more than, the stormwater that is currently not being used. The author may wish to amend the bill to further define the scope of the entitlement by including compliance, where appropriate, with an MS4 permit. 3) Prior and Related Legislation: a) SB 790 (Pavley) Chapter 620, Statues of 2009, authorized stormwater resource plans. AB 2594 Page 5 b) AB 1750 (Solorio) Chapter 537, Statues of 2012, recognized property owners did not need a water right to capture rainwater. c) SB 985 (Pavley) Chapter 555, Statues of 2014, required the State Water Board to provide guidance for stormwater resource planning. REGISTERED SUPPORT / OPPOSITION: Support None on File Opposition None on File Analysis Prepared by:Ryan Ojakian / W., P., & W. / (916) 319-2096 AB 2594 Page 6