BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2617


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          Date of Hearing:  April 12, 2016


                  ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE


                                 Marc Levine, Chair


          AB 2617  
          (Mayes) - As Amended March 28, 2016


          SUBJECT:  Water efficiency measures


          SUMMARY:  Requires the California Energy Commission (CEC) to  
          prepare a report analyzing the costs and benefits of incentives  
          for various specified water efficiency measures.  Specifically,  
          this bill:


          1)Requires the CEC, by December 1, 2017, in consultation with  
            experts at the University of California, California State  
            University, local water districts, and others, and in  
            cooperation with the State Water Resources Control Board  
            (Water Board) and the Department of Water Resources (DWR), to  
            develop and solicit comments on a proposed report that  
            contains an analysis of the relative costs and benefits of  
            incentives for various water efficiency measures, including  
            the impact of evapotranspiration rates in different  
            hydrological regions of the state.  Defines evapotranspiration  
            for these purposes.


          2)Requires that the water efficiency measures considered in the  
            proposed report include but not be limited to the following  
            four measures:









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               a)     Turfgrass removal and replacement with  
                 drought-resistant turfgrass or artificial turf.   
                 Turfgrass is defined to mean any living grass that is  
                 used as specified.


               b)     Use of conservation-based irrigation technology such  
                 as smart controllers.


               c)     Investments in graywater infrastructure to supply  
                 water for outdoor landscapes.


               d)     Rebates for highly efficient consumer appliances and  
                 landscape systems.  Highly efficient consumer appliances  
                 and landscape systems are defined to include, but are not  
                 limited to, irrigation systems, toilets, showers, pool  
                 covers, and clothes washers.


          3)Requires that the proposed report include an analysis of  
            unintended adverse environmental impacts of the water  
            efficiency measures considered, and the projected benefits of  
            recommended voluntary water efficiency measures.


          4)Requires the CEC to issue a final report by July 1, 2018, that  
            includes all of the following:


               a)     Identification of the most cost-effective incentives  
                 for water efficiency measures, measured by the amount of  
                 water use reduction per dollar spent.


               b)     Recommendations to public entities for prioritizing  
                 the most cost-effective measures.








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               c)     Analysis of any unintended adverse environmental  
                 impacts from the water efficiency measures.  Unintended  
                 adverse environmental impacts is defined to include, but  
                 are not limited to, impacts on climate change, net effect  
                 on carbon sequestration, increased erosion, and impacts  
                 to stormwater runoff.


               d)     Projected benefits of recommended voluntary water  
                 efficiency measures.


          5)States that it is the intent of the Legislature that the state  
            identify and recommend the most cost-effective water  
            efficiency measures that achieve the greatest reduction in  
            water use and avoid any unintended adverse environmental  
            impacts.


          6)Defines various terms for purposes of this bill.   


          EXISTING LAW:  


          1)Promotes landscape water conservation through water efficient  
            landscape ordinances.  Local agencies must have a water  
            efficient landscape ordinance or DWR's model water efficient  
            landscape ordinance applies.  The model ordinance addresses  
            water conservation and appropriate plant use, encourages the  
            capture and retention of stormwater, and encourages the use of  
            economic incentives to promote the efficient use of water. 


          2)Promotes landscape water conservation through urban water  
            management planning.  Under the Urban Water Management  
            Planning Act, urban water agencies are required to develop and  








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            adopt urban water management plans.  Among other things, urban  
            water management plans are to describe water demand management  
            measures including large landscape conservation programs and  
            incentives.


          3)Requires the CEC to carry out studies on energy efficiency,  
            and to adopt energy and water efficiency standards for  
            building design and construction.  Requires the CEC, in  
            consultation with DWR, to adopt by regulation performance  
            standards and labeling requirements for landscape irrigation  
            equipment, including irrigation controllers and moisture  
            sensors to reduce energy and water consumption. 


          FISCAL EFFECT:  Unknown


          COMMENTS:  This bill requires the CEC, in consultation with  
          other entities, to produce a report that analyzes various water  
          efficiency incentives programs.  The report would be required to  
          include an analysis of four specific water efficiency programs  
          but could include others.  The four measures required to be  
          analyzed in the report include turfgrass removal and replacement  
          with drought-tolerant turfgrass or artificial turf,  
          conservation-based irrigation technology such as smart  
          controllers, graywater infrastructure for outdoor landscaping,  
          and rebates for high energy efficiency appliances and systems  
          such as irrigation, toilets, showers, pool covers, and clothes  
          washers.  


          1)Author's Statement: The author states that while millions of  
            dollars have been spent on water efficiency incentives in  
            response to California's drought, there is not an  
            authoritative independent report comparing the relative costs  
            and benefits of different incentive options.  An audit of the  
            Los Angeles Department of Water & Power's turfgrass  
            replacement program released by the city controller in  








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            November 2015 found that the turf rebate program saved less  
            water per dollar spent than other conservation programs, such  
            as rebates on high-efficiency appliances, which yielded a  
            water savings almost five times higher than turf replacement.   
            This bill would direct the CEC to produce a report on water  
            efficiency incentives and to consider any unintended  
            environmental impacts.  The report can serve as a guide to  
            local water retailers as they evaluate which incentives make  
            sense for their customers, and lead to greater increases in  
            water efficiency at the lowest possible cost.  


          2)Background:  Water applied to landscapes is 50% of residential  
            water consumption statewide, but varies considerably by  
            region, from 30% in some coastal communities to 60% or more in  
            some inland areas.  According to DWR's website, outdoor  
            landscaping is the single largest use of residential water,  
            and in most residential yards turfgrass is the largest  
            consumer of water.  Reducing or eliminating how much grass is  
            present in residential landscapes can thus produce significant  
            water savings.  The Governor's Executive Order issued in April  
            2015 directed specific actions to reduce potable water use in  
            the urban sector.  Directive number 3 of the order called for  
            50 million square feet of turf to be replaced with  
            drought-tolerant landscapes, to be accomplished by, among  
            other things, a residential turf rebate program implemented by  
            DWR.



          The Department of Water Resources is operating a $24 million  
            turf replacement program with rebates of $2 per square foot  
            capped at $2,000 per household.  The rebates are directed to  
            local turf replacement programs.  This is estimated to benefit  
            more than 10,000 homes, with $12 million targeted to  
            disadvantaged communities hardest hit by the drought.  The  
            program is projected to yield 1,200 acre feet of water savings  
            annually.  This is reportedly approximately equivalent to  
            replacing 44,000 legacy toilets with high water efficiency  








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            toilets. 
            In recent years, a number of local governments and agencies  
            have established rebate programs to encourage conservation.   
            For example, in an effort to reduce water consumption, the  
            Metropolitan Water District of Southern California offers a  
            rebate based on each square foot of turf removed.  The City of  
            Sacramento is currently offering cash to help customers remove  
            their front yard turf and replace it with native and drought  
            tolerant plants.



            A report by the Public Policy Institute of California (PPIC)  
            found that well-installed drip irrigation can attain  
            efficiency levels approaching 90-95%, and that low-water  
            plants need only 20% of the evapotranspiration rate compared  
            to 80% for lawns.  Field studies conducted by the Southern  
            Nevada Water Authority estimated conversion from turf to  
            low-water landscaping plants brought water use down from 73  
            gallons per square foot to 17.2 gallons, for a 76% water  
            savings.

            The sponsors of this bill assert that the environmental  
            benefits of turfgrass include carbon sequestration.  A 2008  
            research report commissioned by the sponsors entitled  
            "Technical Assessment of the Carbon Sequestration Potential of  
            Managed Turfgrass in the United States" by Dr. Ranajit Sahu  
            found that one acre of managed turfgrass will hold about .46  
            tons or 920 lbs. of carbon in a year.  After subtracting the  
            amount of CO2 emitted by mowers, the study concluded that  
            turfgrass produced a net carbon sink of 760 lbs.  However,  
            critics of the study have asserted that it failed to take into  
            account the amount of CO2 emitted by lawn chemicals, the  
            manufacture and transport of fertilizers, and the effects of  
            irrigation. By comparison, temperate forests can hold 2,000 to  
            6,000 lbs of carbon per year per acre, and native grasslands  
            can sequester 2,400 to 3,000 lbs per year.  Studies show that  
            different types of vegetation and how they are managed will  
            sequester different quantities of CO2.








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            A 2010 Florida study found that highly manicured and  
            maintained lawn areas may actually emit more CO2 than they  
            sequester.  While Florida has a different climate and soils  
            than California, the take home message of the study was that  
            highly maintained lawns and trees sequester much less CO2 than  
            more natural areas with little maintenance. With more lawn  
            cover than tree canopy cover, the balance can actually shift  
            to emitting CO2. The calculations of the study were simplified  
            as they did not add the carbon cost of making and maintaining  
            the power equipment or the carbon cost of growing and  
            transporting sod.  The study also did not calculate the  
            emission of nitrous oxide (N2O) from fertilization  
            applications, but noted that urban turfgrass typically emits  
            N2O after fertilization and/or irrigation. According to the  
            study, N2O has a worse global warming potential as its  
            heat-absorbing potential is approximately 300 times more than  
            CO2. Thus, urban open space that has a large amount of mowed,  
            irrigated, fertilized lawns can be a source of CO2 rather than  
            a sink.  Because below-ground soil carbon sequestration was  
            not calculated, the study cautioned that full carbon credit  
            could not be assessed and that the above-ground numbers  
            reported should therefore be regarded as a first look at the  
            potential carbon value of urban greenspace. The study  
            concluded that at this stage natural greenspaces in and around  
            urban areas, with little to no maintenance, seem to be the  
            best option for CO2 sequestration. Natural urban greenspaces  
            also have other benefits, such as biodiversity conservation,  
            reduced stormwater runoff, and reduced fertilizer  
            applications. The study concluded that overall, the  
            conservation of urban open space could play a role in reducing  
            Florida's carbon footprint, but highly maintained urban  
            greenspace could be regarded as a source of greenhouse gases. 
              
          3)Prior and Related Legislation:  AB 1881 (Laird) Chapter 559,  
            Statues of 2006, established the Water Conservation in  
            Landscaping Act.










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          AB 2525 (Holden) which was heard and passed by this committee on  
            March 29, 2016, requires DWR to create a program to encourage  
            local economic incentives that promote water efficient  
            landscapes.  AB 2525 requires DWR to create a program to fund  
            the advancement of turf rebates, jobs, and education of  
            eco-landscaping.

          AB 1928 (Campos) requires the State Energy Resources  
            Conservation and Development Commission to adopt landscape  
            irrigation equipment performance standards and labeling  
            requirements.  AB 1928 was heard and passed by this committee  
            on March 29, 2016.

          Support Arguments:  Supporters emphasize the CEC's experience in  
            performing cost benefit analyses, and that industry, local  
            government and the environmental community have worked  
            cooperatively with the CEC in development of cost benefit  
            analyses on energy efficiency building standards. Other  
            supporters describe turfgrass as a resilient groundcover  
            solution that sequesters carbon and air pollutants.  They  
            assert that large scale removal of turfgrass from lawns has  
            detrimental environmental effects and is not the most cost  
            effective water conservation tool.  Supporters claim benefits  
            provided by grass lawns include reducing stormwater runoff,  
            filtering pollutants from water and air, reducing soil  
            erosion, mitigating heat island effect, increasing human and  
            pet health, diminishing noise and light pollution, and  
            producing oxygen.
          4)Opposition Arguments: None received.


          5)Suggested Amendments:  This bill requires that the study look  
            at four specific water efficiency measures, but does not  
            specifically require that the option of turfgrass removal and  
            replacement with native or drought-tolerant, low-water use  
            plants be analyzed.  In addition, this bill requires the CEC  
            to analyze the unintended adverse environmental impacts that  
            could result from the measures, but not the beneficial  








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            environmental impacts.  The stated legislative intent in this  
            bill includes avoiding any adverse environmental impacts, but  
            the actual legislative intent might more accurately be  
            described as producing a net result in which the beneficial  
            environmental impacts of a chosen measure outweigh any adverse  
            impacts.  In order to better accomplish the author's stated  
            intent, the following amendments are recommended:


            On page 2, amend line 8 to read:



            "that achieve the greatest reduction in water use  and produce  
            net environmental benefits that outweigh  and avoid   any  
            unintended adverse environmental impacts."

            On page 3, after line 14 insert:

             "(2) Turfgrass removal and replacement with native or  
            drought-tolerant plants."
           REGISTERED SUPPORT / OPPOSITION:




          Support


          California Building Industry Association


          California Pool and Spa Association


          Irrigation Association


          National Hispanic Landscape Alliance








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          Outdoor Power Equipment Institute


          SFParks


          Turfgrass Producers International







          Opposition


          None on file.




          Analysis Prepared by:Diane Colborn / W., P., & W. / (916)  
          319-2096