BILL ANALYSIS Ó
AB 2617
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Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2617 (Mayes) - As Amended April 14, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the California Energy Commission (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. Specifically, this bill:
AB 2617
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1)Requires CEC to consult with experts at the University of
California, California State University, local water districts
and others. Requires CEC to develop the report in cooperation
with the State Water Resources Control Board (SWRCB) and the
Department of Water Resources (DWR).
2)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
indoor and outdoor 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.
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.
FISCAL EFFECT:
1)Increased costs of $400,000 per year over a two-year period
for CEC to hire additional staff or issue contracts to prepare
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the report (GF or special fund).
2)Increased costs for SWRCB to participate in the evaluations of
water efficiency measures of approximately $70,000 per year.
3)Minor, absorbable costs for DWR to participate in the
evaluations.
COMMENTS:
1)Purpose. According to the author, 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. The author intends the report
required by this bill to serve as a guide to local water
retailers as they evaluate which incentives lead to greater
increases in water efficiency at the lowest possible cost.
2)Water Efficiency and the Drought. Executive Order B-29-15
from April of 2015 directed: 1) the CEC to fund emerging water
saving technologies; 2) the 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.
Technology in landscape irrigation has advanced in recent
years with numerous new efficient irrigation controls and
moisture sensing devices coming to the market. The cost of
water has increased significantly in the past decade and is
projected to increase annually at a rate of 4% or higher.
Consumers appear to be responding to these conditions as it
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has been reported that one of the largest areas of sales
growth at home improvement stores has been efficient landscape
irrigation equipment.
Water efficiency programs hold the potential to produce
similar significant benefits. With nearly half of all urban
water use occurring outdoors there is a clear need and
opportunity to explore ways to improve landscape irrigation.
3)Related Legislation. AB 2525 (Holden) requires DWR to create
a program to encourage local economic incentives that promote
water efficient landscapes. 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