BILL ANALYSIS Ó
SB 88
Page 1
(Without Reference to File)
SENATE THIRD READING
SB
88 (Committee on Budget and Fiscal Review)
As Amended June 17, 2015
Majority vote. Budget Bill Appropriation Takes Effect
Immediately
SENATE VOTE: Vote not relevant
SUMMARY: This is the Drought Trailer Bill for 2015-16. It
contains necessary changes related to the Budget Act of 2015.
This bill makes various statutory changes related to water and
drought relief to implement the 2015-16 budget and appropriates
$10 million for water efficiency. Specifically, this bill:
1)Drought Water System Consolidation. Authorizes the State
Water Resources Control Board (State Water Board) to require
water systems that are serving disadvantaged communities with
unreliable and unsafe drinking water to consolidate with or
receive service from public water systems with safe, reliable,
and adequate drinking water.
2)Recycled Water Projects CEQA Exemption. Provides a narrowly
tailored California Environmental Quality Act (CEQA) exemption
during a drought state of emergency proclaimed by the Governor
SB 88
Page 2
for a public agency to mitigate drought conditions by building
or expanding a recycled water pipeline and related groundwater
replenishment infrastructure if it is within existing rights
of way, does not impact wetlands or sensitive habitat, and
where the construction impacts are fully mitigated. Authority
sunsets on January 1, 2017.
3)Recycled Water Codes CEQA Exemption. Exempts the development
of new building codes related to dual plumbing from certain
CEQA provisions for one code update cycle.
4)Well Ordinances CEQA Exemption. Includes legislative findings
clarifying that local governments may regulate groundwater
pursuant to their police power and provides a limited CEQA
exemption for adopting a groundwater protection ordinance.
That exemption would expire within two years, or upon the
cessation of the current Drought State of Emergency, whichever
is later.
5)Drought Expanded Local Enforcement Authority. Allows local
water agencies to issue penalties for violations of local and
state water conservation requirements but limits penalties to
up to $1,000 for the first violation (increasing for
continuing violations) unless the violator has shown intent
and the nature of the violation is substantial.
6)Drought Penalties. Requires the State Water Board to
separately account for penalties assessed for violations of
emergency conservation regulations and deposit such funds into
the Water Rights Fund for appropriation by the Legislature to
support water conservation activities.
7)Drought Monitoring and Reporting. Requires that diversions in
excess of 10 acre feet of water per year, with some
SB 88
Page 3
exceptions, must have a measuring device or a method of
measurement for diversions. Authorizes the State Water Board
to adopt emergency regulations to implement the measuring
device requirement and increases the frequency of water
diversion reporting to be at least annually. Consideration is
given for cost feasibility and a one-year exemption is
included for parties in voluntary settlement with the State
Water Board regarding water curtailments.
8)Proposition 1 (2014) Clarifications and Accountability.
Requires the Natural Resources Agency to provide specific
information on projects funded by Proposition 1 and requires
state agencies to provide outcomes and metrics for projects
funded.
9)Water Efficiency Revolving Fund Appropriation. Appropriates
$10 million of Proposition 1 to the CalConserve Revolving Fund
for low-interest loans for water efficiency upgrades.
COMMENTS: This bill contains the statutory changes necessary to
implement this bill related to drought and water. It contains
nine main components:
1)Drought Water System Consolidation. Authorizes the State
Water Board to require consolidation of water systems in
disadvantaged communities in unincorporated areas or served by
mutual water companies with a chronic lack of adequate, safe,
and reliable drinking water.
2)Recycled Water Projects CEQA Exemption. Provides a CEQA
exemption for a narrow class of water recycling projects that
will not impact sensitive environments.
3)Recycled Water Codes CEQA Exemption. Provides a CEQA
exemption in order to streamline the adoption of building
SB 88
Page 4
codes related to dual plumbing and facilitate water savings.
4)Well Ordinance CEQA Exemption. Provides legislative findings
clarifying that local governments may regulate groundwater
pursuant to their police power and provides a limited CEQA
exemption for adopting a groundwater protection ordinance.
That exemption would expire within two years, or upon the
cessation of the current Drought State of Emergency, whichever
is later.
5)Drought Expanded Local Enforcement Authority. Allows any
public entity that supplies water to assess, including
administratively, up to a $10,000 penalty for violation of an
emergency conservation regulation. Limits the level of fines
for a first time violation to a maximum of $1,000 unless the
residential user had actual notice of the requirement, the
conduct was intentional and the amount of water was
substantial.
6)Drought Penalties. Directs State Water Board civil penalties
collected from violations of water conservation regulations
into a fund to be used, upon appropriation by the Legislature,
for statewide water conservation activities and programs.
7)Drought Monitoring and Reporting. This is a two part
proposal. Makes the State Water Board's temporary
drought-related $500/day administrative enforcement penalty
authority permanent. Also requires annual water measurement
reporting to the State Water Board for water uses of 10
acre-feet per annum or more. However, this bill incorporates
flexibility regarding the device or method of measurement and
exceptions to the monitoring requirements if strict compliance
is infeasible, unreasonably expensive, adequately addressed by
other conditions, or deemed unnecessary for a smaller
diversion. Provides a one-year extension for parties that
SB 88
Page 5
settled with the State Water Board on voluntary diversion
reductions.
8)Proposition 1 Clarifications and Accountability. Facilitates
bond accountability by requiring grantees to evaluate outcomes
for projects funded by Proposition 1 and requires the
California Natural Resources Agency to post to its web site
changes in project time lines and funding.
9)Water Efficiency Revolving Fund Appropriation. Appropriates
$10 million of Proposition 1 to the CalConserve Revolving Fund
for a pilot project for local agencies to provide water
efficiency upgrades to eligible residents at no upfront cost
through low-interest loans that can be repaid through utility
bills.
Analysis Prepared by: Gabrielle Meindl /
BUDGET / (916) 319-2099 FN: 0001029