Amended in Assembly June 8, 2016

Amended in Assembly September 3, 2015

Amended in Senate June 2, 2015

Senate Bill No. 163

Introduced by Senator Hertzberg

February 4, 2015

An act to add Section 13557.5 to the Water Code, relating to water.

LEGISLATIVE COUNSEL’S DIGEST

SB 163, as amended, Hertzberg. Wastewater treatment: recycled water.

The California Constitution requires that the water resources of the state be put to beneficial use to the fullest extent of which they are capable and that the waste or unreasonable use or unreasonable method of use of water be prevented. Existing law declares that the use of potable domestic water for certain nonpotable uses is a waste or an unreasonable use of water if recycled water is available, as determined by the State Water Resources Control Board, and other requirements are met.

Under existing law, the state board and the 9 California regional water quality control boards prescribe waste discharge requirements in accordance with the federal national pollutant discharge elimination system (NPDES) permit program established by the federal Clean Water Act and the Porter-Cologne Water Quality Control Act.

This bill would declare begin delete that the discharge of treated wastewater from ocean outfalls, end delete begin insert that, end insert except in compliance with the bill’s provisions, begin insert it end insert is a waste and unreasonable use of begin delete water in light of the cost-effective opportunities to recycle this water for further beneficial use. This bill, on or before January 1, 2026, would require a wastewater treatment facility discharging through an ocean outfall to achieve at least 50% reuse of the facility’s actual annual flow, as defined, for beneficial purposes. This bill, on and after January 1, 2036, would prohibit the discharge of treated wastewater through ocean outfalls, except as backup discharge, as defined, and would require a wastewater treatment facility to achieve 100% reuse of the facility’s actual annual flow for beneficial purposes. This bill, on and after January 1, 2022, would authorize a NPDES permitholder subject to these requirements to petition the state board for a partial exemption to the above-described requirements. This bill would require the state board to determine, after notice and opportunity for comment, whether the petition demonstrates that the NPDES permitholder cannot comply with these reuse requirements and would provide that an exemption from these reuse requirements is valid for a period of no more than 5 years, at which point the NPDES permitholder is required to reapply for an exemption or comply with these reuse requirements. This bill would prohibit a NPDES permitholder subject to these provisions from being eligible for state grants or loans if they receive a partial exemption to these reuse requirements, unless the state grant or loan is solely for the purpose of achieving compliance with these reuse requirements. end delete begin insert water to discharge treated wastewater from an ocean or bay outfall, or for a water supplier or water replenishment district to not take treated wastewater made available for certain purposes. The bill would require the state board to promulgate regulations, on or before January 1, 2020, that would require each NPDES permitholder, on or before January 1, 2023, to submit to the state board the permitholder’s plans to achieve beneficial reuse, to the maximum extent possible, of treated wastewater that would otherwise be discharged through ocean or bay outfalls. The bill would require these regulations to require, on or before January 1, 2033, the beneficial reuse of at least 50% of treated wastewater that the NPDES permitholder would otherwise discharge though ocean or bay outfalls relative to the inflow to the treatment plant. The bill would require the regulations to provide operational and compliance flexibility, as specified. The bill would authorize the state board to convene an advisory group and to consider any other recommendations or testimony provided during the regulation adoption process. The bill would authorize the state board to adopt reasonable fees payable by a holder of an NPDES permit to recover costs incurred in administering these provisions. end insert

begin delete

This bill would require a holder of a NPDES permit authorizing the discharge of wastewater through an ocean outfall as of January 1, 2016, to submit, on or before July 1, 2020, a prescribed plan to meet these provisions, directly or by contract, to the executive director of the state board and would require the plan to be updated on or before January 1, 2024. This bill, on or before January 1, 2017, and by January 1 every 5 years thereafter, would require the holder of a NPDES permit authorizing the discharge of wastewater through an ocean outfall to submit a report to the executive director of the state board summarizing the actions accomplished to date and the actions remaining and proposed to meet the requirements of these provisions. This bill would require the state board to submit a report to the Governor and the Legislature on the implementation of these provisions on or before July 1, 2021, and by July 1 every 5 years thereafter.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 13557.5 is added to the end insert begin insert Water Code end insert begin insert , to
read: end insert

begin insert

begin insert 13557.5. end insert   

(a) The Legislature hereby finds and declares that,
except in compliance with the provisions of this section, it is a
waste and unreasonable use of water within the meaning of Section
2 of Article X of the California Constitution to discharge treated
wastewater from an ocean or bay outfall, or for a water supplier
or water replenishment district to not take treated wastewater
made available to the supplier or district for groundwater
recharge, surface water augmentation, or landscape irrigation.

(b) On or before January 1, 2020, the state board shall
promulgate regulations to require both of the following:

(1) On or before January 1, 2023, each holder of an NPDES
permit to submit to the state board the permitholder’s plans to
achieve beneficial reuse, to the maximum extent possible, of treated
wastewater that would otherwise be discharged through ocean or
bay outfalls.

(2) On or before January 1, 2033, the beneficial reuse of at
least 50 percent of treated wastewater that the NPDES
permitholder would otherwise discharge through ocean or bay
outfalls relative to the inflow to the treatment plant.

(c) The regulations promulgated pursuant to subdivision (b)
shall provide operational and compliance flexibility in the event
of an emergency, scheduled maintenance or repairs, extreme
weather events, or any other factor that the board determines
warrants consideration.

(d) In developing the regulations pursuant to subdivision (b),
the state board may convene an advisory group for the purpose
of preparing a report or recommendations to the state board about
how to implement this section and the state board may consider
any other recommendations or testimony provided during the
regulation adoption process.

(e) Consistent with Section 3 of Article XIII A of the California
Constitution, the state board may adopt reasonable fees payable
by a holder of an NPDES permit to recover costs incurred in
administering this section.

end insert

begin delete

SECTION 1.  

The Legislature finds and declares all of the
following:

(a) Severe drought conditions have persisted for the last three
years in California, and 2013 was the state’s driest calendar year
on record.

(b) California’s water supplies have dipped to alarmingly low
levels indicated by the very limited snowpack in the Sierra Nevada
Mountains, declining water levels in the state’s largest water
reservoirs, reduced surface water flows in major river systems,
and historically low groundwater levels. These water supplies
continue to be severely depleted despite a limited amount of winter
precipitation in 2014.

(c) The duration of the drought is unknown, but based on the
projected impact of climate change on California’s snowpack,
extremely dry conditions will likely continue beyond this year and
occur more regularly in the future.

(d) Continuous severe drought conditions present urgent
challenges across the state, including, but not limited to, water
shortages in communities and for agricultural production, increased
risk of wildfires, degraded habitat for fish and wildlife, and threat
of saltwater contamination in large fresh water supplies.

(e) Water reuse is one of the most efficient and cost-effective
ways to improve the drought resilience of California communities.

(f) The State Water Resources Control Board has established
goals of recycling 1,500,000 acre-feet of wastewater by 2020 and
2,500,000 acre-feet of wastewater by 2030. However, California
is not on track to meet the board’s goals.

(g) The discharge of treated wastewater from ocean outfalls
constitutes waste and unreasonable use of water within the meaning
of Section 2 of Article X of the California Constitution, in light of
the opportunities to recycle this water for further beneficial use.

(h) By prohibiting ocean discharges from wastewater treatment
plants, California could dramatically accelerate the adoption of
water recycling and thus increase water supply available for
beneficial use.

(i) Water recycling can reduce California’s dependence on
diversions from surface rivers and streams that are subject to
variable climate and regulatory conditions.

(j) In addition to water supply benefits, requiring water recycling
for further beneficial use eliminates ocean wastewater discharges,
decreasing pollutant loadings to ocean waters and improving
coastal water quality, thereby benefitting the aquatic environment
and local economies that depend on those coastal resources.

SEC. 2.  

Section 13557.5 is added to the Water Code, to read:

13557.5.  

(a) The Legislature hereby finds and declares that
the discharge of treated wastewater from ocean outfalls, except in
compliance with the provisions of this section, is a waste and
unreasonable use of water within the meaning of Section 2 of
Article X of the California Constitution in light of the cost-effective
opportunities to recycle this water for further beneficial use,
including both potable and nonpotable uses.

(b) On or before January 1, 2026, each wastewater treatment
facility that discharges through an ocean outfall shall achieve at
least 50 percent reuse of the facility’s actual annual flow for
beneficial purposes.

(c) On and after January 1, 2036:

(1) A wastewater treatment facility shall not discharge treated
wastewater through ocean outfalls, except as a backup discharge.
A backup discharge may occur only during periods of reduced
demand for reclaimed water in the reuse system, such as a period
of wet weather.

(2) Each wastewater treatment facility shall achieve 100 percent
reuse of the facility’s actual annual flow for further beneficial use.

(d) (1) A holder of a NPDES permit authorizing the discharge
of wastewater through an ocean outfall as of January 1, 2016, shall
submit, on or before July 1, 2020, a plan to meet the requirements
of this section, directly or by contract, to the executive director of
the state board that contains all of the following:

(A) An identification of all land acquisition and facilities
necessary to provide for treatment, transport, and reuse of treated
wastewater.

(B) An analysis of the costs to meet the requirements of this
section.

(C) A financing plan for meeting the requirements of this
section, including identifying any actions necessary to implement
the financing plan, such as bond issuance or other borrowing,
assessments, rate increases, fees, charges, or other financing
mechanisms.

(D) A detailed schedule for the completion of all necessary
actions.

(E) Supporting data and other documentation accompanying
the plan.

(2) On or before January 1, 2024, the plan described in
paragraph (1) shall be updated and submitted to the executive
director of the state board by the permit holder to include any
refinements or changes in the costs, actions, or financing necessary
to achieve full recycling of all wastewater and thereby eliminate
the ocean outfall discharge in accordance with this section or a
written statement that the plan is current and accurate.

(e) On or before January 1, 2017, and by January 1 every five
years thereafter, the holder of a NPDES permit authorizing the
discharge of wastewater through an ocean outfall shall submit to
the executive director of the state board a report summarizing the
actions accomplished to date and the actions remaining and
proposed to meet the requirements of this section. The report shall
include progress toward meeting the deadlines set forth in
subdivisions (b) to (d), inclusive, and specifically include the
detailed schedule for, and status of, the following:

(1) Evaluation of reuse and disposal options.

(2) Preparation of preliminary design reports.

(3) Preparation and submission of permit applications.

(4) Construction initiation.

(5) Construction progress milestones.

(6) Construction completion.

(7) Initiation of operation.

(8) Continuing operation and maintenance.

(f) (1) On or before July 1, 2021, and by July 1 every five years
thereafter, the state board shall submit a report to the Governor
and the Legislature on the implementation of this section. The
report shall summarize the progress up to date, including the
increased amount of reclaimed water provided and potable water
offsets achieved, and shall identify any obstacles to continued
progress, including all instances of substantial noncompliance.

(2) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government
Code.

(g) (1) On and after January 1, 2022, a NPDES permitholder
subject to the requirements of this section, may petition the state
board for a partial exemption to the requirements of this section.
The petition shall include the information required in subdivisions
(d) and (e), and shall demonstrate that the NPDES permitholder
cannot comply with the requirements of this section for one of the
following reasons:

(A) The state board has failed to adopt regulations that approve
the indirect potable reuse of wastewater.

(B) Upgrading the wastewater treatment plant to achieve
recycled water standards produces recycled water that costs more
than twice the cost per-acre foot as compared with other new
surface and groundwater supplies.

(C) The wastewater treatment plant has achieved water quality
standards for recycled water, but there is not sufficient demand
for this water within the region.

(2) The state board shall determine, after notice and opportunity
for comment, whether the petition demonstrates that the NPDES
permitholder cannot comply with the requirements of this section
pursuant to paragraph (1). If the state board approves the partial
exemption to the requirements of this section, that exemption shall
be valid for a period of no more than five years, at which point the
NPDES permitholder shall reapply for an exemption or comply
with the requirements of this section.

(3) A NPDES permitholder subject to the requirements of this
section shall not be eligible for state grants or loans if they receive
a partial exemption to the requirements of this section pursuant to
this subdivision, unless the state grant or loan is solely for the
purpose of achieving compliance with the requirements of this
section.

(h) As used in this section:

(1) “Actual annual flow” means the annual average flow of
treated wastewater discharging through a facility’s ocean outfall
as determined by the state board using monitoring data available
for calendar years 2009 to 2014, inclusive.

(2) “Backup discharge” means a surface water discharge that
occurs as part of a functioning reuse system that has been permitted
in accordance with the rules of the state board and that provides
reclaimed water for irrigation or public access areas, residential
properties, edible food crops, sea water barrier injection to protect
groundwater resources, groundwater replenishment, industrial
cooling, or other acceptable reuse purposes. “Backup discharge”
may also include releases to the ocean on an emergency basis, as
approved by a regional board, for a duration not to exceed 90 days
and only in the quantities as are necessary in the event of a storm
or other cause that impedes groundwater replenishment.

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