Amended in Senate April 6, 2015

Senate Bill No. 471

Introduced by Senator Pavley

February 26, 2015

An act to begin insert add Chapter 10 (commencing with Section 39950) to Part 2 of Division 26 of the Health and Safety Code, to end insert add Section 75214.5 to the Public Resources Code, and to amend Sections 10537 and 10538 of, and to add Section 79746.5 to, the Water Code, relating to water.

LEGISLATIVE COUNSEL’S DIGEST

SB 471, as amended, Pavley. Water, energy, and reduction of greenhouse gas emissions: planning.

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(1) Existing law requires all moneys, except for fines and penalties, collected by the State Air Resources Board from the auction or sale of allowances as part of a market-based compliance mechanism relative to reduction of greenhouse gas emissions, to be deposited in the Greenhouse Gas Reduction Fund. Existing

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(1) Existing law designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. Existing law requires all moneys, except for fines and penalties, collected by the State Air Resources Board from the auction or sale of allowances as part of a market-based compliance mechanism relative to reduction of greenhouse gas emissions, commonly known as cap and trade revenues, to be deposited in the Greenhouse Gas Reduction Fund, and to be used, upon appropriation by the Legislature, for specified purposes.

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This bill would require the state board, in cooperation with various other agencies, to develop an emissions inventory of greenhouse gas emissions from the water system in the state, using best available data. The bill would provide water recycling, wastewater treatment, water end-use efficiency, water technology improvements, best management practices, and other projects that reduce water system greenhouse gas emissions shall be eligible for funding from the Greenhouse Gas Reduction Fund.

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begin insert (2) end insert begin insert   end insert begin insert Existing end insert law continuously appropriates specified portions of the annual proceeds in the Greenhouse Gas Reduction Fund to various programs including 20% for the Affordable Housing and Sustainable Communities Program, administered by the Strategic Growth Council. Existing law specifies the objectives for the program and identifies categories of projects eligible for funding under this program.

This bill would require the council, in implementing these provisions, to give special consideration to awarding funds to eligible projects that, in addition to existing objectives and goals, would also result in reduced begin delete energy use by a water supplier, an end user of water, or both. end delete begin insert greenhouse gas emissions by the water system in the state. end insert

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(2)

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begin insert (3) end insert  The Integrated Regional Water Management Planning Act authorizes a regional water management group to prepare an integrated regional water management plan, in accordance with certain procedures, for the implementation or operation of specified qualified projects or programs pertaining to water supply, water quality, or related matters. The act defines “regional projects or programs” as projects or programs identified in an integrated regional water management plan that accomplish specified water-related goals, including an increase in water supplies through the use of certain means.

This bill would specifically include projects or programs that reduce begin insert the greenhouse gas emissions from end insert energy used to acquire, transport, treat, or distribute water as a regional project or program.

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(3)

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begin insert (4) end insert  Existing law, the Water Quality, Supply, and Infrastructure Improvement Act of 2014, approved by the voters as Proposition 1 at the November 4, 2014, statewide general election, authorizes the issuance of general obligation bonds in the amount of $7,545,000,000 to finance a water quality, supply, and infrastructure improvement program. The bond act provides that the sum of $810,000,000 is to be available, upon appropriation by the Legislature, for expenditures on, and competitive grants and loans to, projects that are included in and implemented in, an adopted integrated regional water management plan and respond to climate change and contribute to regional water security. The bond act authorizes the use of $100,000,000 of those funds for direct expenditures, and for grants and loans, for certain water conservation and water-use efficiency plans, projects, and programs.

This bill, in implementing the direct expenditures, grants, and loans for these water conservation and water-use efficiency plans, projects, and programs, would require special consideration be given to expenditures, grants, and loans that would result in reduced begin delete energy use by the water supplier, end user of the water, or both. end delete begin insert greenhouse gas emissions. end insert

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(4)

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begin insert (5) end insert  The bill would make legislative findings and declarations, and a statement of legislative intent, with regard to the nexus between water and energy and water and reduction of greenhouse gas emissions.

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(5) The bill would also state the intent of the Legislature to enact legislation to require the Energy Resources Conservation and Development Commission to update and further refine its 2007 study of water-related energy use in California, without imposing any new emissions regulations on affected entities.

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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:

SECTION 1.  

(a)  The Legislature finds and declares all of the
following:

(1) Water and energy resources are inextricably connected. This
relationship is known as the water-energy nexus.

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(A) Transportation and treatment of water, treatment and
disposal of wastewater, and the energy used to heat and consume
water account for nearly 20 percent of the total electricity and 30
percent of nonpowerplant-related natural gas consumed in
California.

(B) Similarly, water is used to turn turbines for hydropower, to
produce steam for thermoelectric power, and to cool equipment
by absorbing the waste heat produced by power generation.

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(A) The energy used to drive California’s water system,
including, but not limited to, the fuels used to power groundwater
pumps, transportation, treatment and disposal systems for water
and wastewater, heating and cooling of water in buildings and
other facilities, and the delivery of water to end users, accounts
for nearly 20 percent of the total electricity usage, 30 percent of
nonpower-related natural gas consumed, and an unknown quantity
of greenhouse gas emissions associated with that energy
production.

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(B) The water used to drive California’s energy system,
including, but not limited to, the water used to turn turbines for
hydropower, to produce steam and cooling systems for
thermoelectric power, and to extract and refine oil and gas,
represents a substantial portion of our state water demand.

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(C) Consequently, saving water saves energy, and vice versa.

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(2)

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begin insert (D) end insert  Because begin delete of end delete the begin delete water-energy nexus, there is also a
water-greenhouse gas nexus. end delete begin insert production of energy often results in
the emission of greenhouse gases, there is substantial potential
for emission reductions in the water system. end insert

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(A) Production of energy often results in production of
greenhouse gases.

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(B) Consequently, saving water saves energy and, by extension,
reduces greenhouse gas emissions.

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(3)

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begin insert (2) end insert  Planning for water use is often conducted without
consideration of energy use or greenhouse gas emissions. Similarly,
planning for energy and reduction of greenhouse gas emissions is
often conducted without consideration of water resources. begin insert end insert begin insert As a
result, local and state agencies may not be identifying projects
that best serve water and energy investments to maximize
greenhouse gas emissions reductions. end insert

(b) It is the intent of the Legislature, in enacting this act, to:

(1) Provide the best available data on the water-energy nexus
so that it may be included in the scoping plan update prepared
pursuant to the California Global Warming Solutions Act of 2006
(Ch. 488, Stats. 2006).

(2) More closely integrate the planning for water, energy, and
greenhouse gas emissions.

(3) Enable opportunities for innovative projects and programs
that reduce the greenhouse gas intensity of our water system begin delete and
the water intensity of our energy system to access eligible funds,
including moneys from the Greenhouse Gas Reduction Fund, the
Water Quality, Supply, and Infrastructure Improvement Act of
2014 (Proposition 1), the Electric Program Investment Charge
Fund, and investor-owned utility ratepayer dollars end delete begin insert in order to
access eligible funds end insert .

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(c) It is further the intent of the Legislature to enact legislation
to require the Energy Resources Conservation and Development
Commission to update and further refine its 2007 study of
water-related energy use in California, including source-specific
data, which would be anonymized to the extent necessary to protect
business confidential information or security sensitive information,
and without imposing any new emissions regulations on the entities
with which these water-related energy use emissions are associated.

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begin insert SEC. 2. end insert   

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begin insert Chapter 10 (commencing with Section 39950) is added
to Part 2 of Division 26 of the end insert begin insert Health and Safety Code end insert begin insert , to read: end insert

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Chapter   begin insert 10. end insert Emissions From The Water System

 

begin insert 39950. end insert   

(a) The state board, in cooperation with the State
Energy Resources Conservation and Development Commission,
the Public Utilities Commission, the State Water Resources Control
Board, and the Department of Water Resources, shall develop an
emissions inventory of greenhouse gas emissions from the water
system in the state, using best available data.

(b) Water recycling, wastewater treatment, water end-use
efficiency, water technology improvements, best management
practices, and other programs that reduce water system greenhouse
gas emissions shall be eligible for funding from the Greenhouse
Gas Reduction Fund.

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begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

Section 75214.5 is added to the Public Resources Code,
to read:

75214.5.  

In implementing the program, the council shall give
special consideration to awarding funds to eligible projects that,
in addition to achieving the objectives identified in Section 75210
and supporting the goals identified in Section 75214, would also
result in reduced begin delete energy use by a water supplier, an end user of
water, or both. end delete begin insert greenhouse gas emissions by the water system in
the state. end insert

begin delete SEC. 3. end delete
begin insert SEC. 4. end insert   

Section 10537 of the Water Code is amended to read:

10537.  

“Regional projects or programs” means projects or
programs identified in an integrated regional water management
plan that accomplish any of the following:

(a) Reduce water demand through agricultural and urban water
use efficiency.

(b) Increase water supplies for any beneficial use through the
use of any of the following, or other, means:

(1) Groundwater storage and conjunctive water management.

(2) Desalination.

(3) Precipitation enhancement.

(4) Water recycling.

(5) Regional and local surface storage.

(6) Water-use efficiency.

(7) Stormwater management.

(c) Improve operational efficiency and water supply reliability,
including conveyance facilities, system reoperation, and water
transfers.

(d) Improve water quality, including drinking water treatment
and distribution, groundwater and aquifer remediation, matching
water quality to water use, wastewater treatment, water pollution
prevention, and management of urban and agricultural runoff.

(e) Improve resource stewardship, including agricultural lands
stewardship, ecosystem restoration, flood plain management,
recharge area protection, urban land use management, groundwater
management, water-dependent recreation, fishery restoration,
including fish passage improvement, and watershed management.

(f) Improve flood management through structural and
nonstructural means, or by any other means.

(g) Reduce begin insert the greenhouse gas emissions from end insert energy used to
acquire, transport, treat, or distribute water.

begin delete SEC. 4. end delete
begin insert SEC. 5. end insert   

Section 10538 of the Water Code is amended to read:

10538.  

“Regional reports or studies” means reports or studies
relating to any of the matters described in subdivisions (a) to (g),
inclusive, of Section 10537, that are identified in an integrated
regional water management plan.

begin delete SEC. 5. end delete
begin insert SEC. 6. end insert   

Section 79746.5 is added to the Water Code, to read:

79746.5.  

In implementing Section 79746, special consideration
shall be given to expenditures, grants, and loans that, in addition
to the purposes of Section 79746, would also result in reduced
begin delete energy use by the water supplier, end user of the water, or both. end delete
begin insert greenhouse gas emissions. end insert