Amended in Senate May 5, 2015

Amended in Senate April 13, 2015

Amended in Senate April 6, 2015

Senate Bill No. 471

Introduced by Senator Pavley

February 26, 2015

An act to begin insert amend Section 39712 of, and to end insert add Chapter 10 (commencing with Section 39950) to Part 2 of Division 26 begin delete of end delete begin insert of, end insert the Health and Safety Code, relating to water.

LEGISLATIVE COUNSEL’S DIGEST

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

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 begin insert , including the reduction of greenhouse gas emissions associated with water use and supply end insert .

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 begin delete 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 end delete begin insert include reduction of greenhouse gas emissions associated with water treatment among the investments that are end insert eligible for funding from the Greenhouse Gas Reduction Fund. The bill would also 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.

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.

(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.

(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.

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

(D) Because the production of energy often results in the
emission of greenhouse gases, there is substantial potential for
emission reductions in the water system.

(2) 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. 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.

(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
(Division 25.5 (commencing with Section 38500) of the Health
and Safety Code).

(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 in
order to access eligible funds.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 39712 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

39712.  

(a) (1) It is the intent of the Legislature that moneys
shall be appropriated from the fund only in a manner consistent
with the requirements of this chapter and Article 9.7 (commencing
with Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title
2 of the Government Code.

(2) The state shall not approve allocations for a measure or
program using moneys appropriated from the fund except after
determining, based on the available evidence, that the use of those
moneys furthers the regulatory purposes of Division 25.5
(commencing with Section 38500) and is consistent with law. If
any expenditure of moneys from the fund for any measure or
project is determined by a court to be inconsistent with law, the
allocations for the remaining measures or projects shall be
severable and shall not be affected.

(b) Moneys shall be used to facilitate the achievement of
reductions of greenhouse gas emissions in this state consistent
with Division 25.5 (commencing with Section 38500) and, where
applicable and to the extent feasible:

(1) Maximize economic, environmental, and public health
benefits to the state.

(2) Foster job creation by promoting in-state greenhouse gas
emissions reduction projects carried out by California workers and
businesses.

(3) Complement efforts to improve air quality.

(4) Direct investment toward the most disadvantaged
communities and households in the state.

(5) Provide opportunities for businesses, public agencies,
nonprofits, and other community institutions to participate in and
benefit from statewide efforts to reduce greenhouse gas emissions.

(6) Lessen the impacts and effects of climate change on the
state’s communities, economy, and environment.

(c) Moneys appropriated from the fund may be allocated,
consistent with subdivision (a), for the purpose of reducing
greenhouse gas emissions in this state through investments that
may include, but are not limited to, any of the following:

(1) Funding to reduce greenhouse gas emissions through energy
efficiency, clean and renewable energy generation, distributed
renewable energy generation, transmission and storage, and other
related actions, including, but not limited to, at public universities,
state and local public buildings, and industrial and manufacturing
facilities.

(2) Funding to reduce greenhouse gas emissions through the
development of state-of-the-art systems to move goods and freight,
advanced technology vehicles and vehicle infrastructure, advanced
biofuels, and low-carbon and efficient public transportation.

(3) Funding to reduce greenhouse gas emissions associated with
begin delete water use and supply, end delete land and natural resource conservation and
management, forestry, begin delete and end delete sustainable agriculture begin insert , and the water
sector, including, but not limited to, water use, supply, and
treatment end insert .

(4) Funding to reduce greenhouse gas emissions through
strategic planning and development of sustainable infrastructure
projects, including, but not limited to, transportation and housing.

(5) Funding to reduce greenhouse gas emissions through
increased in-state diversion of municipal solid waste from disposal
through waste reduction, diversion, and reuse.

(6) Funding to reduce greenhouse gas emissions through
investments in programs implemented by local and regional
agencies, local and regional collaboratives, and nonprofit
organizations coordinating with local governments.

(7) Funding research, development, and deployment of
innovative technologies, measures, and practices related to
programs and projects funded pursuant to this chapter.

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

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

 

Chapter  10. Emissions From The Water System

 

39950.  

begin delete (a) end delete begin delete   end delete 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.

begin delete

(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.

end delete