BILL NUMBER: SB 471	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 2, 2015
	AMENDED IN SENATE  MAY 5, 2015
	AMENDED IN SENATE  APRIL 13, 2015
	AMENDED IN SENATE  APRIL 6, 2015

INTRODUCED BY   Senator Pavley

                        FEBRUARY 26, 2015

   An act to amend Section 39712  of, and to add Chapter 10
(commencing with Section 39950) to Part 2 of Division 26 of,
  of  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 
    The California Global Warming Solutions Act of 2006 
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, including the reduction of
greenhouse gas emissions associated with water use and supply.
   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 include reduction of
greenhouse gas emissions associated with water treatment among the
investments that are 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) 
    (1)  More closely integrate the planning for water,
energy, and greenhouse gas emissions. 
   (3) 
    (2)  Enable opportunities for innovative projects and
programs that reduce the greenhouse gas intensity of our water system
in order to access eligible funds.
  SEC. 2.  Section 39712 of the Health and Safety Code is amended to
read:
   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
land and natural resource conservation and management, forestry,
sustainable agriculture, and the water sector, including, but not
limited to, water use, supply, and treatment.
   (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. 
  SEC. 3.    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.  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.