Amended in Assembly July 7, 2015

Amended in Senate June 2, 2015

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 amend Section 39712 of the Health and Safety Code, begin insert to add Section 25229 to the Public Resources Code, and to add Section 189.5 to the Water Code, end insert relating to water.

LEGISLATIVE COUNSEL’S DIGEST

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

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 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.

begin insert

This bill would require the State Energy Resources Conservation and Development Commission, in cooperation with the State Water Resources Control Board, the State Air Resources Board, the Public Utilities Commission, and the Department of Water Resources to conduct a study of water-related energy use in California.

end insert begin insert

This bill would require the State Water Resources Control Board, in cooperation with the State Energy Resources Conservation and Development Commission, the State Air Resources Board, the Public Utilities Commission, and the Department of Water Resources to establish a grant and loan program for water projects that result in the net reduction of water-related greenhouse gas emissions.

end insert

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, begin delete and end delete the delivery of begin delete water to end delete begin insert water, and end insert end begin delete users, end delete
begin insert uses end insert begin insert , end insert accounts for nearly 20 percent of the total electricity begin delete usage, end delete
begin insert usage and end insert 30 percent of nonpower-related natural gas consumed,
and begin delete an unknown quantity of end delete begin insert there are known gaps in quantifying end insert
greenhouse gas emissions associated with that energy begin delete production. end delete
begin insert use. end insert

(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)  begin delete 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 end delete begin insert While energy
use has historically been a fundamental element in the planning
and development of California’s water supply systems, there are
new opportunities for improving this linkage to reduce
water-related greenhouse gas emissions. New end insert projects that best
serve water and energy investments begin delete to end delete begin insert can end insert maximize greenhouse
gas emissions reductions.

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

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

(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.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 25229 is added to the end insert begin insert Public Resources Code end insert begin insert ,
to read: end insert

begin insert

begin insert 25229. end insert   

(a) The commission, in cooperation with the State
Water Resources Control Board, the State Air Resources Board,
the Public Utilities Commission, and the Department of Water
Resources, shall conduct a study of water-related energy use in
California.

(b) In conducting the study, the commission shall do all of the
following:

(1) Hold at least two workshops to allow input by private and
public water agencies and utilities, research institutions,
environmental organizations, and other interested stakeholders.

(2) Include any source-specific data, to be anonymized to the
extent necessary to protect business confidential information or
security sensitive information.

(3) After considering existing studies and data sources, identify
any existing data gaps.

(c) Nothing in this section shall be construed as imposing any
new emissions regulations on the entities with which these
water-related energy use emissions are associated.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 189.5 is added to the end insert begin insert Water Code end insert begin insert , to read: end insert

begin insert

begin insert 189.5. end insert   

(a) The board, in cooperation with the State Energy
Resources Conservation and Development Commission, the State
Air Resources Board, the Public Utilities Commission, and the
Department of Water Resources, shall establish a grant and loan
program for water projects that result in the net reduction of
water-related greenhouse gas emissions.

(b) Project categories eligible for funding under the program
shall include, but need not be limited to, the following:

(1) Precision irrigation.

(2) Infrastructure improvements that will help deliver
on-demand water for precision application.

(3) Local water solutions that reduce net energy use, including,
but not limited to, water recycling, stormwater capture and reuse,
and groundwater cleanup.

(4) Clean energy generation by the water sector.

(5) Leak detection.

(6) Water appliance efficiency.

(7) Water monitoring software.

(c) In order to be eligible for funding under the program,
projects shall result in the net reduction of water-related
greenhouse gas emissions.

(d) Any public funds made available for the program to private
water companies regulated by the Public Utilities Commission
shall be used for the benefit of the ratepayers or the public, and
not the investors of the companies, and shall be subject to oversight
by the Public Utilities Commission.

(e) The board may adopt guidelines and regulations necessary
or convenient to implement this section.

end insert