Amended in Assembly August 17, 2015

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 BillNo. 471


Introduced by Senator Pavley

February 26, 2015


An act to amend Section 39712 of the Health and Safety Code, to add Section 25229 to the Public Resources Code, and to add Section 189.5 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.

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.

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 Waterbegin delete Resourcesend deletebegin insert Resources,end insert to conduct a study of water-related energy use in California.

This bill would require the State Water Resources Control Board,begin insert upon an appropriation from the Greenhouse Gas Reduction Fund andend insert in cooperation with the State Energy Resources Conservation and Development Commission, the State Air Resources Board, the Public Utilities Commission, and the Department of Waterbegin delete Resourcesend deletebegin insert Resources,end insert to establish a grant and loan program for water projects that result in the net reduction of water-related 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:

P2    1

SECTION 1.  

(a)  The Legislature finds and declares all of the
2following:

3(1) Water and energy resources are inextricably connected. This
4relationship is known as the water-energy nexus.

5(A) The energy used to drive California’s water system,
6including, but not limited to, the fuels used to power groundwater
7pumps, transportation, treatment and disposal systems for water
8and wastewater, heating and cooling of water in buildings and
9other facilities, the delivery of water, and end uses, accounts for
10nearly 20 percent of the total electricity usage and 30 percent of
11 nonpower-related natural gas consumed, and there are known gaps
12in quantifying greenhouse gas emissions associated with that
13energy use.

14(B) The water used to drive California’s energy system,
15including, but not limited to, the water used to turn turbines for
P3    1hydropower, to produce steam and cooling systems for
2thermoelectric power, and to extract and refine oil and gas,
3represents a substantial portion of our state water demand.

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

5(D) Because the production of energy often results in the
6emission of greenhouse gases, there is substantial potential for
7emission reductions in the water system.

8(2) While energy use has historically been a fundamental
9element in the planning and development of California’s water
10 supply systems, there are new opportunities for improving this
11linkage to reduce water-related greenhouse gas emissions. New
12projects that best serve water and energy investments can maximize
13greenhouse gas emissions reductions.

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

15(1) More closely integrate the planning for water, energy, and
16greenhouse gas emissions.

17(2) Enable opportunities for innovative projects and programs
18that reduce the greenhouse gas intensity of our water system in
19order to access eligible funds.

20

SEC. 2.  

Section 39712 of the Health and Safety Code is
21amended to read:

22

39712.  

(a) (1) It is the intent of the Legislature that moneys
23shall be appropriated from the fund only in a manner consistent
24with the requirements of this chapter and Article 9.7 (commencing
25with Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title
262 of the Government Code.

27(2) The state shall not approve allocations for a measure or
28program using moneys appropriated from the fund except after
29determining, based on the available evidence, that the use of those
30moneys furthers the regulatory purposes of Division 25.5
31(commencing with Section 38500) and is consistent with law. If
32any expenditure of moneys from the fund for any measure or
33project is determined by a court to be inconsistent with law, the
34allocations for the remaining measures or projects shall be
35severable and shall not be affected.

36(b) Moneys shall be used to facilitate the achievement of
37reductions of greenhouse gas emissions in this state consistent
38with Division 25.5 (commencing with Section 38500) and, where
39applicable and to the extent feasible:

P4    1(1) Maximize economic, environmental, and public health
2benefits to the state.

3(2) Foster job creation by promoting in-state greenhouse gas
4emissions reduction projects carried out by California workers and
5businesses.

6(3) Complement efforts to improve air quality.

7(4) Direct investment toward the most disadvantaged
8communities and households in the state.

9(5) Provide opportunities for businesses, public agencies,
10nonprofits, and other community institutions to participate in and
11benefit from statewide efforts to reduce greenhouse gas emissions.

12(6) Lessen the impacts and effects of climate change on the
13state’s communities, economy, and environment.

14(c) Moneys appropriated from the fund may be allocated,
15consistent with subdivision (a), for the purpose of reducing
16greenhouse gas emissions in this state through investments that
17may include, but are not limited to, any of the following:

18(1) Funding to reduce greenhouse gas emissions through energy
19efficiency, clean and renewable energy generation, distributed
20renewable energy generation, transmission and storage, and other
21related actions, including, but not limited to, at public universities,
22state and local public buildings, and industrial and manufacturing
23facilities.

24(2) Funding to reduce greenhouse gas emissions through the
25development of state-of-the-art systems to move goods and freight,
26advanced technology vehicles and vehicle infrastructure, advanced
27biofuels, and low-carbon and efficient public transportation.

28(3) Funding to reduce greenhouse gas emissions associated with
29land and natural resource conservation and management, forestry,
30sustainable agriculture, and the water sector, including, but not
31limited to, water use, supply, and treatment.

32(4) Funding to reduce greenhouse gas emissions through
33strategic planning and development of sustainable infrastructure
34projects, including, but not limited to, transportation and housing.

35(5) Funding to reduce greenhouse gas emissions through
36increased in-state diversion of municipal solid waste from disposal
37through waste reduction, diversion, and reuse.

38(6) Funding to reduce greenhouse gas emissions through
39investments in programs implemented by local and regional
P5    1agencies, local and regional collaboratives, and nonprofit
2organizations coordinating with local governments.

3(7) Funding research, development, and deployment of
4innovative technologies, measures, and practices related to
5programs and projects funded pursuant to this chapter.

6

SEC. 3.  

Section 25229 is added to the Public Resources Code,
7to read:

8

25229.  

(a) The commission, in cooperation with the State
9Water Resources Control Board, the State Air Resources Board,
10the Public Utilities Commission, and the Department of Water
11Resources, shall conduct a study of water-related energy use in
12California.

13(b) In conducting the study, the commission shall do all of the
14following:

15(1) Hold at least two workshops to allow input by private and
16public water agencies and utilities, research institutions,
17environmental organizations, and other interested stakeholders.

18(2) Include any source-specific data, to be anonymized to the
19extent necessary to protect business confidential information or
20security sensitive information.

21(3) begin deleteAfter considering existing studies and data sources, identify end delete
22begin insertIdentify, after considering existing studies and data sources,end insert any
23existing data gaps.

24(c) Nothing in this section shall be construed as imposing any
25new emissions regulations on the entities with which these
26water-related energy use emissions are associated.

27

SEC. 4.  

Section 189.5 is added to the Water Code, to read:

28

189.5.  

(a) The board,begin insert upon an appropriation of moneys by the
29Legislature from the Greenhouse Gas Reduction Fund, created
30pursuant to Section 16428.8 of the Government Code, andend insert
in
31cooperation with the State Energy Resources Conservation and
32Development Commission, the State Air Resources Board, the
33Public Utilities Commission, and the Department of Water
34Resources, shall establish a grant and loan program for water
35projects that result in the net reduction of water-related greenhouse
36gas emissions.

37(b) Project categories eligible for funding under the program
38shall include, but need not be limited to, the following:

39(1) Precision irrigation.

P6    1(2) Infrastructure improvements that will help deliver on-demand
2water for precision application.

3(3) Local water solutions that reduce net energy use, including,
4but not limited to, water recycling, stormwater capture and reuse,
5and groundwater cleanup.

6(4) Clean energy generation by the water sector.

7(5) Leak detection.

8(6) Water appliance efficiency.

9(7) Water monitoring software.

10(c) In order to be eligible for funding under the program, projects
11shall result in the net reduction of water-related greenhouse gas
12emissions.

13(d) Any publicbegin delete fundsend deletebegin insert moneysend insert made available for the program
14to private water companies regulated by the Public Utilities
15Commission shall be used for the benefit of the ratepayers or the
16public, and not the investors of the companies, and shall be subject
17to oversight by the Public Utilities Commission.

18(e) The board may adopt guidelines and regulations necessary
19or convenient to implement this section.



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