BILL NUMBER: SB 471	AMENDED
	BILL TEXT

	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

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 Water  Resources
  Resources,  to conduct a study of water-related
energy use in California.
   This bill would require the State Water Resources Control Board,
 upon an appropriation from   the Greenhouse Gas
Reduction Fund and  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   Resources,  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:

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

   (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) 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 projects that best serve
water and energy investments can 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.
  SEC. 3.  Section 25229 is added to the Public Resources Code, to
read:
   25229.  (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   Identify, after considering existing studies
and data sources,  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.
  SEC. 4.  Section 189.5 is added to the Water Code, to read:
   189.5.  (a) The board,  upon an appropriation of moneys by the
Legislature from the Greenhouse Gas Reduction Fund, created pursuant
to Section 16428.8 of the Government Code, and  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   moneys  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.