BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 471 (Pavley) - Water, energy, and reduction of greenhouse gas
emissions: planning.
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|Version: May 5, 2015 |Policy Vote: E.Q. 7 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: May 28, 2015 |Consultant: Marie Liu |
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SUSPENSE FILE. AS AMENDED.
Bill
Summary: SB 471 would require the California Air Resources
Board (ARB) to develop an emissions inventory of greenhouse gas
(GHG) emissions from the water system in the state using the
best available data.
Fiscal Impact (as approved on May 28, 2015):
Unknown possible cost pressures, likely in the hundreds of
thousands to millions of dollars, to the Greenhouse Gas
Reduction Fund for the addition of water treatment as an
eligible use.
Background: Under the California Global Warming Solutions Act of 2006
(referred to as AB 32, HSC §38500 et seq.), the California Air
Resources Board (ARB) is required to determine the 1990
statewide greenhouse gas (GHG) emissions level, to approve a
statewide GHG emissions limit equivalent to that level that will
be achieved by 2020, and to adopt GHG emissions reductions
measures by regulation. ARB is authorized to include the use of
SB 471 (Pavley) Page 1 of
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market-based mechanisms to comply with the regulations. All
monies, except for fines and penalties, collected pursuant to a
market-based mechanism are deposited in the Greenhouse Gas
Reduction Fund (GGRF) (Government Code §16428.8).
Existing law requires that the GGRF only be used to facilitate
the achievement of reductions of GHG emissions consistent with
AB 32 (HSC §39710 et seq.). Section 39712 lists a non-exclusive
list of eligible project purposes including funding to reduce
GHG emissions associated with water use and supply.
Proposed Law:
This bill would explicitly make investments that reduce GHG
emissions from water treatment eligible for funding from the
GGRF.
This bill would require the ARB, in cooperation with the
California Energy Commission (CEC), California Public Utilities
Commission (CPUC), State Water Resources Control Board (board),
and the Department of Water Resources (DWR), to develop an
emissions inventory of GHG emissions from the water system in
the state using the vest available data. The bill would
establish that it is the intent of the Legislature for this
information to inform the next scoping plan update.
Staff
Comments: To conduct the GHG emissions inventory of the state
water system on a timeframe that would allow the information to
inform the next scoping plan update, the ARB estimates that it
would need an additional staff for its emission inventory team
at an annual cost of $175,000 from the Cost of Implementation
Account.
Staff notes that the emissions inventory is to be of the "state
water system," but this term is not defined and could have
various interpretations. According to the author's staff, this
term is meant to be fairly inclusive of the various water
systems in the state from the state water project down to the
individual household and water heaters. Staff notes that this
could involve a significant amount of data and detail to obtain.
The costs to the ARB assume the analysis done on a regional
level that would include emissions from water distribution,
water treatment, and hydropower generation.
SB 471 (Pavley) Page 2 of
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This bill would require the CEC, CPUC, board, and DWR to assist
the ARB in creating the emissions inventory. For the most part,
these costs should be minor and absorbable. However, one of the
agencies, most likely DWR or the board, will likely have a
greater role in identifying water suppliers and water retailers
whom will need to provide information to inform ARB's inventory.
Depending on how much ARB will rely on the coordinating agencies
to collect the information, costs for a coordinating agency
could be up to $50,000 annually.
This bill would explicitly allow GGRF funds to be used to reduce
GHG emissions associated with water treatment. Existing law
already allows GGRF to be used for reducing GHG emissions
associated with water use and supply. It is conceivable that
treatment would have already been considered an eligible use as
it is an integral component of urban water use and can require
significant amounts of electricity. This bill would remove any
doubt on the ability to use GGRF for water treatment projects.
To the extent that this would be a new use, this bill would add
cost pressures to the GGRF.
Committee amendments (as adopted on May 28, 2015): Amend to
delete the requirement for the development of an GHG emissions
inventory the water system in the state and associated findings
language.
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