BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 551 (Wolk) - State water policy: water and energy efficiency.
          
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          |Version: February 26, 2015      |Policy Vote: N.R. & W. 8 - 0    |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 11, 2015      |Consultant: Marie Liu           |
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          This bill meets the criteria for referral to the Suspense File. 


          Bill  
          Summary:  SB 551 would declare it the state's policy that water  
          use and water treatment shall be as energy efficient as is  
          feasible and that energy use and generation shall be as water  
          efficient as is feasible.


          Fiscal  
          Impact:  Cost pressures, potentially in the millions of dollars  
          to the General Fund and various special funds to increase grant  
          awards, reprioritize programs, and change state operations to  
          increase electricity and water efficiency.


          Background:  The Warren-Alquist State Energy Resources Conservation and  
          Development Act establishes the state's policy to promote all  
          feasible means of energy and water conservation and all feasible  
          uses of alternative energy and water supply sources. (PRC  
          §25008)








          SB 551 (Wolk)                                          Page 1 of  
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          The Water Measurement Law contains Legislative findings and  
          declarations that state that the waste or unreasonable use of  
          water imposes unnecessary and wasteful consumption of energy to  
          deliver or furnish the water therefore, water usage should be  
          measured in order to reduce energy consumption. (WC §522) 




          Proposed Law:  
            This bill would declare it the state's policy that water use  
          and water treatment shall be as energy efficient as is feasible  
          and that energy use and generation shall be as water efficient  
          as is feasible. 
          Relevant state agencies would be required to consider this  
          policy in their policies, regulations, and grant criteria.




          Staff  
          Comments:  This bill sets a state policy regarding water and  
          energy efficiency and directs the state agencies to consider  
          this policy in their various activities. No actual actions are  
          required; however various agencies may see cost pressures to  
          implement the policy. More specifically, the state offers of  
          number of water and energy related financial assistance  
          programs. The policy adopted by this bill could implore the  
          granting agencies to consider more expensive projects. For  
          example, the State Water Resources Control Board offers grants  
          from the Drinking Water State Revolving Fund to assist  
          communities in enhancing and upgrading drinking water supplies.  
          Incorporating additional water and energy efficiencies upgrades  
          into a grant for water treatment and delivery could increase  
          project costs. Staff notes that energy and water efficiency  
          projects can require more upfront costs in order to reduce  
          ongoing operational costs. That said, the State Water Resources  
          Control Board believes there would be no costs to just consider  
          water and energy efficiencies. 
          The state itself operates water systems that require energy,  
          such as the State Water Project which uses considerable amount  
          of energy to move water resources around the state. This bill  
          would impose cost pressures for energy efficiency upgrades. 








          SB 551 (Wolk)                                          Page 2 of  
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          This bill is trying to promote actions that are as energy and  
          water efficient "as is feasible." Staff notes that what is  
          "feasible" could be beyond what is cost effective. 







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