BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 551|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                    THIRD READING


          Bill No:  SB 551
          Author:   Wolk (D)
          Introduced:2/26/15  
          Vote:     21  

           SENATE NATURAL RES. & WATER COMMITTEE:  8-0, 4/28/15
           AYES:  Pavley, Stone, Allen, Hertzberg, Hueso, Jackson,  
            Monning, Wolk
           NO VOTE RECORDED:  Vidak

           SENATE APPROPRIATIONS COMMITTEE:  5-2, 5/28/15
           AYES:  Lara, Beall, Hill, Leyva, Mendoza
           NOES:  Bates, Nielsen

           SUBJECT:   State water policy:  water and energy efficiency


          SOURCE:    Author


          DIGEST:  This bill declares 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.


          ANALYSIS:   


          Existing law:


          1)Establishes, under the Warren-Alquist State Energy Resources  








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            Conservation and Development Act, 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)


          2)Contains in the Water Measurement Law similar 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) 


          This bill:


          1)Declares 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.  



          2)Requires the relevant state agencies to consider this policy  
            in their policies, regulations, and grant criteria.


          Comments


          Water/energy nexus.  The link between water and energy resources  
          is known as the water-energy nexus.  Advocates for greater  
          recognition of that nexus note that 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 projects that best serve water  
          and energy investments


          What would this bill accomplish?  According to the author's  
          office, their expectation is that under this bill, the  
          water/energy nexus would be taken into considering new projects  







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          and programs.  For example, grant guidelines for water use  
          efficiency projects would also consider how the grants could  
          also encourage energy efficiency.


          Prior/Related Legislation


          The Legislature passed a somewhat similar bill in 2012 (AB 685,  
          Eng, Chapter 524), which established as "policy of the state  
          that every human being has the right to safe, clean, affordable,  
          and accessible water adequate for human consumption, cooking,  
          and sanitary purposes."  Proponents of that bill subsequently  
          used that bill to argue for the creation of a special office to  
          focus on improving access to safe drinking water.  Partly in  
          response to that effort, the water package enacted earlier this  
          year included a measure that established the Office of  
          Sustainable Water Solutions within the State Water Resources  
          Control Board.  That Office was directed to promote permanent  
          and sustainable drinking water and wastewater treatment  
          solutions to ensure effective and efficient provision of safe,  
          clean, affordable, and reliable drinking water and wastewater  
          treatment services.  (AB 92, Committee on Budget).


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          According to the Senate Appropriations Committee, this bill  
          creates 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


          SUPPORT:   (Verified5/28/15)


          Nexus eWater
          Sierra Club California










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          OPPOSITION:   (Verified5/28/15)


          None received


          ARGUMENTS IN SUPPORT:     According to the author, "Water and  
          energy are inextricably linked.  Energy generation requires  
          water in many cases.  Transportation and treatment of water,  
          treatment and disposal of wastewater, and the energy used to  
          heat and consume water account for nearly 20 percent of the  
          total electricity and 30 percent of non-power plant related  
          natural gas consumed in California.  Demand for water and energy  
          resources is expected to rise due to population growth and also  
          as a result of climate change.  California must take every  
          measure to ensure both water and energy efficiencies are  
          maximized by developing water and energy policies that recognize  
          the nexus between these two vital resources."



          Prepared by:Dennis O'Conner / N.R. & W. / (916) 651-4116
          5/30/15 10:20:47


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