BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 551| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 SB 551 Page 2 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 SB 551 Page 3 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 SB 551 Page 4 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 **** END ****