BILL ANALYSIS Ó
SB 551
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Date of Hearing: July 14, 2015
ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE
Marc Levine, Chair
SB
551 (Wolk) - As Amended July 6, 2015
SENATE VOTE: 27-9
SUBJECT: State water policy: water and energy efficiency.
SUMMARY: Establishes a State policy recognizing the nexus
between water and energy and requiring that water use and water
treatment be as energy efficient as feasible and that energy use
and generation be as water efficient as feasible. Specifically,
this bill:
1)Finds and declares that water and energy are vital to
California's economy and inextricably linked and that energy
generation can be water intensive.
2)Further finds and declares that water treatment and wastewater
disposal account for nearly 20% of the electricity and 30% of
the nonpowerplant-related natural gas consumed in California.
3)Establishes a State policy that water use and water treatment
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shall operate in a manner that is as energy efficient as
feasible and that energy use and generation shall operate in a
manner that is as water efficient as feasible.
4)Requires all relevant state agencies to consider the water and
energy efficiency policy when revising, adopting, or
establishing policies, regulations, and criteria pertinent to
the use of energy and water.
5)Defines feasibility as capable of being accomplished in a
successful manner within a reasonable period of time taking
into account specified factors including, but not limited to,
cost, environment, public health, and technology.
EXISTING LAW:
1)Establishes the policy of the state and the intent of the
Legislature to promote all feasible means of energy and water
conservation and all feasible uses of alternative energy and
water supply sources.
2)Finds and declares that waste or unreasonable use of water
imposes unnecessary and wasteful consumption of energy to
deliver or furnish the water, and it is necessary, therefore,
to determine the quantities of water in use throughout the
state to the maximum extent that it is reasonable to do so in
order to reduce that energy consumption.
FISCAL EFFECT: According to the Senate Appropriations Committee
analysis this bill would create cost pressures, potentially in
the millions of dollars to the General Fund and various special
funds to increase grant awards, reprioritize programs, and
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change state operations to increase electricity and water
efficiency.
COMMENTS: According to research performed by the California
Energy Commission (CEC), "water and energy resources are
inextricably connected, and this is known as the Water-Energy
Nexus." This bill would create a new state efficiency policy
with regard to the Water-Energy Nexus.
Author's statement: According to the author, water
transportation, treatment, and use require a great deal of
energy, while energy generation also requires water. The author
specifies that, "transportation and treatment of water,
treatment and disposal of wastewater, and the energy used to
heat and consume water account for nearly 20% of the total
electricity and 30% of non-power plant related natural gas
consumed in California." The author adds that, "demand for
water and energy resources is expected to rise due to population
growth and also as the result of climate change. California
must take every measure to ensure that both water and energy
efficiencies are maximized by developing water and energy
policies that recognize the nexus between these two vital
resources."
Background: Focus on the Water-Energy Nexus is growing. The
CEC, in its policy report California's Water-Energy Relationship
(Prepared in support of the 2005 Integrated Energy Policy Report
Proceeding (04-IEPR-01E)) found that "the relationship between
the water sector and the energy sector is complex and highly
interdependent." The report also found that "currently, most
water and energy system are internally optimized on a single
utility basis. Systems are rarely optimized in coordination with
other systems (water, wastewater, electric, and natural gas) or
with their customers, missing opportunities to reduce total
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energy consumption, shift loads off-peak, or maximize energy
generation." The report states that "energy demand in the water
sector will likely increase over time due to a number of
factors, including population and urban load growth, increased
water and wastewater treatment because of more stringent water
quality regulations to protect water quality, and market,
economic, regulatory, and legislative changes."
Some energy think tanks are linking food to the nexus as well.
In the February 2015 Scientific American article A Puzzle for
the Planet, Michael Webber, Deputy Director of the Energy
Institute at the University of Texas at Austin states that in
"July 2012 three of India's regional electric grids failed,
triggering the largest blackout on earth. More than 620 million
people - 9 percent of the world's population - were left
powerless. The cause: the strain of food production from a lack
of water. Because of a major drought, farmers plugged in more
and more electric pumps to draw water from deeper and deeper
belowground for irrigation. Those pumps, working furiously
under the hot sun, increased the demand on power plants. At the
same time low water levels meant hydroelectric dams were
generating less electricity than normal." California, Mr. Webber
concludes, "is facing a surprisingly similar confluence of
energy, water, and food troubles" that require "new policy
thinking."
Related legislation: SB 471 (Pavley) recognizes the nexus
between water and energy and water and reduction of greenhouse
gas emissions and includes reduction of greenhouse gas emissions
associated with water treatment among the investments that are
eligible for funding from the Greenhouse Gas Reduction Fund. SB
471 is pending in the Assembly.
Supporting arguments: Supporters state that the "water sector
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in this state can use around 20% of total energy" and that "as
we work to increase energy efficiency and reduce greenhouse
gases we should consider every sector, including water."
Supporters conclude that this bill will "ensure real energy
savings and that we adopt the smartest water policies going
forward."
Other parties make their support contingent on the author adding
amendments to this bill specifying that the policy does not
create a "loading order" that would "direct water managers to
use the least energy-consumptive water first, and through a
progression, only utilize the most energy-consumptive water
supplies (such as desalination and potable reuse) as a last
resort." These supporters also dispute the energy-consumption
figures in the findings of the bill and recommend other figures.
Opposing arguments: None on file.
REGISTERED SUPPORT / OPPOSITION:
Support
Sierra Club of California
California League of Conservation Voters
San Diego County Water Authority (if amended)
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Opposition
None on file
Analysis Prepared by:Tina Leahy / W., P., & W. / (916)
319-2096