BILL ANALYSIS Ó
SB 555
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Date of Hearing: August 19, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 555
(Wolk) - As Amended August 17, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires urban water suppliers to submit annual water
loss audit reports to the Department of Water Resources (DWR)
beginning in 2017. This bill requires DWR and the State Water
Resources Control Board (SWRCB) to adopt rules related to the
SB 555
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water loss audits and to establish water loss performance
standards as specified. Additionally, this bill requires SWRCB
to contribute up to $400,000 towards the initial costs for
validating water loss audit reports using funds available for
the 2016-17 year.
FISCAL EFFECT:
1)One-time GF costs of approximately $150,000 for DWR to develop
the rules for standardizing and validating water loss audit
reports and auditors.
2)Annual GF costs of approximately $150,000 for DWR to review
urban water supplier audit reports and post the reports on its
internet website.
3)Increased annual GF costs shifts of between $150,000 and
$200,000 to provide technical assistance to urban water
suppliers on water loss detection programs.
This bill requires DWR to provide technical assistance with
existing resources. However, DWR indicates this cost is not
absorbable and would require reductions in existing programs.
4)Absorbable one-time costs for SWRCB to consult with DWR to
develop water loss metrics and performance standards.
The 2015-16 Budget Act provides $833,000 (special fund) and 2
positions to SWRCB for water conservation activities that are
available fulfill these requirements.
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5)Absorbable one-time costs to SWRCB of up to $400,000 (Drinking
Water State Revolving Fund) for its contribution towards
procuring water loss audit report validation assistance for
urban water suppliers.
It is presumed the urban water suppliers will be responsible
for their validation costs after the first year. The author
may wish to clarify that the urban water supplier is
responsible for its ongoing validations costs after the
2016-17 year.
COMMENTS:
1)Purpose. According to the author, California's water supply
is under intense pressure from climate change, increasing
population, and aging infrastructure. The financial demands
from communities around the state for additional water and
wastewater currently exceed the available state and federal
resources.
The author states that despite the availability of free audit
software and the establishment of a Best Management Practice
(BMP) for water loss by the California Urban Water
Conservation Council, urban water suppliers have been slow to
realize the full potential of water loss control.
This bill will increase water use efficiency by requiring
water suppliers to document and control system water losses
through annual audit reports to DWR.
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2)Background. The Urban Water Management Planning Act requires
all urban water suppliers to prepare and adopt an urban water
management plan. In order for an urban water supplier to be
eligible for a water management grant or loan from the state,
it must implement the water demand management measures in its
urban water management plan.
Last year, the Legislature passed and the Governor signed SB
1420 (Wolk), which requires the urban water management plan to
include a calculation of the distribution system water losses.
The loss calculations are to be based on the water system
balance methodology developed by the American Water Works
Association (AWWA).
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081