BILL ANALYSIS Ó
SB 919
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Date of Hearing: June 28, 2016
ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE
Marc Levine, Chair
SB
919 (Hertzberg) - As Amended May 31, 2016
SENATE VOTE: 35-0
SUBJECT: Water supply: creation or augmentation of local water
supplies
SUMMARY: Requires the Public Utilities Commission (PUC) to,
before January 1, 2018, address the oversupply of renewable
energy resources through a tariff or other economic incentive
for electricity purchased for the operation of facilities that
create or augment local water supplies. Specifically, this bill:
1) Requires the tariff or economic incentive to reduce the
cost of electricity for facilities that create or augment
local water supplies.
2) Defines facilities that create or augment local water
supplies to include desalination, brackish water desalting,
water recycling, water reuse, stormwater and dry weather
runoff capture and use, and groundwater recharge
facilities.
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EXISTING LAW:
1) Gives the PUC regulatory authority over public
utilities, including electrical corporations.
2) Requires through the California Renewables Portfolio
Standard (RPS) Program a retail seller of electricity and
local publicly owned electric utilities to increase
purchase of renewable energy such that 50% of retail sales
come from renewable sources by December 31, 2030.
FISCAL EFFECT: Unknown.
COMMENTS: Requires the PUC to, before January 1, 2018, address
the oversupply of renewable energy resources through a tariff or
other economic incentive for electricity purchased for the
operation of facilities that create or augment local water
supplies.
1)Author's Statement: This bill encourages the development and
diversification of local water supplies through water
recycling, reclamation, and desalination by directing
renewable energy 'oversupply' to those water suppliers. An
ancillary benefit is that the bill requires better
coordination of California's renewable energy resources and
demand for power and enables better, more cost-effective
utilization of renewable power as it is generated.
2)Background: Water supply reliability across much of the state
will be an ongoing challenge for the foreseeable future.
There are questions and uncertainty about water moving from
the Colorado River and from Northern California through the
Sacramento-San Joaquin Delta. It seems certain that a more
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diversified water portfolio that places greater emphasis on
local water supplies will be more adaptable to changing water
conditions.
The big challenge to diversifying the water supply portfolio
is cost. Depending on the water source, energy can be a
significant portion of the cost. This bill seeks to reduce
the cost of energy for local water supplies while
simultaneously limiting curtailment of renewable energy
generation.
3)Supporting Arguments: This bill creates a mechanism to
harness clean, low-cost renewable energy as a power source to
expand California's water supply. This will create an
opportunity to use renewable energy that might otherwise be
curtailed or sold at a loss due to oversupply conditions. The
nexus between the state's water and power needs are clear and
this bill provides a beneficial approach to address both those
needs.
4)Support if Amended: Two entities have submitted "support if
amended" positions, requesting that the PUC be given more time
beyond January 1, 2018, or to be allowed to consider active
proceedings before having to meet the deadline currently in
this bill to develop economic incentives. There are further
requests to acknowledged water agencies' energy efficiency and
provide for incorporating the opportunities this bill would
present in a cost-effective manner. Additionally, there is a
request to remove the intent to expedite Proposition 1 as
placed on the ballot by AB 1471 (Rendon), Chapter 188,
Statutes of 2014, funding for local water supplies.
REGISTERED SUPPORT / OPPOSITION:
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Support
Independent Energy Producers Association (Sponsor)
Association of California Water Agencies (If Amended)
California Association of Sanitation Agencies
California Manufacturers & Technology
California Municipal Utilities Association (If Amended)
San Diego County Water Authority
Opposition
None on file.
Analysis Prepared by:Ryan Ojakian / W., P., & W. / (916)
319-2096
SB 919
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