BILL ANALYSIS                                                                                                                                                                                                    



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1328 (Lara) - Stormwater capture and treatment projects:   
          funding
          
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          |Version: April 25, 2016         |Policy Vote: E.Q. 7 - 0         |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 9, 2016       |Consultant: Narisha Bonakdar    |
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          This bill meets the criteria for referral to the Suspense File.

          Bill  
          Summary:  SB 1328 authorizes the State Water Resources Control  
          Board (SWRCB) to expend moneys from the Greenhouse Gas Reduction  
          Fund (GGRF), upon appropriation by the Legislature, to provide  
          grants to public entities to implement stormwater and dry  
          weather runoff collection and treatment projects that are  
          intended to reduce greenhouse gas emissions by decreasing the  
          demand for electricity needed to pump, transport, and deliver  
          water from natural sources to serve water consumers, as  
          prescribed.


          Fiscal  
          Impact:  

           According to the SWRCB, the administration costs would equal 5  
            percent of the funds appropriated for this program (currently  
            unspecified in the bill).  (GGRF)

           Up to $406,000 (GGRF) annually for the Air Resources Board to  
            coordinate with SWRCB in developing and periodically updating  







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            guidelines, developing quantification methodologies, and other  
            tasks. (See staff comments)

           Cost pressures, potentially in the millions (GGRF), to fund  
            the program.


          Background:  The California Global Warming Solutions Act of 2006 (referred  
          to as AB 32, HSC 38500 et seq.) requires the California Air  
          Resources Board (ARB) to determine the 1990 statewide greenhouse  
          gas (GHG) emissions level, to approve a statewide GHG emissions  
          limit equivalent to that level that will be achieved by 2020,  
          and to adopt GHG emissions reductions measures by regulation.  
          ARB is authorized to include the use of market-based mechanisms  
          to comply with the regulations. Under this authority, the ARB  
          initiated the cap-and-trade program. All monies, except for  
          fines and penalties, collected pursuant to the cap-and-trade  
          program deposited in the Greenhouse Gas Reduction Fund (GGRF)  
          (Government Code 16428.8). 
          Existing law requires that the GGRF only be used to facilitate  
          the achievement of reductions of GHG emissions consistent with  
          AB 32 (HSC 39710 et seq.). To this end, the Department of  
          Finance, in consultation with the ARB and any other relevant  
          state agencies, is required to develop, as specified, a  
          three-year investment plan for the moneys deposited in the GGRF.  
          The investment plan must allocate a minimum of 25% of the funds  
          to projects that benefit disadvantaged communities and to  
          allocate 10% of the funds to projects located within  
          disadvantaged communities. Additionally, the ARB, in  
          consultation with CalEPA, is required to develop funding  
          guidelines for administering agencies receiving allocations of  
          GGRF funds that include a component for how agencies should  
          maximize benefits to disadvantaged communities.
          Improving and increasing stormwater capture and reuse may be  
          especially beneficial in southern California, which imports a  
          significant amount of its water supply from northern California.  
           The State Water Project is the largest single user of energy in  
          the state and consumes an average of 5 billion kWh/yr,  
          accounting for about 2-3% of all electricity consumed in  
          California.  Stormwater capture and reuse may create net  
          benefits in reductions of GHG emissions and energy use by  
          supplying and delivering water more locally.

          Proposed Law:  This bill:  








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          1) Authorizes the SWRCB to provide grants to public agencies to  
             implement stormwater and dry runoff collection and treatment  
             projects that are intended to reduce GHG emissions by  
             decreasing demand for electricity needs to pump, transport,  
             and deliver water from natural resources to consumers. 


          2) Authorizes SWRCB to expend moneys from GGRF, upon  
             appropriation of the Legislature for these grants.


          3) Provides that eligible projects for funding include, but not  
             be limited to, green infrastructure, rainwater, stormwater,  
             dry weather runoff capture projects, and stormwater treatment  
             facilities.


          4) Specifies that grant funds may be used for all phases of  
             planning, design, and project construction and  
             implementation.


          5) Requires SWRCB to establish criteria for funding projects  
             based on demonstration of GHG emissions reductions and  
             geographic conditions that facilitate stormwater and dry  
             weather runoff collection.


          6) Requires SWRCB to give preference to projects located in, and  
             provide benefits to, disadvantaged communities.


          7) Authorizes the SWRCB to use or adapt the guidelines developed  
             to implement the Storm Water Grant Program, which is funded  
             in accordance with the Water Quality, Supply, and  
             Infrastructure Improvement Act of 2014.




          Related  
          Legislation: SB 1425 (Pavley, 2016) which requires ARB, in  
          consultation with other relevant state agencies, and the Climate  
          Registry, to develop and administer a registry of GHG emissions  








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          resulting from the water-energy nexus using the best available  
          data.  SB 1425 is currently in Senate Appropriations Committee.

          SB 471 (Pavley, 2015) specifies that reductions in GHG emissions  
          associated with the water sector are eligible investments for  
          GGRF, requires CEC to study water-related energy use in  
          California, and requires SWRCB to develop a grant and loan  
          program to fund projects that result in water-related GHG  
          reductions.  Held in Assembly Appropriations Committee.
          AB 1471 (Rendon, Chapter 188, Statutes of 2014) established the  
          Water Quality, Supply and Infrastructure Improvement Act of 2014  
          and authorized $7.545 billion in new general obligation bonds  
          (Proposition 1). 




          Staff  
          Comments:  This is one of many bills before the committee that  
          will potentially impact Greenhouse Gas Reduction Fund (GGRF)  
          monies.  The Committee may wish to consider a holistic approach  
          to GGRF expenditures.


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