BILL ANALYSIS Ó
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
SB 1328 (Lara) Page 1 of
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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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