BILL ANALYSIS Ó
SB 1328
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Date of Hearing: June 28, 2016
ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE
Marc Levine, Chair
SB
1328 (Lara) - As Amended June 21, 2016
SENATE VOTE: 25-8
SUBJECT: Stormwater capture and treatment projects: funding
SUMMARY: Authorizes the State Water Resources Control Board
(SWRCB) to use money 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 (GHG). Specifically, this bill:
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 the SWRCB to expend moneys from the GGRF, upon
appropriation by the Legislature for these grants.
3) Specifies, but does not limit to, listed eligible projects
and makes clear that all stages of an eligible project may be
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awarded funds.
4) Requires the SWRCB to establish criteria for funding projects
based on demonstration of GHG emissions reductions.
5) Requires the SWRCB to give preference to projects located in,
and provide benefits to, disadvantaged community or within
one-half mile of a channelized river.
6) Permits the SWRCB to use or adapt the guidelines developed to
implement the Storm Water Grant Program funded through
Proposition 1 of 2014.
EXISTING LAW:
1)Establishes the GGRF in the State Treasury, requires all
moneys, except for fines and penalties, collected pursuant to
a market-based mechanism be deposited in the fund.
2)Requires moneys from the GGRF be used to facilitate the
achievement of reductions of GHG emissions in California.
3)Establishes the Stormwater Resource Planning Act, which
authorizes one or more public agencies to develop a stormwater
resource plan that meets specified standards to address the
capture, treatment, and storage of stormwater and dry weather
runoff.
FISCAL EFFECT: According to the Senate Appropriations
Committee, cost pressures potentially in the millions from the
GGRF. SWRCB administration costs equal to 5% of the funds
appropriated. Up to $406,000 in GGRF funds annually to the Air
Resources Board to coordinate with the SWRCB.
COMMENTS: Authorizes the SWRCB to use money from the GGRF upon
appropriation by the Legislature, to provide grants to public
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entities to implement stormwater and dry weather runoff
collection and treatment projects that are intended to reduce
GHG emissions.
1)Author's Statement: This bill provides much needed assistance
for the increased deployment of stormwater capture and ground
water recharge facilities. Despite the availability of Water
Bond funds for stormwater infrastructure there are still
significant barriers to increased implementation of stormwater
projects. Access to funding is a key component to increased
deployment, these barriers are compounded when applied to
disadvantaged communities.
This bill permits the SWRCB to use appropriated funds from the
GGRF to facilitate the increased deployment of stormwater
capture projects and groundwater recharge facilities, while
also prioritizing projects located in disadvantaged
communities. By increasing incentives for stormwater capture
infrastructure all communities can benefit from increased
resiliency in local water supplies, providing better access
and water quality, and decrease dependence on imported water.
2)Background: GHG emissions associated with water are
significant. There is potential to capture a substantial
amount of water through stormwater. The capture and reuse of
stormwater may create net benefits in reductions of GHG
emissions by supplying and delivering water more locally.
Water and energy use: The State Water Project is the single
largest 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. According to the State Energy
Resources and Conservation and Development Commission,
water-related energy use in California consumes approximately
20% of the state's electricity and 30% of the state's
non-power plant natural gas (natural gas not used to produce
electricity). The water sector uses electricity to pump,
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treat, transport, deliver, and heat water. Additionally,
expected increases in groundwater pumping, water treatment,
and water recycling due to drought conditions in the state,
mean the energy intensity of water will likely increase.
Stormwater funding: In 2014 the Public Policy Institute of
California estimated that there was an annual funding gap of
$500 million to $800 million for stormwater infrastructure.
The SWRCB, manages the Storm Water Grant Program to fund
stormwater and dry weather runoff projects that best advance
SWRCB's policy goals of improving water quality and realizing
multiple benefits from the use of stormwater and dry weather
runoff as resources. In November 2014, California voters
approved Proposition 1 (Prop. 1), Water Quality, Supply and
Infrastructure Improvement Act of 2014 (AB 1471, Rendon,
Chapter 188). Of the $7.545 billion in general obligation
bonds for water projects, Prop. 1 provides $200 million in
grants for multi-benefit stormwater management projects.
GGRF: Since November of 2012, the Air Resources Board has
held quarterly cap-and-trade auctions, generating over $4
billion in funds. State law requires that auction proceeds
must be used to facilitate GHG reductions. This bill makes
stormwater and dry weather runoff collection and treatment
projects that have demonstrated GHG emission reductions
eligible for grants supported through the GGRF, upon
appropriation by the Legislature.
3)Prior and Related Legislation:
a) AB 2594 (Gordon), passed this committee 10-3, passed
Senate Environmental Quality 5-2 and is currently in
Senate Natural Resources and Water. Would permit a
public entity that captures stormwater before the water
reaches a natural channel to use the water.
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b) AB 1989 (Jones), passed this committee 14-0, and is
held under submission in Assembly Appropriations. Would
have required several state agencies to develop and
implement a grant and low interest loan program to reduce
water-related GHG emissions.
c) SB 471 (Pavely), 2015, held in Assembly
Appropriations was very similar to AB 1989.
d) SB 551 (Wolk), 2015, passed this committee 9-4, held
in Assembly Appropriations. Would have established a
state policy recognizing and addressing the nexus between
water and energy.
e) AB 1471 (Rendon), Chapter 188, Statutes of 2014,
placed Proposition 1, a $7.545 billion general obligation
bond for water-related projects and programs
f) AB 32 (Núñez, Pavely), Chapter 488, Statues of 2006,
establishes the requirement to reduce GHG emissions and
put in place the mechanism to achieve that requirement.
g) SB 790 (Pavley), Chapter 620, Statues of 2009,
authorized stormwater resource plans.
h) AB 1750 (Solorio), Chapter 537, Statues of 2012,
recognized property owners did not need a water right to
capture rainwater.
i) SB 985 (Pavley), Chapter 555, Statues of 2014,
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required the State Water Board to provide guidance for
stormwater resource planning.
1)Supporting Arguments: Stormwater capture is critical for local
water reliability. This bill would allow for GGRF money to be
leveraged as grants for stormwater capture projects and
groundwater recharge facilities, prioritizing disadvantaged
communities in consideration for grant awards. Doing this
incentivizes development in rural communities that would not
only improve communities' water quality and supply, but would
also increase those communities' resilience to drought, and
decrease dependence on external sources of water.
2)Opposing Arguments: This bill distorts the nature of a
regulatory fee. Cap-and-trade auction revenue cannot legally
be earmarked for expenditures such as those identified in this
bill, absent a two-thirds vote. By directing funding beyond
the clear regulatory purposes, this bill opens up the
cap-and-trade auction to ongoing challenges.
REGISTERED SUPPORT / OPPOSITION:
Support
Association of California Water Agencies
Audubon California
California League of Conservation Voters
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City of Long Beach
Tree People
Water Replenishment District of Southern California
Opposition
CalTax
Analysis Prepared by:Ryan Ojakian / W., P., & W. / (916)
319-2096