BILL ANALYSIS                                                                                                                                                                                                    

                                                                    SB 1328

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          1328 (Lara)

          As Amended  August 18, 2016

          Majority vote

          SENATE VOTE:  25-8

          |Committee       |Votes|Ayes                   |Noes                 |
          |                |     |                       |                     |
          |                |     |                       |                     |
          |                |     |                       |                     |
          |Water           |12-3 |Levine, Dodd, Eggman,  |Gallagher, Bigelow,  |
          |                |     |                       |Harper               |
          |                |     |                       |                     |
          |                |     |Cristina Garcia,       |                     |
          |                |     |Eduardo Garcia, Gomez, |                     |
          |                |     |Lopez, Mathis,         |                     |
          |                |     |Nazarian, Olsen,       |                     |
          |                |     |Salas, Williams        |                     |
          |                |     |                       |                     |
          |Appropriations  |11-3 |Gonzalez, Bloom,       |Bigelow, Jones,      |
          |                |     |Bonilla, Bonta,        |Obernolte            |
          |                |     |Eggman, Eduardo        |                     |
          |                |     |Garcia, Quirk,         |                     |
          |                |     |Santiago, Weber, Wood, |                     |
          |                |     |McCarty                |                     |
          |                |     |                       |                     |


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          |                |     |                       |                     |

          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 agencies, as defined, non-profits, public utilities,  
          and mutual water companies to implement stormwater and dry  
          weather runoff collection and treatment projects that are  
          intended to reduce greenhouse gas emissions (GHG) by decreasing  
          the demand for fossil fuels needed to pump, transport, and  
          deliver water to serve water consumers, as specified.   
          Specifically, this bill:  

          1) Authorizes the SWRCB to provide grants to public agencies, as  
             defined, non-profits, public utilities, and mutual water  
             companies to implement stormwater and dry runoff collection  
             and treatment projects that are intended to reduce GHG  
             emissions by decreasing demand for fossil fuel needs to pump,  
             transport, and deliver water to consumers. 
          2) Authorizes the SWRCB to expend moneys from the GGRF, upon  
             appropriation by the Legislature for these grants.  Specifies  
             grant funds may be used for all phases of planning, design,  
             and project construction and implementation.  Requires grant  
             recipients to provide a 50% match with some exceptions.

          3) Requires the SWRCB to establish criteria for funding projects  
             based on demonstration of GHG emissions reductions.  To be  
             eligible, a project is expected to result in a new decrease  
             in GHG emissions.  Projects proposed by a public utility or a  
             mutual water company shall have a clear and definite public  
             purpose and shall benefit the customers and not the  

          4) Requires the SWRCB to give preference to projects located in,  


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             and providing benefits to, disadvantaged community or located  
             within one-half mile of a channelized river.

          5) 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 (Proposition 1, Water  
             Bond), or other previously developed and adopted project  
             solicitation and evaluation guidelines. Exempts programs or  
             project authorized or funded pursuant to this section from  
             the Administrative Procedures Act.  

          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  

          FISCAL EFFECT:  According to the Assembly Appropriations  

          1)Cost pressures, likely in the millions of dollars, to fund the  
            program (GGRF).


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          2)Increased unknown administrative costs, likely 5% of the total  
            program funds, for SWRCB to implement the program.  According  
            to SWRCB, an amendment is necessary to allow the use of GGRF  
            for administrative costs rather than General Fund.

          3)Up to approximately $565,000 (GGRF) annually for the Air  
            Resources Board (ARB) to coordinate with SWRCB in developing  
            and updating guidelines, developing quantification  
            methodologies, and providing legal review.


          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 the reduction of GHG emissions by supplying and  
          delivering more water locally. While there are funding sources  
          available for stormwater capture projects they fall short of the  
          funding needs.    

          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, 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  


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          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  

          Analysis Prepared by:                                             
                          Ryan Ojakian / W., P., & W. / (916) 319-2096   
          FN: 0004301