BILL ANALYSIS Ó
SB 1328
Page 1
SENATE THIRD READING
SB
1328 (Lara)
As Amended August 18, 2016
Majority vote
SENATE VOTE: 25-8
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|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 | |
| | | | |
SB 1328
Page 2
| | | | |
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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
investors.
4) Requires the SWRCB to give preference to projects located in,
SB 1328
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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
runoff.
FISCAL EFFECT: According to the Assembly Appropriations
Committee:
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.
COMMENTS:
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
increase.
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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
projects.
Analysis Prepared by:
Ryan Ojakian / W., P., & W. / (916) 319-2096
FN: 0004301