BILL ANALYSIS Ó SB 1340 Page 1 Date of Hearing: June 28, 2016 ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE Marc Levine, Chair SB 1340 (Wolk) - As Amended June 21, 2016 SENATE VOTE: 21-12 SUBJECT: Water Conservation in Landscaping Act SUMMARY: Requires a local permit, for water efficiency compliance purposes, for installation of large stand-alone landscaping irrigation systems. Specifically, this bill: 1)Requires a local agency, on or after July 1, 2018, to require a written permit for installation of an automatic irrigation system, or the expansion of an existing irrigation system to increase the irrigated area by 25% or more, for landscaping that is not already within the scope of another permit and is either: a) Nonresidential landscaping that is not a cemetery and is at least 2,500 square feet. b) Residential landscaping of 10,000 square feet or greater. SB 1340 Page 2 1)Clarifies that the permit requirement established by this bill does not apply to the repair or replacement of the components of parts of any existing automatic irrigation system. 2)Authorizes the local agency to adopt an ordinance prescribing permit fees, not to exceed the amount reasonably required for review of applications and issuance of the permits, and not for general revenue purposes. 3)Authorizes the applications for residential landscapes to be submitted by the property owner, property manager, landscape contractor, landscape architect, or other agent of the owner. EXISTING LAW: 1)Requires, under the Water Conservation in Landscaping Act, the Department of Water Resources (DWR) to adopt and update a model water efficient landscaping ordinance. 2)Requires the model ordinance to address specific elements to reduce water use, including but not limited to, water conservation and appropriate plant use, a landscape water budget, stormwater capture, automatic irrigation systems and schedules, soil assessment and management, use of recycled water, water user education, economic incentives, maintenance practices for long-term water conservation, and minimization of overspray and runoff. FISCAL EFFECT: This bill has been designated as non-fiscal by Legislative Counsel. SB 1340 Page 3 COMMENTS: This bill seeks to close a gap in implementation of California's existing water efficient landscape ordinance, by establishing a local permit requirement for large, stand-alone landscape irrigation projects that are installed after building construction. By requiring a local permit for installation, this bill seeks to help ensure that the water efficiency standards addressed by the model ordinance are applied to large stand-alone irrigation systems. This bill would implement a recommendation of the Independent Technical Panel on Demand Management Measures included in their May 2016 final draft report. 1)Author's Statement: Since at least 1990 it has been the goal of the state that new landscapes and major renovations be designed and installed to be water-efficient. The state's model water efficient landscape ordinance provides standards and criteria for new and renovated landscape projects that are included in projects that require a local permit, plan check or design review, such as construction of a new building. However, there is a major gap that leaves a significant portion of new landscape projects without any standards. It is a common practice for home builders to leave back yards of new homes un-landscaped. In some parts of the state it is also common for front yards to be left un-landscaped by home builders. In these cases the building permit for the new home does not include the landscape. Consequently, the owner-initiated landscape projects that may follow new home construction by anywhere from a few months to a few years are not subject to the water efficiency standards of the model ordinance, because in most localities the installation of landscape materials and an irrigation system as a stand-alone project do not require a permit. 2)Background: At the request of the Legislature in 2007, an SB 1340 Page 4 Independent Technical Panel (ITP) on Demand Management Measures was formed to provide DWR and the Legislature information and recommendations on new water demand management measures, technologies and approaches to water use efficiency. The most recent report of the ITP was issued in May 2016 and is titled "Recommendations Report to the Legislature on Landscape Water Use Efficiency." Among other recommendations, the report recommends that a new permit requirement be implemented by local agencies for installation of new automatic irrigation systems, or the expansion of existing irrigation systems, for large nonresidential and residential landscapes over certain sizes. This bill would implement this recommendation of the ITP. The ITP report notes that "the proper design, installation, and control of automatic landscape irrigation systems is essential to the efficient use of water and avoidance of water waste. Stand-alone landscape projects are common in California, and should not be exempt from permitting. While the planting of landscape materials can take place over an extended period of time, the irrigation system largely controls the delivery of water to the landscape. Thus, the installation of an irrigation system for a large landscape is itself an appropriate "trigger" for a permit subject to all requirements of the [model ordinance]?..Developer-installed landscape projects would continue to be covered by a building permit, without requiring a separate permit for the irrigation system." The ITP report further states that "we recommend that the Legislature directly incorporate a requirement for permitting of stand-alone irrigation installations for commercial and large residential landscapes into the Water Conservation and Landscaping Act. The effect will be to bring stand-alone landscape projects under the scope of the revised [model ordinance] in all local jurisdictions?" Finally, the ITP report notes "In light of the diverse and challenging SB 1340 Page 5 conditions in which ornamental landscapes are installed, and the frequent changes in irrigation technology and plant varieties, the avoidance of waste requires that all new landscapes and major additions should require a permit." 3)Double-referral: This bill is double-referred to the Assembly Local Government Committee which is scheduled to hear this bill next after this committee. 4)Recent Amendments: This bill was previously heard in this committee on June 14, 2016. The measure failed passage but reconsideration was granted. Author's amendments taken since that hearing increased the threshold for commercial properties from 500 to 2,500 square feet, and deleted the authorization for the California Building Standards Commission or the Department of Housing and Community Development to revise the thresholds. The amendments also clarified that the permit requirement does not apply to repair or replacement of the components of any existing automatic irrigation system. 5)Prior and Related Legislation: AB 1881 (Laird), Chapter 559, Statutes of 2006, required the DWR to update the model water efficiency in landscaping ordinance, and required local agencies to either adopt the model ordinance or another ordinance that is at least as efficient in conserving water. AB 1420 (Laird), Chapter 628, Statutes of 2007, directed the DWR to form an independent panel to provide information to the DWR and the Legislature on new demand management measures, technologies, and approaches. SB 1340 Page 6 AB 2525 (Holden) would require the DWR to create a water efficiency landscaping program to encourage local economic incentives to promote water efficient landscapes. AB 2525 was held in the Assembly Appropriations Committee last month. AB 1928 (Campos) extends the date by which the State Energy Resources Conservation and Development Commission is required to adopt landscape irrigation equipment performance standards and labeling requirements. AB 1928 passed the Assembly and is pending in the Senate. AB 2617 (Mayes) requires the DWR to prepare a report analyzing the costs and benefits of incentives for various water efficiency measures. AB 2617 passed the Assembly and is pending in the Senate. AB 2515 (Weber) requires the DWR, on or before January 1, 2020, and every three years thereafter, to either update the model water-efficient landscaping ordinance or make a finding that an update to the model water-efficient landscaping ordinance at that time is not useful or effective. The bill would additionally require DWR to submit the update to the Building Standards Commission during the triennial revision process of the California Green Building Standards Code. AB 2515 passed the Assembly and is pending in the Senate. SB 1340 Page 7 6)Support Arguments: Supporters note that statewide about half of the water supplied to urban areas is used outdoors, primarily for landscape irrigation. Improving efficiency in outdoor water use is critically important for water supply reliability. The proper design, installation, and control of automatic landscape irrigation systems are essential to improving water use efficiency. A permitting requirement for large, stand-alone irrigation projects will help assure those improvements. 7)Opposition Arguments: The California Association of Realtors asserts that this bill would impose a new, time-consuming, unnecessary and expensive mandate on local property owners, which would burden property owners rather than assist them in making better landscape decisions. The Association of California Water Agencies believes that this bill would increase workload and costs for water agencies to process the permits, and would burden ratepayers with an additional fee. In response to the assertion that this bill imposes a new mandate on local property owners, the author notes that landscape installations associated with a new home are already covered by the model ordinance. This bill will ensure that landscape installations that are deferred, and come at a later time, are also subject to the water efficiency standards of the model ordinance. REGISTERED SUPPORT / OPPOSITION: Support SB 1340 Page 8 Apartment Association, California Southern Cities Apartment Association of Orange County California Building Industry Association California Building Officials California Business Properties Association California Landscape Contractors' Association California League of Conservation Voters California Native Plant Society Clean Water Action East Bay Rental Housing Association Gardenworks, Inc. Irrigation Association Natural Resources Defense Council SB 1340 Page 9 North Valley Property Owners Association Regional Water Authority Sierra Club California Sonoma County Water Agency Trust for Public Lands USGBC California Opposition Association of California Water Agencies California Association of Realtors Analysis Prepared by:Diane Colborn / W., P., & W. / (916) 319-2096 SB 1340 Page 10