BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2153
                                                                  Page 1

          Date of Hearing:  April 17, 2008

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                 Loni Hancock, Chair
                   AB 2153 (Krekorian) - As Amended:  April 8, 2008
           
          SUBJECT  :  Water conservation.

           SUMMARY  :  Amends the California Environmental Quality Act (CEQA)  
          to require every new residential or commercial building subject  
          to CEQA first to implement all feasible and cost-effective water  
          efficiency measures, then to mitigate its annual water annual  
          consumption, as projected by its water supplier.

           EXISTING LAW  :

          1)CEQA requires lead agencies with the principal responsibility  
            for carrying out or approving a proposed project to prepare a  
            negative declaration, mitigated negative declaration, or  
            environmental impact report (EIR) for this action, unless the  
            project is exempt from CEQA (CEQA includes various statutory  
            exemptions, as well as categorical exemptions in the CEQA  
            guidelines).  CEQA requires mitigation of significant effects  
            on the environment.

          2)CEQA exempts specified residential housing projects which meet  
            extensive criteria established to ensure the project does not  
            have a significant effect on the environment.  The exemption  
            is available to:  

               a)     Affordable agricultural housing projects not more  
                 than 45 units within a city, or 20 units within an  
                 agricultural zone, on a site not more than five acres in  
                 size; 

               b)     Affordable urban housing projects not more than 100  
                 units on a site not more than five acres in size; and,

               c)     Urban infill housing projects under 100 units, on a  
                 site not more than four acres in size, which is within  
                 one-half mile of a major transit stop.

          3)Prohibits approval of a tentative or parcel map, or a  
            development agreement for a subdivision of property of more  
            than 500 residential units, unless the legislative body of a  








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            city or county or the designated advisory agency provides  
            written verification from the applicable public water system  
            that a sufficient water supply is available or, in addition, a  
            specified finding is made by the local agency that sufficient  
            water supplies are, or will be, available prior to completion  
            of the project.

          4)Provides that whenever a city or county determines that a  
            project is subject to CEQA, the project must comply with the  
            provisions of law that evaluate the sufficiency of water  
            supplies.

          5)Requires the CEC to prescribe energy conservation design  
            standards for new residential and new nonresidential  
            buildings, and also prescribe water efficiency standards for  
            those buildings, provided the adopted water efficiency or  
            conservation standards are necessary to save energy.

           THIS BILL  :

          1)Amends CEQA to require every new residential or commercial  
            building subject to CEQA to:

               a)     Implement all feasible and cost-effective water  
                 efficiency measures.

               b)     Mitigate its annual water annual consumption, as  
                 projected by its water supplier.

          1)Mitigation measures must be implemented within the same  
            hydrologic region as the new building and may include:

               a)     Water efficiency measures including interior and  
                 exterior water conservation.

               b)     Infrastructure rehabilitation resulting in reduced  
                 water loss due to leaking pipes or reduced need to flush  
                 pipe systems.

               c)     Recycled water facilities.

               d)     Groundwater remediation and treatment facilities.

               e)     Stormwater capture facilities.









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          2)Mitigation measures must also meet the following criteria:

               a)     At least 40 percent of the mitigation shall be  
                 accomplished through projects that serve disadvantaged  
                 communities.

               b)     Mitigation projects shall be real, have a life  
                 expectancy of at least 20 years, and have quantifiable  
                 results that produce an amount of water equal to the  
                 projected water usage of the project.

               c)     Mitigation projects shall to the extent feasible  
                 minimize greenhouse gas emissions, minimize environmental  
                 impact, reduce contaminated runoff, and provide  
                 environmental benefit.

          3)Mitigation measures shall target affordable housing and, if  
            undertaken for public buildings, target public buildings, with  
            priority for schools.

          4)Affordable housing projects are subject to water efficiency  
            requirements, but not mitigation requirements.
           
          FISCAL EFFECT  :  Unknown, potentially significant costs to the  
          state to comply with water efficiency and mitigation  
          requirements for new state buildings, offset by water use  
          savings over the life of the building. 


























                                                                  AB 2153
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           COMMENTS  :

           1)Water is for fighting over.   Since California's last prolonged  
            drought in the early 1990's, Californians have taken numerous  
            steps to promote water conservation.  In 1991, the Urban Water  
            Management Council's memorandum of understanding (MOU) was  
            executed among water agencies to promote "best management  
            practices" for water use efficiency.  The next year, Congress  
            passed the Central Valley Project Improvement Act, which  
            required agricultural users to develop water conservation  
            plans.  In the decade that followed, the vast majority of  
            urban water agencies signed on to the MOU; agricultural water  
            agencies developed their own MOU; the CALFED Bay Delta Program  
            began implementing a water use efficiency program; and, the  
            Legislature passed laws requiring urban water management plans  
            to include water conservation plans.  
             
            Last year, AB 1560 (Huffman) extended water use efficiency  
            efforts into the private sector, establishing water use  
            efficiency standards for new residential and non-residential  
            buildings, provided the water efficiency standards are  
            necessary to save energy.  The CEC has concluded that as much  
            as 19% of electric energy load is related to the movement,  
            treatment, and consumption of water and 39% of gas load is  
            related to heating water.

           2)CEQA.   CEQA provides a process for evaluating the  
            environmental effects of applicable projects undertaken or  
            approved by public agencies.  If a project is not exempt from  
            CEQA, an initial study is prepared to determine whether the  
            project may have a significant effect on the environment.  If  
            the initial study shows that there would not be a significant  
            effect on the environment, the lead agency must prepare a  
            negative declaration.  If the initial study shows that the  
            project may have a significant effect on the environment, the  
            lead agency must prepare an EIR.

          3)Generally, an EIR must accurately describe the proposed  
            project, identify and analyze each significant environmental  
            impact expected to result from the proposed project,  identify  
            mitigation measures to reduce those impacts to the extent  
            feasible  , and evaluate a range of reasonable alternatives to  
            the proposed project.  Prior to approving any project that has  
            received environmental review, an agency must make certain  
            findings.  If mitigation measures are required or incorporated  








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            into a project, the agency must adopt a reporting or  
            monitoring program to ensure compliance with those measures.

           4)Zero net water use.   This bill proposes a novel application of  
            the CEQA concept of mitigation.  Rather than having mitigation  
            following project-specific analysis and identification of  
            significant effects on the environment, the bill would require  
            each new building to mitigate any projected water use, on the  
            basis that net water consumption should be avoided for new  
            construction as a statewide matter, regardless of individual  
            project details or local circumstances.

           5)What types of buildings would be subject to this bill?   It's  
            difficult to generalize, but affordable housing projects and  
            limited infill housing projects, as well as individual  
            single-family homes, that are exempt from CEQA, would not be  
            subject to this bill.  Multi-unit apartment and housing  
            developments, or commercial buildings, of any significant size  
            likely would be subject to the bill.  In addition, even a  
            project that receives a negative declaration is "subject to  
            CEQA," so the bill may apply to a project otherwise determined  
            to have no significant effect on the environment.

           6)What process will govern the selection and validation of  
            mitigation measures?   As stated above, CEQA mitigation is  
            handled by the lead agency on a project-by-project basis.   
            Pursuant to the CEQA process, the proposed mitigation measures  
            would be subject to public review and comment, then approval  
            by the lead (public) agency.  In approving the project, the  
            agency must adopt a reporting or monitoring program to ensure  
            compliance with those mitigation measures.  The particular  
            mitigation measures likely would be selected by the project  
            developer and subject to review and approval by the lead  
            agency.

           7)How much will it cost?   Supporters suggest an average  
            mitigation cost per single-family home of about $350 or less,  
            based on 0.6 acre foot/year water use.  Opponents informally  
            indicated much higher cost estimates, but have not provided  
            the Committee a specific figure.

           8)Related legislation:  

               a)     AB 2175 (Laird), pending in the Water, Parks and  
                 Wildlife Committee, requires the Department of Water  








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                 Resources (DWR) to: 

                                   Establish a statewide target to  
                        achieve a 20% reduction in urban per capita water  
                        use by 2020.
                                   Establish a statewide numeric water  
                        conservation target for agricultural water use  
                        that provides for a significant increase in  
                        agricultural water conservation by 2009.
                                   Establish and publish a list of  
                        technically feasible urban and agricultural water  
                        conservation measures by 2010.
                                   Each urban water supplier would be  
                        required to reduce its per capita water use by 20%  
                        by 2020.
                                   Each agricultural water supplier would  
                        be required to adopt numeric water conservation  
                        targets to be achieved by 2015 and 2020.  

               b)     AB 2219 (Parra), pending in the Water, Parks and  
                 Wildlife Committee, amends the current water supply  
                 assessment law to require the city or county to approve  
                 or disapprove the subdivider's water savings projections  
                 attributable to voluntary demand management measures  
                 after being reviewed by the retail water supplier.  The  
                 city or county would have to reduce the anticipated water  
                 demand for the project based on the water service  
                 provider's voluntary water demand management measures.

           REGISTERED SUPPORT / OPPOSITION :

           Support 
           
          Bay Institute
          Butte Environmental Council
          California Coastkeeper Alliance
          California Trout
          Catholic Charities, Diocese of Stockton
          Center for Biological Diversity
          Clean Water Action
          Community Water Center
          Defenders of Wildlife
          Desal Response Group
          East Bay Watershed Center
          End Oil








                                                                  AB 2153
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          Environment California
          Environmental Justice Coalition for Water (co-sponsor)
          Federation of Fly Fishers
          Food and Water Watch
          Friends of the River
          Natural Resources Defense Council
          Ocean Conservancy
          Parents for a Safer Environment
          Planning and Conservation League (co-sponsor)
          Sierra Club California

           Opposition 
           
          Associated General Contractors California
          California Building Industry Association
          California Business Properties Association
          California Chamber of Commerce
          Consulting Engineers and Land Surveyors of California
          Western Electrical Contractors Association

           
          Analysis Prepared by  :  Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092