BILL ANALYSIS
AB 2153
Page 1
ASSEMBLY THIRD READING
AB 2153 (Krekorian)
As Amended May 22, 2008
Majority vote
NATURAL RESOURCES 5-3 APPROPRIATIONS 9-5
-----------------------------------------------------------------
|Ayes:|Hancock, Brownley, Laird, |Ayes:|Leno, Davis, DeSaulnier, |
| |Saldana, Wolk | |Furutani, Huffman, |
| | | |Karnette, Krekorian, |
| | | |Lieu, Nava |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|La Malfa, Aghazarian, |Nays:|Walters, Emmerson, La |
| |Keene | |Malfa, Nakanishi, Sharon |
| | | |Runner |
| | | | |
-----------------------------------------------------------------
SUMMARY : Amends the California Environmental Quality Act (CEQA)
to require every new residential or commercial building subject to
CEQA to implement all feasible and cost-effective water efficiency
measures, then mitigate its annual water consumption, as projected
by its water supplier, with specified exceptions. Specifically,
this bill :
1)Requires mitigation measures to be implemented within the same
hydrologic region as the new building and provides mitigation
measures 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; and,
f) Greywater systems.
2)Requires mitigation measures to meet the following criteria:
AB 2153
Page 2
a) At least 40% of the mitigation shall be accomplished
through projects that serve disadvantaged communities;
b) Mitigation projects shall have a life expectancy of at
least 20 years and have quantifiable results that yield water
equal to the projected water usage of the project; and,
c) Mitigation projects shall, to the extent feasible,
minimize greenhouse gas emissions, minimize environmental
impact, reduce contaminated runoff, and provide environmental
benefit.
3)Caps the cost of water consumption mitigation measures that may
be imposed on a project equal to one percent of the building's
price.
4)Provides that affordable housing and public building projects
are subject to water efficiency requirements, but not mitigation
requirements.
5)Permit a local agency to substitute a local program for the
requirements of this bill if it determines the local program
achieves equivalent water supply reliability results.
EXISTING LAW :
1)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)Exempts specified residential housing projects which meet
extensive criteria established to ensure the projects do not
have a significant effect on the environment. Generally, the
exemption is available to affordable agricultural housing
projects under 45 units, affordable urban housing projects under
100 units, and urban infill housing projects under 100 units
near 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
AB 2153
Page 3
500 residential units, unless the legislative body of a 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 California Energy Commission (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 standards are necessary to save energy.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, potentially substantial costs, in the millions of
dollars annually statewide starting in 2008-09, to cities and
counties and other local lead agencies under CEQA to review and
approve project mitigation measures and to enforce the mitigation
process. These costs are covered by revenue generated by
CEQA-related fees imposed on project developers.
COMMENTS : 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.
AB 1560 (Huffman), Chapter 532, Statutes of 2007, 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
AB 2153
Page 4
electric energy load is related to the movement, treatment, and
consumption of water and 39% of gas load is related to heating
water.
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
prepares a negative declaration. If the initial study shows that
the project may have a significant effect on the environment, the
lead agency prepares an EIR.
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 into a project,
the agency must adopt a reporting or monitoring program to ensure
compliance with those measures.
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, this 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.
What types of buildings would be subject to this bill? It is
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. All qualified affordable
housing projects and public building projects (local, state, and
schools) are exempt from the bill's mitigation requirements.
AB 2153
Page 5
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,
approval, and monitoring by the lead agency.
Analysis Prepared by : Lawrence Lingbloom / NAT. RES. / (916)
319-2092
FN: 0004848