BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 2270|
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                                 THIRD READING


          Bill No:  AB 2270
          Author:   Laird (D) and Feuer (D), et al
          Amended:  8/4/08 in Senate
          Vote:     21

           
           SENATE ENV. QUALITY COMMITTEE  :  5-2, 6/16/08
          AYES:  Simitian, Corbett, Florez, Kuehl, Lowenthal
          NOES:  Runner, Aanestad
           
          SENATE NATURAL RES. & WATER COMMITTEE  :  7-1, 6/24/08
          AYES:  Steinberg, Cogdill, Kehoe, Kuehl, Machado, Margett,  
            Migden
          NOES:  Hollingsworth

           SENATE APPROPRIATIONS COMMITTEE  :  8-5, 7/7/08
          AYES:  Torlakson, Cedillo, Corbett, Florez, Kuehl,  
            Ridley-Thomas, Simitian, Yee
          NOES:  Cox, Aanestad, Ashburn, Dutton, Wyland
          NO VOTE RECORDED:  Oropeza, Runner
           
          ASSEMBLY FLOOR  :  51-19, 5/29/08 - See last page for vote


           SUBJECT  :    Recycled water:  water quality

           SOURCE  :     WateReuse Association
                      Inland Empire Utilities Agency


           DIGEST  :    This bill requires additional reporting on  
          recycled water and allows local limitations on salinity  
          inputs.
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           Senate Floor Amendments  of 8/4/08 consolidate reporting on  
          recycled water to the State Water Resources Control Board  
          (SWRCB), in place of reporting to an appropriate regional  
          water quality control board (RWQCB).  The amendments,  
          largely technical in nature, also contain two provisions  
          that require (1) a person authorized to supply or  
          distribute recycled water to annually report specified  
          information to the SWRCB, in place of a prior proposal in  
          the bill to provide such reporting to the appropriate  
          RWQCB, and (2) the Department of Health Services to include  
          information from the SWRCB when updating its report on  
          water recycling.

           ANALYSIS  :    

          Existing law:

          1. Authorizes a residential water softening or conditioning  
             appliance to be installed if certain conditions are met.

          2. Provides that a local agency may limit the availability,  
             or prohibit the installation, of residential water  
             softening or conditioning appliances that discharge to  
             the community sewer system if the local agency makes  
             specified findings in an ordinance.

          3. Requires that any ordinance banning the installation of  
             water softeners be prospective and may not require the  
             removal of residential water softening or conditioning  
             appliances that are installed before the effective date  
             of the ordinance.

          4. Provides that any water softening appliance in place at  
             a residential dwelling prior to January 1, 1980, in  
             those areas being served by sewage treatment facilities  
             that have been limited with regard to salt loading  
             pursuant to Division 7 of the Water Code and for which  
             the appropriate RWQCB makes a finding that the control  
             of residential salinity input is necessary to provide  
             compliance with those limitations, may be continued in  
             operation for a period no longer than four years.

          5. Authorizes the Santa Clarita Valley Sanitation District,  

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             or any successor district, to adopt an ordinance  
             requiring the removal of all installed residential  
             self-regenerating water softeners that discharge to the  
             community sewer system, if the sanitation district makes  
             specified findings and includes them in the ordinance,  
             pursuant to SB 475 (Runner), Chapter 393, Statutes of  
             2006.

          This bill:

          1. Requires the Department of Water Resources (DWR) to  
             update recycling "targets" every five years, as  
             specified (e.g., information from appropriate regional  
             boards and water management plans).  Requires the DWR to  
             include revised targets in the California Water Plan  
             beginning in 2013.

          2. Requires an urban water supplier to include in its urban  
             water management plan information on recycled water, as  
             specified (e.g., a description of the quantity of  
             treated wastewater meeting recycled water standards).

          3. Requires a permittee to submit the recycled water use  
             information on an annual basis to an RWQCB.

          4. Requires any person authorized to supply or distribute  
             recycled water to annually report to the appropriate  
             RWQCB the amount of recycled water supplied or  
             distributed in the previous year.

          5. Authorizes a local agency maintaining a community sewer  
             system to act to control residential salinity inputs  
             (e.g., water softeners) to protect the state's water  
             quality, based on a finding by the SWRCB or an RWQCB  
             that residential salinity input will contribute to  
             achieving water quality objectives, as based on one or  
             more of several actions adopted by the SWRCB or RWQCB  
             (e.g., water quality control plans, waste discharge  
             requirements, cease and desist orders).

             A.    Actions to control residential salinity inputs may  
                include various types of controls (e.g., requiring  
                plumbing permits, the removal of water softeners).


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             B.    If a local agency adopts an ordinance requiring  
                the removal of a water softener, the local agency is  
                required to provide a program to compensate owners,  
                as determined by a local agency.

             C.    Provides a standard of judicial review that is  
                based on a review of evidence, and is according to  
                the same as the standard of review required for the  
                corresponding water quality action which serves as  
                the basis for the finding.

             6.    Requires the DWR and the SWRCB to promote 2005  
                California Water Plan policies related to water use  
                efficiency and recycled water in the priorities for  
                awarding state water management grants and loans.

           Comments  
          
          According to the Senate Environmental Quality Committee  
          analysis, this bill advances the use of recycled water in  
          the state by removing barriers to its use, improving water  
          quality and tracking progress in meeting the state's target  
          for recycled water.  This bill addresses Recycled Water  
          Task Force recommendations by promoting the use of recycled  
          water and removing barriers to implementation.

           Prior/Related Legislation  
           
          SB 475 (Runner), Chapter 393, Statutes of 2006, established  
          a process by which the Santa Clarita Valley Sanitation  
          District, upon voter approval of an ordinance adopted by  
          the district board to do so, may require the removal of all  
          residential water softening or conditioning appliances that  
          discharge to the public sewer system, in an effort to  
          reduce the volume of chloride discharged to the Santa Clara  
          River.
           
           NOTE:  Please refer to the Senate Environmental Quality  
                 Committee analysis for further background  
                 information.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No


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          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

             Major Provisions            2008-09           
             2009-10   2010-11              Fund  

            California Water Plan             $50     $50      
            $50Bond*
            update: include recycled
            water information

            * Proposition 84

          DWR estimates it requires additional funding of $200,000  
          every five years (over four years for the first report) to  
          include the revised targets in the California Water Plan.   
          This bill specifies the intent of the Legislature to use  
          Proposition 84 monies to implement this bill.  The Senate  
          Appropriations Committee staff notes that while Proposition  
          84 may authorize the use of bond monies for non-capital  
          expenditures this may not be the best use of long-term  
          monies.  If bond monies were used to fund this update,  
          total costs to the General Fund over 30 years would be  
          $390,000 for a portion of an update that has a shelf-life  
          of only five years.

           SUPPORT :   (Verified  7/8/08)

          WateReuse Association (co-source)
          Inland Empire Utilities Agency (co-source)
          Association of California Water Agencies 
          California Alliance of Golf
          California Golf Course Superintendents Association
          California League of Food Processors
          California Municipal Utilities Association
          California Poultry Federation
          California Association of Sanitation Agencies
          California Coastkeeper Alliance
          California Farm Bureau Federation 
          Calleguas Creek Watershed Management Committee
          Calleguas Metropolitan Water District
          Central Solano Citizen/Taxpayer Group
          Central Valley Clean Water Association

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           Cities of Camarillo, Corona, Davis, Dixon, Fillmore,  
            Fresno, Lompoc, Los Angeles, Ontario, Riverside,  
            Roseville, San Diego, San Jose, Stockton, and Thousand  
            Oaks 
          City of Livermore Public Works Department
          City of Santa Barbara - Public Works Department
          Coachella Valley Water District
          County of Los Angeles 
          County of Santa Barbara Public Works Department
          County Sanitation Districts of Los Angeles
          East Bay Municipal Utility District 
          Eastern Metropolitan Water District
          Elsinore Valley Metropolitan Utility District
          Farm Bureau of Ventura County
          Groundwater Resources Association of California
          Irvine Ranch Water District
          Kern County Taxpayers Association 
          Las Virgenes Municipal Water District
          League of California Cities 
          Metropolitan Water District of Southern California 
          Monte Vista Water District
          Monterey Regional Water Pollution Control Agency 
          Napa-Solano Central Labor Council
          Napa-Solano Counties Building and Trades Council 
          Nisei Farmers League
          Olivehain Municipal Utility District
          Orange County Sanitation District
          Orange County Water District
          Planning and Conservation League
          Sacramento Regional Wastewater Treatment 
          Salida Sanitary District 
          San Diego County Water Authority
          San Elijo Joint Powers Authority 
          Santa Ana Watershed Project Authority
          Santa Clara Valley Water District
          Southern California Alliance of Publicly Owned Treatment  
          Works
          Solano County Taxpayers Association
          Sonoma County Water Agency 
          Southern California Water Committee 
          Three Valleys Municipal Water District
          Union Sanitary District
          United Water Conservation District
          Valencia Water Company

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          Vallecitos Water District
          Ventura County Agricultural Association
          Victor Valley Wastewater Authority 
          Water Replenishment District of Southern California
          Western Municipal Water District 
          Western United Dairymen

           OPPOSITION  :    (Verified  7/8/08)

          AAA Water Systems, Inc.
          Agua Limpia
          American Home Solutions
          AmeriTek Industries
          Aqua Blue
          Aqua Kleen
          Aqua Primo Water Systems
          AquaTerra Water Service
          Augie's Water Systems
          B & D Quality Water, Inc.
          California Groundwater Association
          California Retailers Association 
          Challenger Water International
          Cirqua Customized Water
          ClearWater Corp.
          Crystal King
          Culligan Quality Water Enterprises
          Culligan Water Solutions
          CUNO Inc. a 3M Company
          Dupure International
          EcoWater Systems
          Environmental Aqua
          Evans Plumbing
          Executive Vending & OCS, Inc. 
          Groundwater Association 
          GE Consumer & Industrial
          GE Water & Process Technologies
          Good Water Warehouse
          Howlett Consulting
          Investment on Financial Capital, Inc.
          Kevin Shaw Plumbing
          Kinetico Quality Water
          Kinetico Water Systems
          Life Ionizers
          McCowin Enterprises

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          Morton Salt
          Neftec Inc. DBA Ampac Water
          Osmosis Technology, Inc
          Pacific Water Quality Association
          Pat's Water Inc.
          Pentair Water Pool and Spa
          Performance Water Products
          Plumbing Concepts, Inc.
          Precision Installation Products
          Puronics Water Systems
          QMP, Inc
          Quality Water, Inc.
          Rain Soft Water Treatment Systems
          Randazzo's Water Conditioning
          Rayne Water Conditioning
          South Bay Salt Works
          Special T Water Systems, Inc.
          TaylorMade Water Systems
          Topway Global Inc.
          Water Conditioning & Purification Magazine
          Water Quality Association
          Water Resources International, Inc.
          Water Techniques
          Water Warehouse
          Weeks Drilling & Pump Company
          West Coast Services

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          growing population, local and regional water shortages, the  
          recent federal court decision to limit freshwater exports  
          from the Delta, climate change, and the need to protect  
          California's fish and wildlife make it imperative that the  
          state manage its water resources as efficiently as  
          possible.  Recycled water provides additional water  
          supplies that are a cost-effective and drought proof method  
          of helping meet California's water needs.

          Recycled water is used for many purposes including  
          agricultural irrigation, landscape irrigation, groundwater  
          recharge, and seawater intrusion barriers.  Before recycled  
          water can be used for these beneficial uses, the RWQCBs and  
          Department of Public Health require treatment to remove  
          pollutants that could be harmful to the beneficial use.   
          One major pollutant that is costly to remove is salt and  

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          high salts can reduce the ability of the recycled water to  
          be used for irrigation and groundwater recharge purposes.

          The need to increase the state's use of recycled water but  
          ensure protection of public health is reflected in many  
          Code sections.  Sections 13575-13583 of the Water Code  
          establish a statewide goal to recycle 700,000 acre feet of  
          water by 2000, and one million acre feet by 2010.  However,  
          progress has been slow.  The 2000 goal was not met, and  
          based on the 2005 California Water Plan, the state could be  
          20 years behind in meeting the 2010 goal.

          In response to the failure to meet the state's 2000 goal,  
          the Legislature in 2001 added Section 13578 of the Water  
          Code [AB 331 (Goldberg), Chapter 590, Statutes of 2001].   
          Section 13578 requires the DWR to convene a statewide task  
          force and report back to the Legislature on the  
          opportunities for, and obstacles to, increasing the use of  
          recycled water.  The Recycled Water Task Force Report was  
          issued in June 2003, and included 26 recommendations.

           ARGUMENTS IN OPPOSITION  :    Opponents from the water  
          softener industry point to the long history of legislative  
          debate over limitations on softeners, and assert that local  
          agencies have not justified the need for any change.  They  
          argue that this bill is unnecessary because local agencies  
          that follow the statutory process ultimately may regulate  
          water softeners, noting two cities that now regulate water  
          softeners.  The City of Dixon notes that it has received an  
          immediate cease and desist order and a civil fine that  
          threatens their entire city, while citizens continue to  
          dump salt into their sewer.  The City of Dixon complains  
          that the state penalizes cities while preventing local  
          agencies from having direct control over salt from  
          softeners.  Some opponents suggest that this bill is  
          "outlawing an industry and denying citizens the right to  
          improve the quality of their water."  


           ASSEMBLY FLOOR  : 
          AYES:  Aghazarian, Arambula, Beall, Berg, Berryhill,  
            Blakeslee, Brownley, Carter, Coto, Davis, De La Torre, De  
            Leon, DeSaulnier, Dymally, Eng, Evans, Feuer, Fuentes,  
            Furutani, Galgiani, Hancock, Hayashi, Hernandez, Huffman,  

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            Jones, Karnette, Krekorian, Laird, Leno, Levine, Lieber,  
            Lieu, Ma, Mendoza, Mullin, Nava, Nunez, Parra, Plescia,  
            Portantino, Price, Ruskin, Salas, Saldana, Smyth,  
            Solorio, Strickland, Swanson, Torrico, Wolk, Bass
          NOES:  Adams, Anderson, Benoit, DeVore, Duvall, Gaines,  
            Garcia, Garrick, Huff, Keene, La Malfa, Maze, Niello,  
            Sharon Runner, Silva, Spitzer, Tran, Villines, Walters
          NO VOTE RECORDED:  Caballero, Charles Calderon, Cook,  
            Emmerson, Fuller, Horton, Houston, Jeffries, Nakanishi,  
            Soto


          TSM:mw  8/6/08   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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