BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2501
                                                                  Page  1

          Date of Hearing:   April 1, 2008

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                  Lois Wolk, Chair
                  AB 2501 (Wolk) - As Introduced:  February 21, 2008
           
          SUBJECT  :   Water: climate change and bond funding appropriations

           SUMMARY  :   Enacts the Climate Change and Water Resource  
          Protection Act of 2008 and makes appropriations of existing bond  
          funding for high-priority water projects.  Specifically,  this  
          bill  :

          1)Requires the Department of Water Resources (DWR) to include  
            climate change analysis, to the extent applicable, in all its  
            water management reports and plans, including the State Water  
            Project (SWP) delivery capability report California Water  
            Plan, and reports related to the Sacramento-San Joaquin Delta  
            (Delta).  

          2)Requires DWR to identify and make available, by July 2009,  
            peer-reviewed information or best available scientific  
            information about climate change and water resources in the  
            state.  

          3)Prohibits DWR from approving, after January 1, 2011,  
            integrated regional water management grants for plans that do  
            not include climate change analysis, unless climate change  
            information is not available or does not apply to a particular  
            planning area.

          4)Requires DWR, in collaboration with other state agencies, to  
            prepare a report by January 2009 quantifying the energy  
            savings and greenhouse gas emission reductions associated with  
            water supply development alternatives, including recycled  
            water.  

          5)Requires the State Water Resources Control Board (SWRCB) and  
            all regional water quality control boards to consider  
            reasonably foreseeable effects of climate change in basin  
            water quality plans triennial reviews required by the federal  
            Clean Water Act. 

          6)Requires urban water suppliers, starting in July 2009, and  
            agricultural water suppliers, starting in January 2010, to  








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            request climate change information from DWR and consider that  
            information in preparing urban or agricultural water  
            management plans, unless climate change information is  
            unavailable or inapplicable.

          7)Appropriates $600,890,000 of bond funds as follows:

             a)   From Proposition 1E (2006 flood bond measure): 
               i)     $50 million to DWR for emergency preparedness in the  
                 Delta.
               ii)    $150 million to DWR for stormwater flood management  
                 projects.

             b)   From Proposition 84 (2006):
               i)     $50 million to the State Department of Public Health  
                 (DPH) for small community safe drinking water  
                 infrastructure.
               ii)    $50,400,000 to DPH for projects to prevent or reduce  
                 groundwater contamination of drinking water supplies  
                 (including $2 million for pilot projects in Salinas and  
                 Tulare).
               iii)   $40 million to DWR for planning and local  
                 groundwater assistance.
               iv)    $50 million to DWR for improving drinking water from  
                 the Delta.
               v)     $60 million to DWR and the Central Valley Flood  
                 Protection Board (CVFPB) for emergency preparedness  
                 relating to levees throughout the Central Valley.
               vi)    $100 million to DWR/CVFPB for the protection of  
                 Delta resources, consistent with the Delta Vision,  
                 including but not limited to certain identified projects.  
                  
               vii)   $12 million to DWR for planning and feasibility  
                 studies for new surface storage under the California  
                 Bay-Delta Program.
                viii) $15 million to DWR for studies on use of the state's  
                  existing flood protection and water supply systems.   
                  Studies must include climate change information.
               ix)    $10 million to DWR for climate change planning  
                 (including $2 million for SWRCB). 
               x)     $10 million to DWR for studies to implement the  
                 Delta Vision.

             c)   From Proposition 13 (2000): $3,490,000 to DWR for  
               surface storage studies under the California Bay-Delta  








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               Program.

          8)Requires SWRCB, with specified agencies, to develop pilot  
            projects in Tulare Lake Basin and Salinas Valley to improve  
            understanding of groundwater contamination issues.  

          9)Gives a deadline of June 30, 2010 for encumbrance of the  
            appropriated funds.

          10)Requires programs receiving these funds to report to the  
            Legislature about committed and anticipated expenditures by  
            January 10, 2009.

          11)Makes legislative findings regarding climate change and water  
            resources.

           EXISTING LAW  : Authorizes and/or directs DWR and local water  
          agencies to prepare water planning documents.  The California  
          Global Warming Solutions Act of 2006 (AB 32) requires all state  
          agencies to consider and implement strategies to reduce  
          greenhouse gas emissions.  

           FISCAL EFFECT  :   Appropriates $600,890,000 in currently  
          authorized bond funds.

           COMMENTS  :   This bill reflects two different - but complementary  
          - efforts to address urgent water issues facing California.  The  
          first incorporates climate change into existing water planning  
          efforts by state and local agencies, as well as requires a study  
          of greenhouse gas emissions from water supply development  
          alternatives.  The second appropriates currently authorized bond  
          funds to address some of the most urgent water resource  
          challenges, particularly in the Delta.

          Climate Change.  Water managers increasingly have recognized  
          climate change as a major threat to western water supply  
          reliability and, conversely, that water use is a significant  
          contributor of greenhouse gas emissions that lead to climate  
          change. Reports on the current prolonged drought in the Colorado  
          River Basin, for example, connect the drought to climate change.  
          A 2005 California Energy Commission report, which was presented  
          to the Committee at a February 2007 informational hearing, found  
          that conveyance and use of water reflects 19% of California  
          electricity usage.  The state's large urban water agencies have  
          begun investing substantial funding in climate change resource,  








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          focused primarily on adaptation.

          Resolving Uncertainty: State-Identified Information.  The  
          climate change part of this bill reflects the language in the  
          author's previous bill (AB 224), which remains in Senate  
          Appropriations Committee.  After some water agencies noted that  
          they were not sure which climate change information was  
          reliable, the bill was amended to require DWR to identify which  
          information should be used, and then specified that use of  
          DWR-specified information was sufficient.  Alternatively, a  
          water supplier may use other information in its possession.  If  
          DWR does not identify such information, then local water  
          suppliers are exempt from these requirements.  The author  
          asserts that State specification of information resolves any  
          questions of uncertainty as to which information should be used.

          Study of Greenhouse Gas Effects of Water Supply Development.   
          The bill also provides for state agencies to examine the other  
          side of the climate change issue - mitigation of climate change  
          impacts from water use.  Under DWR leadership, state agencies  
          will assess the greenhouse gas effects and reductions arising  
          out of water supply development alternatives, including water  
          recycling and conservation.  In recent months, state agencies  
          have increased their activities related to climate change and  
          water resources, establishing the "WETCAT" - the water and  
          energy sub-team of the climate action team, co-chaired by SWRCB  
          Member Frances Spivy-Weber and DWR Deputy Director Mark Cowin.  

          Existing Bond Appropriations.  The other major element of AB  
          2501 appropriates existing bond funds to address various water  
          issues, which the author believes are some of the top priorities  
          for immediate funding.  The Delta receives special attention in  
          these appropriations, which the author suggests is the most  
          important water issue facing California today.  The  
          appropriations originate in last year's SB 1002 (Perata), which  
          Governor Schwarzenegger vetoed after Senator Perata's proposed  
          bond measure failed to pass off the Senate floor during last  
          fall's 2nd Extraordinary Session on water.  The appropriations  
          in this bill reflect some changes, including removal of  
          provisions identified for specific projects and clearer  
          direction on funding for climate change/water planning - tied to  
          the bill's other provisions.  The author concentrated these  
          appropriations on the Delta, including:
                 $100 million of Delta levee funding to protect Delta  
               resources, including certain "no regrets" projects that  








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               need to proceed before a final decision on a sustainable  
               Delta.
                 $50 million for emergency preparedness in the Delta
                 $50 million to improve drinking water from the Delta,  
               which may include movement of drinking water intakes in the  
               Delta
                 $10 million for studies to implement the Delta Vision
                 $15 million to complete surface water storage facility  
               feasibility studies under the CALFED Bay-Delta Program

          Appropriation Priorities.  The author has invited all those who  
          have concerns for the Delta and California's water resources to  
          comment on the current priorities for appropriating existing  
          bond funds.  The Committee has received two letters proposing  
          amendments.  One from Contra Costa Water District, Solano County  
          Water Agency and the City of Stockton would clarify use of the  
          $50 million for Delta drinking water quality, to ensure that the  
          funding is available to the three entities to which that funding  
          applies.  The other, from East Bay MUD, proposes funding for  
          Delta levees to protect its Mokelumne aqueduct and for  
          protection of Mokelumne salmon.   Others concerned about water  
          funding priorities may testify at the hearing.  The author has  
          indicated her intent to meet with those interested in these  
          appropriation priorities, following the hearing, and will accept  
          Contra Costa's proposed amendments.  She will consider  
          amendments to this bill before it is heard in the Natural  
          Resources Committee.

          Budget Connection?  While this bill's appropriations reflect  
          some similarities to the Governor's budget proposals, there is  
          no direct connection between AB 2501 and the State Budget.  The  
          bill focuses only on the most critical priorities for  
          appropriating existing water bond funding and does not address  
          all the water issues that arise in the budget.  Last year, these  
          appropriations were removed from the budget and placed in  
          Senator Perata's SB 1002.  This year, the author decided to  
          offer a different version to reflect the priorities that she and  
          other members believed were most important.  It will proceed  
          through policy committee review and, at some later point, may be  
          incorporated into the coming year's budget.  Some have suggested  
          that these bond appropriations might be candidates for an  
          economic stimulus package in a policy bill.

           REGISTERED SUPPORT / OPPOSITION  :   









                                                                  AB 2501
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           Support  :  

          Contra Costa Water District (support if amended)
          East Bay Municipal Utility District (support if amended)
          Natural Resources Defense Council
          Planning and Conservation League

           Opposition  :None submitted
           
          Analysis Prepared by  :    Alf W. Brandt & Kakuti Lin / W., P. &  
          W. / (916) 319-2096