BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2501
                                                                  Page 1

          Date of Hearing:  April 14, 2008

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                 Loni Hancock, Chair
                   AB 2501 (Wolk) - As Amended:  February 21, 2008
           
          SUBJECT  :  Water:  climate change and bond funding  
          appropriations.

           SUMMARY  :  Requires the Department of Water Resources (DWR) to  
          include climate change analysis, to the extent applicable, in  
          all its water management reports and plans; appropriates  
          existing bond funding for high-priority water projects.

           EXISTING LAW  :  Authorizes 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 :  Unknown; appropriates $600,890,000 in currently  
          authorized bond funds.

           THIS BILL  :

          1)Requires DWR to include an analysis of the effects of climate  
            change, 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 1, 2009,  
            peer-reviewed information or best available scientific  
            information about climate change and water resources for the  
            state and each of the state's hydrologic regions.

          3)Prohibits DWR from approving, after January 1, 2011,  
            integrated regional water management grants for plans that do  
            not include climate change information prepared by DWR, unless  
            the 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 1, 2009 quantifying the energy  
            savings and greenhouse gas emission (GHG) reductions  








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            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 on water  
            quality. 

          6)Requires urban water suppliers, starting in July 1, 2009, and  
            agricultural water suppliers, starting in January 1, 2010, to  
            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: 

               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:

               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.
               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  








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

          10)Requires programs receiving bond 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.

           COMMENTS  :  This bill reflects two different - but complementary  
          - efforts to address urgent water issues facing California.  The  
          first requires information about the effects of climate change  
          to be incorporated into existing water planning efforts by state  
          and local agencies; DWR must also quantify energy savings and  
          GHG reductions from the use of recycled water under various  
          scenarios.  The second part of the bill appropriates currently  
          authorized bond funds to address some of the state's most urgent  
          water resource challenges, particularly in the Delta.

          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 to GHG  
          emissions. For example, climate change has been linked with the  
          current prolonged drought in the Colorado River Basin.  A 2005  
          California Energy Commission report found that 19% of the  
          state's energy demand is from conveyance and use of water.  The  








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          state's large urban water agencies have invested substantial  
          resources to identify strategies to adapt to climate change.
           
          Resolving Uncertainty: State-Identified Information.   

          The climate change part of this bill substantially mirrors last  
          year's AB 224 by the same author.  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.

           Study of Greenhouse Gas Effects of Water Supply Development 

          The bill requires certain state agencies to investigate ways to  
          mitigate the effects of climate change on water use.  Under DWR,  
          state agencies would assess the greenhouse gas effects and  
          reductions from water supply alternatives such as 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.

           Existing Bond Appropriations  

          The other major element of this bill appropriates existing bond  
          funds to address key water priorities, including the Delta,  
          worthy of near-term funding.  The source of these appropriations  
          is last year's SB 1002 (Perata), which Governor Schwarzenegger  
          vetoed.  This bill excludes specific projects identified in SB  
          1002 and provides clearer direction on funding for climate  
          change and water planning.  Delta appropriations include:

                 $100 million of Delta levee funding to protect Delta  
               resources, including certain "no regrets" projects;
                 $50 million for emergency preparedness;
                 $50 million to improve drinking water from the Delta,  
               which may include movement of drinking water intakes;
                 $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.









                                                                  AB 2501
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           Budget Connection?   

          While this bill's appropriations are similar to the Governor's  
          budget proposals, there is no direct connection between the two.  
           The bill focuses only on the most critical priorities for  
          appropriating existing water bond funding.  Last year, these  
          appropriations were removed from the budget and placed in  
          Senator Perata's SB 1002.  This year, the author is advancing a  
          revised version that reflects her priorities.  It will proceed  
          through policy committee review and, at some later point, may be  
          incorporated into the budget.
           
          Suggested amendments

           1)Page 7, line 34 should read: "?on of before January 1,  2010   
             2009  
          2)Page 10, line 30 should read: "?sum of fifty  four  million  
            dollars ($  50,000,000   $54,000,000  )?."

          3)Page 12, lines 39-40, and page 13, lines 1-3 should read:

            (4)  Pursuant to subdivision (d) of Section 75029 of the Public  
            Resources Code, the sum of fifty million dollars ($50,000,000)  
            to the department for projects that improve the quality of the  
            drinking water supply from the Sacramento-San Joaquin Delta in  
            accordance with that subdivision.  

             Pursuant to subdivision (d) of Section 75029 of the Public  
            Resources Code, the sum of fifty-five million dollars  
            ($55,000,000) to the department for drinking water intake  
            facility projects that improve the quality of drinking water  
            supply from the Sacramento-San Joaquin Delta and are  
            identified in the June 2005 Delta Region Drinking Water  
            Quality Management Plan.  Funding shall be made available for  
            environmental review, design and construction.  Projects  
            seeking funding for construction shall meet all the following  
            criteria:

            (A)  Have completed documentation required under the  
            California Environmental Quality Act (Division 13, commencing  
            with Section 21000 of the Public Resources Code) and a notice  
            of determination has been filed prior to June 30, 2008.
            (B)  Have demonstrated multiple benefits in conveyance and  
            Delta operations to achieve protection or improvement to delta  
            pelagic fisheries as well as drinking water quality  








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            improvement and public health protection.
            (C)  Are able to complete design and commence construction  
          prior to June 30, 2009.
            (D)  Have local and/or federal cost sharing funds available  
          immediately.  

          4)Page 13, line 4 should read: "Section  75033   75032  of the  
            Public Resources Code the sum of one hundred sixty million  
            dollars ($160,000,000) to the department and  working in  
            conjunction with  the Central Valley Flood Protection Board, as  
            follows:"

          5)Page 15, lines 27-31 should read: "(c) Of the funds made  
            available pursuant to subdivision (a) of Section 79550  of the  
            Water Code  , the sum of three million  four hundred ninety  
            thousand dollars ($3,490,000)   seven hundred sixty thousand  
            ($3,760,000) is hereby appropriated to the department for  
            planning and feasibility studies associated with surface  
            storage under the California Bay-Delta Program.
           
          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Natural Resources Defense Council
          San Diego County Water Authority

           Opposition 
           
          None on file
           

          Analysis Prepared by  :  Dan Chia / NAT. RES. / (916) 319-2092