BILL ANALYSIS                                                                                                                                                                                                    





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2009-2010 Regular Session                    |
          |                                                                 |
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          BILL NO: AB 49                     HEARING DATE: July 6, 2009  
          AUTHOR: Feuer                      URGENCY: No  
          VERSION: June 29, 2009             CONSULTANT: Dennis O'Connor    

          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Water conservation: agricultural water management  
          planning.  
          
          BACKGROUND AND EXISTING LAW
          1.Under existing law, the California Water Plan is accepted as  
            the master plan that guides the orderly and coordinated  
            control, protection, conservation, development, management and  
            efficient utilization of the water resources of the state.   
            The Department of Water Resources (DWR) is required to update  
            the Water Plan on or before December 31, 2003, and every five  
            years thereafter.  The plan shall include a discussion of  
            various strategies that may be pursued in order to meet the  
            future water needs of the state.

          2.The Urban Water Management Planning Act requires urban water  
            suppliers to prepare and submit Urban Water Management Plans  
            (UWMPs) to DWR every five years on or before December 31, in  
            years ending in five and zero.  Among other things, the plans  
            are required to:


                 Describe the reliability of the water supply by water  
               year type (average, single dry year, etc.) 


                 Quantify, to the extent records are available, past,  
               current, and projected water use, identifying the uses  
               among water use sectors (residential, commercial, etc.).


                 Describe each water demand management measure currently  
               being implemented, or scheduled for implementation.
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          1.The Agricultural Water Management Planning Act required  
            agricultural water suppliers that supply more than 50,000  
            acre-feet of water annually to develop agricultural water  
            management plans by 1992.  Among other things, and to the  
            extent information was available, the reports were to address  
            the following:


                 Current water conservation and reclamation practices  
               being used.


                 Plans for changing current water conservation plans.


                 Conservation educational services being used.


                 Whether the supplier, through improved irrigation water  
               management, has a significant opportunity to do one or both  
               of the following:
                     Save water by means of reduced evapotranspiration,  
                 evaporation, or reduction of flows to unusable water  
                 bodies that fail to serve further beneficial uses.
                     Reduce the quantity of highly saline or toxic  
                 drainage water.

          1.Existing law makes the terms of, and eligibility for, a water  
            management grant or loan made to an urban water supplier and  
            awarded or administered by the department, state board, or  
            California Bay-Delta Authority or its successor agency  
            conditioned on the implementation of the water demand  
            management measures identified in the Urban Water Management  
            Planning Act.

          2.Under Federal law (Section 210 Public Law 97-293 of 1982) all  
            CVP contractors are required to develop water conservation  
            plans.  In 1993, the Central Valley Project Improvement Act  
            (CVPIA) Section 3405(e) required the Bureau of Reclamation to  
            develop criteria to determine the adequacy of the water  
            conservation plans required by Section 210.  The Bureau  
            adopted the criteria in 1993 and the most recent update was  
            done in 2005.

          3.On February 28, 2008 Governor Schwarzenegger sent a letter to  
            Senators Perata, Steinberg, and Machado in response to their  
                                                                      2







            concerns that his administration was unilaterally beginning  
            work on a "peripheral canal."  In that letter, the Governor  
            identified administrative actions he was considering as part  
            of a comprehensive solution in the Delta.  Included in that  
            letter was the following "key element":

             "1.  A plan to achieve a 20 percent reduction in per capita  
               water use statewide by 2020.  Conservation is one of the  
               key ways to provide water for Californians and protect and  
               improve the Delta ecosystem.  A number of efforts are  
               already underway to expand conservation programs, but I  
               plan to direct state agencies to develop this more  
               aggressive plan and implement it to the extent permitted by  
               current law.  I would welcome legislation to incorporate  
               this goal into statute."
          
          PROPOSED LAW
          1.This bill would require the state to achieve a 20% reduction  
            in urban per capita water use in California by December 31,  
            2020. The state would be required to make incremental progress  
            towards this goal by reducing per capita water use by at least  
            10% on or before December 31, 2015. 

          2.The bill would define several terms, including:


                 "Agricultural water supplier" - a water supplier that  
               provides water to an unspecified number of acres of  
               agricultural land, excluding recycled water.


                 "Base daily per capita water use"
                     The urban retail water supplier's estimate of its  
                 average gross daily water use per capita, measured in  
                 gallons per capita per day (gpcd) and calculated over a  
                 continuous 10-year period ending in 2004 or later.
                     For an urban retail water supplier that meets at  
                 least 10 percent of its 2008 metered retail water demand  
                 through recycled water, the urban retail water supplier  
                 may extend the calculation of base daily per capita water  
                 use up to an additional five years, to a maximum of a  
                 continuous 15-year period ending in 2004 or later.
                     For an urban water supplier that was a member of the  
                 California Urban Water Conservation Council (CUWCC)  
                 before 1994, and whose base daily per capita water use is  
                 at or below a specific state hydrologic region target,  
                 the urban retail water supplier's estimate of its average  
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                 gross daily water use per capita, reported in gpcd and  
                 calculated over a continuous five-year period ending in  
                 2007 or later.


                 "Baseline commercial, industrial, and institutional  
               water use" - an urban retail water supplier's base daily  
               per capita water use for commercial, industrial, and  
               institutional (CII) users.

          1.The bill would require each urban retail water supplier to:


                 Develop an urban water use target and interim urban  
               water use targets by December 31, 2010.  Urban water use  
               target and interim urban water use targets would be defined  
               as follows:
                     Urban water use target would be one of the  
                 following:
                  (a)       80% of the baseline daily per capita water  
                    use.
                  (b)       Calculated as follows:
                               For indoor residential water use, 55 gpcd.
                               For landscape irrigated through dedicated  
                      or residential meters, water efficiency equivalent  
                      to the standards of the Model Water Efficient  
                      Landscape Ordinance.
                               For CII uses, a 10-percent reduction in  
                      water use from the baseline CII use by 2015. Upon  
                      completion of a CII task force report, targeted  
                      savings for 2020 shall be based on the CII  
                      efficiency standards by the task force.  If the task  
                      force report is not completed by April 1, 2012, the  
                      10-percent targeted reduction in water use shall be  
                      extended from 2015 to 2020.
                  (c)       For an urban water supplier that was a member  
                    of the CUWCC before 1994, and whose base daily per  
                    capita water use is at or below a specific state  
                    hydrologic region target, 95 percent of base daily per  
                    capita water use. 
                     Interim urban water use targets
                  (a)       The midpoint between the urban retail water  
                    supplier's base daily per capita water use and the  
                    urban retail water supplier's urban water use target  
                    for 2020.
                  (b)       For urban water suppliers using the system  
                    described in (b) above, the sum of the following:
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                               For indoor residential and landscape uses,  
                      the midpoint between the urban retail water  
                      supplier's base daily per capita water use and the  
                      indoor residential and landscape targets for 2020. 
                               For CII uses, a 10-percent reduction from  
                      the baseline CII water use. 


                 Report their urban water use target and interim urban  
               water use target in their 2010 urban water plan and report  
               on their progress in meeting their urban water use targets  
               in subsequent updates of their urban water management  
               plans.

          1.The bill would require agricultural water suppliers to:


                 Implement all of the following critical efficient  
               management practices:
                     Measure the volume of water delivered to customers  
                 and to implement volumetric pricing.
                     Adopt a pricing structure for water customers based  
                 at least in part on quantity delivered. 
                     Designate a water conservation coordinator who will  
                 develop and implement the water management plan and  
                 prepare progress reports.
                     Provide for the availability of specific water  
                 management services to water users. 
                     Evaluate the policies of agencies that provide the  
                 supplier with water to identify the potential for  
                 institutional changes to allow more flexible water  
                 deliveries and storage. 
                     Evaluate and improve the efficiencies of the  
                 supplier's pumps. 


                 Implement all of the following additional efficient  
               management practices if the measures are locally  
               cost-effective and technically feasible:
                     Facilitate alternative land use for lands with  
                 exceptionally high water duties or whose irrigation  
                 contributes to significant problems, including drainage.
                     Facilitate use of available recycled water that  
                 otherwise would not be used beneficially, that meets all  
                 health and safety criteria, and does not harm crops or  
                 soils.
                     Facilitate the financing of capital improvements for  
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                 on-farm irrigation systems.
                     Implement an incentive pricing structure that  
                 promotes specified goals:
                     Line or pipe distribution systems and construct  
                 regulatory reservoirs to increase distribution system  
                 flexibility and capacity, decrease maintenance, and  
                 reduce seepage.
                     Increase flexibility in water ordering by, and  
                 delivery to, water customers within operational limits.
                     Construct and operate supplier spill and tailwater  
                 recovery systems.
                     Increase planned conjunctive use of surface and  
                 groundwater within the supplier service area.
                     Automate canal control structures.
                     Facilitate or promote customer pump testing and  
                 evaluation.


                 Report to DWR on which efficient water management  
               practices have been implemented and are planned to be  
               implemented, an estimate of the water savings that have  
               occurred since the last report, and an estimate of the  
               water savings estimated to occur five and 10 years in the  
               future. If an agricultural water supplier determines that a  
               particular efficient water management practice is not  
               locally cost-effective or technically feasible, the  
               supplier would be required to submit information  
               documenting that determination.
                     The reports would be due by December 31, 2012, and  
                 thereafter in years ending in zero and years ending in  
                 five.
                     The reporting requirements could be met through the  
                 submitting to DWR an agricultural water management plan,  
                 or a plan developed for the United States Bureau of  
                 Reclamation that is consistent with this part.

          1.The bill would require DWR to:


                 Develop, in consultation with the board, the California  
               Bay-Delta Authority, the State Department of Public Health,  
               and the Public Utilities Commission, a single standardized  
               water use reporting form to meet the water use information  
               needs of each agency. 


                 Convene, in conjunction with the CUWCC, by April 1,  
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               2010, a task force consisting of experts to develop  
               alternative best management practices for CII users and an  
               assessment of the potential statewide reduction in water  
               use in the CII sector that would result from implementation  
               of these best management practices. The task force would be  
               required to submit a report to the Legislature by April 1,  
               2012, that, among other things, would establish water use  
               efficiency standards for CII users among various sectors of  
               water use.


                 Develop, in consultation with the Agricultural Water  
               Management Council, academic experts, and other  
               stakeholders, a methodology for quantifying the efficiency  
               of agricultural water use. Alternatives to be assessed  
               would be required to include determining efficiency levels  
               based on crop type or irrigation system distribution  
               uniformity. DWR would be required to report to the  
               Legislature by December 31, 2011 on a proposed methodology  
               and a plan for implementation. The plan would be required  
               to include the estimated implementation costs and the types  
               of data needed to support the methodology. 


                 Review the 2015 urban water management plans and report  
               to the Legislature by December 31, 2016, on progress  
               towards achieving a 20-percent reduction in urban water use  
               by 2020.  The report could include recommendations on  
               changes to water efficiency standards or urban water use  
               targets in order to achieve the 20-percent reduction and to  
               reflect updated efficiency information and technology  
               changes. 


                 Submit to the Legislature a series of reports by  
               December 31, 2013, December 31, 2016, and December 31,  
               2021, on the agricultural efficient water management  
               practices that have been implemented and are planned to be  
               implemented and an assessment of how the implementation of  
               those efficient water management practices have or will  
               affect agricultural operations, including estimated water  
               savings, if any. 


                 Submit to the Legislature a series of reports by  
               December 31, 2013, and thereafter in the years ending in  
               six and years ending in one, a report summarizing the  
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               status of the Agricultural Water Management Plans required  
               by this bill. 
                     The report would be required to identify the  
                 outstanding elements of any plan adopted pursuant to this  
                 part. The report would be required to include an  
                 evaluation of the effectiveness of the Agricultural Water  
                 Management Planning Act in promoting efficient  
                 agricultural water management practices and  
                 recommendations relating to proposed changes to this  
                 part, as appropriate. 
                     DWR would be authorized to update the best  
                 management practices established in this bill, in  
                 consultation with the Agricultural Water Management  
                 Council, the United States Bureau of Reclamation, and  
                 SWRCB.  The best management practices for agricultural  
                 water use would be adopted or revised by DWR only after  
                 public hearings to allow participation of the diverse  
                 geographical areas and interests of the state. 

          1.This bill would substantially revise existing law relating to  
            agricultural water management planning to require agricultural  
            water suppliers to prepare and adopt agricultural water  
            management plans with specified components by December 31,  
            2012, and updated on or before December 31, 2015, and on or  
            before December 31 every 5 years thereafter. 


                 An agricultural water supplier that becomes an  
               agricultural water supplier after December 31, 2012, would  
               be required to prepare and adopt an agricultural water  
               management plan within one year after becoming an  
               agricultural water supplier. 


                 The agricultural water supplier would be required to  
               notify each city or county within which the supplier  
               provides water supplies with regard to the preparation or  
               review of the plan. The bill would require the agricultural  
               water supplier to submit copies of the plan to the  
               department and other specified entities. 


                 The bill would provide that an agricultural water  
               supplier is ineligible to receive specified state funds if  
               the supplier does not prepare, adopt, and submit the plan  
               in accordance with the requirements established by the  
               bill.
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          1.The bill, with certain exceptions, would condition eligibility  
            for certain water management grants or loans to urban water  
            suppliers, beginning July 1, 2016, and agricultural water  
            suppliers, beginning July 1, 2013, on the implementation of  
            water conservation requirements established by the bill. 

          2.The bill would repeal on July 1, 2016, an existing requirement  
            that conditions eligibility for certain water management  
            grants or loan to an urban water supplier on the  
            implementation of certain water demand management measures.

          ARGUMENTS IN SUPPORT
          According to the Sponsors, "There is growing imperative to  
          accelerate water use efficiency in California. The impacts of  
          climate change, the fragility of Delta ecosystems and levees,  
          recent court decisions limiting Delta water exports, and reduced  
          reliability of other traditional sources demonstrate a need for  
          prompt action to conserve precious water resources. Efficient  
          use is the foundation of local water supply reliability, and the  
          State must act to promote this and other critical water  
          management strategies."

          "Using water more efficiently also saves tremendous amounts of  
          energy. The California Energy Commission estimates that 19% of  
          the state's electricity and over 30% of the non-power plant  
          natural gas use is associated with water use. Achieving these  
          water savings is critical both to meet the state's water supply  
          needs and to help meet the state's AB32 targets for reducing  
          greenhouse gas emissions."

          Many supporters point out AB 49 would: 
           Meet the Governor's goal by requiring a 10% reduction in  
            statewide urban per capita water use by 2015, and a 20%  
            reduction in statewide urban per capita water use by 2020. 
           Provide flexibility to water suppliers by allowing them to  
            comply on an individual or regional basis, and by allowing  
            them to allocate savings across customer classes in the manner  
            they deem appropriate to their service area. 
           Require agricultural water suppliers to implement specified  
            Best Management Practices, and to report on savings from those  
            practices. 
           Require agricultural water suppliers every 5 years to prepare  
            water management plans and submit those plans to the  
            Department of Water Resources. 

          ARGUMENTS IN OPPOSITION
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          Opponents tend to focus on one of two sets of issues, either CII  
          water use efficiencies or requirements of agricultural water  
          suppliers.

          A coalition of manufacturing interests asserts that the bill  
          suffers from thee critical flaws:
           "First, it measures efficiency of water use in the CII setting  
            by the arbitrary measure of gallons per day per capita among  
            residences in the supplier's service area.  This is a  
            meaningless measurement in the CII setting."
           "Second, the bill combines residential and CII water use into  
            one target, which results in arbitrary water use reductions in  
            both sectors.  The only alternative is an absolute reduction  
            in CII water use by 10% in the next five years."
           "Third, it fails to recognize or provide credit for existing  
            use of recycled water and other major conservation efforts  
            that have already taken place in the CII sector."

          A coalition of agricultural interests make two main points:
           "Agricultural interests believe the threshold [to be subject  
            to the provisions of AB 49] should be 35,000 acres, because  
            small irrigation districts to not have the personnel,  
            resources or financial capacity to prepare, and adopt and  
            implement efficient water management plans for their  
            customers.  The 35,000 acre threshold would cover  
            approximately 75 percent of all agriculturally-applied water  
            in the state."
           "AB 49 is fashioned after a controversial congressional  
            mandate for federal water contractors.  The United States  
            Bureau o f Reclamation provides technical assistance and  
            funding to assist smaller suppliers in complying with the  
            requirements, however, AB 49 provides no such assistance."

          Most opponents also either directly or indirectly question the  
          appropriateness of DWR taking the lead on developing,  
          overseeing, and reporting on progress in meeting various  
          efficiency measures.

          COMMENTS 
           Will It Achieve 20% By 2020?   Probably not, but it depends in  
          part on how you interpret the Governor's call for "A plan to  
          achieve a 20 percent reduction in per capita water use statewide  
          by 2020."  This bill contends that the 20 percent statewide  
                     reduction should reasonably apply to all water supplied by urban  
          water suppliers, with certain significant exceptions.  One could  
          just as reasonably assert that it should apply to all water  
          uses, regardless of sector (urban, agriculture, environment) or  
                                                                      10







          water supplier (urban water supplier, agricultural water  
          supplier, or self-supplied).

          Another question is that of the base year.  That is, a 20  
          percent reduction compared to when?  The Governor first went on  
          record calling for the 20 percent reduction in February 2008.   
          So, one could reasonably argue that 2008 should be the basis for  
          comparison.  Others argue that since urban water management  
          plans were last updated in 2005, and urban water management  
          plans include an officially adopted detailed analysis of local  
          urban water use, that 2005 should be the base year.  This bill  
          suggest that an average of the 10 year period ending in 2004 or  
          later should be the base, as averaging evens out annual  
          fluctuations due to climate and other variables.

          One key reason this bill will probably not achieve the 20%  
          reduction is its "credit" features for earlier conservation  
          efforts.  This credit comes in two forms.

           Base year adjustment - this bill would set the base year as an  
            average of the 10 year period ending in 2004 or later.   
            However, urban retail water suppliers that meet at least 10  
            percent of its 2008 demand through recycled water may extend  
            the base year calculation up to an additional five years to a  
            maximum of a continuous 15-year period ending in 2004 or  
            later.

            Each year, Californians automatically improve their water use  
            efficiency by some amount by things such as replacing out of  
            date water fixtures, upgrading irrigation systems, etc.   
            Consequently, the further back in time the base year is  
            calculated, the less efficient the water use in the base year,  
            and the easier it is to meet the target.  It also means that a  
            20 percent reduction in water use by an agency using the  
            15-year basis does not mean the same thing.

           Pre 1994 CWCC members - this bill would allow urban water  
            suppliers that were members of the CWCC prior to 1994, and  
            whose base daily per capita water use is at or below a  
            specified state hydrologic region target, to only reduce  
            baseline per capita water use by 5 percent by 2020.  It would  
            also provide that the base year be calculated on a 5-year  
            average ending in 2007 or later.  This is a tremendous  
            discount.  Depending on the number of people served by water  
            agencies that meet this criteria, other water agencies would  
            need to reduce their gpcd water use by significantly more than  
            20 percent in order for the state as a whole to meet the  
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            statewide target.

          The bill does provide that by December 31, 2016, DWR is to  
          report to the Legislature on progress towards achieving a  
          20-percent reduction in urban water use by 2020.  And, the  
          report may include recommendations on changes to water  
          efficiency standards or urban water use targets in order to  
          achieve the 20-percent reduction and "to reflect updated  
          efficiency information and technology changes."  However,  
          without some sort of future action by the Legislature, or  
          statutory direction to DWR to develop regulations to implement  
          the recommendations, any recommendations would not become the  
          new standards or targets.  Also, because the recommendation  
          would be limited to reflect updated efficiency information and  
          technology changes, the recommendations could not be focused on  
          resolving issues associated with the crediting provisions.

           Interim Target.   The bill defines the 2015 interim target as the  
          mid point between the base water use and the 2020 target.  While  
          requiring water agencies to demonstrate meaningful progress half  
          way into implementing this new program makes sense, it is not  
          clear why a strict mid-point calculation would be appropriate in  
          every case.  Agency A may be about to implement some program  
          that would provide significant reductions in the near future -  
          Agency B may be developing plans that will have a big pay-off by  
          2020, but not much sooner.  In both cases, comparing actual 2015  
          water use with a mid point target would provide misleading  
          information.  Agency A's actual 2015 water use would likely be  
          significantly below its interim target, suggesting that it may  
          exceed its target, Agency B's actual 2015 water use would show  
          just the opposite.  It might be more appropriate to require  
          water agencies to develop their plans to achieve their 2020  
          targets, and then report on their estimated reduction for 2015  
          based on their individual plans.

           CII & GPCD.   Population is at best tangentially related to  
          determining CII water use.  Economic output, gross receipts,  
          enrollment, etc. are much more appropriate factors to consider  
          in evaluating how efficiently water is being used by CII water  
          users.  When the economy is growing well, a manufacture may see  
          an increase in water use, even while adopting highly water  
          efficient production methods, due solely to higher output.   
          While it is true that the Governor's call was for a 20 percent  
          reduction in gpcd water use, it is also true that gpcd is a  
          flawed metric for measuring CII efficiency.  It might make sense  
          to require the CII taskforce established through this bill to  
          recommend how to best reconcile its recommended metrics for CII  
                                                                      12







          efficiency in context of the requirements of this bill.  

           Task Force Setting Regulatory Standards.   Typically, task forces  
          recommend regulatory standards, state agencies adopt regulatory  
          standards through the administrative law process.  This bill  
          states that the report of the CII Task Force "shall establish ?"  
          and that for those agencies that chose to use the disaggregated  
          approach for reaching their targets, the CII targeted savings  
          for 2020 "shall be based on the [CII] standards ? established by  
          the task force ? "  While the bill does include language stating  
          that the bill would not limit the application of the  
          administrative law process, it might make sense to make more  
          explicit that upon completion of the CII Task Force, DWR would  
          initiate a regulatory process to adopt the water use efficiency  
          standards recommended by the CII Task Force.

           Agricultural Water Suppliers.   As noted in the Background and  
          Existing Law, the existing, though dormant, provisions of the  
          Agricultural Water Management Planning Act required agricultural  
          water suppliers to fully describe their service area, quantity  
          and quality of water resources, water management practices, etc.  
           Agricultural water suppliers were defined as a supplier  
          providing more than 50,000 acre-feet of water annually for  
          agricultural purposes.  However, this bill has a blank for the  
          definition of agricultural water suppler.  The question is; what  
          is the appropriate definition of an agricultural water supplier?  


          There are a number of approaches one might take to answer this  
          question.  One might be able to determine, based on an analysis  
          of water agency operations, financial and technical capacity,  
          etc., the minimum size of an agency that would not only be  
          technically able to conduct the analysis but where the results  
          of the analysis would be commensurate with the costs of the  
          analysis. This is probably neither a simple nor uncontroversial  
          approach.  Another approach would be to focus on establishing  
          parity with urban water management plans.  Such an analysis  
          would consider the percent of agricultural water that would be  
          covered by agricultural water plans as compared to the percent  
          of urban water covered by urban water management plans.  While  
          probably easier computationally, it may result in picking only  
          the low hanging fruit.

           Urban/Ag Equity.   There are a number of instances in this bill  
          where agricultural water suppliers are treated significantly  
          different from urban water suppliers.  For example:

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           Compliance Dates.  The bill would condition eligibility for  
            grants or loans on complying with the requirements of the  
            bill.  Urban water suppliers must demonstrate compliance in  
            grant or loan applications beginning July 1, 2016,  
            agricultural water suppliers demonstrate compliance beginning  
            July 1, 2013.  Those dates coincide with the first required  
            submissions of information to DWR under this bill.

            However, water agencies do have to act earlier than 2016 -  
            they must develop their targets by the end of 2010.  It is  
            just that the bill is silent as to what they have to do with  
            those targets beyond including them in their urban water  
            management plans.  As urban water agencies are already  
            required under current law to submit those plans to DWR, it  
            might make sense from both an accountability and an  
            equitability perspective to condition loans and grants to  
            urban water suppliers on including their targets in the urban  
            water management plans that are due 12/31/10.

           Causes of Action - Under this bill, any action or proceeding  
            to attack, review, set aside, etc. the acts or decisions of an  
            agricultural water supplier on the grounds of noncompliance  
            the provisions of the Agricultural Water Management Planning  
            Act, would be required to be brought pursuant to Section 1085  
            of the Code of Civil Procedure (regarding writs of mandate).   
            Moreover, the court's review of compliance or noncompliance  
            would extend only to whether the plan, or portion thereof, or  
            revision thereto, substantially complies with the requirements  
            of that Act.  No such language exists for urban water  
            management plans.

          The author should be encouraged to resolve any inappropriate  
          differences in treatment of the two water using sectors.

           Related Bills:   SB 261 (Dutton & Ducheny) requires urban water  
          supplier to develop and implement a water use efficiency and  
          efficient water resources management plan to reduce per capita  
          residential water use by 20 percent, creates a task force to  
          develop best management practices for CII water uses, and  
          revises and updates requirements under the Agricultural Water  
          Management Planning Act.  

          While AB 49 and SB 261 both attempt to implement the Governor's  
          call for a 20 percent reduction in per capita water use by 2020,  
          they take significantly different approaches.  Most  
          fundamentally, AB 49 is focused on achieving the goal by greater  
          water use efficiency - squeezing more out of each drop.  SB 261,  
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          which includes water use efficiency options, is focused more on  
          improvements in water resources management - freeing up more  
          drops.  

           Work In Progress.   This bill has been heavily negotiated and  
          heavily amended.  In addition to the issues raised above, this  
          bill has a number of confusing or otherwise incomplete  
          provisions, such as how "compliance daily per capita water use"  
          relates to "base daily per capita use" and "urban water use  
          target."  There are conflicting provisions whether "the state  
          shall achieve" a 20-percent reduction or whether "it is the  
          intent of the Legislature that" these provisions result in a  
          20-percent reduction.  There are other areas requiring  
          additional attention as well.

          Should the committee decide to move this bill forward, the  
          committee may wish to seek a commitment from the author to  
          continue to work closely with committee staff to resolve the  
          various issues raised by this analysis.

          SUGGESTED AMENDMENTS: None 

          SUPPORT
          Metropolitan Water District of Southern California (Sponsor)
          Natural Resources Defense Council (Sponsor)
          Aerospace Cancer Museum of Education
          Amigo de los Rios
          CA ReLeaf
          California League of Conservation Voters
          California Sportfishing Protection Alliance
          California State Grange
          California Striped Bass Association West Delta Chapter
          California Urban Forests Council
          Central Basin Municipal Water District 
          City of Los Angeles
          Clean Up Rocketdyne
          Clean Water Action
          Contra Costa Water District
          Defenders of Wildlife
          Diablo Valley Fly Fishermen
          Environmental Defense Fund
          Environmental Entrepreneurs
          Food and Water Watch
          Friends of the River
          Green Plumbers USA
          Heal the Bay
          Inland Empire Utilities Agency
                                                                      15







          Irvine Ranch Water District
          Mountains Recreation and Conservation Authority
          National Parks Conservation Association
          Northern California/Nevada Council Federation of Fly Fishers
          Pacific Coast Federation of Fishermen's Associations
          Pacific Institute
          Sierra Club California
          Sierra Nevada Alliance
          Sonoma County Water Agency
          The Bay Institute
          Three Valleys Municipal Water District
          TreePeople
          Upper San Gabriel Valley Municipal Water District
          Water 4 Fish
          West Basin Municipal Water District
          1 Individual


          OPPOSITION
          Agricultural Council of California
          Association of California Water Agencies 
          California Association of Nurseries and Garden Centers
          California Association of Wheat Growers
          California Association of Winegrape Growers
          California Bean Shippers
          California Cattlemen's Association
          California Chamber of Commerce
          California Citrus Mutual
          California Cotton Growers and Ginners Associations
          California Farm Bureau Federation
          California Grain and Feed
          California League of Food Processors
          California Manufacturers and Technology Association
          California Nevada Soft Drink Association
          California Pear Growers
          California Retailers Association
          California Rice Commission
          California State Floral Association
          California Warehouse Association
          Chemical Industry Council of California
          City of Lakewood 
          Family Winemakers of California
          Friant Water Authority
          Grocery Manufacturers Association
          Imperial Irrigation District
          Industrial Environmental Association
          Irrigation Association
                                                                      16







          Kern County Water Agency
          Modesto Irrigation District
          Nisei Farmers League
          Northern California Water Association
          Pacific Egg and Poultry Association
          Regional Council of Rural Counties
          Santa Barbara Technology and Industry Association
          Solano County Water Agency
          Tule River Association
          Valley Ag Water Coalition
          Western Growers 
          Western States Petroleum Association
          Wine Institute


































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