BILL ANALYSIS
AB 300
Page 1
Date of Hearing: April 28, 2009
ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
Jared William Huffman, Chair
AB 300 (Caballero) - As Amended: April 20, 2009
SUBJECT : Subdivisions: water supply
SUMMARY : Requires local agencies to reduce the projected water
demand from a development project, as defined, based on the
project applicant's voluntary water demand management measures,
if a project applicant elects to include voluntary demand
management measures, until January 1, 2020. Specifically, this
bill :
1)Defines "voluntary [water] demand management measures" to
include water-use efficiency measures that are permanently
fixed to residential, commercial, industrial, or other real
property that will reduce a proposed subdivision's water
demand beyond existing statutory, regulatory, and
local-ordinance requirements, including specified measures.
2)Allows developer to mitigate water demand associated with
proposed residential subdivision by paying into the water
supplier's Voluntary Water Demand Mitigation Fund (Fund -
defined term), which will pay for least expensive, most
cost-effective water conservation measures to yield water and
reduce the project's water demand.
a) Limits fees to an amount necessary to offset the actual
or percentage of actual water demand impacts agreed upon in
the agreement between the applicant and the public water
system and not exceeding the amount of all capacity charges
and other water service fees applicable to the subdivision.
b) Reduces all applicable capacity charges and other water
service fees to the extent that contributions are made to
the Fund.
c) Prohibits waiver or modification by contractual
agreement, act, or omission of the parties.
d) Prohibits disapproval of tentative map based on
applicant's refusal to use voluntary mitigation measures.
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e) Requires the public water system to expend all Fund
monies on water conservation measures to reduce the
projected demand associated with the subdivision.
f) Allows Fund monies to be used within the subdivision or
elsewhere within the service area of the public water
supplier, at its discretion.
g) Prohibits expenditure of Fund monies to supplant funding
for water conservation programs already required under
existing law or paid for by existing rates and surcharges.
3)Requires public water systems to include water savings
projections attributable to voluntary water demand management
measures in water supply assessments and verifications.
a) Requires public water system, or if there is no public
water system, the local agency, to verify water savings
projections attributable to voluntary demand management
measures.
b) Allows the public water agency to collect fees necessary
to provide additional analysis of voluntary demand
management measurers.
4)Provides for calculation of projected water savings and
enforcement of water conservation for subdivision projects
relying on water conservation in water supply verification.
a) Allows water savings projections to be calculated using
California Urban Water Conservation Council (CUWCC)
projections.
b) Requires estimates for measures that CUWCC has not
adopted findings to be based on evidence in the record and
included in the water supplier assessment.
c) Requires the city or county, if project applicant
proposes a new voluntary water reduction demand management
measure lacking a CUWCC water savings projection, to
condition approval on project applicant entering into an
agreement with water supplier to implement and monitor the
actual water savings over time.
d) Allows agreement to include legally enforceable
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mechanisms to ensure implementation of water conservation
measures, including covenants/restrictions on property
(CCR).
e) Requires water supplier to prepare report on actual
water savings five years after complete development of
project, with copies going to the project applicant, the
city or county approving the subdivision map, CUWCC, and
Department of Water Resources.
f) Requires developer to place a manual providing
directions to the owner or occupant on the proper use of
water conservation devices in the dwelling
5)Specifies that voluntary mitigation measures may include, at
the applicant's sole discretion, water demand mitigation
measures that minimize a percentage, as determined by the
applicant, of a project's impact to the public water system.
6)Provides that these provisions automatically terminate on
January 1, 2020, and restores existing law as of that date.
EXISTING LAW
1)Prohibits approval of a subdivision of property of more than
500 dwelling units, except as specified, unless the
legislative body of a city or county or the designated
advisory agency provides written verification from the
applicable public water system that a sufficient water supply
is or will be available prior to completion of the project.
2)Requires an assessment of future water supply whenever a city
or county determines that a project, as defined, is subject to
the California Environmental Quality Act (CEQA).
3)Requires urban water suppliers to prepare Urban Water
Management Plans.
FISCAL EFFECT : Unknown
COMMENTS : AB 300 is one of two bills proposing to incorporate
water conservation measures into the water supply
assessment/verification processes required of new development in
California. The other bill is AB 1408 (Krekorian), which will
be heard during this same hearing. Both bills purport to
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encourage greater investment in water conservation measures by
developers of housing and commercial projects, based on the
incentive of increased likelihood of project approval with lower
demand for new water supplies.
Determinations as to sufficiency of water supply occur at two
points in the development process. First, when CEQA requires a
city/county to comply on a project, the water supplier for the
property must assess future water supply sufficiency upon the
city/county's request. Second, for residential developments of
more than 500 units, the city/county must verify the sufficiency
of the 20-year water supply, based on the water supplier's
assessment. While the developer's participation in the program
proposed by this bill is voluntary, the bill requires local
agencies to incorporate the developer's water savings
projections attributable to voluntary demand management measures
into both the assessment and verification, and reduce the
development's projected future water demand.
The bill's sponsor, the California Building Industry Association
(CBIA), casts this bill as addressing a history of local
agencies failing to consider the builders' use of water-saving
devices in the local agency estimates of future water demand
from those developments. CBIA asserts that homebuilders have
built this low-water-use technology into their new homes "for
years," but local agencies "do not always" consider the reduced
water demands. It argues: "As California's water situation
worsens, it has become increasingly difficult to ensure reliable
water supplies for new housing." The sponsor intends to address
the California water supply by giving developers incentives to
invest in water-use efficiency. The author believes that AB 300
will encourage innovative approaches to reduce water consumption
in new homes by accounting for voluntary water conservation
measures when a local agency quantifies a project's water
demand.
The bill would establish a voluntary program to allow
homebuilders to incorporate water-saving strategies and
technology into their development design, or pay into a
Voluntary Water Demand Mitigation Fund, in order to reduce the
projected water demand of their project, and improve the
likelihood of the project's approval. AB 300, and AB 1408, will
assist water agencies and the state in documenting the potential
water savings from new water use efficiency projects and
programs in a manner that will promote successful water
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conservation strategies and discourage ineffective ones. Most
importantly, by creating an incentive based conservation
program, AB 300 will achieve reductions in water consumption
without any additional cost to state or local governments.
AB 300 and AB 1408 have many similarities, but also some
differences, which the Committee may wish to consider:
1)Conservation Enforcement : AB 300 relies largely on the water
supplier to enforce, through the agreement with the developer
at the time of the assessment, the water conservation
measures. It allows for, but does not require, inclusion of
water conservation conditions in the "covenants, conditions
and restrictions" (CCRs) in the property title. It also
requires the water supplier to complete a report on the
project 5 years after development completion, and the
developer to provide a manual for water conservation devices
to each homeowner. AB 1408 also relies on the water supplier,
but requires enforcement tools (e.g. CCRs), subsequent
monitoring, and further water supplier actions if the
projected water savings do not materialize.
2)Amount of Conservation :AB 300 allows for a range of water
conservation targets for new developments, which allow the
proposed conservation measures to reduce, but not necessarily
eliminate, water demand from a proposed project. AB 1408
requires that the conservation achieve a 100% elimination of
new water demands from a proposed development, if the
developer chooses to participate. Because this program is a
new concept, it is not clear whether the 100% target is
attainable. East Bay MUD, a sponsor of AB 1408, has tried
this program with a new development in its own area, but has
not reported on whether its program has achieved a 100%
elimination of new water demand. Finally, AB 1408 puts the
burden on the water supplier to estimate the costs of
sufficient water measures to offset 100% of the water supply.
3)Assessment & Verification :AB 300 provides for this program to
apply to both the assessment and verification stages.
Association of California Water Agencies has suggested that
using both stages is redundant, and suggested the program
apply to only one stage. AB 1408 applies the program only to
the verification stage. At that stage, the water assessment
provides sufficient information for both the developer and the
supplier to determine how much water demand needs to be
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offset, either to achieve the 100% elimination target or a
reduction that would allow the development's water demand to
fall within projected water supply.
4)Restrictions on Fund :AB 300 requires use of Fund monies on
water conservation measures and bars supplanting other water
conservation funding with Fund money. AB 1408 then adds
requirements on Fund expenditures, to quantifiable and
verifiable conservation measures and for water conservation in
disadvantaged communities (40%). It also requires more
substantial water supplier follow-up, with
documentation/calculation of expenditures, actual resulting
conservation and water savings.
These differences deserve more analysis and consideration. AB
300 does not include the level of detail in AB 1408. On the
other hand, the AB 1408 amendments proposed for Committee
adoption today are substantial. The Committee may consider
whether to encourage the authors to collaborate with each other
and with the sponsors, to work out a consensus bill that
addresses this concept in a comprehensive way.
REGISTERED SUPPORT / OPPOSITION :
Support
CA Building Industry Association (sponsor)
American Council of Engineering Companies CA
Associated General Contractors
Assoc. of CA Water Agencies (if amended)
CA Alliance for Jobs
CA Apartment Association
CA Association of Realtors
CA Business Properties Association
CA Chamber of Commerce
CA Manufacturing and Technology Assn.
Opposition: None submitted
Analysis Prepared by : Alf W. Brandt / W., P. & W. / (916)
319-2096