BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1465
                                                                  Page  1

          Date of Hearing:   April 28, 2009

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                            Jared William Huffman, Chair
                     AB 1465 (Hill) - As Amended:  April 21, 2009
           
          SUBJECT  :   Urban water management planning. 

           SUMMARY  :   Revises the best management practices (BMPs), or  
          water demand management measures, of the Urban Water Management  
          Planning Act to reflect the revisions to the memorandum of  
          understanding (MOU) signed by the California Urban Water  
          Conservation Council (CUWCC) in December 2008.   Specifically,  
           this bill  :  

          1)Requires that the urban water management plans (plans)  
            establish the goal of the urban water supplier for water  
            demand management through implementation of the following  
            listed measures, alternative equivalent water demand  
            management measures, or an overall reduction in gallons per  
            capita per day of urban water use and provide a description of  
            each water demand management measure that is currently being  
            implemented, or scheduled for implementation:

               a)     Utility operations programs, including programs  
                 relating to conservation coordination, water waste  
                 prevention, wholesale agency assistance, pricing,  
                 metering, and water loss control. 

               b)     Education and information programs, including  
                 programs relating to school education and public  
                 information. 

               c)     Residential programs, including programs relating to  
                 residential assistance, landscape water surveys, high  
                 efficiency clothes washer incentives, ordinances, and  
                 low-flow toilet incentives. 

               d)     Commercial, institutional, and industrial programs,  
                 including programs relating to device-based incentives,  
                 audits and process improvement incentives. 

               e)     Landscape programs, including programs relating to  
                 water budgets, water use surveys, and financial  
                 incentives. 








                                                                  AB 1465
                                                                  Page  2


          2)Requires every urban water supplier to provide:

               a)     A schedule of implementation for all water demand  
                 measurements proposed or described in the plan.

               b)     An estimate of the water savings or reduction in  
                 gallons per capita per day of urban water use that will  
                 be achieved through implementation of the proposed water  
                 demand management measures. 

               c)     A description of the methods, if any, that the  
                 supplier will use to evaluate the effectiveness of water  
                 demand management measures implemented or described in  
                 the plan.


          3)Requires that the plan evaluate and describe:  

             a)   Any alternative water demand management measures being  
               implemented by the supplier to provide a level of water  
               savings that is equivalent to the savings provided by the  
               implementation of the listed water demand management  
               measures.

             b)   Each listed water demand measure that is not currently  
               being implemented due to lack of legal authority or lack of  
               cost effectiveness.

             c)   Opportunities for development of recycled water  
               supplies, including opportunities for non-potable and  
               indirect potable reuse as a long-term water supply.

             d)   Opportunities for stormwater recapture and reuse as a  
               long-term water supply.  

          1)Requires DWR to determine that an urban water supplier is  
            eligible for a water management grant or loan, despite a  
            failure to implement all of the water demand management  
            measures identified in the urban water management plan, if the  
            supplier submits documentation for DWR's approval  
            demonstrating that the supplier's proposed water demand  
            management measures provide a level of water savings that is  
            equivalent to the savings provided by the implementation of  
            the listed measures, or that the supplier lacks the authority  








                                                                  AB 1465
                                                                  Page  3

            to implement one or more of the listed measures. 

           EXISTING LAW  incorporates the water demand management measures  
          from the 1991 CUWCC MOU into the Urban Water Management Planning  
          Act.  Existing law also requires, with certain exceptions, that  
          an urban water supplier must implement the water demand  
          management measures identified in the supplier's urban water  
          management plan in order to be eligible for a water management  
          grant or loan administered by DWR, the State Water Resources  
          Control Board (SWRCB), the California Bay-Delta Authority or its  
          successor agency. 

           FISCAL EFFECT  :   Unknown. 

           COMMENTS  :  AB 1465 codifies the recently approved BMPs for water  
          conservation adopted by the CUWCC in their December 2008 MOU.   
          During the 1990's drought, the CUWCC was created to increase  
          efficient water use statewide through partnerships among urban  
          water agencies, public interest organizations, and private  
          entities.  CUWCC's goal is to integrate urban water conservation  
          BMPs into the planning and management of California's water  
          resources.  Currently the CUWCC has 398 members. 

          The December 2008 CUWCC MOU incorporates advances in  
          conservation practices and provides a more flexible set of BMPs  
          to allow urban water agencies to tailor their BMPs to better fit  
          their local circumstances.  AB 1465 incorporates these updated  
          BMPs into the Urban Water Management Planning Act, including  
          Foundational BMPs, relating to utilities operations and  
          education, and Programmatic BMPs, organized into residential,  
          commercial, industrial, and landscape categories.  Water  
          agencies may also choose "Flex-Track" activities that provide  
          water savings equal to or greater than the savings that would be  
          achieved through the foundational BMPs.  The CUWCC MOU was last  
          updated in 1991.     

          The author notes that AB 1465 and the CUWCC MOU are a response  
          to the Governor's 2008 call for a decrease in water demand of 20  
          percent by 2020, and an effort by water agencies to improve the  
          efficiency of water use through changes in public attitudes  
          toward conservation and through changes in their own operating  
          systems.  

          Currently under the Urban Water Management Planning Act, BMPs  
          are not mandatory, and AB 1465 does not make the updated BMPs  








                                                                  AB 1465
                                                                  Page  4

          mandatory.  However, in order be eligible for a water management  
          loan or grant from DWR, SWRCB, Cal-Fed Bay Delta Authority or  
          its successor agency, an agency must be implementing BMPs or  
          submit documentation proving that BMPs are not cost effective or  
          that the supplier lacks the legal authority to implement them,  
          establishing an incentive for BMP implementation.  AB 1465  
          incorporates the language from SB 27XXX (Negrete McLeod),  
          Chaptered March 27, 2009, stating that this section does not  
          apply to water management projects funded under the American  
          Recovery and Reinvestment Act of 2009. 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           San Diego County Water Authority (Sponsor)
          East Bay Municipal Utility District
          California Municipal Utilities Association 
          California Landscape Contractors Association 
          Southern California Water Committee 

           Opposition:   None submitted 
           
          Analysis Prepared by  :    Lindsey Scott-Florez / W., P. & W. /  
          (916) 319-2096