BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1465
                                                                  Page  1

          Date of Hearing:   May 13, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 1465 (Hill) - As Amended:  April 21, 2009 

          Policy Committee:                              WPW  Vote:13-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill revises the best management practices (BMPs), or water  
          demand management measures, of the Urban Water Management  
          Planning Act.  Specifically, this bill:

          1)Requires an urban water supplier to establish, as part of its  
            urban water management plan, its goal for water demand  
            management through implementation of specified measures,  
            alternative equivalent water demand management measures, or an  
            overall reduction in gallons per capita per day of urban water  
            use, and to include other specified information.

          2)Requires the Department of Water Resources (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 demonstrating to DWR's satisfaction that:

               i)     the proposed water demand management measures  
                 provide a level of water savings equivalent to the  
                 savings provided by the implementation of the listed  
                 measures,

               ii)    a demand management measure is not cost effective,  
                 or 

               iii)   the supplier lacks the authority to implement one or  
                 more of the listed measures.

           FISCAL EFFECT  









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          Negligible costs to DWR to review and make a determination  
          regarding information provided by a water supplier pursuant to  
          this bill.

          COMMENTS  

           1)Rationale  .  The December 2008 California Urban Water  
            Conservation Council memorandum of understanding (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.  The author describes AB 1465 and the  
            MOU as responses to the governor's 2008 call for a decrease in  
            water demand of 20% 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.

           2)Background  .

              a)   Urban Water Demand Management.   Existing law requires an  
               urban water supplier to implement 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 and other  
               certain state agencies.

              b)   Urban Water Supplier.   The Urban Water Management Act  
               defines an "urban water supplier" as  public or privately  
               supplier of water for municipal purposes to more than 3,000  
               customers or supplying more than 3,000 acre-feet of water  
               annually.  

             c)   California Urban Water Conservation Council  .  The  
               mission of the Council is to increase urban water use  
               efficiency statewide.  The Council was created by the MOU  
               Regarding Urban Water Conservation in California, first  
               signed in 1991 by a group of urban water suppliers,  
               environmental interest groups, and other interested  
               parties.  Water suppliers signing the MOU agree to develop  
               and implement comprehensive conservation BMPs that are  
               cost-effective, using sound economic criteria.  Since 1991,  
               over 200 urban water suppliers across California have  
               signed the MOU, representing nearly 75% of the state's  








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               urban water supply. Currently the Council has 398 members. 

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081