BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           261 (Dutton)
          
          Hearing Date:  05/18/2009           Amended: 04/30/2009
          Consultant:  Brendan McCarthy   Policy Vote: NR&W 11-0
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          BILL SUMMARY: SB would require urban water suppliers to develop  
          a water use efficiency plan, generally to reduce water use by 20  
          percent by 2020. Water suppliers that fail to meet milestones in  
          their plans would be penalized when applying for grant or loan  
          funding from the state. The bill would also require the State  
          Water Board and Department of Water Resources to convene a  
          taskforce to develop best management practices for water use.
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                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
                                                                  
          Taskforce costs        $410       $410                  General  
          *

          * Costs may be reimbursed by participants.
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          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense file. 
          
          SB 261 would require each urban water supplier or regional water  
          management group to develop and implement a plan to reduce water  
          use through efficiency. In general, the plans would have to  
          achieve a 20 percent reduction in water use by 2020. The plans  
          would have to include interim milestones for measuring progress.  


          If an urban water supplier failed to meet the milestones in its  
          plan, it would be subject to additional reporting requirements  
          and would be subject to a 20 percent penalty in any competitive  
          grant or loan solicitation by the state.

          The bill would require the State Water Board and the Department  
          of Water Resources to convene a task force to develop best  










          management practices for commercial, industrial, and  
          institutional water management. The intent is to reduce  
          statewide water use from these sectors by 10 percent by 2020.  
          The task force would include participants from state agencies,  
          water suppliers, trade groups and others. The task force would  
          be required to submit a report no later than April 2011.

          The bill provides that costs associated with the task force may  
          be funded by the participants or by the California Urban Water  
          Conservation Council.

          Staff notes that SB 460 (Wolk) requires urban and agricultural  
          water suppliers to develop plans to reduce water use by 20  
          percent by 2020.