BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 261|
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                                 THIRD READING


          Bill No:  SB 261
          Author:   Dutton (R) and Ducheny (D), et al
          Amended:  5/28/09
          Vote:     21

           
           SENATE NATURAL RES. & WATER COMMITTEE  :  11-0, 4/28/09
          AYES:  Pavley, Cogdill, Benoit, Hollingsworth, Huff, Kehoe,  
            Leno, Padilla, Simitian, Wiggins, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  12-0, 5/28/09
          AYES:  Kehoe, Cox, Corbett, Denham, DeSaulnier, Hancock,  
            Leno, Oropeza, Runner, Walters, Wyland, Yee
          NO VOTE RECORDED:  Wolk


           SUBJECT  :    Water use

           SOURCE  :     Santa Ana Watershed Project Authority


           DIGEST  :    This bill requires each urban water supplier, or  
          regional water management group acting on behalf of the  
          urban water supplier, to develop and implement a water use  
          efficiency and efficient water resources management plan,  
          and enacts the Comprehensive Urban Water Efficiency Act of  
          2009.

           ANALYSIS  :    

          Existing law:

          1. Requires the Department of Water Resources (DWR) to  
                                                           CONTINUED





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             convene an independent technical panel to provide  
             information to the department and the Legislature on new  
             demand management measures, technologies, and  
             approaches. "Demand management measures" means those  
             water conservation measures, programs, and incentives  
             that prevent the waste of water and promote the  
             reasonable and efficient use and reuse of available  
             supplies.

          2. Requires urban water suppliers to prepare and adopt  
             urban water management plans with specified components.

          This bill:

          1. Requires each urban water supplier, or regional water  
             management group acting on behalf of the urban water  
             supplier, to develop and implement a water use  
             efficiency and efficient water resources management  
             plan.

             A.    Urban water suppliers achieving extraordinary  
                water use efficiency is exempt from these  
                requirements.  Extraordinary water use efficiency  
                is defined as:

                (1)      The use of less than 70 gallons per  
                   person per day for indoor residential uses.

                (2)      The use of less than 70 percent of  
                   reference evapotranspiration for outdoor  
                   residential uses.

             B.    The plans are required to accomplish one or more  
                of the following:

                (1)      Reduce residential per capita potable  
                   water use by 20 percent by 2020 as compared  
                   to water use in 2000.

                (2)      Reduce total residential potable water  
                   use by 2020 by a total of 20 percent as  
                   compared to the 2020 projection in the  
                   agency's 2005 urban water management plan,  
                   which reduction shall include water  







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                   conservation measures already included in the  
                   2005 urban water management plan.

                (3)      Achieve, by 2020, extraordinary water  
                   use.

             C.    The plan is required to include interim  
                milestones for each even-numbered year for progress  
                towards achieving the 2020 target, and each  
                reporting agency will report its progress toward  
                reaching the 2020 target to an unspecified person  
                or agency, using whatever metrics the reporting  
                agency considers to be most appropriate for its  
                circumstances.

             D.    If an urban water supplier fails to meet an  
                interim milestone identified in its plan, it would  
                be:

                (1)      Required to report its failure to DWR  
                   on the following March 1. 

                (2)      Required, within 90 days, to submit a  
                   plan to DWR to meet the next interim  
                   milestone. 

                (3)      Subject to a penalty of 20 percent of  
                   available points in any competitive grant or  
                   loan program awarded or administered by DWR,  
                   the State Water Resource Control Board  
                   (SWRCB), or the California Bay-Delta  
                   Authority until such time the urban water  
                   supplier satisfies the interim milestones.

          2. Enacts the Comprehensive Urban Water Efficiency Act of  
             2009.  This Act will:

             A.    Require DWR and SWRCB, by April 1, 2010, to  
                convene a task force to develop best management  
                practices for commercial, industrial, and  
                institutional (CII) water uses.  

                (1)      The intent is to result in a statewide  
                   target of at least a 10-percent reduction in  







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                   potable water use in the CII sector by 2020  
                   as compared to statewide water use by that  
                   sector in 2000.

                (2)      The task force will be composed of  
                   representatives of DWR, SWRCB, urban water  
                   suppliers, trade groups representing the CII  
                   sector, and environmental groups. 

                (3)      Operations of the task force could be  
                   funded by the participants, or by the  
                   California Urban Water Conservation Council.

                (4)      The task force will be required to  
                   submit a report to DWR and SWRCB no later  
                   than April 1, 2011. 

                (5)      Any recommendation of the task force  
                   shall be endorsed by all members of the task  
                   force.

                (6)      The task force report shall include a  
                   discussion of numerous subjects, including  
                   metrics, appropriate quantities of water  
                   needed for various CII activities, potential  
                   use of stormwater, recycled water, treated  
                   water, desalinated water, or other  
                   alternative sources of water, and an  
                   evaluation of whether it is feasible to  
                   reduce water use statewide in the CII sector  
                   by at least 10 percent by 2020.

             B.    Allows DWR to enter into agreements with the  
                task force participants or the California Urban  
                Water Conservation Council to fund the state's  
                costs to carry out the duties of the task force.  
                 If DWR determines, before May 2, 1010, that  
                revenues pursuant to existing reimbursement  
                agreements are insufficient to fund those costs,  
                DWR shall impose a fee on urban water suppliers  
                in an amount sufficient to fund the costs.

             C.    Makes numerous findings and statements of  
                legislative intent regarding water conservation  







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                planning.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions                2009-10     2010-11     
           2011-12   Fund  

          Taskforce costs                    Fully  
          reimbursableSpecial*

          *Reimbursements

           SUPPORT  :   (Verified  5/29/09)

          Santa Ana Watershed Project Authority (source)
          Elsinore Valley Municipal Water District

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          California's growing population, periodic and serious  
          drought conditions, and court-ordered supply reductions  
          require that Californians adopt reasonable water efficiency  
          measures that improve water supply reliability.  In  
          addition, the Governor has issued an executive order  
          calling for a permanent reduction in per capita use by 20  
          percent by 2020.


          CTW:do:m  5/29/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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