BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 134
                                                                  Page  1

          Date of Hearing:   April 5, 2011

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                Jared Huffman, Chair
                   AB 134 (Dickinson) - As Amended:  March 23, 2011
           
          SUBJECT  :   Appropriation of treated wastewater

           SUMMARY  :   Allows the Sacramento Regional County Sanitation 
          District (SRCSD) to apply for a permit to appropriate an amount 
          of water up to the amount of discharged wastewater.  
          Specifically,  this bill  :

          1)Declares the benefit of water recycling while also finding 
            that it is in the best interest of the people of California to 
            allow the SRCSD to benefit financially from its production and 
            discharge of high-quality recycled water in order to offset 
            the costs associated with a mandatory wastewater treatment 
            plant upgrade.

          2)Allows the SRCSD to file an application for a permit to 
            appropriate an amount of water equal to the amount of treated 
            wastewater discharged, less carriage losses, if the water is 
            rediverted from the Sacramento River or Sacramento-San Joaquin 
            Delta.

          3)Declares a special law is necessary due to the unique problems 
            applicable to full utilization of the waters of the Sacramento 
            River into which the SRCSD discharges treated wastewater.

           EXISTING LAW  

          1)Provides that the owner of a wastewater treatment plant shall 
            hold the exclusive right to the treated wastewater.

          2)Requires approval from the State Water Resources Control Board 
            for a change in the point of discharge, place of use, or 
            purpose of use of treated wastewater, unless such change does 
            not decrease flow in any portion of a watercourse.

          3)Protects wastewater which has been introduced into the 
            watercourse with the intention of maintaining or enhancing 
            fishery, wildlife, recreational or other instream beneficial 
            uses from being treated as abandoned and subject to 
            appropriation by others.








                                                                  AB 134
                                                                  Page  2

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

          The importance of the Sacramento-San Joaquin Delta Estuary 
          (Delta) as a regional, state and national treasure and an 
          integral part of an ecosystem which is home to more than 750 
          wildlife species and more than 120 species of fish is well 
          documented. Equally well documented has been the precipitous 
          decline of its fisheries including, but not limited to, fish 
          species listed under both the Federal Endangered Species Act 
          (ESA) and California Endangered Species Act (CESA) such as Delta 
          smelt, winter-run Chinook salmon and spring-run Chinook salmon.  


          There have been many reasons for this decline including the 
          effects of the Central Valley Project (CVP) and State Water 
          Project (SWP). The CVP/SWP, which operate in a coordinated 
          fashion, have two huge pumping plants located near one another 
          in the south of the Delta which export water primarily to 
          Central Valley agriculture and southern California cities. 
          Collectively, these pumping plants change the overall 
          hydrodynamics of the Delta including exerting a pull so strong 
          they force two rivers, Old River and Middle River, to cease to 
          flow westward towards the San Francisco Bay and instead run 
          backwards towards the pumps themselves.  This reverse flow 
          causes direct losses of fish, larva and eggs due to entrainment 
          (being drawn in to the pumping facilities) and impingement 
          (being trapped against screens) as well as indirect losses due 
          to straying, predation, and loss of food production.  

          The killing of ESA and CESA listed species is legally prohibited 
          without a permit.  Thus, the CVP/SWP are required to obtain 
          permits for their operations.  Because the permits are specific 
          to CVP/SWP operations, they focus on measures to try to minimize 
          the operational impacts of the projects on fish, including by 
          limiting Old and Middle Rivers' reverse flow during seasons when 
          the fish species are most vulnerable (such as breeding).  While 
          the permits do not cause the pumps to cease operating, they 
          affect the maximum amount of water than can be exported, 
          particularly from December through June.  In addition, maximum 
          export pumping is constrained by Army Corps of Engineers permits 
          and the San Francisco Bay/Sacramento-San Joaquin Delta Estuary 
          Water Quality Control Plan because, among other factors, the 
          outflow of water through the Delta is a hydraulic barrier to 
          salinity coming in from the ocean.







                                                                  AB 134
                                                                  Page  3


          As part of the Bay Delta Conservation Plan (BDCP) process, a 
          stakeholder-driven effort to obtain new 50 year permits for 
          CVP/SWP operations, the agencies that contract with the federal 
          Bureau of Reclamation and State Department of Water Resources 
          for CVP/SWP export supplies have increasingly focused on the 
          possible role of other "stressors" besides the water projects in 
          the fish declines.  In particular, they have contributed to 
          studies analyzing ammonia as affecting the Delta food web and 
          fish species and called for more stringent permits on discharges 
          into the Sacramento River from the Sacramento Regional 
          Wastewater Treatment Plant (Treatment Plant) owned and operated 
          by SRCSD.  On December 9, 2010 the Central Valley Regional Water 
          Quality Control Board issued a new Waste Discharge Requirement 
          for the SRCSD Treatment Plant which, among its provisions, 
          requires increased wastewater filtration and limits ammonia 
          levels. 

          To date, SRCSD's wastewater discharges have formed part of the 
          water supply exported by the CVP/SWP.  This is because, while 
          most water permits are for quantifiable amounts of water to be 
          diverted at a specific location during a specific time period 
          for a specific place of use, the CVP/SWP Delta pumping plants 
          take all the water in the system that they are capable of 
          diverting constrained by physical limitations (the size of the 
          pumps and canals) and legal standards.  In some years this has 
          allowed them to deliver both contracted-for amounts of water 
          plus amounts in excess of those contracts.    

          SRCSD's concerns over its wastewater as export supply were 
          exacerbated by the BDCP proposal to build five new intakes on 
          the Sacramento River directly downstream of the SRCSD Treatment 
          Plant's outfall.  Collectively, these proposed intakes are 
          almost fifty times larger than any other screened diversion in 
          the Delta and would be used to export water around the Delta via 
          a new peripheral canal.  This location and timing of the BDCP 
          proposal has caused SCRSD to feel that they are being compelled 
          to provide drinking water quality water for current and future 
          export and to seek a mechanism to require the CVP/SWP 
          contractors, or any other entity which wishes to benefit from 
          this new high-quality water supply, to pay for it.

           Support Arguments  :  SRCSD and other supporters of this bill 
          assert that Treatment Plant upgrades will cost up to $2 billion 
          and that a multi-faceted approach is needed at the "local, state 
          and federal level to minimize the burden on the Sacramento 







                                                                  AB 134
                                                                  Page  4

          Region."  They point out this bill follows an approach that was 
          established in 1961 for the San Joaquin River and that the 
          amended version of the bill provides assurances that are 
          necessary to protect other legal users of water, including the 
          environment.

           Opposition Arguments  :  Opponents state that some of the effluent 
          discharge that could be sold by SRCSD under this bill "has 
          historically been considered Delta inflow available for use 
          and/or export downstream."  They state that "many other 
          communities have had to do similar upgrades to their sewage 
          treatment to meet Clean Water Act requirements without seeking 
          to radically transform existing water rights law."

           Issues and Suggested Amendments  :  The Sacramento Area Council of 
          Governments, in a Background Report on Sacramento Area Resources 
          quoted figures showing that while the State average for water 
          consumption is about 165 gallons per capita per day (GPCD), with 
          Los Angeles around 135 GPCD, some purveyors around the 
          Sacramento region could be consuming 200 GPCD and even as much 
          as 400 GPCD.  This is due to the low-cost water generally 
          prevalent in the Sacramento region.  If this bill were to allow 
          the total volume of wastewater generated through inefficient 
          uses to become a valuable commodity, that could act as a 
          disincentive to conservation.

          SB 7 (Steinberg) Chapter 4, Statutes of 2009-10 Seventh 
          Extraordinary Session requires the state to achieve a 20% 
          reduction in urban per capita water use by December 31, 2020.  
          The author may wish to consider an amendment recognizing the 
          need for increased conservation in the Sacramento Region and 
          limiting the total volume of wastewater that could be subject to 
          appropriation under this bill.
           
          REGISTERED SUPPORT / OPPOSITION  : 
            
           Support  

          California Apartment Association
          CA Association of Sanitation Agencies
          California Teamsters Public Affairs Council
          Campbell Soup Company
          Central Contra Costa Sanitary District
          City of Citrus Heights
          City of Elk Grove
          City of Rancho Cordova







                                                                  AB 134
                                                                  Page  5

          City of Sacramento
          City of West Sacramento
          Downtown Sacramento Partnership
          Jim Provenza, Yolo County Supervisor
          Marriott Cal Expo Properties
          Midtown Business Association
          Mike McGowan, Yolo County Supervisor
          Nor-Cal Beverage Co., Inc.
          North State Building Industry Association
          Sacramento County Board of Supervisors
          Sacramento Metro. Chamber of Commerce
          Sacramento Regional Co. Sanitation District+
           

          Opposition 






































                                                                 AB 134
                                                                  Page  6



          Alameda County Flood Control and Water


            Conservation District Zone 7 


          Alameda County Water District 


          Association of CA Water Agencies


          Burbank Chamber


          Burbank Water and Power 


          California Chamber of Commerce 

          California Municipal Utilities Assoc.

          Calleguas Municipal Water District 

          Castaic Lake Water Agency 

          Central City Association 


          Chambers of Commerce Alliance, 


            Ventura and Santa Barbara Counties 

          Chino Valley Chamber of Commerce

          City of Corona (unless amended)

          Coachella Valley Water District

          Contra Costa Water District (unless amended) 

          Downey Chamber of Commerce 
          Eastern Municipal Water District 







                                                                  AB 134
                                                                  Page  7


          EI Monte/South EI Monte Chamber of           Commerce 


          Friant Water Authority


          Fullerton Chamber of Commerce 


          Inland Empire Utilities Agency (unless amended)

          Irvine Chamber of Commerce 
          Irvine Ranch Water District 
          Irwindale Chamber of Commerce 
          Kern County Water Agency 
          LaVerne Chamber of Commerce 

          Long Beach Area Chamber of Commerce 

          Los Angeles Area Chamber of Commerce

          Los Angeles Business Council 

          Metropolitan Water District of So. California 
          Mojave Water Agency 

          Montclair Chamber of Commerce 

          Montebello Chamber 

          North Orange County Legislative Alliance


          Orange County Business Council  


          Redondo Beach Chamber of Commerce &     Visitors Bureau 


          Regional Chamber of Com/-San Gabriel Valley 


          San Diego County Water Authority 









                                                                  AB 134
                                                                  Page  8

          San Fernando Chamber of Commerce 


          San Gabriel Valley Legislative Coalition of   Chambers 


          Simi Valley Chamber of Commerce 

          Southern California Water Committee 
          Southwest California Legislative Council

          The Greater Corona Valley Chamber of       Commerce 


          Three Valleys Municipal Water District 


          United Chambers of the San Fernando Valley


          Upland Chamber of Commerce


          Upper San Gabriel Valley Municipal Water District

          Valley Industry & Commerce Association

          Ventura Co. Economic Development Assoc.


          Western Municipal Water District (unless amended)

          Westlands Water District
           



















                                                                  AB 134
                                                                  Page  9


           

          Analysis Prepared by  :    Tina Cannon Leahy / W., P. & W. / (916) 
          319-2096