BILL ANALYSIS                                                                                                                                                                                                    �





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2011-2012 Regular Session                    |
          |                                                                 |
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          BILL NO: AB 134                    HEARING DATE: June 28, 2011
          AUTHOR: Dickinson                  URGENCY: No
          VERSION: April 15, 2011            CONSULTANT: Dennis O'Connor
          DUAL REFERRAL: No                  FISCAL: Yes
          SUBJECT: Appropriation of Water: Sacramento Regional County 
          Sanitation District
          
          BACKGROUND AND EXISTING LAW
          Under existing law:
           Any person or entity may apply to the State Water Resources 
            Control Board (SWRCB) for a permit to appropriate water.
           The board may issue a permit to appropriate water to any 
            applicant provided, among other things, that the water is put 
            to a reasonable and beneficial use, the exercising of the 
            rights under the permit would not harm any other legal water 
            rights holder, and the exercising of the right would not 
            unreasonably harm fish and wildlife.  The State Water Board is 
            further authorized to impose conditions on the permits to 
            ensure those protections are realized.
           The board must reject an application to appropriate water when 
            in its judgment the proposed appropriation would not best 
            conserve the public's interests.
           The owner of a waste water treatment plant has the exclusive 
            right to the treated wastewater.

          Also under existing law, there is a clearly delineated process 
          for:
           Petitioning the board to change the point of water diversion 
            and/or place of use of appropriated water.
           Petitioning the board to transfer or exchange water or water 
            rights on either a short term or long term basis.
           Petitioning the board to change the point of discharge, place 
            of use, or purpose of use of treated wastewater.

          PROPOSED LAW
          This bill would:
           Authorize the Sacramento Regional County Sanitation District 
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            (Sac Regional) to apply for a permit to appropriate an amount 
            of water up to the amount of treated wastewater that is 
            discharged into the Sacramento River.
           Authorize the SWRCB to grant the permit subject to the terms 
            and conditions as in the board's judgment are necessary for 
            the protection of the rights of any legal user of the water.
           Require the SWRCB to comply with the provisions of the water 
            code governing the appropriation of surface water and other 
            applicable law, and authorize the board to impose terms and 
            conditions authorized under those laws.
           Allow water appropriated under the provisions of this bill to 
            be sold or utilized for any beneficial purpose.
           Declare that a special law is necessary because of the unique 
            problems applicable to the full utilization of the waters of 
            the Sacramento River and the Sacramento-San Joaquin Delta, 
            into which flows treated wastewater discharged by Sac 
            Regional.

          ARGUMENTS IN SUPPORT
          According to the author, "This legislation would provide an 
          additional procedural option for �Sac Regional] to realize the 
          benefit of its treated wastewater discharges.  Depending on the 
          outcome of its anticipated permit application to the State Board 
          to appropriate water up to an amount equal in volume to its 
          discharge, �Sac Regional] could potentially market that water to 
          willing purchasers, thereby offsetting part of what has been 
          estimated to be nearly $2.1 billion in treatment plant upgrades 
          that will be necessary to comply with recent regulatory actions 
          taken by the Central Valley Regional Water Quality Control Board 
          ('Regional Board')."

          ARGUMENTS IN OPPOSITION
          Six Southern California water agencies submitted a letter 
          stating "Although several of our previous concerns have been 
          addressed in amendments to the bill, we remain opposed due to 
          the precedent it creates as other wastewater dischargers would 
          be encouraged to seek similar authorization to appropriate their 
          effluent discharges.  In addition, we are concerned that the 
          'market opportunities' the bill would provide to SRCSD can 
          actually serve as a disincentive for water conservation in the 
          region."

          COMMENTS 
           Is This Bill Necessary? Part 1.   Current law already authorizes 
          everything authorized in this bill and all actions the sponsor 
          purportedly is contemplating.  It is not clear what additional 
          powers, duties, or authorities this bill would create, if any.
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           Is This Bill Necessary? Part 2.   Given the recent Regional Board 
          requirement that Sac Regional upgrade its waste water treatment 
          system, Sac Regional is understandably exploring numerous 
          options to develop additional funding sources to help offset its 
          estimated $2.1 billion price tag. However, at this point Sac 
          Regional does not have a specific project in mind.  Instead, it 
          is exploring its various project options.  Consequently, it is 
          not clear what changes in current law would be necessary or 
          desirable to aid Sac Regional's ultimate project or projects.

           Camel's Nose?   A number of other upstream Sacramento River 
          interests have expressed interest to the sponsors, either 
          directly or indirectly, in having similar authorizations as 
          provided by this bill.  Should this bill be enacted, it would 
          not be surprising to see similar such bills introduced in the 
          not so distant future.

           Based on �1485.   The new section added by this bill is patterned 
          after �1485, which granted similar authorities to any wastewater 
          treatment plants that disposed of water into the San Joaquin 
          River.  That section was created in 1961 and last amended in 
          1967 - before water law was expanded to address issues of water 
          recycling, short and long term water transfers, etc.  

           Status of Opposition.   When this bill was first analyzed in 
          Assembly Water Parks & Wildlife, the analysis listed 52 entities 
          in opposition.  Since then, the author has substantially amended 
          the bill.  This committee is in possession of letters removing 
          opposition from 22 of the 52 previous opponents.  Of the 
          remaining 30, this committee has letters reaffirming their 
          opposition from 5 entities (including one that previously 
          withdrew its opposition) and one new opponent.  It is not clear 
          what the current position of the other 25? previously opposed 
          entities is.

          SUGGESTED AMENDMENTS: None 

          SUPPORT
          Sacramento Regional County Sanitation District (Sponsor)
          American Rivers
          California Apartment Association
          California Association of Sanitation Agencies
          California League of Food Processors
          California Teamsters Public Affairs Council
          Campbell Soup Company
          Central Contra Costa Sanitary District
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          City of Citrus Heights
          City of Elk Grove
          City of Rancho Cordova
          City of Sacramento
          City of West Sacramento
          Congresswoman Doris Matsui
          County of Sacramento
          County of Yolo
          Downtown Sacramento Partnership
          Marriott Cal Expo Properties
          Midtown Business Association
          Nor-Cal Beverage Co., Inc.
          North State Building Industry Association
          Rental Housing Association of Sacramento Valley
          Sacramento Metro Chamber
          The Nature Conservancy
          The River District

          OPPOSITION
          Cucamonga Valley Water District
          Eastern Municipal Water District
          Irvine Ranch Water District
          Metropolitan Water District of Southern California
          Three Valleys Municipal Water District
          Upper San Gabriel Valley Municipal Water District






















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