BILL ANALYSIS                                                                                                                                                                                                    �



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          Date of Hearing:   April 10, 2012

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                Jared Huffman, Chair
                    AB 2398 (Hueso) - As Amended:  March 29, 2012
           
          SUBJECT  :   Water Recycling Act of 2012
                                                                  
           SUMMARY  :  Deletes much of the existing statutory and regulatory 
          language governing recycled water, and consolidates similar, and 
          in some cases identical, provisions into a new division of the 
          Water Code entitled the Water Recycling Act of 2012 (WRA).  Adds 
          new definitions and other new requirements to recycled water 
          permitting. Specifies that the Department of Public Health (DPH) 
          shall permit advanced treated purified water (ATPW) for potable 
          uses and adds a new section to the Health and Safety Code 
          regulating ATPW.  Specifies that the Regional Water Quality 
          Control Boards (Regional Boards) and State Water Resources 
          Control Board (State Board) (collectively "Water Boards") shall 
          permit recycled water for nonpotable uses.  Makes technical 
          conforming changes.  Specifically,  this bill  :

          1)Defines ATPW as wastewater treated with a method at least as 
            effective as membrane filtration, reverse osmosis, advanced 
            oxidation, or disinfection and that includes engineered 
            reliability features approved by DPH.  

          2)Defines "recycled water" as municipal wastewater that is 
            treated to a disinfected tertiary level or greater, including 
            ATPW.  Creates a regulatory scheme where recycled water is not 
            deemed a waste discharge, ATPW projects are permitted by DPH, 
            and recycled water that is not ATPW is permitted by the Water 
            Boards under the WRA.

          3)Specifies all other water reuse besides ATPW and recycled 
            water shall permitted as a waste discharge by the Water Boards 
            under the existing statutory scheme in the Porter Cologne 
            Water Quality Act (Porter-Cologne) (Water Code �� 13000 and 
            sequence).
           
          4)Allows government agencies to charge fees for permitting and 
            other services required pursuant to the WRA. 

          5)Repeals the Water Recycling in Landscaping Act (Government 
            Code �� 65601 and seq.) and integrates specific portions of 








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            that Act into Chapter 5, Article 3 of the WRA (�� 
            18120-18123). 

          6)Amends the Health and Safety Code to:

             a)   Exempt recycled water that is being used in accordance 
               with the WRA from classification as a waste discharge.
             b)   Add recycled water to the existing exemption for waste 
               discharges permitted by the Water Boards.
             c)   Declare ATPW, as defined, is being used for groundwater 
               recharge.
             d)   Declare that the planned introduction of ATPW into a raw 
               water (i.e. water for a potable use prior to drinking water 
               treatment) can help meet the State's recycled water goals 
               and that rigorous safety review and clear permitting 
               authority for such uses is needed.
             e)   Reference the definitions of ATPW, potable reuse, raw 
               water, raw water augmentation, treated water augmentation, 
               and uniform drinking water criteria found in the WRA.
             f)   Specify that recycled water is a source of supply and, 
               as such, no change to the method of treatment or 
               distribution can be made unless first authorized by DPH.  
               Distinguishes recycled water from wastewater that would be 
               subject to the permitting jurisdiction of the Water Boards. 

             g)   Set out the specific criteria DPH must meet in 
               permitting a raw water augmentation project ("Augmentation 
               Project") using recycled water, including an engineering 
               evaluation, establishment of drinking water criteria under 
               the WRA, consultation with the Water Boards regarding any 
               relevant water quality control plan or other applicable 
               plan or policy, and a public hearing.  Allows case-by-case 
               permitting of Augmentation Projects prior to DPH's 
               establishment of drinking water criteria but requires DPH 
               consider current and potential future public health 
               consequences of the project prior to permitting. 
             h)   Allow DPH to charge fees necessary to recoup regulatory 
               costs for issuing Augmentation Project permits and requires 
               those funds be placed in the Augmentation Permit Fund.
             i)   Require holders of both DPH permits for Augmentation 
               Projects and Water Board permits for recycled water to pay 
               an annual fee to DPH to support investigations, 
               inspections, adjudications of permits, and consultations 
               between DPH and the Water Boards.  Requires annual fees be 
               placed in the Augmentation Permit Fund.








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          7)Repeals the Health and Safety Code requirement that all 
            recycled water be conveyed via purple pipes and inserts 
            language regarding the use of purple pipes for recycled water 
            into WRA section 18140.

          8)Makes technical conforming changes to the Public Utilities 
            Code and Water Code to redefine "reclaimed water" as "recycled 
            water," and "wastewater recycling" as "water recycling," 
            respectively.

          9)Repeals the Water Reuse Law of 1974 (Water Code �� 460 and 
            seq.), which calls for studies to promote the use of reclaimed 
            water, and incorporates it into WRA sections 18110-18111.

          10)Repeals the Groundwater Quality Monitoring Act of 2001 (Water 
            Code �� 10780), which calls for the creation of a 
            comprehensive groundwater monitoring program. That program was 
            created by the State Board in 2000 as the Groundwater Ambient 
            Monitoring and Assessment Program (GAMA Program).
           
          11)Amends the Water Code, Division 6, Part 2.76 regarding 
            groundwater quality monitoring to require that:  

             a)   Constituents of emerging concern (CECs) be included in 
               the State Board's GAMA Program rather than in salt and 
               nutrient plans.
             b)   Requires the State Board to integrate existing 
               monitoring programs and design new program elements in 
               order to establish comprehensive groundwater monitoring.  
               Requires the State Board to monitor CECs consistent with 
               the recommendations of the advisory panel established 
               pursuant to the State Boards' Recycled Water Policy.  
             c)   Requires the State Board create an interagency task 
               force (Task Force) to determine what constituents other 
               than CECs should be monitored.  States the Task Force shall 
               consists of the State Board, the Department of Water 
               Resources (DWR), DPH, the Department of Pesticide 
               Regulation, the Department of Toxic Substances Control, and 
               the Department of Food and Agriculture.
             d)   Requires the State Board to convene an advisory 
               committee to the Task Force with two representatives each 
               from federal agencies opting to participate, public water 
               systems, environmental organizations, the business 
               community, agriculture, groundwater management entities; 








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               and one representative from a local agency managing 
               groundwater pursuant to an implemented groundwater 
               management plan.

          12)Deletes master recycling permits from Porter Cologne and 
            establishes water recycling permits will be issued under the 
            WRA.

          13)Specifies existing permits to use recycled water issued 
            before December 31, 2012, including master permits, will 
            remain valid until expiration or modification.

          14)Deletes chapters 7 ("Water Reclamation"), 7.3 ("Direct and 
            Indirect Potable Reuse"), and 7.5 ("Water Recycling Act of 
            1991") from Porter-Cologne and makes conforming changes to 
            Porter-Cologne to delete references to Chapters 7, 7.3, 7.5, 
            and recycled water permitting.

          15) Amends language regarding the prohibition on waste wells 
            back in to Porter-Cologne chapter 7, but excludes groundwater 
            recharge using recycled water from the waste well definition.

          16)Amends the Water Code to create the WRA (Division 8, �� 18000 
            and seq.), which replicates much, but not all, of the language 
            from deleted Porter-Cologne chapters 7, 7.3, and 7.5 and 
            consolidates, reorganizes, and revises that language.    

          17)Makes findings regarding the safety, necessity, societal and 
            environmental value of using recycled water to help meet 
            California's future water needs.  States water that is 
            recycled, supplied, stored and used in accordance with the WRA 
            is not a discharge of waste or sewage or a nuisance, except as 
            provided in the WRA.

          18)Incorporates the State Board's Recycled Water Policy, but 
            converts it into the numeric goals of recycling 1.5 million 
            acre-feet of water per year by 2020 and 2.5 million acre-feet 
            by 2030.  States that the relevant public agencies shall use 
            their authorities to encourage the use of recycled water and 
            that such use under the WRA counts towards meeting the goals.

          19)States that actions authorized pursuant to the WRA shall be 
            consistent, to the extent applicable, with the federal Clean 
            Water Act and the federal Safe Drinking Water Act and that 
            nothing in the WRA shall alter or affect any existing water 








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            rights.

          20)Authorizes the State Board and DPH to adopt regulations to 
            carry out the act.  Allows DPH to accept public or private 
            funds from any source and to expend those fund, upon 
            appropriation by the Legislature, for the purposes of the WRA.

          21)Requires DPH to establish and maintain uniform water 
            recycling criteria for each varying type of nonpotable use 
            where the water use requires protection of public health.  
            (Modeled on Porter-Cologne �� 13521, 13562(b).)
           
          22)Requires DPH to investigate, develop, maintain appropriate 
            criteria for, and report to the legislature on, potable reuse 
            projects, including treated water augmentation and raw water 
            augmentation, as defined by the WRA.  
             a)   Requires, by December 31, 2013, that DPH to adopt 
               drinking water criteria for groundwater projects utilizing 
               recycled water.
             b)   Requires, by December 31, 2016, that DPH to adopt 
               drinking water criteria for projects that augment raw water 
               supplies with ATPW.  
             c)   Requires, by December 31, 2016, that DPH report to the 
               Legislature on the feasibility of developing drinking water 
               criteria for direct potable reuse including, but not 
               limited to, the treatments and technologies necessary to 
               ensure the protection of public health.
             d)   Requires that criteria for proposed raw water 
               augmentation projects and direct potable reuse be submitted 
               to an expert panel for a review as to whether criteria 
               adequately protect public health, which is consistent with 
               existing law.
             e)   Makes mandatory existing discretionary requirement for 
               DPH to appoint a task force of stakeholders, including 
               industry and environmental interests, to advise DPH 
               regarding the development of drinking water criteria for 
               potable reuse projects.
             f)   Models these requirements on Porter-Cologne sections 
               13560, 13562, 13563, 13566.

          23)Declares that the use of potable domestic water for 
            nonpotable uses including, but not limited to, toilet 
            flushing, landscape irrigation, cooling towers or air 
            conditioning devices, is a waste or unreasonable use of water 
            in accordance with the California Constitution if recycled 








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            water, as specified, is available.  Models these requirements 
            on Porter-Cologne sections 13550, 13552, and 13553 which state 
            that a State Board or a Regional Board must determine:
             a)   Recycled water of adequate specified quality and 
               comparable cost is available;
             b)   The use of recycled water from the proposed source will 
               not be detrimental to the public health and DPH concurs; 
               and
             c)   The use recycled water will not adversely affect 
               downstream water rights, will not degrade water quality, 
               except in accordance with the applicable water quality 
               control plan, and will not be injurious to plantlife, fish, 
               and wildlife.

          24)Allows any state, local or public agency, if there will be no 
            loss or diminution of existing water rights, to require the 
            use of recycled water for:
             a)   Residential landscaping if proper irrigations systems 
               are constructed.  (Modeled on Porter-Cologne � 13552.4.)
             b)   Cooling if the new or retrofitted structure is approved 
               by DPH to use recycled water and, if there could be public 
               exposure to mists, mist mitigation or mist control is 
               provided.  (Modeled on Porter-Cologne � 13552.8.)  
             c)   Toilet and urinal flushing, except in a mental facility, 
               if the public agency has prepared an engineering report, as 
               specified.  For condominiums adds additional requirements 
               regarding notice and consistency with recycled water laws 
               and regulations.  (Modeled on Porter-Cologne � 13553-4.)

          25)Exempts the retrofit of an existing plumbing system to 
            accommodate the use of recycled water from the California 
            Environmental Quality Act (CEQA).  Models this exemption on 
            multiple existing statutory and categorical exemptions.

          26)Incorporates existing language recognizing the use of sea 
            water to flush urinals and toilets is corrosive and allows a 
            state or local public agency, where there is a separate 
            distribution system for the sea water, to use recycled if it 
            meets DPH criteria.  (Modeled on Porter-Cologne � 13553.1.)

          27)Allows a recycled water producer, wholesaler, or supplier 
            (collectively "recycled water entity") to provide notice to 
            the Department of Transportation (DOT) and the Department of 
            General Services (DGS) that, within 10 years , the recycled 
            water entity will provide recycled water that meets all 








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            necessary standards for use for state landscape irrigation.  
            Thereafter, DOT and DGS must install dual piping ("purple 
            pipe") that meets applicable requirements.  
          (Modeled on Porter-Cologne � 13555.5.)

          28)Requires a local land use agency to adopt a recycled water 
            ordinance, as specified,  if it is notified by a recycled 
            water entity that recycled water will be provided within the 
            boundaries of the local land use agency within 10 years.  
            Requires, if relevant criteria are met, that new industrial, 
            commercial or residential subdivisions include a separate 
            plumbing system to apply recycled water to nonpotable uses.  
            (Modeled on the Water Recycling in Landscaping Act, Government 
            Code �� 65604-65607.)

          29)Allows any local public agency or private company supplying 
            or storing water, or a mutual water company, to acquire, 
            store, provide, sell, and deliver recycled water if the water 
            is used in accordance with the uniform water recycling 
            criteria and regulations established pursuant to the WRA or 
            the drinking water criteria developed for ATPW by DPH.  
            (Modeled on Porter-Cologne 13556.)

          30)States that retailer water suppliers shall, and recycled 
            water producers and wholesalers may assist in, identifying 
            potential uses for recycled water and potential customers.  
            Allows cooperation on groundwater replenishment feasibility 
            studies.  Mandates that a recycled water supplier shall 
            provide recycled water to a requesting customer.  Restricts a 
            customer to receiving recycled water from the local service 
            area retail water supplier unless otherwise permitted by that 
            supplier.  (Modeled on Porter-Cologne �� 13579, 13580, and 
            13580.5.)

          31)Requires the use of separate purple pipe systems for recycled 
            water, with specified exceptions.  (Modeled on Porter-Cologne 
            � 13555.3 and Health and Safety Code � 116815.)    
            
          32)Specifies that ATPW, other than ATPW blended with recycled 
            water, shall be regulated by DPH as a source of drinking water 
            supply in consultation with the Regional Boards and accordance 
            with the new requirements and procedures added to the Health 
            and Safety Code by this bill.

          33)Requires permits for recycled groundwater recharge projects 








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            using soil aquifer treated purified water to implement the 
            drinking water criteria adopted by DPH.

          34)Specifies that raw water augmentation projects not subject to 
            drinking water criteria, and using other than ATPW, shall be 
            permitted on a case-by-case basis in consultation with DPH.
          35)Requires DPH to review reports of intent to recycle water and 
            make any recommendations for the proposed recycled water 
            projects to the state board and regional boards as appropriate 
            for the protection of public health.

          36)Specifies that permits for nonpotable use must include 
            requirements to:
             a)   Assure compliance with uniform water recycling criteria;
             b)   Submit an annual report summarizing the recycled water 
               use; 
             c)   Create a program of oversight and compliance with the 
               uniform water recycling criteria; 
             d)   Comply with the program described in the permittee's 
               report of intent to recycle water, and,
             e)   Implement the DPH recommendations protective of public 
               health.
            (Requirements (a)-(c) above are modeled on Porter-Cologne 
            �13523.1(b).)

          37)Specifies that where water recycling occurs within an area 
            covered by a municipal separate storm sewer system (MS4) 
            permit issued pursuant to the federal National Pollutant 
            Discharge Elimination System (NPDES), the Water Boards shall 
            regulate incidental runoff as a low threat nonstorm water 
            discharge under the MS4.

          38)Specifies that the Water Boards shall regulate the filling 
            and storm-induced overflow of nonpotable surface water 
            augmentation reservoirs and other nonpotable impoundments on a 
            case-by-case basis as necessary to avoid or minimize adverse 
            impacts relating to the individual impoundment that are not 
            addressed by uniform water recycling criteria. 

          39)In lieu of issuing water recycling permits for nonpotable 
            reuse to a recycling entity, allows the Water Boards to issue 
            general permits to that entity.  

          40)Specifies that the Water Boards may issue a recycled water 
            groundwater recharge permit to a recycled water entity, an 








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            entity responsible for groundwater replenishment, or both, for 
            a project using soil aquifer treated purified water, with or 
            without ATPW, if that permit implements the recommendations of 
            DPH to protect public health and includes:
             a)   Requirements to assure compliance with drinking water 
               criteria for recycled water groundwater recharge projects, 
               including source control requirements;
             b)   Monitoring and reporting in order to demonstrate 
               compliance with the permit;
             c)   Technical specifications with regard to buffer zones, 
               travel times, diluent ratios and groundwater retention 
               requirements, as recommended by DPH; and,
             d)   A requirement to comply with the permittee's intent to 
               recycle water.

          41)Requires recycled water producers, wholesalers, and suppliers 
            of recycled water for nonpotable purposes for which uniform 
            water recycling criteria have been established to file a 
            report of intent to recycle water with the appropriate 
            Regional Board that incorporates:
             a)   An engineering report which includes, but is not limited 
               to:
                i.     information required by DPH in accordance Title 22 
                 of the California Code of Regulations;
                ii.     methods of treatment;
                iii.   system installation, operation, maintenance and 
                 emergency backup systems;
                iv.    recycled water use areas; and,
                v.     a monitoring and reporting program to demonstrate 
                 compliance with permit terms.
             b)   An implementation plan for demonstrating that the 
               recycled water use will not cause the receiving water to 
               exceed any water quality objective specified for the 
               receiving water in the applicable water quality control 
               plan, except a salinity standard in the basin plan.  Allows 
               that where a salt and nutrient management plan is in place 
               for the basin or subbasin, the implementation plan may 
               consist of the implementation provisions of that plan.
             c)   As applicable, the recycled water entity's established 
               rules or general rules or regulations as approved by DPH 
               for recycled water entities in accordance with the uniform 
               water recycling criteria.

          42)Exempts the filing of a report where a producing, 
            manufacturing or processing operation recycles water solely 








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            for its own use.

          43) Requires any person proposing a groundwater recharge project 
            to file a report of intent to recycle water that includes:
             a)   An engineering report containing relevant technical 
               information;
             b)   An implementation plan demonstrating that the use of 
               recycled water will not cause the underlying groundwater to 
               exceed any water quality objective specified in the 
               applicable water quality control plan, except as allowed 
               with regard to salinity.  Where a salt/nutrient plan is in 
               place, the implementation plan may consist of the 
               implementation provisions of the salt/nutrient plan.

          44)Mandates that if there is any material change or proposed 
            change in the character of recycled water or its use, the 
            recycled water entity must file a report with the appropriate 
              Regional Board.  (Modeled on Porter-Cologne � 13522.5(b).)

          45)Specifies that all reports of intent to recycle water and 
            reports of changes are sworn statements submitted under 
            penalty of perjury.  (Modeled on Porter-Cologne �13522.5(c).)

          46)Requires a Regional Board to determine the adequacy of a 
            report of intent to recycle water within the time frames set 
            out in the Permit Streamlining Act (PSA)(Government Code 
            �65920 and seq.) .  (Modeled on California Code of Regulations 
            (CCR), Title 23, � 2205 regarding Regional Board approval of a 
            waste discharge report under Porter-Cologne.)

          47)If the Regional Board fails to act within the statutory 
            period, allows the applicant to recycle water until the 
            Regional Board acts to adopt a water recycling permit or 
            recycled water groundwater recharge permit. (Modeled on CCR, 
            Title 23, � 2208.) 

          48)Further requires the Water Boards, in issuing a water 
            recycling permit, to:
             a)   Consult with, and receive the recommendations of DPH;
             b)   Provide notice and a minimum of 30 days to comment; and,
             c)   Hold a public hearing.

          49)Requires a permit filing fee when a report of intent to 
            recycle water is filed and states the payment of fees may deem 
            the application complete.  Requires the payment of annual 








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            fees. Allows the Board to adjust fees periodically, as 
            appropriate, after notice and hearing.  Limits what costs are 
            recoverable through fees.  (Modeled on Water Code � 1535(a) 
            and Porter-Cologne � 13260.)

          50)  Allows any aggrieved person to petition the State Board to 
            review any action or failure to act of a Regional Board in the 
            same manner as provided in Porter-Cologne.

          51)Allows any person aggrieved by a decision or order to obtain 
            review of that decision in superior court in the same manner 
            as provided in Porter-Cologne.

          52)Requires immediate notification to the Board, as soon as 
            practicable, for the discharge of 50,000 gallons or more of 
            tertiary recycled water in or on, or projected to be in or on, 
            waters of the state. (Modeled on Porter-Cologne �  13529.2.) 

          53)States storm-induced overflow, as defined, is not an 
            unauthorized release.

          54)Establishes the Water Recycling Research Fund.  Sets out 
            fines for the unauthorized release of water.  Requires any 
            fines to be deposited into the Water Recycling Research Fund.  
            (Modeled on Porter-Cologne � 13267.)  

          55)Prohibits the use of recycled water without a permit for any 
            purpose for which uniform water recycling criteria or drinking 
            water were established.  Imposes a misdemeanor fine for each 
            day the recycled water is distributed.  Allows the Regional 
            Board to impose administrative liability, taking into account 
            the nature, circumstances, extent and gravity of violations.   
            Requires fines to be deposited in the Water Recycling Research 
            Funds.  Allows funds to be used for environmentally beneficial 
            projects (Modeled on Porter-Cologne �� 13323, 13326-8, 13330, 
            13351, 13524, 13525, and 13550.)  Does not include strict 
            liability.

          56)Allows for the issuance of cease and desist orders directly 
            by the State Board, after notice and hearing.  Allows civil 
            penalties.  Requires funds be deposited in the State Water 
            Pollution Cleanup and Abatement Account.  (Modeled on 
            Porter-Cologne � 13308.)

          57)Allows DPH to order contamination abated if the use of 








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            recycled water contaminates potable supplies.  Establishes a 
            presumption that the use of water in accordance with the 
            uniform water recycling criteria does not constitute 
            contamination.  (Modeled on Porter-Cologne       � 13522.)

          58)Allows DWR to assist local agencies and public utilities in 
            applying for and receiving funding for cost-effective recycled 
            water projects.  Authorizes the State Board to provide loans 
            for the development of recycled water projects and mandates 
            added consideration for water quality control facilities 
            providing optimum water recycling and recycled water use.  
            (Modeled on Water Code � 465 and Porter-Cologne 13515, 13527.)

           EXISTING LAW  :

          1)Provides the State Board has the ultimate authority over State 
            water rights and water quality policy under Porter-Cologne.  
            However, Porter-Cologne also establishes nine Regional Boards 
            to oversee water quality on a day-to-day basis at the local 
            and regional level.

          2)Requires the Regional Boards, and sometimes the State Board, 
            to prepare and periodically update Basin Plans (water quality 
            control plans).  Each Basin Plan establishes:
             a)   Beneficial uses of water designated for each water body 
               to be protected;

             b)   Water quality standards, known as water quality 
               objectives, for both surface water and groundwater; and,

             c)   The actions necessary to maintain these standards in 
               order to control point sources (end of  pipe discharges) 
               and non-point sources of pollution to the State's waters.

          1)Mandates permits issued to control pollution (i.e. 
            waste-discharge requirements and NPDES permits) must implement 
            Basin Plan requirements (i.e. water quality standards), taking 
            into consideration beneficial uses to be protected.

          2)Requires any person proposing to discharge waste within any 
            region to file a report of waste discharge with the 
            appropriate Regional Board. No discharge may take place until 
            the Regional Board issues waste discharge requirements or a 
            waiver of the waste discharge requirements.









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          3)Empowers the Water Boards, under the auspices of the U.S. 
            Environmental Protection Agency, to grant Clean Water Act 
            NPDES permits for certain point-source discharges. In 
            practice, California routinely issues NPDES permits to 
            selected point-source dischargers and either waste discharge 
            requirements or conditioned water quality certification for 
            other discharges. 

          4)Requires any discretionary decision by a public agency with 
            the potential for significant impacts of the environment to 
            undergo environmental review pursuant to the California 
            Environmental Quality Act (CEQA), unless otherwise exempt.
            
          FISCAL EFFECT  :   Unknown

          COMMENTS  :  In January 2012 the National Academy of Sciences 
          (NAS) issued a report entitled: Water Reuse: Potential for 
          Expanding the Nation's Water Supply Through Reuse of Municipal 
          Wastewater.  In that report the NAS states that approximately 12 
          billion gallons of municipal wastewater effluent is discharged 
          each day to an ocean or estuary and that reusing these coastal 
          discharges could directly augment public supply by 27 percent. 
          Unlike water that is discharged into a stream and potentially 
          used by another downstream party, water discharged to the ocean 
          is considered "irrecoverable." 

          In California, the 2009 update of the California Water Plan, 
          also known as "Bulletin 160," projected that 0.9 million to 1.4 
          million acre-feet of "new water" could be achieved by 2030 
          through the recycling of municipal wastewater that is currently 
          discharged into the ocean or saline bays. An acre-foot is enough 
          water to flood an acre of land a foot deep and supply, on 
          average, five people for one year. In 2008, the Legislative 
          Analyst's Office, in California's Water: An LAO Primer, found 
          that using a "least cost, highest gain" criterion for long-term 
          water supply options," investing in the long-term solution of 
          recycled municipal water would be the first funding priority."

          This January, the National Water Research Institute (NWRI), in a 
          white paper entitled Direct Potable Reuse: Benefits for Public 
          Water Supplies, Agriculture, the Environment, and Energy 
          Conservation, concluded that treating a significant fraction of 
          the municipal wastewater now being discharged to the ocean to 
          drinking water standards and introducing direct potable reuse of 
          municipal wastewater could stabilize the water supply in 








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          Southern California by augmenting reduced State Water Project 
          deliveries and ensuring against water supply interruptions due 
          to unforeseen events, such as a natural or human-made disasters. 
           

           Supporting Arguments  :  The author of this bill states that 
          recycled water is an important component of California's 
          sustainable water future and economic strength and that this 
          bill "would expand the use of recycled water in California by 
          improving and streamlining the existing regulatory and 
          permitting process to reflect current scientific study and 
          advances in treatment technology."  The author concludes that by 
          "establishing a consistent and appropriate regulatory and 
          permitting framework for this important alternative water 
          supply, this bill will help secure California's water supply 
          reliability and provide the foundation for California's future 
          economic stability."  Supporters state that while many of their 
          member agencies "participate in recycled water projects, the 
          projects themselves can be difficult to get off of the ground 
          because of the complicated and fragmented permitting processes 
          that currently exist."  They believe that "creating a 
          streamlined process of clear regulations and permits will 
          encourage local governments to pursue recycled water projects as 
          a means of local water supply sustainability."

           Opposition Arguments  :  Opponents are concerned that the changing 
          the definition of waste in this bill to exclude certain types of 
          recycled water could have negative impacts on the environment 
          and human health.  Opponents question how "tertiary treatment is 
          differentiated from the most advanced technologies that 
          supposedly produce 'purified' water in some Southern California 
          treatment systems" and are concerned that "incidental runoff 
          will not be reported until 50,000 gallons has been spilled by 
          each recycler."  Opponents state that "100 gallons is the most 
          that should be considered 'incidental'" and cite to studies on 
          the negative impacts of low doses of endocrine disrupting 
          chemicals in water and wastewater.  

           Why is recycled water no longer called waste in this bill?   The 
          purpose of this bill is to define water recycled to a tertiary 
          disinfected level or higher as "recycled water" and then 
          consolidate many of the provisions governing recycled water into 
          one section with clear permitting processes, while eliminating 
          redundant and obsolete code sections.  If recycled water was 
          still also called waste, it could create a greater redundancy by 








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          requiring permitting under the new WRA created by this bill in 
          addition to, as opposed to instead of, Porter-Cologne. 

           Unintended consequences?   This bill merges much of existing 
          Porter-Cologne and other statutes into one consolidated recycled 
          water provision, with some changes and refinements.  For 
          example, the reporting threshold for unauthorized discharges of 
          disinfected tertiary recycled water is currently 50,000 gallons. 
           This bill only addresses water treated to a level of 
          disinfected tertiary or higher, so that standard is unchanged.  
          However, an unintended consequence of deleting the original 
          chapter was to remove a reference that required unauthorized 
          releases of water treated at less than a disinfected tertiary 
          level to be reported at levels of 1,000 gallons or more.  The 
          author states there is no intention to reduce an existing health 
          or environmental standard and reports that the reporting 
          requirement for discharges of 1,000 gallons or more is 
          maintained elsewhere in Porter-Cologne.  Nevertheless, the 
          author advises he is willing to clarify this and any other 
          unintended consequence if necessary.  In addition, the author 
          was asked whether language was too broad when it indicated that 
          "storm-induced overflow is not an unauthorized release."  The 
          author points out that language appears in a section regarding 
          reporting only and is not meant to indicate such releases are 
          somehow authorized.  The author advises, moving forward, that 
          language could be added to specify that the statement is only 
          for the purposes of the reporting section.

           Will adequate health, safety, and environmental standards be 
          maintained?   The author believes that processes for the adequate 
          protection of human health and safety as well as the environment 
          are maintained in this bill.  For example, the bill requires 
          DPH, who has authority over drinking water standards, to permit 
          potable uses using ATPW and retains the Water Boards' authority 
          over permitting all other uses.   In response to concerns over 
          the this bill creating a new process for monitoring of salt and 
          nutrient plans, etc., the author will be removing sections 14 
          and 15 and reverting to existing law.  

           Is the CEQA exemption created under this bill new?   The author 
          has taken a variety of exemptions and exclusions added over the 
          years with regard to recycled water and tried to merge them into 
          a single stand-alone exemption advising the intent was not to 
          expand the exemption but to consolidate.  However, upon further 
          review the author feels that the language in this bill arguably 








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          expands the CEQA exemption.  Moving forward the author intends 
          to revise the language of the exemption to narrow the scope back 
          to existing law but, for clarity, amend the provision into CEQA 
          where other statutory exemptions to CEQA are found.

          REGISTERED SUPPORT / OPPOSITION:   

           Support 
           Eastern Municipal Water District (Sponsor)
          Irvine Ranch Water District (Sponsor)
          San Diego County Water Authority (Sponsor)
          WateReuse (Sponsor)
          BIOCOM
          California Association of Sanitation Agencies
          Dublin San Ramon Services District
          Las Virgenes Municipal Water District
          Metropolitan Water District of Southern California
          Sonoma County Water Agency

           Opposition 
           Russian River Watershed Protection Committee  

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