BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2398
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          Date of Hearing:   May 25, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     AB 2398 (Hueso) - As Amended:  May 21, 2012 

          Policy Committee:                              Water, Parks and 
          Wildlife     Vote:                            9-1
                        Environmental Safety and Toxic Materials8-1

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill, the Recycled Water Act of 2012, makes major changes 
          to the state's regulation of the use of recycled water, and 
          establishes a statewide goal to recycle 1.5 million acre-feet of 
          water by 2020 and 2.5 million acre-feet of water by 2030.  
          Generally, this bill defines highly treated recycled water as 
          Advanced Treated Purified Water (ATPF) and subjects its use to 
          regulation by the Department of Public Health (DPH), and defines 
          less-treated, but still relatively clean recycled water, known 
          as tertiary treated recycled water, as not waste water and 
          subjects its use to regulation by the State Water Resources 
          Control Board (SWRCB). 

           The bill also provides permitting fee authority to DPH and 
          SWRCB to cover their permitting costs and related 
          responsibilities required by this bill.  
           
          FISCAL EFFECT  

          1)Annual special fund costs to DPH to develop and implement a 
            program to issue permits for raw water augmentation projects, 
            including (a) conducting engineering evaluations, (b) 
            establishing uniform water recycling criteria, (c) reporting 
            on the feasibility of developing drinking water criteria for 
            potable reuse involving treated water augmentation, (d) 
            convening and administering an expert panel on public health 
            issues and scientific and technical matter, (e) appointing an 
            advisory group, and (f) conducting studies and investigations. 
             (Augmentation Permit Fund, created by this bill.)









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          2)Annual permitting fee revenue of an unknown amount sufficient 
            to cover DPH's annual costs (Augmentation Permit Fund).

          3)Annual special fund costs to SWRCB, in the range of $450,000 
            to $900,000 (approximately equivalent to three to seven staff 
            members), to develop and implement a program for permitting 
            tertiary treated recycled water projects, including (a) 
            reviewing monitoring reports, (b) prescribing terms of permits 
            and monitoring requirements, (c) enforcing and evaluating 
            compliance, (d) analyzing laboratory samples, (e) conducting 
            water monitoring and modeling, (f) reviewing documents, and 
            (g) other administrative activities. (Water Recycling Permit 
            Fund, created by this bill.)

          4)Annual savings to SWRCB, in the range of $165,000 to $325,000 
            (equivalent to one to three staff members) resulting from 
            transfer of certain recycled water projects permitting to DPH 
            that, absent this bill, would be permitted by SWRCB (Waste 
            Discharge Permit Fund.)

           COMMENTS  

          1)Rationale  .  The author contends water recycling projects can 
            be difficult to instigate because of the complicated and 
            fragmented permitting processes.  The author intends this bill 
            to expand use of recycled water by improving and streamlining 
            the existing regulatory and permitting process to reflect 
            current scientific study and advances in treatment technology.

           2)Background.   Numerous sources have concluded there is 
            potential to greatly increase California's water supply 
            through the increased use of recycled water.  For example, as 
            noted in previous analyses of this bill, the 2009 update of 
            the California Water Plan,  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 sea. 

           3)Support.   This bill is supported by numerous water agencies, 
            including the Metropolitan Water District and the San Diego 
            County Water Agency, and others who expect to rely 
            increasingly on recycled water.


           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081 








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