BILL ANALYSIS                                                                                                                                                                                                    �



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          ASSEMBLY THIRD READING
          AB 2595 (Hall)
          As Amended  May 1, 2012
          Majority vote

           WATER, PARKS & WILDLIFE    9-1  NATURAL RESOURCES   6-2         
           
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          |Ayes:|Halderman, Bill           |Ayes:|Chesbro, Knight,          |
          |     |Berryhill, Blumenfield,   |     |Dickinson, Grove,         |
          |     |Campos, Beth Gaines,      |     |Halderman, Skinner        |
          |     |Gatto, Roger Hern�ndez,   |     |                          |
          |     |Hueso, Lara               |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Huffman                   |Nays:|Huffman, Monning          |
          |     |                          |     |                          |
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           APPROPRIATIONS      17-0                                        
           
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          |Ayes:|Fuentes, Harkey,          |     |                          |
          |     |Blumenfield, Bradford,    |     |                          |
          |     |Charles Calderon, Campos, |     |                          |
          |     |Davis, Donnelly, Gatto,   |     |                          |
          |     |Ammiano, Hill, Lara,      |     |                          |
          |     |Mitchell, Nielsen, Norby, |     |                          |
          |     |Solorio, Wagner           |     |                          |
          |     |                          |     |                          |
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           SUMMARY  :  Creates a task force to make recommendations on 
          improving the current seawater desalination facility (desal) 
          permitting processes while maintaining current regulatory 
          protections.  Specifically,  this bill  :   

          1)Makes legislative findings and declarations regarding the need 
            for efficient water resource management, the benefits of 
            desal, and the complexity of permitting.
           
          2)Requires a representative of the Ocean Protection Council 
            (OPC) to convene, and act as chair, for a Seawater 
            Desalination Permit Improvement Task Force (Task Force) whose 
            recommendations will be included in a report submitted to the 
            Legislature by December 31, 2014.








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          3)Specifies that, in addition to the OPC, the Task Force shall 
            include:

             a)   One voting representative each from the:  Department of 
               Water Resources (DWR), State Water Resources Control Board 
               (SWRCB), California Coastal Commission (CCC), State Lands 
               Commission (SLC), and State Department of Public Health 
               (DPH).

             b)   One non-voting advisory representative from each, as 
               determined by OPC:  the Commission for Economic 
               Development, the State Energy Resources Conservation and 
               Development Commission, a recognized environmental advocacy 
               group, two separate and broadly recognized environmental 
               advocacy groups that focus on coastal protection, a public 
               water purveyor that is developing or proposing to develop a 
               seawater desalination facility, a wholesale water supplier, 
               a nonprofit association created to further the use of 
               seawater desalination, an environmental justice advocacy 
               group, a business advocacy group, an organization 
               representing public unions, an organization representing 
               private unions, the California Environmental Protection 
               Agency, the Natural Resources Agency, the Department of 
               Parks and Recreation, the Department of Fish and Game, and 
               the Coastal Regional Water Quality Control Boards, if 
               available. 

          1)Requires the report to establish a clear permit process that 
            will eliminate redundant requirements between California 
            permitting agencies and improve communication while 
            maintaining current regulatory protections and independent 
            review.

          2)Requires the report's recommended actions to be made in a way 
            that:

              a)    Accommodates any new policies developed by the SWRCB 
                for the California Ocean Plan or DWR for the State Water 
                Plan; 

              b)    Considers the prior 2003 California Water Desalination 
                Task Force Report, the 2004 Seawater Desalination and the 
                California Coastal Act report prepared by the CCC, and the 








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                2008 California Desalination Planning Handbook prepared by 
                the California State University, Sacramento, Center for 
                Collaborative Policy; and,

              c)    Discusses how desal should fit in as an element of a 
                balanced state water portfolio that includes conservation 
                and water recycling to the maximum extent possible.

          3)The report must be adopted by a majority of the voting 
            members.  In the case of a tie the OPC representative, who is 
            chair, votes again to break the tie.

          4)Appropriates $250,000 from grant funds in the Safe Drinking 
            Water, Water Quality and Supply, Flood Control, River and 
            Coastal Protection Bond Act of 2006 (Proposition 84) that are 
            made available to DWR to assist local agencies in meeting the 
            long term water needs of the state and requires DWR use those 
            funds to pay the costs of convening the Task Force and 
            preparing the report.

           EXISTING LAW  :  

          1)Charges DWR with finding economic and efficient methods of 
            desalination to meet the growing water requirement of the 
            State of California. 

          2)Requires that any project subject to a discretionary approval 
            by a public agency which could have potentially significant 
            impacts on the environment must undergo environmental review.

          3)Empowers various local, state and federal agencies with 
            jurisdictions including, but not limited to, land use 
            decisions, threatened and endangered species, state lands, 
            public health and welfare, transportation, and utilities to 
            require permits or agreements from projects that could 
            adversely affect those resources.

          4)Requires the SWRCB to formulate and adopt a water quality 
            control plan for ocean waters through the development of the 
            California Ocean Plan. The plan is currently being updated 
            with environmentally protective, science-based regulations, 
            specifically for desalination projects. 

           FISCAL EFFECT  :   According to the Assembly Appropriations 








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          Committee:

          1)One-time costs of an unknown amount, collectively in the low 
            hundreds of thousands, to the following agencies to 
            participate in the taskforce and prepare the report:  OPC, 
            DWR, CCC, DPH, the SWRCB, SLC, CEC, Environmental Protection 
            Agency, Natural Resources Agency, Department of Parks and 
            Recreation and Department of Fish and Game (various special 
            funds).

          2)One-time appropriation of $250,000 from Proposition 84's Safe 
            Drinking Water and Water Quality Projects monies.  (DWR 
            reports that, of the Proposition 84 funds identified by this 
            bill, only $25,000 remains available for appropriation.)

          3)Cost pressure in the low hundreds of thousands of dollars to 
            fund the work of the public agencies participating in the Task 
            Force (General Fund, special funds and bond funds.)

           COMMENTS  :    

          In 1965 the Legislature passed the Cobey-Porter Saline Water 
          Conversion Law calling for development of economical desal 
          processes which could reduce the need for water imports.  In 
          2002 DWR was directed to convene the California Water 
          Desalination Task Force (2003 Task Force) and report to the 
          Legislature on potential opportunities and impediments for using 
          seawater and brackish water desal, and to examine what role, if 
          any, the state should play in furthering the use of desal 
          technologies.  The overarching recommendation of the 2003 Task 
          Force was that desal projects should be evaluated on a 
          case-by-case basis because each facility is essentially unique.  
          Also in 2002, the Water Security, Clean Drinking Water, Coastal 
          and Beach Protection Act (Proposition 50) provided $50 million 
          in matching grants for desal projects.

          The author and supporters of this bill state that desal is an 
          important option for local and regional water managers to 
          consider in meeting future water supply needs and that an 
          unworkable process of up to thirty different permits is the 
          greatest impediment to desal projects.  Supporters assert that 
          it takes years to go through the process of designing and 
          building a plant and that this bill will provide a much-needed 
          review of the permitting process through and open and inclusive 








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          dialogue.  

          Opponents argue that the proponents have failed to demonstrate a 
          problem when Coastal Commission data demonstrates that the 
          average permitting time for desal projects is seven months if 
          one excludes the permitting times for projects submitted by one 
          particular applicant whom the commission describes as 
          intentionally uncooperative.  Opponents also state the bill 
          would inappropriately use oversubscribed public bond funds for 
          an activity that mainly benefits private entities that have the 
          resources to develop, recommend and advocate desalination 
          permitting reforms on their own.  


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


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