BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 267
                                                                  Page  1

          Date of Hearing:   June 28, 2011

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                Jared Huffman, Chair
                     SB 267 (Rubio) - As Amended:  April 13, 2011

           SENATE VOTE  :   37-1
           
          SUBJECT  :   Water supply assessment:  photovoltaic and wind 
          energy projects

           SUMMARY  :   Specifies that a photovoltaic or wind energy plant 
          that uses water below a specific threshold is not subject to the 
          requirement to do a water supply assessment (WSA) just because 
          it is over 40 acres in size.  

          Specifically,  this bill:
           
          1)Revises the definition of "project" subject to a WSA to 
            exclude a proposed photovoltaic or wind energy generation 
            facility approved on or after the effective date of this bill 
            that demands an amount of water equivalent to, or less than, 
            the amount of water required by a 250 dwelling unit project.

          2)Repeals, as of January 1, 2017, the exemption for photovoltaic 
            and wind energy projects by reverting to the prior definition 
            of a project.
             
           EXISTING LAW  

           1) Requires a city or county that determines a project is 
             subject to the California Environmental Quality Act (CEQA) to 
             identify any public water system that may supply water for 
             the project and to request those public water systems to 
             prepare a specified WSA. 

           2) Requires the city or county, if no public water system is 
             identified, to prepare the WSA.  

           3) Defines a "project" subject to a WSA as, among other things, 
             a proposed industrial, manufacturing, or processing plant, or 
             industrial park planned to house more than 1,000 persons, 
             occupying more than 40 acres of land, or having more than 
             650,000 square feet of floor area.  









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           FISCAL EFFECT  :   According to the Senate Appropriations 
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :   

          In 2001, the Legislature passed, and Governor Davis signed SB 
          610 (Costa), and SB 221 (Kuehl), Chapter 642, Statutes of 2001.  
          Collectively, these two bills are also known as the "show us the 
          water" bills.  The purpose of these bills, as noted in the 
          findings for SB 610, was "to strengthen the process pursuant to 
          which local agencies determine the adequacy of existing and 
          planned future water supplies to meet existing and planned 
          future demands on those water supplies."

          To assist local governments in deciding whether to approve 
          projects, SB 610 requires a WSA whenever a city or county 
          determines a proposed project is subject to CEQA.  The WSA must 
          be included in any CEQA document prepared for the project.  In 
          turn, a provision of CEQA requires compliance with the SB 610 
          requirements.

          The WSA is prepared by the public water system that may provide 
          water for the project, or, if the city or county identifies no 
          such public water system, the city or county prepares the WSA.  
          The WSA is required to include a discussion regarding whether 
          the total projected water supplies (during normal, single dry, 
          and multiple dry water years) over the next 20 years will meet 
          the projected water demand associated with the proposed project, 
          over and above that required for existing and planned future 
          uses.  Further, when a water supply for a proposed project 
          includes groundwater, the WSA must include additional 
          information about the sufficiency of the groundwater supply.

          A project requiring a WSA can be any of the following proposed 
          uses:  residential developments with over 500 dwelling units; 
          shopping centers or businesses that employ more than 1,000 
          persons or have more than 500,000 square feet of floor space; 
          commercial office buildings employing more than 1,000 persons or 
          having more than 250,000 square feet of floor space; hotels or 
          motels having more than 500 rooms; industrial, manufacturing, or 
          processing plants, or industrial parks planned to house more 
          than 1,000 persons, occupying more than 40 acres of land, or 
          having more than 650,000 square feet of floor area; mixed-use 
          projects that include one or more of the above; or any other 
          project that would demand an amount of water equivalent to, or 








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          greater than, the amount of water required by a 500 dwelling 
          unit project.

           Supporting arguments:   According to the author, "As California 
          moves toward requiring 33 percent of our energy to be from 
          renewable sources, we must do everything possible to reach this 
          important goal.  SB 267 addresses a recent court decision that 
          has caused proposed renewable energy facilities to evaluate 
          project water needs beyond what is currently required in CEQA, 
          just because they will occupy 40 acres or more.  Wind and solar 
          photovoltaic renewable energy projects do not use significant 
          water and should not be required to study water use above and 
          beyond CEQA.  To apply a requirement that is clearly intended 
          for large water users will stymie the state's ongoing efforts to 
          encourage renewable energy projects."  Supporters add that, 
          "Given the low water use of wind projects, applying the WSA 
          requirement to the CEQA process is an unnecessary expense and 
          delay that wind companies can ill afford, particularly now as 
          renewable projects are trying to qualify for the federal cash 
          grant program."

           Opposing arguments  :  According to the Sierra Club, the "most 
          significant concern is the exemption of a renewable energy 
          project from the water supply assessment process.  Regardless of 
          the possible noble intentions of a project, it is unjust and a 
          disservice to the existing community to approve a project 
          without assessing the impact to local water supply.  With 
          California's water supply under intense pressure from climate 
          change, increasing population and development, the water supply 
          assessment process is the best safeguard to ensure a community's 
          vital water supply is not exhausted due to poor planning."  
          Other opponents to this bill state that they are worried about 
          the "precedent of codifying industry-specific exemptions from 
          �WSA] requirements."

           


           Committee staff suggest that because the Legislature is taking 
          the extraordinary step of considering an industry-specific 
          exemption for photovoltaic and wind energy projects based on the 
          de minimis water usage of those technologies, it would be 
          prudent to lower the threshold in this bill (page 3, lines 6-8) 
          from "an amount of water equivalent to, or less than, the amount 
          of water required by 250 dwelling units" to a number that more 








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          accurately reflects the actual maximum water usage that is 
          expected.   
           

          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Wind Energy Association (co-source)
          County of Kern (co-source)
          NextEra Energy
           
            Opposition 
           
          Association of California Water Agencies (unless amended)
          East Bay Municipal Utility District
          Eastern Municipal Water District
          Sierra Club

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