BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 267
                                                                  Page  1

          Date of Hearing:  June 29, 2011

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Cameron Smyth, Chair
                     SB 267 (Rubio) - As Amended:  April 13, 2011

           SENATE VOTE  :  37-1
           
          SUBJECT  :  Water supply planning: renewable energy plants.

           SUMMARY  :  Excludes a proposed photovoltaic or wind energy 
          generation facility approved on or after the effective date of 
          this measure from the definition of a "project" subject to a 
          water supply assessment if the facility would demand an amount 
          of water equivalent to, or less than, the amount of water 
          required by a 250 dwelling unit project.  Specifically,  this 
          bill  :   

          1)Excludes a proposed photovoltaic or wind energy generation 
            facility approved on or after the effective date of this 
            measure from the definition of a "project" subject to a water 
            supply assessment if the facility would demand an amount of 
            water equivalent to, or less than, the amount of water 
            required by a 250 dwelling unit project.

          2)Contains a sunset date of January 1, 2017.

          3)Contains an urgency clause. 

           EXISTING LAW  :

          1)States that a water supply assessment is required on any of 
            the following types of "projects": 

             a)   A proposed residential development of more than 500 
               dwelling units; 

             b)   A proposed shopping center or business establishment 
               employing more than 1,000 persons or having more than 
               500,000 square feet of floor space;

             c)   A proposed commercial office building employing more 
               than 1,000 persons or having more than 250,000 square feet 
               of floor space; 









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             d)   A proposed hotel or motel, or both, having more than 500 
               rooms; 

             e)   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;

             f)   A mixed-use project that includes one or more of the 
               projects specified in this subdivision; or,  

             g)   A project that would demand an amount of water 
               equivalent to, or greater than, the amount of water 
               required by a 500 dwelling unit project.


          2)Prohibits approval of a tentative map, or a parcel map for 
            which a tentative map was not required, or a development 
            agreement for a subdivision of property of more than 500 
            dwelling units, except as specified, including the design of 
            the subdivision or the type 
          of improvement, unless the legislative body of a city or county 
            or the designated advisory agency provides written 
            verification from the applicable public water system that a 
            sufficient water supply is available or, in addition, a 
            specified finding is made by the local agency that sufficient 
            water supplies are, or will be, available prior to completion 
            of the project.
           
          FISCAL EFFECT  :   Unknown

           COMMENTS  :   

          1)The Subdivision Map Act prohibits approval of a tentative map 
            for a subdivision of property of more than 500 dwelling units, 
            unless the legislative body of a city or county provides 
            written verification from the applicable public water system 
            that a sufficient water supply is available or, in addition, a 
            specified finding is made by the local agency that sufficient 
            water supplies are, or will be, available prior to completion 
            of the project.  This requirement was placed into law by SB 
            221 (Kuehl), Chapter 642, Statutes of 2001.  Existing law 
            further provides that whenever a city or county determines 
            that a development project is subject to the California 
            Environmental Quality Act (CEQA), the project must comply with 








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            the provisions of law that evaluate the sufficiency of water 
            supplies.  This requirement was placed into law by SB 610 
            (Costa), Chapter 643, Statutes of 2001.  Under AB 221 and 
          SB 610, proof of the availability of a sufficient water supply 
            to serve the proposed subdivision or development project is 
            based on written verification from the applicable retail water 
            supplier.

          2)Existing law states that 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 
            requires a water supply assessment.  In the recent case of 
            Center for Biological Diversity v. County of San Bernardino 
            (210 185 Cal, App. 4th 866) the California Court of Appeals 
            found that an open air nursery/composting facility on more 
            than 40 acres of land violated CEQA for failing to include a 
            water supply assessment.  Based on the Court's ruling a 
            renewable energy facility is now deemed to be an industrial 
            plant and subject to a water supply assessment if the facility 
            is over 40 acres. 

          3)At least 33% of retail energy sales by investor owned 
            utilities, local publicly owned utilities, and energy service 
            providers must come from renewable energy resources by 
            December 31, 2020 (SB 2x, Simitian, Chapter 1, Statutes of 
            2011).  To meet this goal, utility systems and private 
            investors need locations to build renewable energy facilities. 
             The California Energy 
          Commission tracks more than 375 renewable energy projects, 
            including 252 solar photovoltaic projects spread over 21 
            counties.

          4)According to the author, in the wake of the May 2010 Court 
            decision, project opponents have challenged solar projects in 
            the counties of San Diego and San Bernardino on the basis that 
            the projects do not have a water supply assessment, and 
            therefore, are not in compliance with CEQA.  Concerned with 
            litigation, some counties, including Kern, are now requiring 
            water 


          supply assessments to avoid future claims.  The author states 
            that wind and solar photovoltaic 
          renewal energy projects do not use significant water and should 








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            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.

          5)Support arguments:  Supporters argue that wind farms and solar 
            photovoltaic projects use negligible amounts of water and 
            should not be subject to the detailed hydrological analysis 
          of a water supply assessment.  Moreover, the bill will remove 
            additional barriers in siting renewable energy facilities. 

            Opposition arguments:  Opposition, including the Association 
            of California Water Agencies, argues that there should not be 
            an industry specific exception given but that there should be 
            a blanket exception for all industrial facilities that demand 
            an amount of water less than the amount of water required by a 
            500 dwelling unit project. 

          6)This bill is double-referred to the Committees on Water, Parks 
            and Wildlife and Local Government.

           REGISTERED SUPPORT / OPPOSITION  :

          Support 
           
          California Wind Energy Association �CO-SPONSOR]
          County of Kern �CO-SPONSOR]
          NextEra Energy Resources
           
            Opposition 
           
          Association of California Water Agencies (unless amended)
          East Bay Municipal Utility District
          Eastern Municipal Water District (unless amended)

           Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916) 
          319-3958