BILL ANALYSIS                                                                                                                                                                                                    �





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2011-2012 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 1340                   HEARING DATE: March 27, 2012 
          AUTHOR: La Malfa                   URGENCY: No
          VERSION: Introduced                CONSULTANT: Dennis O'Connor
          DUAL REFERRAL: No                  FISCAL: Yes
          SUBJECT: Appropriation of water: Sewerage Commission Oroville
          
          BACKGROUND AND EXISTING LAW
          Under existing law:
           Any person or entity may apply to the State Water Resources 
            Control Board (SWRCB) for a permit to appropriate water.
           The board may issue a permit to appropriate water to any 
            applicant provided, among other things, that the water is put 
            to a reasonable and beneficial use, the exercising of the 
            rights under the permit would not harm any other legal water 
            rights holder, and the exercising of the right would not 
            unreasonably harm fish and wildlife.  The State Water Board is 
            further authorized to impose conditions on the permits to 
            ensure those protections are realized.
           The board must reject an application to appropriate water when 
            in its judgment the proposed appropriation would not best 
            conserve the public's interests.
           The owner of a waste water treatment plant has the exclusive 
            right to the treated wastewater.

          Also under existing law, there is a clearly delineated process 
          for:
           Petitioning the board to change the point of water diversion 
            and/or place of use of appropriated water.
           Petitioning the board to transfer or exchange water or water 
            rights on either a short term or long term basis.
           Petitioning the board to change the point of discharge, place 
            of use, or purpose of use of treated wastewater.

          PROPOSED LAW
          This bill would:
           Authorize the Sewarage Commission Oroville (SCOR) to apply for 
            a permit to appropriate an amount of water up to the amount of 
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            treated wastewater that is discharged into the Sacramento 
            River.
           Authorize the SWRCB to grant the permit subject to the terms 
            and conditions as in the board's judgment are necessary for 
            the protection of the rights of any legal user of the water.
           Require the SWRCB to comply with the provisions of the water 
            code governing the appropriation of surface water and other 
            applicable law, and authorize the board to impose terms and 
            conditions authorized under those laws.
           Allow water appropriated under the provisions of this bill to 
            be sold or utilized for any beneficial purpose.




































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          ARGUMENTS IN SUPPORT
          According to the author, "SB 1340 will offer an additional 
          procedural option for Sewerage Commission Oroville to 
          potentially realize the benefit of its treated wastewater. It 
          will authorize SCOR to file an application with the State Water 
          Board for a permit to appropriate an amount of water equal to 
          the amount produced and discharged into the Feather River by 
          SCOR. The water may then be sold for any beneficial purpose."

          "The appropriation option is important because revenue from 
          water sales will partially offset cost for treatment, thus 
          stabilizing costs for ratepayers in Oroville's chronically 
          depressed local economy, perhaps providing some stimulus for 
          economic development in the region."

          ARGUMENTS IN OPPOSITION: None Received

          COMMENTS 
          
           Its D�j� Vu All Over Again.   The new section added by this bill 
          is virtually the same language as AB 134 (Dickenson), which 
          granted the same authorities to the Sacramento Regional County 
          Sanitation District.  This committee's analysis of AB 134 made a 
          number of comments that are just as germane here.  These 
          include:

            Is This Bill Necessary?  Current law already authorizes 
            everything authorized in this bill and all actions the sponsor 
            purportedly is contemplating.  It is not clear what additional 
            powers, duties, or authorities this bill would create, if any.

            Camel's Nose?   A number of other upstream Sacramento River 
            interests have expressed interest to the sponsors, either 
            directly or indirectly, in having similar authorizations as 
            provided by this bill.  Should this bill be enacted, it would 
            not be surprising to see similar such bills introduced in the 
            not so distant future.

            Based on �1485.   The new section added by this bill is 
            patterned after �1485, which granted similar authorities to 
            any wastewater treatment plants that disposed of water into 
            the San Joaquin River.  That section was created in 1961 and 
            last amended in 1967 - before water law was expanded to 
            address issues of water recycling, short and long term water 
            transfers, etc.  

           Does Location Matter?   Two agencies, Sacramento Regional County 
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          Sanitation District and the City of Stockton, both have under 
          current law and intend to use the authorities proposed by this 
          bill.  They both discharge water into the Delta.  This bill 
          would extend these authorities to an agency significantly 
          further up in the watershed.  It is not obvious whether or not 
          it makes sense to limit the granting of these authorities to 
          agencies in a specific geographic area, such as just those in 
          the Delta.

           Cumulative Impacts.   Just as it is not clear what additional 
          powers, duties, or authorities this bill would create, if any, 
          it is also not clear what the cumulative effect of Sacramento 
          Regional County Sanitation District, the City of Stockton, and 
          potentially the Sewerage Commission Oroville, all exercising the 
          authorities provided by this bill would be on water rights, 
          instream flows, or water quality.  This is especially a concern 
          if the trend of granting these authorities to more and more 
          agencies continues.  It would be helpful if the SWRCB were to 
          provide a report assessing the potential cumulative impacts.  
          (See Suggested Amendment).

          SUGGESTED AMENDMENT

               On page 2, between lines 24 and 25, insert:

               SEC. 2. Water Code Section 1488 is added to read:
               1488. (a) The board shall prepare a report to be submitted 
          to the Legislature assessing the potential cumulative effects of 
          the application of this Article, on the following:
               (1) The use of water rights by current water rights 
          holders.
               (2) The ability to meet or exceed instream flow standards 
          for the Sacramento and San Joaquin rivers.
               (3) The ability to meet or exceed water quality standards 
          for the Delta and the Sacramento and San Joaquin rivers.
               (b) On or before July 1, 2013, the board shall submit to 
          the Legislature its report required under subdivision (a).
               (c) (1) The requirement for submitting a report imposed 
          under this subdivision is inoperative on July 1, 2017, pursuant 
          to Section 10231.5 of the Government Code.
               (2) A report to be submitted pursuant to this subdivision 
          shall be submitted in compliance with Section 9795 of the 
          Government Code.

               On page 2, line 25, delete "SEC. 2" and insert:
               SEC. 3
          
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          SUPPORT
          Sewerage Commission Oroville Region (Sponsor)
          Lake Oroville Area Public Utility District (Sponsor)
          Sacramento Regional County Sanitation District

          OPPOSITION
          None Received








































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