BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          SB 1340 (LaMalfa) - Appropriation of water: Sewerage Commission 
          Oroville
          
          Amended: April 9, 2012          Policy Vote: NRW 8-1 
          Urgency: No                     Mandate: No
          Hearing Date: April 30, 2012                      Consultant: 
          Marie Liu     
          
          This bill does not meet the criteria for referral to the 
          Suspense File.


          Bill Summary: SB 1340 would explicitly authorize the Sewerage 
          Commission Oroville to apply for a permit from the State Water 
          Board to appropriate water in an amount equivalent to its 
          wastewater discharge into the Feather River.

          Fiscal Impact: One-time costs of $110,000 from the Water Rights 
          Fund (special fund) in 2013 to conduct a cumulative impact 
          analysis.

          Background: Existing law gives the owner of a wastewater 
          treatment plant the exclusive right to treated wastewater. Last 
          year, AB 134 (Dickinson) Chapter 212/2011 gave authorization to 
          the Sacramento Regional County Sanitation District to apply to 
          the State Water Resources Control Board (SWRCB) for a permit to 
          divert water from the Sacramento River in an amount equal to the 
          district's discharge of treated wastewater into the Sacramento 
          River. Since the passage of AB 134, the Sacramento Regional 
          County Sanitation District has submitted its application for an 
          appropriation. 

          Proposed Law: This bill would give virtually the same 
          authorization granted to the Sacramento Regional County 
          Sanitation District to the Sewage Commission Oroville - the 
          explicit authority to apply for a permit to divert water in an 
          amount equal to its wastewater discharge into the Feather River.

          Related Legislation: AB 134 (Dickinson) Chapter 212/ 2011

          Staff Comments: The authority authorized in AB 134 and proposed 
          in this bill is essentially restating existing law and does not 








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          seem to offer any additional powers or duties to either the 
          applicant or to the SWRCB. The Sewage Commission Oroville, 
          should they submit an application, will have to pay an 
          application fee and an annual fee should they be issued a 
          permit. While it is unclear whether the application fee fully 
          reimburses the SWRCB's cost in reviewing the application, any 
          remaining costs would be incurred under existing law.

          In response to concerns that expanding explicit authorization to 
          apply for divisions of water equivalent to wastewater discharges 
          might create unintended cumulative impacts, this bill contains a 
          reporting requirement for the SWRCB to study the potential 
          cumulative impacts on current water rights holders and the 
          ability to meet or exceed instream flow standards for the 
          Sacramento and San Joaquin rivers should other districts apply 
          for similar water rights claims. To understand potential 
          cumulative effects, the SWRCB would need to run model 
          simulations, research current downstream water rights, and run 
          multiple simulations of the state's water resources model to 
          evaluate impacts to flow and water quality. The SWRCB estimates 
          that it would cost approximately $95,000 in staff resources to 
          analyze the cumulative impact of one application for water 
          rights for treated wastewater. Much of these staff resources 
          would be needed to set-up models to predict cumulative impacts, 
          but once this model is established, running multiple simulations 
          will be significantly less expensive per simulation. Thus, the 
          SWRCB believes that the broader report required by this bill can 
          be done with approximately $110,000 in staff resources. Staff 
          notes that while it is reasonable that running multiple 
          simulations will be significantly less expensive per simulation 
          once the models are established and calibrated, SWRCB's estimate 
          seems to assume significant "economies of scale."