BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1340
                                                                  Page  1

          Date of Hearing:   June 26, 2012

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                Jared Huffman, Chair
                    SB 1340 (LaMalfa) - As Amended:  June 20, 2012

           SENATE VOTE  :   37-0
           
          SUBJECT  :   Sewerage Commission Oroville: appropriation of 
          treated wastewater

           SUMMARY  :   Allows the Sewerage Commission Oroville (SCO) to 
          apply for a permit from the State Water Resources Control Board 
          (SWRCB) to appropriate an amount of water up to the amount of 
          discharged wastewater.  Specifically,  this bill  :   

          1)Authorizes SCO to apply for a permit to appropriate an amount 
            of water up to the amount of treated wastewater that is 
            discharged into the Feather River, less diminution by seepage, 
            evaporation, transportation, or other natural causes between 
            the point of discharge from the treatment plant and the point 
            of diversion out of the Feather River.

          2)Authorizes 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.

          3)Requires the SWRCB to comply with the provisions of the water 
            code governing the appropriation of surface water and other 
            applicable law, and authorizes the board to impose terms and 
            conditions authorized under those laws.

          4)Allows water appropriated under the provisions of this bill to 
            be sold or utilized for any beneficial purpose.

          5)Requires the SWRCB to prepare a report on the potential 
            cumulative effects of waste discharge entities applying for 
            water rights to their discharges.  Requires the report to: 

             a)   Assess potential effects on water rights and the ability 
               to meet instream flow standards and water quality standards 
               in the Sacramento and San Joaquin Rivers;
             b)   Be posted in draft form on the SWRCB's Internet web site 
               and, once interested parties are notified electronically, 
               be subject to a minimum thirty day period for public 








                                                                  SB 1340
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               comment; and,
             c)   Be posted in final form on the SWRCB's Internet web site 
               and transmitted, by July 1, 2013, to the Senate Committee 
               on Natural Resources and the Assembly Water, Parks and 
               Wildlife Committee.

           EXISTING LAW  

          1)Provides that the owner of a wastewater treatment plant shall 
            hold the exclusive right to the treated wastewater.

          2)Requires approval from the State Water Resources Control Board 
            for a change in the point of discharge, place of use, or 
            purpose of use of treated wastewater, unless such change does 
            not decrease flow in any portion of a watercourse.

          3)Protects wastewater which has been introduced into the 
            watercourse with the intention of maintaining or enhancing 
            fishery, wildlife, recreational or other instream beneficial 
            uses from being treated as abandoned and subject to 
            appropriation by others.

           FISCAL EFFECT  :  According to the Senate Appropriations Committee 
          staff analysis an estimated one-time costs of $110,000 from the 
          Water Rights Fund (special fund) in 2013 for the SWRCB to 
          conduct the cumulative impact analysis required by this bill.

           COMMENTS :  Existing law gives the owner of a wastewater 
          treatment plant the exclusive right to treated wastewater.  Last 
          year, AB 134 (Dickinson), Chapter 212, Statutes of 2011, gave 
          authorization to the Sacramento Regional County Sanitation 
          District (SRCSD) to apply to the 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, SRCSD has submitted its 
          application for an appropriation.

           Supporting arguments :  According to the author, this bill will 
          offer an additional procedural option for SC-OR "to potentially 
          realize the benefit of its treated wastewater."  Supporters also 
          state that small to medium-sized wastewater treatment plants are 
          under increasing regulatory pressure to use advanced treatment 
          methods and that a "permit to appropriate and sell the amount of 
          water it treats will allow SC-OR to recoup a portion of the 
          costs spent on the expensive wastewater treatment process, with 








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          the direct result of lowering the costs for ratepayers."  Both 
          the author and supporters note that this bill only allows an 
          application.  It does not require the SWRCB to grant an 
          authorization.

          Opposition to this bill was removed when the author agreed to 
          amend this bill in Committee to require SCO to delay any 
          application to SWRCB for the permit described in this bill, 
          until after July 1, 2013, which is the date on which the report 
          on potential cumulative effects must be complete. 

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Sewerage Commission Oroville Region (sponsor)
          Lake Oroville Area Public Utility District (sponsor)
          Oroville City Council
          Oroville Economic Development Corporation
          Sacramento Region County Sanitation District
          Thermalito Water and Sewer District
           
            Opposition 
           
          None on file.

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