BILL ANALYSIS �
AB 1349
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Date of Hearing: April 16, 2013
ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
Anthony Rendon, Chair
AB 1349 (Gatto) - As Introduced: February 22, 2013
SUBJECT : CalConserve Water Use Efficiency Revolving Fund
SUMMARY : Creates the CalConserve Water Use Efficiency
Revolving Fund (CalConserve) in the State Treasury in order to
provide low-interest loans for water use efficiency projects.
Specifically, this bill :
1)Declares that the Legislature's intent with regarding to
creating CalConserve is to provide a sustainable funding
source for projects that:
a) Reduce urban per capita use;
b) Improve agricultural water use efficiency;
c) Increase use of recycled water; or
d) Reduce greenhouse gas emissions through water use
efficiency improvements.
2)Continuously appropriates CalConserve to the Department of
Water Resources (DWR) to use for the purposes of the fund.
3)Allows DWR to deposit any available and necessary moneys into
CalConserve.
4)Allows DWR to enter into agreements with local governments or
investor-owned utilities that provide water or recycled water
service to provide loans for the purposes of the fund.
5)Allows local governments, subject to all Constitutional
restrictions, to borrow money and incur indebtedness under
CalConserve.
6)Provides that DWR may adopt rules and regulations necessary
and convenient to the purpose of implementing CalConserve.
EXISTING LAW : Requires the state to achieve a 20% reduction in
urban per capita water use in California by December 31, 2020
and requires each urban retail water supplier to comply with
that target. Also requires agricultural water suppliers to
implement efficient water management practices, including water
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measurement.
FISCAL EFFECT : Unknown
COMMENTS : There is no existing program like CalConserve in
DWR, but comparisons to the State Water Resources Control
Board's Clean Water State Revolving Fund Program (CWSRF) are
useful. The CWSRF receives money from the federal government
pursuant to the Clean Water Act and disburses $200 to $300
million annually for the construction of publicly-owned
wastewater, stormwater, and water reclamation facilities. The
CWSRF charges a rate that is equivalent to 1/2 of the most
recent General Obligation Bond Rate.
In 2010 the federal government added a new CWSRF requirement
that, provided there were sufficient eligible projects, at least
20% of the grants should be used for projects to address green
infrastructure, water or energy efficiency improvements or other
environmentally innovative activities. However, the federal
program does not allow for the funding of projects on private
property.
Support Arguments : The author states that SB 7 (Steinberg) from
the historic 7th Extraordinary Session on water in 2009 (SB 7
X7) requires the entire state, including private entities to
reduce per capita water use 20% by 2020. The author adds that
while the Department of Public Health and the State Water
Resources Control Board both administer grant programs which
offer low-cost loans for public entities to finance high
water-use efficiency retrofits, there are no similar low-cost
loan programs available to private entities, including
homeowners, to finance retrofits. The author also points out
that a revolving fund would provide "a self-renewing source of
funding for water-use efficiency, which would continue to be
available to the public between water bonds" while also
"leveraging private investment in water-use efficiency" and
helping "cities, counties, and water districts meet the state's
20% by 2020 water-use reduction goals." Supporters state that
California has a limited water supply, making its efficient uses
a statewide priority," but as grant funding is limited,
alternative funding mechanisms are needed. Supporters point out
CalConserve, as created by this bill, would "be the first such
fund in the nation targeting water efficiency."
Prior Legislation : This bill is similar to AB 2011 (Gatto)
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which would also have created CalConserve. However, AB 2011
differed in that it allocated an anticipatory $50 million from
the Safe, Clean, and Reliable Drinking Water Supply Act of 2012,
if that act were to pass. AB 2011 was held in the Assembly
Appropriations Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
Association of California Water Agencies
California Association of Realtors
California Municipal Utilities Association
California Special Districts Association
Calleguas
Eastern Municipal Water District
Foothill Municipal Water District
Friant Water Authority
Las Virgenes Municipal Water District
San Diego County Water Authority
The Metropolitan Water District of Southern California
Opposition
None on file.
Analysis Prepared by : Tina Cannon Leahy / W., P. & W. / (916)
319-2096