BILL ANALYSIS �
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THIRD READING
Bill No: AB 2636
Author: Gatto (D) and Skinner (D), et al.
Amended: 8/19/14 in Senate
Vote: 21
SENATE ENVIRONMENTAL QUALITY COMMITTEE : 6-0, 6/18/14
AYES: Hill, Gaines, Fuller, Hancock, Jackson, Leno
NO VOTE RECORDED: Pavley
SENATE NATURAL RESOURCES AND WATER COMMITTEE : 8-0, 6/24/14
AYES: Pavley, Cannella, Evans, Hueso, Jackson, Lara, Monning,
Wolk
NO VOTE RECORDED: Fuller
SENATE APPROPRIATIONS COMMITTEE : 5-0, 8/14/14
AYES: De Le�n, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Walters, Gaines
ASSEMBLY FLOOR : 74-2, 5/28/14 - See last page for vote
SUBJECT : CalConserve Water Use Efficiency Revolving Fund
SOURCE : Author
DIGEST : This bill establishes the CalConserve Water Use
Efficiency Revolving Fund (CalConserve) funded by Legislative
appropriations and administered by the Department of Water
Resources (DWR) for the principal purpose of providing
low-interest loans to local agencies, as defined, for water use
efficiency projects.
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ANALYSIS :
Existing law:
1. Requires, under the California Global Warming Solutions Act
of 2006 (Act of 2006) (AB 32, Nunez and Pavley, Chapter 488,
Statutes of 2006), the Air Resources Board (ARB) to determine
the 1990 statewide greenhouse gas (GHG) emissions level and
approve a statewide GHG emissions limit that is equivalent to
that level, to be achieved by 2020, and to adopt GHG
emissions reductions measures by regulation. ARB is
authorized to include the use of market-based mechanisms to
comply with these regulations.
2. Establishes the GHG Reduction Fund (GHG RF) in the State
Treasury and requires all monies, except for fines and
penalties, collected pursuant to a market-based mechanism be
deposited in the fund and requires the Department of Finance,
in consultation with the state board and any other relevant
state agency, to develop, as specified, a three-year
investment plan for the monies deposited in GHG RF.
3. Requires monies from GHG RF be used to facilitate the
achievement of reductions of GHG emissions in this state
consistent with the Act of 2006, and authorizes those funds
to be allocated for the purpose of reducing GHG emissions in
this state through investments that may include, among other
specified categories, funding to reduce GHG emissions
associated with water use and supply.
4. Requires the state to achieve a 20% reduction in urban per
capita water use in California by December 31, 2020.
This bill:
1. Makes multiple findings including, but not limited to, the
finite nature of water resources, the uncertainty of water
supplies due to drought and climate change, water use
efficiency as an effective strategy to address those
uncertainties, and the need for a stable funding source for
water efficiency projects.
2. Requires CalConserve funded projects have one of the
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following benefits:
A. Measurable reductions in urban per capita potable
water use;
B. Measurably reduce agricultural water use;
C. Increased use or availability of recycled water; or
D. Reductions in GHG emissions and water and energy use.
3. Defines a local agency that is eligible for CalConserve funds
as a city, county, city and county, municipal utility
district, community services district, sanitary district,
sanitation district, water district, public water system, or
a private water company under the jurisdiction of the Public
Utilities Commission. Specifies that CalConserve funds
provided to private water companies should benefit ratepayers
and not investors.
4. Transfers remaining Proposition 13 of 2000 bond funds for
agricultural water use efficiency loans and grants to
CalConserve for loans and grants to acquire and construct
agricultural conservation projects.
5. Authorizes DWR to:
A. Deposit any available and necessary monies into
CalConserve;
B. 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;
C. Provide appropriate auditing and administration of
the CalConserve; and
D. Take actions necessary to secure federal funds for
CalConserve.
6. Specifies that CalConserve funds shall be used for loans to
local agencies that are at or below market interest rates and
for a maximum repayment of 20 years or up to 25 years for
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disadvantaged communities.
7. Allows CalConserve funds to earn interest and be used for
multiple purposes including, but not limited to, technical
assistance, bond repayment for bond funds deposited in
CalConserve; and, federal capitalization grant purposes if
those grant funds are deposited.
8. Allows up to 4% of the fund for repayment of the DWR's
reasonable cost of administering the fund itself, but
prohibits CalConserve funds to a local agency from being used
for that local agency's administrative costs.
9. Defines "On-bill Financing" to mean a utility-based method
for providing low-interest financing for water use efficiency
improvements through the monthly utility bill.
10.Authorizes DWR to adopt rules and guidelines necessary to
implement this bill.
Background
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 one-half 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
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According to the Senate Appropriations Committee:
Cost pressures, likely in the millions of dollars, to the
General Fund to fund the CalConserve Fund.
Cost pressures in the hundreds of thousands of dollars to the
General Fund/CalConserve Fund to DWR to administer the
program.
SUPPORT : (Verified 8/19/14)
Association of California Water Agencies
Burbank Water and Power
California Landscape Contractors Association
California Municipal Utilities Association
East Bay Municipal Utility District
Metropolitan Water District of Southern California
Nexus eWater
San Diego County Water Authority
Sierra Club California
Sonoma County Water Agency
ASSEMBLY FLOOR : 74-2, 5/28/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Cooley, Dababneh,
Dahle, Daly, Dickinson, Eggman, Fong, Fox, Beth Gaines,
Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray, Grove,
Hagman, Hall, Harkey, Roger Hern�ndez, Holden, Jones,
Jones-Sawyer, Levine, Logue, Lowenthal, Maienschein, Mansoor,
Medina, Melendez, Mullin, Muratsuchi, Nazarian, Nestande,
Olsen, Pan, Patterson, Perea, John A. P�rez, V. Manuel P�rez,
Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Salas,
Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski,
Williams, Yamada, Atkins
NOES: Conway, Wilk
NO VOTE RECORDED: Donnelly, Frazier, Linder, Vacancy
RM:d 8/19/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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