BILL ANALYSIS                                                                                                                                                                                                    �





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2013-2014 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 1036                   HEARING DATE: April 29, 2014
          AUTHOR: Pavley                     URGENCY: No
          VERSION: April 7, 2014             CONSULTANT: Dennis O'Connor
          DUAL REFERRAL: No                  FISCAL: Yes
          SUBJECT: Urban Water Management Plans.
          
          BACKGROUND AND EXISTING LAW
          Under the Urban Water Management Planning Act (Act), all urban  
          water suppliers are required to prepare and adopt an urban water  
          management plan.  Updated every five years, the plans include,  
          among other things, a description of the service area of the  
          supplier, the identity and quantity of water resources, and  
          water use projections.  Urban water management plans (UWMPs)  
          help inform the public about the water challenges faced by their  
          local water supplier, the suppliers' plans for addressing those  
          challenges, and are the basis for making water availability  
          determinations under the "show us the water" statutes (SBs 610 &  
          221 of 2001).  Compliance with the Act is a requirement to  
          receive state funding.

          AB 1420 (Laird/2007), among other things, required the  
          Department of Water Resources (DWR) to convene an independent  
          technical panel (ITP) to provide information and recommendations  
          to the department and the Legislature on new demand management  
          measures, technologies, and approaches. The panel was to be  
          convened by January 1, 2009, and is required to report to the  
          Legislature no later than January 1, 2010, and every five years  
          thereafter. 

          In February 2014, the ITP issued its Report to the Legislature  
          on Urban Water Management Plan Demand Management Measures  
          Reporting and Requirements.  The Report made five  
          recommendations for improving UWMPs.  The fifth recommendation  
          was Voluntary Inclusion of Energy Intensity in Urban Water  
          Management Plans.  According to the ITP report:

               "The intent of this recommendation is to encourage the  
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               voluntary reporting of information about the energy  
               intensity of water delivered to customers in a uniform  
               format and at regular intervals, e.g., every five years.  
               The value of reporting energy intensity by water agencies  
               is significant and recognized as a need at the national,  
               state, and local planning levels by the U.S. Environmental  
               Protection Agency and California state agencies. This  
               recommendation will remove a major impediment that  
               currently inhibits the cost sharing collaboration between  
               the water and energy sectors, and will allow the water  
               industry and policymakers a better understanding of the  
               potential opportunities for future cost-effective joint  
               water/energy efficiency programs."

          PROPOSED LAW
          This bill would authorize, but not require, an UWMP to include  
          specific information regarding the amount of energy used to  
          divert, convey, treat, and distribute water.

          DWR would be required, in its UWMP guidelines, to develop a  
          methodology for the voluntary reporting of energy intensity of  
          urban water systems.

          ARGUMENTS IN SUPPORT
          According to the author, "The Urban Water Management Planning  
          Act requires all urban water suppliers to prepare and adopt an  
          urban water management plan containing, among other information,  
          a description of the service area of the supplier, the identity  
          and quantity of water resources, and water use projections." 

          "Unfortunately, urban water suppliers currently do not have  
          clear statutory authority to report energy use associated with  
          water extraction or diversion in the urban water management  
          plan. Such information could be employed to promote conservation  
          efforts and raise funds for urban water suppliers."

          "SB 1036 resolves this problem by making it clear in statute  
          that urban water suppliers may include, at their discretion,  
          information about their energy use in their urban water  
          management plans."

          ARGUMENTS IN OPPOSITION: None Received

          COMMENTS 
           Water Energy Nexus  .  Research performed by the Energy Commission  
          has found that water and energy resources are inextricably  
          connected, and this is known as the Water-Energy Nexus.  
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          Transportation and treatment of water, treatment and disposal of  
          wastewater, and the energy used to heat and consume water  
          account for nearly 20 percent of the total electricity and 30  
          percent of non-power plant related natural gas consumed in  
          California. Demand for water resources is expected to rise  
          primarily due to population growth and also as a result of  
          external factors such as climate change and more strict  
          regulatory rules protecting water quality.

           Related Measures
            AB 2067 (Weber) - would change the reporting requirements for  
            demand management measures in UWMPs as recommended by the ITP.

           AB 2725 (Brown) - would require the description of the water  
            demand management measure in urban water management plans to  
            include a description of an urban waterway restoration  
            program.

           SB 1420 (Wolk) - would implement changes the non-energy  
            related changes to the Urban Water management Planning Act  
            recommended by the Independent Technical Panel.

          SUGGESTED AMENDMENTS: None 


          SUPPORT
          Association of California Water Agencies
          California Coastkeeper Alliance
          California Municipal Utilities Association
          East Bay Municipal Utility District
          Metropolitan Water District of Southern California
          Natural Resources Defense Council 
          Office of Ratepayer Advocates, California Public Utilities  
          Commission

          OPPOSITION: None Received
          










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