BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 1036 (Pavley) - Urban water management plans.
          
          Amended: April 7, 2014          Policy Vote: NR&W 9-0
          Urgency: No                     Mandate: No
          Hearing Date: May 23, 2014      Consultant: Marie Liu
          
          SUSPENSE FILE. AS AMENDED.
          
          
          Bill Summary: SB 1036 would require the Department of Water  
          Resources (DWR) to develop a methodology to allow for the  
          voluntary reporting of the energy intensity of water systems in  
          an urban water management plan. 

          Fiscal Impact (as approved on May 23, 2014): 
              One-time costs of $50,000 from the General Fund to DWR for  
              the development of the methodology.

          Background: The Urban Water Management Planning Act (act)  
          requires all urban water suppliers to prepare and adopt an urban  
          water management plan. These plans must be updated every year  
          ending in 5 and 0 (i.e. every 5 years) and include specified  
          information such as a description of the service area of the  
          supplier, identification and quantity of water resources, and  
          water use projections. Under WAT�16031.5, an urban water  
          supplier, in order to be eligible for a water management grant  
          or loan from the state, must be implementing the water demand  
          management measures in its urban water management plan. 

          Proposed Law: This bill would allow an urban water management  
          plan to include information regarding the energy intensity of  
          its water systems, such as, estimates for the amount of energy  
          used to extract or divert water supplies, convey and distribute  
          water supplies, treat water supplies, and store water.

          This bill would require DWR to develop a methodology to guide  
          the reporting of energy intensity of urban water systems. This  
          methodology would be included in DWR's guidance for the  
          preparation of urban water management plans.

          Related Legislation: AB 2067 (Weber) would change the reporting  
          requirements for demand management measures in urban water  








          SB 1036 (Pavley)
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          management plans.

          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 require urban water management plans  
          (UWMPs) to include quantification of water loss in the  
          distribution system and would allow UWMPs to include projected  
          water savings if specified information is included.

          Staff Comments: This bill would require DWR to develop the  
          methodology to determine energy use in the water system. To  
          develop the methodology, DWR anticipates having stakeholder  
          outreach and meetings and working with the California Public  
          Utilities Commission, who has also conducted studies and  
          programs regarding the "Water/Energy Nexus." DWR anticipates  
          that developing this methodology and incorporating it into its  
          guidebook would cost $50,000. 

          Author Amendments: Specify that DWR may consider studies and  
          calculations conducted by the California Public Utilities  
          Commission in developing the required methodology.