BILL ANALYSIS                                                                                                                                                                                                    �




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


          SB 1049 (Pavley) - Integrated regional water management plans.
          
          Amended: April 23, 2014         Policy Vote: NR&W 8-1
          Urgency: No                     Mandate: No
          Hearing Date: May 5, 2014       Consultant: Marie Liu
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: SB 1049 would expand the possible issues that may  
          be addressed in an integrated regional water management plan  
          (IRWMP) and specifies who should be part of a regional water  
          management group that prepares such a plan.

          Fiscal Impact: Cost pressures at least in the millions of  
          dollars to existing and future bond monies available for IRWMP  
          development and implementation. 

          Background: Under the Integrated Water Management Planning Act  
          of 2002, a regional water management group is authorized, but  
          not required, to prepare and adopt an IRWMP. The act defines a  
          "regional water management group" as three or more local  
          agencies, at least two of which have statutory authority over  
          water supply or water management, plus those persons who may be  
          necessary to develop and implement an IRWMP. 

          The act also lists regional projects or programs that can be  
          included in an IRWMP, such as a project or program that would  
          accomplish reduced water demand through efficiency, increased  
          water supplies for any beneficial use, operational efficiency  
          and water supply reliability, and improved water quality. 

          Proposed Law: This bill would expand the list of goals that may  
          be accomplished in an IRWMP to include projects or programs  
          that:
           Reduce the energy used to acquire, transport, treat, or  
            distribute water and 
           Develop and maintain analytic tools to model regional  
            management strategies to account for climate change, energy  
            use, and other factors relevant to regional demand and supply  
            projections.









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          This bill would also require that a regional water management  
          group, to the extent possible, shall include all of the water  
          suppliers within either the watershed area, the area over a  
          groundwater basin or subbasin, or a county.

          Related Legislation: 
           AB 1249 (Salas) - would require an IRWMP to include an  
            explanation of how, or why not, the plan addresses nitrate  
            contamination for those areas within the boundaries of the  
            identified as a nitrate high-risk area by the State Water  
            Resources Control Board. (Currently in Senate Environmental  
            Quality)
           AB 1731 (Perea) - would require at least 10% of the funding in  
            each IRWM region be used to facilitate and support the  
            participation of disadvantaged communities IRWM planning and  
            for projects that address the critical water supply or water  
            quality needs of those communities.  (Currently in Senate  
            Natural Resources and Water)
           AB 1874 (Gonzalez) - would require DWR to develop, by October  
            1, 2015, a streamlined application process for the funding of  
            regional projects and programs for regional water management  
            groups that met specified criteria. (Currently in Assembly  
            Water, Parks, and Wildlife)
           AB 2725 (Brown) - would add urban waterway restoration  
            projects, as defined, to the list of programs and projects  
            eligible to be included in an IRWMP. (Currently in Assembly  
            Water, Parks, and Wildlife)

          Staff Comments: The development of an IRWMP is optional, however  
          the state has encouraged the development and implementation of  
          IRWMPs by offering grants funded through bonds. Proposition 50,  
          84, and IE have all included funding for IRWMP development and  
          implementation, as do most of the water bond proposals under  
          consideration this session. Much of the state is covered by one  
          or more IRWMPs.

          This bill would add cost pressures on remaining IRWMP bond  
          monies from Proposition 84 and 1E, as well as any future IRWMP  
          bond monies, for both planning and implementation. For planning  
          grants, existing water management groups may seek financial  
          assistance to revise existing IRWMPs in order to include the  
          additional objectives created by this bill or to meet the new  
          geographic requirements. Assistance requests to develop IRWMPs  
          may also be larger in scope, and therefore more expensive to  








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          develop. For implementation grants, this bill may increase the  
          number of eligible programs or projects that may seek financial  
          assistance. Given that past bonds have offered hundreds of  
          millions of dollars of assistance for IRWMP planning and  
          implementation, this bill is likely to add cost pressures at  
          least in the millions of dollars.