Word Document PDF Document

STATE OF CALIFORNIA

Public Utilities Commission

San Francisco

M e m o r a n d u m

Date:

April 2, 2008

   

To:

The Commission

(Meeting of April 10, 2008)

     

From:

Pamela Loomis, Deputy Director

Office of Governmental Affairs (OGA) - Sacramento

   

Subject:

AB 2501 (Wolk) - Water: planning.

 

LEGISLATIVE SUBCOMMITTEE RECOMMENDATION: SUPPORT

SUMMARY OF BILL:

AB 2501 would require the Department of Water Resources (DWR) to produce a report that determines the energy savings and greenhouse gas emissions (GHG) reductions resulting from use of recycled water for nonpotable uses, and from water conservation, in consultation with the CPUC, along with several other state agencies.

SUMMARY OF SUPPORTING ARGUMENTS FOR RECOMMENDATION:

The CPUC has been actively involved in the Water-Energy Partnership (WEP), a statewide association of public and private organizations involved in estimating the energy savings associated with water efficiency. Some data from WEP studies may be useful in this analysis. Also, one of the objectives of the CPUC's current energy efficiency proceeding, R. 06-04-010, is to quantify energy savings resulting from water conservation and efficiency. AB 2501 would reinforce and complement these CPUC activities.

SUMMARY OF SUGGESTED AMENDMENTS:

· As noted above, the bill requires production of a report on quantifying energy savings and greenhouse gas reductions from water conservation and recycling. Currently, the agencies are working on this analysis, but it does not appear as though the current deadline in the bill of January 1, 2009 is feasible. The CPUC's water-energy pilot programs will not be complete in this timeframe. Moving the deadline to January 1, 2010 would allow more time for analysis and learning from activities currently underway.

DIVISION ANALYSIS (Planning and Policy Division:

· The State of California encounters several challenges in obtaining and maintaining sufficient water supply from various sources. Challenges include the uncertain availability of water from the Sacramento-San Joaquin Delta and other sources, increasing state population, limited public funds, likelihood of drought within California (and within the Colorado River Basin) in light of historical precipitation patterns, and climate change impacts.

· The California Energy Commission (CEC) 2005 Integrated Energy Policy Report (IEPR) concluded that, in many areas of the state, recycled water is the least energy-intensive source of new water supply. Furthermore, water conservation and efficiency provide even greater energy savings. Also in 2005, the CPUC's Water Action Plan emphasized the need for greater attention to water conservation and the link between water use and electricity use in California.

· In the CPUC energy efficiency proceeding (R. 06-04-010) various collaborative pilot programs have been authorized between energy and municipal water utilities with the objective to achieve energy savings from water conservation and efficiency. An indirect benefit will be a reduction of GHG emissions. An "embedded energy calculator" developed in this proceeding quantifies the expected water and energy savings, and might be expanded to calculate GHG savings from a broader population of utilities and consumers if the approach were to be expanded beyond its current pilot stage. Also, the CPUC participates in the Water Energy Team, Climate Action Team (WET CAT), which seeks to encourage GHG reductions achievable via water conservation and efficiency.

· This bill would improve state water management and planning by taking into consideration impacts of climate change on those plans. DWR is required to submit by July 1, 2009, peer-reviewed scientific information regarding climate change impact on water resources for each of the state's hydrologic regions. DWR is directed to disapprove any request for a grant submitted after January 1, 2011, unless the integrated regional water management plan upon which the grant is based assesses the impact of climate change on that plan.

· The bill also requires DWR, in collaboration with the SWRCB, California Air Resources Board (ARB), California Energy Commission (CEC), and the CPUC to prepare a report quantifying energy and GHG savings resulting from water efficiency and conservation. Use of recycled water for nonpotable applications, and conservation should receive special focus. DWR should submit the report with policy recommendations to the Governor and Legislature before January 1, 2009. As of July 1, 2009, urban water suppliers will be required to identify the effects of climate change on their water supply projections. As of January 1, 2010, agricultural water suppliers will be required to identify the impact of climate change on their water sources.

· The bill appropriates $610,890,000 available from previously-approved state bonds to:

· The above-listed changes to water supply planning should contribute towards improved water management and planning throughout California, and should enable more accurate projections of water supply reliability. Currently, state and federal law does not adequately address these proposed improvements in water management and planning, including the potential benefits from recycling and conservation, and GHG reductions obtainable through water conservation and efficiency. The bill would have a strong likelihood for success if the state agencies cited above, relevant local agencies, private and public energy and water utilities, agricultural industry, and non-governmental organizations (e.g. environmental and consumer groups) can collaborate effectively to achieve the measures proposed by the bill. Without the bill, there is less likely to be a unified and successful effort by these stakeholders to achieve the overarching goals of improved water resource management and reducing climate change impact from water production, conveyance, distribution, treatment, and use.

· The bill is consistent with CPUC's energy efficiency objectives (CPUC's R. 06-04-010) of quantifying energy savings from water conservation and efficiency, and to reduce GHG emissions as a result. In the CPUC Water Action Plan, the Commission noted "...we will identify actions that our water utilities can take to reduce GHG emissions." (CPUC Water Action Plan, p. 11: ftp://ftp.cpuc.ca.gov/PUC/hottopics/3water/water_action_plan_final_12_27_05.pdf)

PROGRAM BACKGROUND:

· The California Global Warming Solutions Act of 2006 caps California's GHG emissions at 1990 levels by 2020. The State Air Resources Board is required to establish a program for statewide GHG emissions reporting and to monitor and enforce compliance with this program. The Water Energy Team, Climate Action Team (WET CAT) is one of over 10 subgroups which is seeking to determine the optimal policies for achieving the targeted GHG reductions, each for different sectors of the economy (WET CAT's focus being the water-energy nexus).

· As mentioned above, the CPUC is already seeking to quantify the energy savings from water conservation and efficiency in R. 06-04-010 using an "embedded energy calculator". Indeed, in the WET CAT subgroup and other venues, other state agencies, energy investor-owned utilities (IOUs), and non-governmental organizations have been requesting the CPUC to expand the embedded energy calculator to quantify GHG reductions. CPUC has limited resources to undertake an expanded analysis of the resulting GHG reductions, particularly if the objective is to expand the analysis from only energy IOU ratepayers to all citizens of California.

· Class A water utilities (those with greater than 10,000 customers) regulated by the CPUC are required to file a Water Management Program with each General Rate Case (GRC) filing, forecasting supplies and demand for 20 years. AB 2501 would bring added and needed emphasis to the impact of climate change on water supply plans of those water utilities.

· The CPUC is currently examining water conservation and management policies, including use of recycled water, in the Water Conservation Order Instituting Investigation (OII 07-01-022). AB 2501 would complement one of the objectives of this proceeding, namely, to improve water conservation and efficiency planning by regulated water utilities.(i.e. Class A water utilities directly, and Class B, C, and D indirectly).

· The CPUC requires Class A water utilities to be active members in the California Urban Water Conservation Council (CUWCC), including deployment of the CUWCC Best Management Practices (BMPs). AB 2501 further reinforces the CUWCC's objectives of improved water conservation and efficiency.

· Other states' or federal information: The Federal Department of Energy (DOE) produced a report to Congress in early 2006 summarizing the public workshops and research conducted by twelve DOE laboratories on the water-energy nexus: http://www.sandia.gov/energy-water/congress_overview.htm

LEGISLATIVE HISTORY: In 2004, Assemblyperson Wolk sought to have a nearly identical bill, AB 224, passed, but it never reached a full vote in the legislature.

STATUS: AB 2501 is awaiting hearing in the Assembly Committee on Water, Parks and Wildlife.

SUPPORT/OPPOSITION: Unknown.

STAFF CONTACTS:

Pamela Loomis, Deputy Director pcl@cpuc.ca.gov

Office of Governmental Affairs (916) 327-8441

Date: April 2, 2008.

BILL LANGUAGE:

BILL NUMBER: AB 2501 INTRODUCED

INTRODUCED BY Assembly Member Wolk

(Coauthor: Assembly Member DeSaulnier)

FEBRUARY 21, 2008

An act to add Part 1.6 (commencing with Section 10100) to Division

6 of, and to add Division 33 (commencing with Section 83000) to, the

Water Code, relating to water, and making an appropriation therefor.

AB 2501, as introduced, Wolk. Water: planning.

(1) Under existing law, various state and local agencies engage in

water resource planning.

This bill would enact the Climate Change and Water Resource

Protection Act of 2008. The bill would require the Department of

Water Resources, as part of its statewide water resource management

responsibilities, to include an analysis of the potential effects of

climate change, to the extent applicable, in reports or plans

relating to water management or planning that the department is

required to prepare. The bill would prohibit the department from

approving a request for a specified grant, submitted after January 1,

2011, unless certain requirements are met. The department would be

required, by July 1, 2009, to identify available peer-reviewed

information, or the best available scientific information, regarding

climate change and water resources for the state and each of the

state's hydrologic regions for specified uses. The bill would require

an urban water supplier and an agricultural water supplier that is

required to prepare a water management plan to take certain action

relating to specified climate change information, as provided.

The bill would require the department, in collaboration with other

state agencies, to prepare a report that quantifies the energy

savings and greenhouse gas emission reductions associated with water

supply development. The department would be required to submit the

report to the Governor and the Legislature, and to make it available

to the public, on or before January 1, 2009. The bill would require

the state board and each California regional water quality board to

consider specified matters relating to climate change for the purpose

of reviewing applicable water quality standards in accordance with

the federal Clean Water Act.

(2) Under existing law, various bond acts have been approved by

the voters to provide funds for water projects, facilities, and

programs. The Disaster Preparedness and Flood Prevention Bond Act of

2006, a bond act approved by the voters at the November 7, 2006,

statewide general election, authorizes the issuance of bonds in the

amount of $4,090,000,000 for the purposes of financing disaster

preparedness and flood prevention projects. The Safe Drinking Water,

Water Quality and Supply, Flood Control, River and Coastal Protection

Bond Act of 2006, an initiative bond act approved by the voters at

the November 7, 2006, statewide general election, authorizes the

issuance of bonds in the amount of $5,388,000,000 for the purposes of

financing a safe drinking water, water quality and supply, flood

control, and resource protection program. The Water Security, Clean

Drinking Water, Coastal and Beach Protection Act of 2002, approved by

the voters at the November 5, 2002, statewide general election,

authorizes, for the purposes of financing a safe drinking water,

water quality, and water reliability program, the issuance of bonds

in the amount of $3,440,000,000.

This bill, with regard to those bond funds, would appropriate

$610,890,000 as follows: of the funds made available pursuant to the

Disaster Preparedness and Flood Prevention Bond Act of 2006,

$50,000,000 to the Department of Water Resources for essential

emergency preparedness supplies and projects, and $150,000,000 to the

department for stormwater flood management project grants; of the

funds made available pursuant to the Safe Drinking Water, Water

Quality and Supply, Flood Control, River and Coastal Protection Bond

Act of 2006, $50,000,000 to the State Department of Public Health for

grants for small community drinking water system infrastructure

improvements and related actions, $50,400,000 to the State Department

of Public Health for grants for projects to prevent or reduce the

contamination of groundwater that serves as a source of drinking

water, $40,000,000 to the department for administrative costs,

planning grants, and local groundwater assistance grants, $50,000,000

to the department for projects that improve the quality of the

drinking water supply from the Sacramento-San Joaquin Delta,

$60,000,000 to the department and the Central Valley flood Protection

Board to increase the department's ability to respond to levee

breaches and to reduce the potential for levee failure, $100,000,000

to the department and the board for the acquisition, preservation,

protection, and restoration of Sacramento-San Joaquin Delta

resources, $12,000,000 to the department to complete planning and

feasibility studies associated with new surface storage under the

California Bay-Delta Program, $15,000,000 to the department for

planning and feasibility studies to identify potential options for

the reoperation of the state's flood protection and water supply

systems, $10,000,000 to the department for response to climate

change, and $10,000,000 to the department for planning and

feasibility studies to implement the Delta Vision; and of the funds

made available under the Water Security, Clean Drinking Water,

Coastal and Beach Protection Act of 2002, $3,490,000 to the

department for planning and feasibility studies associated with

surface storage under the California Bay-Delta Program.

The bill would provide that up to 5% of the funds appropriated by

the bill may be expended to pay for the administrative costs of that

program. The bill would provide that funds appropriated by the bill

are available for encumbrance until June 30, 2010. On January 10,

2009, program recipients would be required to report to the fiscal

committees of the Legislature with regard to the committed and

anticipated expenditures of these funds.

(3) Under the Porter-Cologne Water Quality Control Act, the State

Water Resources Control Board and the California regional water

quality control boards are the principal state agencies with

authority over matters relating to water quality.

This bill would require the state board, in consultation with

other agencies, to develop pilot projects in the Tulare Lake Basin

and the Salinas Valley focused on nitrate contamination. The bill

would require the state board to create an interagency task force, as

needed, to oversee the pilot projects, and to submit a report to the

Legislature on the scope and findings of the projects within 2 years

of receiving funding. The state board would be required to implement

recommendations for developing a groundwater cleanup program for the

Central Valley Water Quality Control Region and the Central Coast

Water Quality Control Region based upon pilot project results within

2 years of submitting the report to the Legislature.

Vote: majority. Appropriation: yes. Fiscal committee: yes.

State-mandated local program: no.

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. The Legislature finds and declares all of the

following:

(a) The Department of Water Resources issued a report in 2006 on

climate change and California's water resources, and concluded that

climate change is likely to have significant effects on California's

water supply projects and the Sacramento-San Joaquin Delta.

(b) The State Energy Resources Conservation and Development

Commission's Integrated Energy Policy Report (CEC-IEPR) produced in

2005 estimates that water-related energy use consumes 19 percent of

the state's electricity, 30 percent of its natural gas, and 88

billion gallons of diesel fuel every year.

(c) The CEC-IEPR also found that water supply and conveyance have

both the highest energy magnitude and the greatest variability in

energy intensity in the water use cycle.

(d) The California Global Warming Solutions Act of 2006 requires

the adoption of a statewide greenhouse gas emissions limit equivalent

to the statewide greenhouse gas emissions level in 1990 to be

achieved by 2020. Existing law requires all state agencies to

consider and implement strategies to reduce their greenhouse gas

emissions.

(e) The CEC-IEPR concluded that, in many areas of the state,

recycled water is the least energy-intensive source of new water

supply. Increased use of recycled water statewide will reduce

California's energy consumption and help meet the state's goal of

reducing greenhouse gas emissions, as required by the California

Global Warming Solutions Act of 2006.

(f) Increasing water conservation statewide will also reduce

California's energy consumption and help meet the state's goal of

reducing greenhouse gas emissions, as required by the California

Global Warming Solutions Act of 2006.

(g) California should improve its overall planning process to

ensure a safe, clean, and reliable water supply by giving more

consideration to the impacts of climate change on the state's water

resources, and by identifying water supply options that will help the

state meet the requirements of the California Global Warming

Solutions Act of 2006.

SEC. 2. Part 1.6 (commencing with Section 10100) is added to

Division 6 of the Water Code, to read:

PART 1.6. CLIMATE CHANGE AND WATER RESOURCES

10100. This part shall be known and may be cited as the Climate

Change and Water Resource Protection Act of 2008.

10101. (a) The department, as part of its statewide water

resource management responsibilities, shall include an analysis of

the potential effects of climate change, to the extent applicable, in

all reports or plans relating to water management or planning that

the department is required to prepare. These reports or plans include

all of the following:

(1) The biennial report on the overall delivery capability of the

State Water Project and the allocation of that capacity to each

contractor.

(2) The California Water Plan prepared pursuant to Part 1.5

(commencing with Section 10004).

(3) Reports related to the Sacramento-San Joaquin Delta.

(4) State Plan of Flood Control.

(5) Bulletin 118 and other bulletins issued by the department

concerning the statewide status of groundwater resources.

(b) On or before July 1, 2009, the department shall identify

available peer-reviewed information, or in its absence, the best

available scientific information, including information produced in

response to Executive Order S-3-05, regarding climate change and

water resources for the state and each of the state's hydrologic

regions for use by state and local agencies for the purposes

described in Sections 10103 and 10104. To the maximum extent

practicable, the department shall make the information available on

its Internet Web site or through other readily available means. In

conjunction with the preparation of the California Water Plan, the

department shall work with the California Environmental Protection

Agency and the scientific community to periodically update the

climate change information, as appropriate.

(c) The department shall not approve any request for a grant

pursuant to Section 75026 of the Public Resources Code, submitted

after January 1, 2011, unless the integrated regional water

management plan that is the basis of the grant application includes

consideration of the information regarding climate change made

available in accordance with subdivision (b) or other relevant

information if the applicant deems that information reasonably

reliable. If this information is not available, or does not apply to

a particular integrated regional water management planning area, the

grant applicant is not subject to the requirements of this section

and the body adopting the integrated regional water management plan

shall adopt a written statement that information pursuant to

subdivision (b) is not available, or does not apply to the integrated

regional water management in the planning area.

10102. (a) In order to assist local and state agencies in

implementing the California Global Warming Solutions Act of 2006

(Division 25.5 (commencing with Section 38500) of the Health and

Safety Code), the department, in collaboration with the State Water

Resources Control Board, the State Air Resources Board, the State

Energy Resources Conservation and Development Commission, and the

Public Utilities Commission, shall prepare a report that quantifies

the energy savings and greenhouse gas emission reductions associated

with water supply development, including, but not limited to,

increasing the use of recycled water to offset the use of potable

water for nonpotable uses in the state and expanding reliance on

water conservation. For the purposes of this section, the State Water

Resources Control Board has the primary responsibility for the

analysis of recycled water and the department has primary

responsibility for the analysis of all other water supply development

alternatives.

(b) In making the quantifications required by subdivision (a), the

agencies shall use the best scientific information available and

consult with all interested local agencies.

(c) The report shall quantify statewide energy savings and

greenhouse gas emission reductions by utilizing various scenarios

that assume the state will exceed its current use of recycled water

and will meet or exceed the state's goal for water recycling

established by Section 13577. The study shall consider energy savings

and greenhouse gas emission reductions in each region identified in

Section 13200 from all possible nonpotable uses of recycled water

including, but not limited to, the following agricultural,

industrial, environmental, groundwater recharge, commercial, urban

irrigation, and domestic uses:

(1) Flushing toilets and urinals.

(2) Priming drain traps.

(3) Industrial process water that may come into contact with

workers.

(4) Structural fire fighting.

(5) Decorative fountains.

(6) Commercial laundries.

(7) Consolidation of backfill around potable water pipelines.

(8) Artificial snow making for commercial outdoor use.

(9) Commercial car washes, including hand washes if the recycled

water is not heated, where the general public is excluded from the

washing process.

(10) Industrial boiler feed.

(11) Nonstructural fire fighting.

(12) Backfill consolidation around nonpotable piping.

(13) Soil compaction.

(14) Mixing concrete.

(15) Dust control on roads and streets.

(16) Cleaning roads, sidewalks, and outdoor work areas.

(17) Industrial process water that will not come into contact with

workers.

(d) In making the quantification related to water conservation,

the report shall quantify statewide energy savings and greenhouse gas

emission reductions assuming the potential water use efficiency

identified in the department's Bulletin 160-05. The report shall

include recommendations as to emission reduction measures that

provide state agencies a way to reduce greenhouse gas emissions from

water use.

(e) The department shall submit the report required by subdivision

(a) to the Governor and the Legislature, and make the report

available to the public, on or before January 1, 2009. The report

shall include specific policy recommendations and administrative

actions that will assist the state in meeting the requirements of

Section 38560.5 of the Health and Safety Code to identify and

implement specific greenhouse gas emission reduction measures.

10103. For the purpose of the triennial review of applicable

water quality standards pursuant to Section 303(c)(1) of the Clean

Water Act (33 U.S.C. Sec. 1313 (c)(1)), the State Water Resources

Control Board and each California regional water quality control

board shall consider, to the extent practicable, the reasonably

foreseeable effects of climate change on the water quality of the

basin, based on the applicable information made available pursuant to

subdivision (b) of Section 10101 and other information that the

State Water Resources Control Board or the California regional water

quality control board deems relevant and reliable.

10104. (a) On and after July 1, 2009, an urban water supplier

that is required to prepare a plan pursuant to Part 2.6 (commencing

with Section 10610) shall do all of the following:

(1) Request or otherwise obtain from the department the

information regarding climate change and water supply made available

pursuant to subdivision (b) of Section 10101.

(2) Identify, to the extent practicable, the possible effects of

climate change on its water supply projections based on the

information made available pursuant to subdivision (b) of Section

10101 or other relevant information if the supplier deems that

information reasonably reliable.

(3) Consider the information regarding climate change and water

supply made available pursuant to subdivision (b) of Section 10101 or

other information if the supplier deems that information reasonably

reliable in describing the reliability of its water supply pursuant

to subdivision (c) of Section 10631 and the reliability of water

service to its customers pursuant to Section 10635.

(b) On and after January 1, 2010, an agricultural water supplier

that is required to prepare a plan pursuant to Part 2.8 (commencing

with Section 10800) shall do all of the following:

(1) Request or otherwise obtain from the department the

information regarding climate change and water supply made available

pursuant to subdivision (b) of Section 10101.

(2) Consider the information regarding climate change and water

supply made available pursuant to subdivision (b) of Section 10101 or

other relevant information if the supplier deems that information

reasonably reliable in describing the quantity and source of water

delivered to, and by, the supplier.

(c) If the information described in subdivision (b) of Section

10101 is not available or does not apply to a supplier described in

subdivision (a) or (b), the supplier is not subject to the

requirements of this section and the governing board of a supplier

specified in subdivision (a) or (b) shall adopt a written statement

stating that the information described in subdivision (b) of Section

10101 is not available or does not apply to the supplier.

SEC. 3. Division 33 (commencing with Section 83000) is added to

the Water Code, to read:

DIVISION 33. INTEGRATED WATER SUPPLY AND FLOOD PROTECTION

PLANNING, DESIGN, AND IMPLEMENTATION

83000. The Legislature hereby finds and declares all of the

following:

(a) Water is vital to the economy, environment, and overall

well-being of the state.

(b) California faces increasing challenges in managing its water

supply due to climate change, uncertainty regarding the availability

of water from the Sacramento-San Joaquin Delta and other sources, an

increasing state population, limitations on public funds, and other

factors.

(c) California must adopt a new, updated, and comprehensive set of

water planning, design, and implementation policies that reflect

these realities to protect its water supply future.

(d) In the past, state laws, funding schemes, and administrative

actions have treated the planning, construction, and operation of

water supply, groundwater, and flood control systems as separate and

distinct activities, thereby reducing efficiency and water supply

reliability.

(e) California has not taken full advantage of the cost savings,

the environmental benefits, or the expediency of more efficient

operations and usage of existing water supply, storage, and flood

protection facilities.

(f) It is the policy of the state to more effectively integrate

its flood protection systems with its water supply and conveyance

systems in order to conserve limited public dollars, increase the

available water supply, improve water quality, increase wildlife and

ecosystem protections, protect public health and safety, and address

the effects of climate change.

(g) The purpose of this division is to require the integration of

flood protection and water systems to achieve multiple public

benefits, including all of the following:

(1) Increasing water supply reliability in the least costly, most

efficient, and most reliable manner to meet current and future state

needs.

(2) Increasing use of water use efficiency and water conservation

measures to increase and extend existing water supplies.

(3) Reducing energy consumption associated with water transport,

thereby reducing state greenhouse gas emissions.

(4) Improving water management to protect and restore ecosystems

and wildlife habitat.

83001. In order to provide the least costly, most efficient, and

reliable water supply to a growing state, it is the intent of the

Legislature that the department accomplish the following objectives:

(a) Integrate state flood protection and water supply systems.

(b) Promote conjunctive use of groundwater storage capacity to

improve overall water supply and flood system operation.

(c) Promote increased water use efficiency through expanded use of

water conservation, water recycling, and improvements in technology.

83002. The sum of six hundred ten million eight hundred ninety

thousand dollars ($610,890,000) is hereby appropriated as follows:

(a) Of the funds made available pursuant to Chapter 1.699

(commencing with Section 5096.800) of Division 5 of the Public

Resources Code, the sum of two hundred million dollars ($200,000,000)

is hereby appropriated as follows:

(1) Pursuant to subdivision (c) of Section 5096.821 of the Public

Resources Code, the sum of fifty million dollars ($50,000,000) to the

department for the acquisition, design, and construction of

essential emergency preparedness supplies and projects in accordance

with that subdivision. Prior to the design or construction of any

project funded pursuant to this paragraph, the California Bay-Delta

Authority, or its successor, shall approve the specific project or

program.

(2) Pursuant to Section 5096.827 of the Public Resources Code, the

sum of one hundred fifty million dollars ($150,000,000) to the

department for grants for stormwater flood management projects that

reduce the risk of flood damage and provide other benefits, including

groundwater recharge, water quality improvement, and ecosystem

restoration. Not less than one hundred million dollars ($100,000,000)

of this amount shall be available for projects that address

immediate public health and safety needs, strengthen existing flood

control facilities to address seismic safety issues, meet immediate

water quality needs related to combined municipal sewer and

stormwater systems to prevent sewage discharges into state waters, or

for stormwater flood protection projects protecting public safety

and property from flood events.

(b) Of the funds made available pursuant to Division 43

(commencing with Section 75001) of the Public Resources Code, the sum

of three hundred ninety-seven million four hundred thousand dollars

($397,400,000) is hereby appropriated as follows:

(1) Pursuant to Section 75022 of the Public Resources Code, the

sum of fifty million dollars ($50,000,000) to the State Department of

Public Health for grants for small community drinking water system

infrastructure improvements and related actions to meet safe drinking

water standards. First priority for these funds shall be given to

disadvantaged or severely disadvantaged communities lacking resources

to provide safe drinking water to residents. Small community

drinking water systems that are dependent on surface water and are

under orders from the State Department of Public Health to boil water

from existing treatment systems for parasites, viruses, or giardia

shall be eligible for grants for drinking water system infrastructure

improvements.

(2) Pursuant to Section 75025 of the Public Resources Code, the

sum of fifty million four hundred thousand dollars ($50,400,000) to

the State Department of Public Health for grants for projects to

prevent or reduce the contamination of groundwater that serves as a

source of drinking water. Funds appropriated by this paragraph shall

be available for projects immediately needed to protect public health

by preventing or reducing the contamination of groundwater that

serves as a major source of drinking water for a community.

(A) The State Department of Public Health shall prioritize project

funding based on the following criteria:

(i) The threat posed by groundwater contamination to the affected

community's overall drinking water supplies, including the need for

the treatment or construction of alternative supplies if groundwater

is not available due to contamination.

(ii) The potential for groundwater contamination to spread and

reduce drinking water supply and water storage capacity for major

population areas.

(iii) The potential of the project, if fully implemented, to

enhance local water supply reliability.

(iv) The potential of the project to increase opportunities for

groundwater recharge and optimization of groundwater supplies.

(B) The State Department of Public Health shall give additional

consideration to projects that meet any of the following criteria:

(i) The project is implemented pursuant to a comprehensive

basinwide groundwater quality management and remediation plan or is

necessary to develop a comprehensive groundwater plan.

(ii) Affected groundwater provides a local supply that, if

contaminated, will require the importation of additional water from

the Sacramento-San Joaquin Delta or the Colorado River.

(iii) The project will serve an economically disadvantaged

community.

(iv) Multiple contaminants affect more than one-third of the well

capacity of a local water system.

(C) Of the amount made available by this section, up to ten

million dollars ($10,000,000) shall be available for projects that

meet the criteria of this section and both of the following criteria:

(i) The potential to leverage funds.

(ii) The project addresses contamination at a site on the list

maintained by the Department of Toxic Substances Control pursuant to

Section 25356 of the Health and Safety Code or a site listed on the

National Priorities List pursuant to the Comprehensive Environmental

Response, Compensation, and Liability Act of 1980 (42 U.S.C. Sec.

9601 et seq.).

(D) Of the funds appropriated by this paragraph, two million

dollars ($2,000,000) shall be allocated to the State Department of

Public Health to contract with the State Water Resources Control

Board for the purposes of Section 83003.

(3) Pursuant to Section 75026 of the Public Resources Code, the

sum of forty million dollars ($40,000,000) to the department for

planning grants and local groundwater assistance grants.

(4) Pursuant to subdivision (d) of Section 75029 of the Public

Resources Code, the sum of fifty million dollars ($50,000,000) to the

department for projects that improve the quality of the drinking

water supply from the Sacramento-San Joaquin Delta in accordance with

that subdivision.

(5) Pursuant to Section 75033 of the Public Resources Code, the

sum of one hundred sixty million dollars ($160,000,000) to the

department and the Central Valley Flood Protection Board, as follows:

(A) Sixty million dollars ($60,000,000) to increase the department'

s ability to respond to levee breaches and to reduce the potential

for levee failure, including, but not limited to, the following:

(i) Acquisition and positioning of emergency construction

materials and equipment.

(ii) Emergency projects to prevent levee failure or repair levees

or other flood control facilities to restore conveyance and flood

protection.

(iii) Preparation for, and implementation of, a delta emergency

operations plan.

(iv) Emergency contracts for activities relating to a flood fight

or levee failure to prevent or mitigate loss of, or damage to, life,

health, property, or essential public services.

(B) One hundred million dollars ($100,000,000) for the

acquisition, preservation, protection, and restoration of

Sacramento-San Joaquin Delta resources in accordance with Section

75033. The department shall expend these funds pursuant to priorities

that reflect the value of the resources and land uses protected by

the levees to the state as a whole, consistent with the Delta Vision.

Projects shall be selected to improve the stability of the delta

levee system, reduce subsidence, and assist in restoring the

ecosystem of the delta. Priority shall be given to projects that

improve conditions for delta smelt and other native fish without

regard to long-term decisions as to the management and conveyance of

water south of the Delta, including, but not limited to, all of the

following projects:

(i) Restoration of floodplain habitat and fish migration through

the Yolo Bypass.

(ii) Restoration of tidal marsh in Suisun Marsh.

(iii) Expedited implementation of Dutch Slough tidal marsh

restoration project.

(iv) Acquisition and restoration of Decker Island.

(v) Restoration and enhancement of the Cache Slough region.

(vi) Implementation of the McCormack Williamson Tract flood

control and ecosystem restoration project.

(6) Pursuant to Chapter 4 (commencing with Section 75041) of

Division 43 of the Public Resources Code, the sum of forty-seven

million dollars ($47,000,000) to the department as follows:

(A) (i) Twelve million dollars ($12,000,000) to complete the

planning and feasibility studies associated with new surface storage

under the California Bay-Delta Program.

(ii) The planning and feasibility studies shall include the

following information:

(I) The identification of specific construction and operation

conditions proposed for each surface storage facility, including

consideration of climate change, an estimated schedule for the

construction and completion of each project funded under Section

75041, and the total costs of constructing each project.

(II) A description of the estimated total costs to construct each

project and an allocation of the costs to public and private

beneficiaries.

(iii) Any feasibility study conducted or funded by the state for

new surface storage under the California Bay-Delta Program shall

evaluate funded projects consistent with all statutory and other

legally established requirements for the protection of environmental

and natural resources, including protections for the McCloud River

pursuant to Section 5093.542 of the Public Resources Code.

(iv) The planning and feasibility studies shall be prepared and

submitted to the Governor and the Legislature no later than December

31, 2008.

(B) (i) Fifteen million dollars ($15,000,000) for planning and

feasibility studies to identify potential options for the reoperation

of the state's flood protection and water supply systems that will

optimize the use of existing facilities and groundwater storage

capacity.

(ii) The studies shall incorporate appropriate climate change

scenarios and be designed to determine the potential to achieve the

following objectives:

(I) Integration of flood protection and water supply systems to

increase water supply reliability and flood protection, improve water

quality, and provide for ecosystem protection and restoration.

(II) Reoperation of existing reservoirs, flood facilities, and

other water facilities in conjunction with groundwater storage to

improve water supply reliability, flood control, and ecosystem

protection and to reduce groundwater overdraft.

(III) Promotion of more effective groundwater management and

protection and greater integration of groundwater and surface water

resource uses.

(IV) Improvement of existing water conveyance systems to increase

water supply reliability, improve water quality, expand flood

protection, and protect and restore ecosystems.

(C) Ten million dollars ($10,000,000)and authorization for up to

10 personnel to begin addressing how the state water system should

respond to climate change, pursuant to the Climate Change and Water

Resource Protection Act of 2008 (Part 1.6 (commencing with Section

10100) of Division 6). Consistent with that act, such funding shall

be used to evaluate climate change impacts, develop strategies to

adapt to climate change impacts, and identify strategies to reduce

greenhouse gas emissions related to the storage, conveyance, and

distribution of water. Of the amount made available by this

subparagraph, the department shall make available two million dollars

($2,000,000) to the State Water Resources Control Board for its

participation in these efforts. The department may transfer funds to

other state agencies and may provide local assistance to local water

agencies for participation in these efforts.

(D) Ten million dollars ($10,000,000) for planning and feasibility

studies to implement the Delta Vision.

(c) Of the funds made available pursuant to subdivision (a) of

Section 79550, the sum of three million four hundred ninety thousand

dollars ($3,490,000) is hereby appropriated to the department for

planning and feasibility studies associated with surface storage

under the California Bay-Delta Program.

83003. To improve understanding of the causes of groundwater

contamination, identify potential solutions and funding sources to

clean up or treat groundwater, and ensure the provision of safe

drinking water to all communities, the State Water Resources Control

Board, in consultation with other agencies as specified in this

section, shall develop pilot projects in the Tulare Lake Basin and

the Salinas Valley that focus on nitrate contamination and do all of

the following:

(a) (1) In collaboration with relevant agencies and utilizing

existing data, including groundwater ambient monitoring and

assessment results along with the collection of new information as

needed, do all of the

following:

(A) Identify sources, by category of discharger, of groundwater

contamination due to nitrates in the pilot project basins.

(B) Estimate proportionate contributions to groundwater

contamination by source and category of discharger.

(C) Identify and analyze options within the board's current

authority to reduce current nitrate levels and prevent continuing

nitrate contamination of these basins and estimate the costs

associated with exercising existing authority.

(2) In collaboration with the State Department of Public Health,

do all of the following:

(A) Identify methods and costs associated with the treatment of

nitrate contaminated groundwater for use as drinking water.

(B) Identify methods and costs to provide an alternative water

supply to groundwater reliant communities in each pilot project

basin.

(3) Identify all potential funding sources to provide resources

for the cleanup of nitrates, groundwater treatment for nitrates, and

the provision of alternative drinking water supply, including, but

not limited to, state bond funding, federal funds, water rates, and

fees or fines on polluters.

(4) Develop recommendations for developing a groundwater cleanup

program for the Central Valley Water Quality Control Region and the

Central Coast Water Quality Control Region based upon pilot project

results.

(b) Create an interagency task force, as needed, to oversee the

pilot projects and develop recommendations for the Legislature. The

interagency task force may include the board, the State Department of

Public Health, the Department of Toxic Substances Control, the

California Environmental Protection Agency, the department, local

public health officials, the Department of Food and Agriculture, and

the Department of Pesticide Regulation.

(c) Submit a report to the Legislature on the scope and findings

of the pilot projects, including recommendations, within two years of

receiving funding.

(d) Implement recommendations in the Central Coast Water Quality

Control Region and the Central Valley Water Quality Control Region

pursuant to paragraph (4) of subdivision (a) within two years of

submitting the report described in subdivision (c) to the

Legislature.

83004. Up to 5 percent of the funds appropriated by this division

may be expended to pay the costs incurred in the administration of

that program.

83005. Funds appropriated by this division shall only be

available for encumbrance until June 30, 2010. On January 10, 2009,

any program that is the recipient of an appropriation made by this

division shall report to the fiscal committees of the Legislature on

the details of all committed and anticipated expenditures of these

funds. The report shall include all of the following information:

(a) Fiscal detail of state operations support and local assistance

costs.

(b) A general description of the project and the project funding

made available by an appropriation in the annual Budget Act for the

2009-10 fiscal year or proposed to be made available in the annual

Budget Act for the 2009-10 fiscal year.

(c) A description of the manner in which funds have been expended

and a plan for the future expenditure of funds.

(d) An anticipated timeframe for the full expenditure of the

appropriation.

(e) An anticipated timeframe for the full completion of the

designated project.

(f) The amount of total matching project funding that is being

provided by an entity other than the state.

83006. The Legislature further finds and declares the following:

(a) At the November 7, 2006, statewide general election, the

voters approved nine billion five hundred thousand dollars

($9,000,500,000) in general obligation bonding authority to improve

flood protection, water supply reliability, water quality, fish and

wildlife, parks and open space, and other natural resources. This is

in addition to the eleven billion one hundred thousand dollars

($11,000,100,000) previously authorized by the voters since 1996 for

similar uses.

(b) The Legislative Analyst reports that at the end of the 2006-07

fiscal year, more than one billion two hundred thousand dollars

($1,000,200,000) of the previously authorized eleven billion one

hundred thousand dollars ($11,000,100,000) had not been appropriated

or otherwise committed for voter-approved uses.

(c) The proceeds of bonds approved by the voters of the state for

water and natural resources should be appropriated and expended for

those uses, as directed by the voters.

Top Of Page