BACKGROUND
Solid Waste
SB 667 (Ben Hueso) Recycling Infrastructure and Facilities (Support)
SB 667 requires CalRecycle to develop a five-year investment strategy to drive innovation and infrastructure to meet organic waste reduction and recycling targets, including providing loans and incentive payments to fund organic waste recycling infrastructure. Intends to use the Greenhouse Gas Reduction Fund for these purposes in fiscal years 2020-21 to 2024-25. Allows the California Alternative Energy and Advanced Transportation Financing Authority to provide alternative financing for facilities needed to develop local and regional recycling markets.
Staff Comment: This measure is follow-up to SB 1383 (Lara, Chapter 523, Statutes of 2014), which established methane emissions-reduction targets. SB 1383 established a statewide target of reducing the disposal of organic waste by 50% from the 2014 level by 2020 and 75% reduction by 2025. The organics recycling market is not fully developed and, through the Solid Waste Industry Group (SWIG) Roseville is supportive of this measure that would help agencies like Roseville meet this new statewide target by providing additional funding. This measure made it out of its policy with bi-partisan support and is was taken up in Appropriations on May 13 where it was placed on the suspense file.
Wastewater
AB 129 (Richard Bloom) Microfiber pollution (Watch)
Requires the State Water Resources Control Board (SWRCB) to identify best practices for clothing manufacturers to reduce the amount of microfibers released into the environment. The bill would require, on or before January 1, 2020, a public entity that uses a laundry system, and a private entity that contracts with a state agency for laundry services, to install a filtration system to capture microfibers that are shed during washing.
Staff Comment: Microplastics are of increasing concern posing threats to, not only aquatic species, but human beings. It is difficult to track microplastics because of their relatively fragmented nature, small size, and ability to come from a wide range of potential sources. Currently, Roseville is not required to monitor for microplastics in water or wastewater, but we are watching this bill closely for regulatory implications.
AB 441 (Susan Eggman) Water: Underground Storage (Watch)
This bill would require that any diversion of water to underground storage constitutes a diversion of water for beneficial use.
Staff Comment: This bill potentially has implications for water and recycled water projects at the City of Roseville and we will be watching closely as it develops.
Water Tax:
AB 217 (Eduardo Garcia) Safe and Affordable Drinking Water Fund (Oppose Unless Amended)
As amended on May 7, 2019, this measure would impose a monthly fifty cent ($0.50) “system charge” per service connection on all public water systems as of July 1, 2020. As proposed, the Safe and Affordable Drinking Water “system charge” is still a tax under the California Constitution. [See Article XIII A.] Additionally, AB 217 expands the scope of assistance beyond the water systems previously identified by the SWRCB and is attempting to use public funds to address private wells and systems.
Staff Comment: As an integrated utility, our goal is to provide high-quality, reliable, low-cost utility services. Staff has estimated the annual “system charge” that EU would have to submit to the SWRCB to be approximately $257,000. Per proposition 218, this cost would have to be passed on to our customers. This new “system charge” would not be used to benefit our customers. In fact, this “system charge” will impact our ability to continue to meet the needs of customers in a cost-effective manner. Ultimately, this “system charge” will have the greatest impact on the affordability of water on our lower income customers.
SB 200 (Bill Monning) Safe and Affordable Drinking Fund (Watch)
As introduced, SB 200 would create the Safe and Affordable Drinking Water Fund in the State Treasury. Those funds would be continuously appropriated to the State Water Resources Control Board to provide secure access to safe drinking water for all Californians. While the funds have been continuously appropriated to the fund, the revenue source has not yet been identified.
Staff Comment: SB 200 was heard in policy committee on April 23 and was passed on a party line. SB 200 was heard in Appropriations on May 13, where it was placed on the suspense file. Senator Monning was the author of the water tax legislation last year (SB 623). Governor Newsom is modeling his Budget Trailer Bill upon SB 623 from last year. As amended May 7, 2019, the bill currently focuses on implementing the Safe and Affordable Drinking Water Fund. The funding source has not yet been added into SB 200, but is anticipated to look very similar to what he proposed last year. Staff will return with a formal position once the funding source is identified in the bill.
SB 414 (Anna Caballero) Small System Water Authority Act of 2019 (Support)
The bill would establish criteria for the consolidation of water systems not meeting drinking water standards. Many of these systems lack the technical, managerial and financial abilities to deliver safe water. Consolidating these water systems that cannot consistently meet state and federal drinking water standards, will help to prevent the need to provide ongoing financial support to prop up these failing systems.
Staff Comment: SB 414 made it out of its first two policy committees on unanimous votes and was placed on the Appropriations Suspense File and is expected to be taken up again on May 16th. We anticipate this measure moving forward as part of the discussion to provide a comprehensive solution to assure all Californians have access to safe and clean water. SB 414 provides an alternative method of consolidation. In return these new systems will have the benefit of a larger service (economies of scale) and access to funding they previously were unable to access. Roseville supports this legislation as it helps to provide a long-term solution to provide safe drinking water to thousands of Californians, in addition to reducing the overall funding needed through the proposed statewide water tax.
SB 669 (Anna Caballero) Safe Drinking Water Trust (Support)
The purpose of the Trust proposed in SB 669 would be to provide a durable funding source to help community water systems in disadvantaged communities provide their customers with access to safe drinking water. This is an alternative policy proposal to the various bills proposing a State Water Tax. The Trust would be funded using one-time funding during budget surplus years. As well, the Trust would also be able to receive funding from other sources like the federal government, non-profits and other donations.
Staff Comment: SB 669 made it out of its first committee on a 7-1 vote and was up in Senate Appropriations Committee on May 13th where it was placed on the suspense file. Due to an alternative proposal, by Senate President pro Tempore Tony Atkins, SB 669 is expected to be held in the Appropriations Committee. The Senate proposal, which was advanced during a recent Budget Hearing, continuously appropriates $150 million from internet sales tax to deliver safe drinking water. The new Senate proposal and the Trust alternative are preferred over placing a water tax on our customers’ bills, as the Governor’s water tax would cost our customers approximately $580,000 annually. The potential annual administrative costs to EU have been estimated to potentially exceed $100,000 annually. This includes changes to our utility billing system and also staff time. As currently proposed, Roseville would have to pass on $80,000-$90,000 annually to our rate payers to cover our administrative costs.
Other:
SB 134 (Bob Hertzberg) Enforcement-Water Loss Performance Standards (Review)
This measure was introduced to fix a conflict that was created with the passage of the conservation legislation (AB 1668 and SB 606) from last year. A conflict was identified between the water loss performance standards of SB 606 and the existing enforcement authority of the State Water Resources Control Board to issue penalties granted under SB 555 (Chapter 679, Statutes of 2015). The conflict created removes the flexibility for a water agency to meet its water use objectives, which was negotiated as part of the conservation legislation.
Staff Comment: This measure was amended on May 8 and staff is reviewing the new language and has some concerns. At issue is language that would have the practical effect of requiring the State Water Resources Control Board to conduct an analysis of each of the water use objective components. This would eliminate any compliance flexibility, even if a water supplier is in compliance with the overall water use objective, if one of the components is above its aggregate estimate, then water loss would still be subject to double jeopardy. Additionally, of potential greater concern, is this language would “establish a path” toward enforcement of the individual components of the water use objective. Providing the board with an unspecified ability to make a determination on the cause of compliance. Roseville’s continued support is under review at this time. Roseville does support removing the double jeopardy that was created with the passage of SB 606. Our water use objectives are a combination of indoor water use standards, outdoor water use standards, commercial, industrial and institutional (CII) performance standards, and water loss performance standards. By removing this double jeopardy Roseville can focus our attention on the standard that will provide the biggest return on our investment.
Federal Efforts
On May 2-3, representatives of the Sacramento region, led by the City of Roseville, met in Washington D.C. for a series of meetings in advance of the annual Cap to Cap trip. There was a contingent of seven representatives from four Sacramento water agencies and the Regional Water Authority. The purpose of the visit was designed to convey the core water issues of interest to professional congressional staff, allowing a broader message to be articulated to elected Members and other congressional staff by the Cap-to-Cap water resources team. In the course of the meetings, the discussions centered upon the development of a regional groundwater bank and the need for robust federal funding of water infrastructure that could assist the City and other regional partners to implement sustainable water-supply projects. The discussions also touched on the status of negotiations among local, state and federal stakeholders to finalize Voluntary Agreements.
HR 2473 (Josh Harder) The Securing Access for the Central Valley and Enhancing (SAVE) Water Resources Act (Support)
HR 2473 develops effective federal programs of assistance to ensure a safe and reliable water supply for California and the Nation.
Staff Comment: The City of Roseville, along with our Sacramento regional partners, is currently developing the Sacramento Regional Groundwater Bank, with the goal of securing federal recognition by the Bureau of Reclamation by 2021/2022. When this project is completed, it will deliver sustainable water for the region with a conjunctive-use program, provide environmental and fisheries benefits, and serve as a potential source of water supply during times of drought for partners outside of the Sacramento region.