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HomeMy WebLinkAboutMINUTES - 08092011 - C.16RECOMMENDATION(S): SUPPORT Assembly Bill 134 (Dickinson): Sacramento Regional County Sanitation District, a bill that would provide an additional procedural option for the District to realize the benefit of its treated wastewater discharges, potentially marketing that water to willing purchasers to offset the cost of its $2.1 billion in required plant upgrades, as recommended by the Legislation Committee. FISCAL IMPACT: Depending on the outcome of its anticipated permit application to the State Board to appropriate water up to an amount equal in volume to its discharge, Sac Regional could potentially market that water to willing purchasers, thereby offsetting part of what has been estimated to be nearly $2.1 billion in treatment plant upgrades that will be necessary to comply with recent regulatory actions taken by the Central Valley Regional Water Quality Control Board. BACKGROUND: Existing law: APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 08/09/2011 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: L. DeLaney, 925-335-1097 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: August 9, 2011 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C.16 To:Board of Supervisors From:Legislation Committee Date:August 9, 2011 Contra Costa County Subject:SUPPORT AB 134 (Dickinson): Sacramento Regional County Sanitation District 1. Provides that the owner of a wastewater treatment plant shall hold the exclusive right to the treated wastewater. 2. Requires approval from the State Water Resources Control Board (SWRCB) for a change in the point of discharge, place of use, or purpose of use of treated wastewater, unless such change does not decrease flow in any portion of a watercourse. 3. Protects wastewater which has been introduced into the watercourse with the intention of maintaining or enhancing fishery, wildlife, recreational or other instream beneficial uses from being treated as abandoned and subject to appropriation by others. 4. Allows waste disposal plants discharging into the San Joaquin River to apply for a permit to appropriate up to an amount of water equivalent to the discharge less carriage losses and to sell or utilize that water for any beneficial purpose. AB 134 would do the following: 1. Allows the Sacramento Regional County Sanitation District (SRCSD) to file an application with the SWRCB for a permit to appropriate an amount of water equal to the amount of treated wastewater discharged, less carriage losses, for diversion out of the Sacramento River or Sacramento-San Joaquin Delta. 2. Clarifies that any permit granted by the SWRCB will be subject to the terms and conditions authorized under applicable law. 3. Declares a special law is necessary due to the unique problems applicable to full utilization of the waters of the Sacramento River into which the SRCSD discharges treated wastewater. According to the author, "This legislation would provide an additional procedural option for [Sac Regional] to realize the benefit of its treated wastewater discharges. Depending on the outcome of its anticipated permit application to the State Board to appropriate water up to an amount equal in volume to its discharge, [Sac Regional] could potentially market that water to willing purchasers, thereby offsetting part of what has been estimated to be nearly $2.1 billion in treatment plant upgrades that will be necessary to comply with recent regulatory actions taken by the Central Valley Regional Water Quality Control Board ('Regional Board')." Six Southern California water agencies submitted a letter stating "Although several of our previous concerns have been addressed in amendments to the bill, we remain opposed due to the precedent it creates as other wastewater dischargers would be encouraged to seek similar authorization to appropriate their effluent discharges. In addition, we are concerned that the 'market opportunities' the bill would provide to SRCSD can actually serve as a disincentive for water conservation in the region." This legislation is aligned with the Board's adopted Water Platform policy of BACKGROUND: (CONT'D) Regional Self-Sufficiency: "All export regions should be implementing all water supply options available to them to reduce stress on the Delta as a limited resource. An argument could be made that the project would add to the region’s water supply options, thereby reducing the stress on the Delta." It could also be argued that the bill furthers the Platform policy related to water quality: Water Quality, Water Quality and Delta Outflow: "Protection and improvement of water quality, quantity and outflow, determination and assurance of adequate water for the delta ecosystem and examination of the State and Federal project operations (including potential for reduced exports) are recommended here." The Legislation Committee recommends that the Board of Supervisors support the bill. The County supported the bill in concept on April 15, 2011. (See attachment.) SUPPORT: Sacramento Regional County Sanitation District (source), American Rivers California Apartment Association, California Association of Sanitation Agencies, California League of Food Processors, California Teamsters Public Affairs Council, Campbell Soup Company, Central Contra Costa Sanitary District, Cities of Citrus Heights, Elk Grove, Rancho Cordova, Sacramento, and West Sacramento, Congresswoman Doris Matsui County of Sacramento, County of Yolo, Downtown Sacramento Partnership, Marriott Cal Expo Properties, Midtown Business Association, Nor-Cal Beverage Co., Inc., North State Building Industry Association, Rental Housing Association of Sacramento Valley, Sacramento Metro Chamber, The Nature Conservancy, The River District OPPOSITION : Cucamonga Valley Water District, Eastern Municipal Water District, Irvine Ranch Water District, Metropolitan Water District of Southern California, Three Valleys Municipal Water District, Upper San Gabriel Valley Municipal Water District STATUS: Senate Third Reading File CONSEQUENCE OF NEGATIVE ACTION: There will be no record of the Board's support for Assembly Bill 134. CHILDREN'S IMPACT STATEMENT: None. ATTACHMENTS AB 134 Bill Text and Support in Concept letter AMENDED IN ASSEMBLY APRIL 15, 2011 AMENDED IN ASSEMBLY MARCH 23, 2011 california legislature—2011–12 regular session ASSEMBLY BILL No. 134 Introduced by Assembly Member Dickinson (Coauthor: Assembly Member Huber) (Principal coauthor: Senator Steinberg) (Coauthor: Senator Wolk) January 12, 2011 An act to add Section 1486 to the Water Code, relating to water resources. legislative counsel’s digest AB134, as amended, Dickinson.Appropriation of water: Sacramento Regional County Sanitation District. Under existing law, the State Water Resources Control Board administers a water rights program pursuant to which the state board grants permits and licenses to appropriate water. Existing law requires the owner of a wastewater treatment plant to obtain the approval of the state board prior to making any changes in the point of discharge, place of use, or purpose of use of treated wastewater, and requires the state board to review the proposed changes in accordance with prescribed procedures. This bill would authorize the Sacramento Regional County Sanitation District to file an application for a permit to appropriate a specified amount of water that is based on the volume of treated wastewater that the district discharges into the Sacramento River, as specified. The bill would authorize the state board to grant a permit to appropriate that 97 treated wastewater upon terms and conditions determined by the state board.The bill would require the board, prior to granting a permit pursuant to these provisions, to comply with permit, approval, and review requirements and other laws applicable to the appropriation of water. This bill would make legislative findings and declarations as to the necessity of a special statute for the Sacramento Regional County Sanitation District. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. The people of the State of California do enact as follows: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 SECTION 1.The Legislature finds and declares all of the following: (a)  The people of the State of California have a primary interest in the development of facilities to produce recycled water to supplement existing surface water and groundwater supplies and to assist in meeting the future water requirements of the state. (b)  It is the intent of the Legislature that the state expeditiously undertake all possible steps to encourage the development of water recycling facilities so that recycled water may be made available to meet the growing water supply needs of the state. (c)  It is in the best interest of the people of the State of California, in enacting this act, to provide an additional means for the Sacramento Regional County Sanitation District to realize the benefit of its production and discharge of high-quality recycled water, and to provide a potential revenue stream to offset the high costs associated with upgrades to the sanitation district’s wastewater treatment plant, to meet new wastewater treatment requirements under the national pollutant discharge elimination system permit issued by the California Regional Water Quality Control Board, Central Valley. SEC. 2. SECTION 1. Section 1486 is added to the Water Code, to read: 1486. (a)  The Sacramento Regional County Sanitation District, and any successor thereto, with respect to treated wastewater produced by the sanitation district that meets the requirements of the California Regional Water Quality Control Board, Central Valley, as may be amended or modified, and that is discharged 97 — 2 —AB 134 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 into the Sacramento River, may file an application for a permit to appropriate an amount of water up to the amount of treated wastewater that is discharged into the Sacramento River, less diminution by seepage, evaporation, transportation, or other natural causes between the point of discharge from the wastewater treatment plant and the point of diversion out of the Sacramento River or the Sacramento-San Joaquin Delta. (b)  Upon application for a permit to appropriate water pursuant to subdivision (a), the board may grant the permit subject to the terms and conditions as in the board’s judgment are necessary for the protection of the rights of any legal user of the water. (c)  Prior to the board granting a permit under subdivision (b), the board shall comply with the provisions of Part 2 (commencing with Section 1200) of Division 2, and other applicable law, and may impose terms and conditions authorized thereunder. (c) (d)  Water appropriated in accordance with this section may be sold or utilized for any beneficial purpose. SEC. 3. SEC. 2.The Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique problems applicable to the full utilization of the waters of the Sacramento River and the Sacramento-San Joaquin Delta, into which treated wastewater discharged by the Sacramento Regional County Sanitation District flows. O 97 AB 134— 3 — The Board of Supervisors County Administration Building 651 Pine Street, Room 106 Martinez, California 94553 John Gioia, 1st District Gayle B. Uilkema, 2nd District Mary N. Piepho, 3rd District Karen Mitchoff, 4th District Federal D. Glover, 5th District April 15, 2011 The Honorable Roger Dickinson State Capitol Room 3126 Sacramento, CA 95814 RE: AB 134 (Dickinson): Appropriation of Water: Sacramento Regional County Sanitation District – SUPPORT IN CONCEPT Dear Assembly Member Dickinson: As Chair of the Contra Costa County Board of Supervisors, I write to express our support in concept for your bill, AB 134. This bill would enable the Sacramento Regional County Sanitation District to sell the District’s high-quality recycled wastewater to downstream users, contingent on the issuance of a permit from the State Water Resources Control Board. We are aware that state water regulators last December directed the District to construct new treatment facilities at its wastewater treatment plant to limit ammonia levels discharged into the Delta. These upgrades will make a direct and lasting contribution to achieving the state’s co-equal goals of Delta ecosystem restoration and a reliable water supply for California. AB 134 addresses a fundamental principle that is important to Contra Costa County and to the Delta Counties Coalition in which we participate -- that the costs of restoring the Delta to benefit those who live and work outside the Delta should not be borne disproportionately by Delta residents. The bill provides the Sacramento Regional County Sanitation District with the opportunity to generate revenue from the sale of its high quality water to offset the costs of complying with state permit requirements. We believe the Sanitation District’s request in AB 134 to apply for another state permit for this purpose to offset the cost to its ratepayers is reasonable and appropriate. Contra Costa County’s Delta water policies also support increased water conservation. Consequently, we share the concern of the Water Parks and Wildlife Committee staff that legislation should not provide incentives for a water seller to increase water use in order to maximize revenue. We support consideration of an amendment recognizing David Twa Clerk of the Board and County Administrator (925) 335-1900 Contra Costa County 2 the need for increased conservation in the Sacramento region and limit the total volume of wastewater that could be subject to appropriation under this bill. For these reasons, Contra Costa County supports the bill in concept. Thank you for your efforts to protect the Delta as a place where our constituents live and work. Sincerely, GAYLE B. UILKEMA Chair, Board of Supervisors cc: Assembly Member Jared Huffman, Chair, Assembly Water, Parks and Wildlife Committee Members, Assembly Water, Parks and Wildlife Committee Consultants, Assembly Water, Parks and Wildlife Committee Contra Costa County Legislative Delegation Members, Board of Supervisors L. DeLaney, County Administrator’s Office M. Avalon, Flood Control District S. Goetz, Deputy Director, Conservation & Development Dept. C. Christian, Nielsen, Merksamer, Parrinello, Gross & Leoni P. Kutras, Delta Counties Coalition