BILL NUMBER: SB 163	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 8, 2016
	AMENDED IN ASSEMBLY  SEPTEMBER 3, 2015
	AMENDED IN SENATE  JUNE 2, 2015

INTRODUCED BY   Senator Hertzberg

                        FEBRUARY 4, 2015

   An act to add Section 13557.5 to the Water Code, relating to
water.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 163, as amended, Hertzberg. Wastewater treatment: recycled
water.
   The California Constitution requires that the water resources of
the state be put to beneficial use to the fullest extent of which
they are capable and that the waste or unreasonable use or
unreasonable method of use of water be prevented. Existing law
declares that the use of potable domestic water for certain
nonpotable uses is a waste or an unreasonable use of water if
recycled water is available, as determined by the State Water
Resources Control Board, and other requirements are met.
   Under existing law, the state board and the 9 California regional
water quality control boards prescribe waste discharge requirements
in accordance with the federal national pollutant discharge
elimination system (NPDES) permit program established by the federal
Clean Water Act and the Porter-Cologne Water Quality Control Act.
   This bill would declare  that the discharge of treated
wastewater from ocean outfalls,   that,  except in
compliance with the bill's provisions,  it  is a waste and
unreasonable use of  water in light of the cost-effective
opportunities to recycle this water for further beneficial use. This
bill, on or before January 1, 2026, would require a wastewater
treatment facility discharging through an ocean outfall to achieve at
least 50% reuse of the facility's actual annual flow, as defined,
for beneficial purposes. This bill, on and after January 1, 2036,
would prohibit the discharge of treated wastewater through ocean
outfalls, except as backup discharge, as defined, and would require a
wastewater treatment facility to achieve 100% reuse of the facility'
s actual annual flow for beneficial purposes. This bill, on and after
January 1, 2022, would authorize a NPDES permitholder subject to
these requirements to petition the state board for a partial
exemption to the above-described requirements. This bill would
require the state board to determine, after notice and opportunity
for comment, whether the petition demonstrates that the NPDES
permitholder cannot comply with these reuse requirements and would
provide that an exemption from these reuse requirements is valid for
a period of no more than 5 years, at which point the NPDES
permitholder is required to reapply for an exemption or comply with
these reuse requirements. This bill would prohibit a NPDES
permitholder subject to these provisions from being eligible for
state grants or loans if they receive a partial exemption to these
reuse requirements, unless the state grant or loan is solely for the
purpose of achieving compliance with these reuse requirements.
  water to discharge treated wastewater from an ocean or
bay outfall, or for a water supplier or water replenishment district
to not take treated   wastewater made available for certain
purposes. The bill would require the state board to promulgate
regulations, on or before January 1, 2020, that would require each
NPDES permitholder, on or before January 1, 2023, to submit to the
state board the permitholder's plans to achieve beneficial reuse, to
the maximum extent possible, of treated wastewater that would
otherwise be discharged through ocean or bay outfalls. The bill would
require these regulations to require, on or before January 1, 2033,
the beneficial reuse of at least 50% of treated wastewater that the
NPDES permitholder would otherwise discharge though ocean or bay
outfalls relative to the inflow to the treatment plant. The bill
would require the regulations to provide operational and compliance
flexibility, as specified. The bill would authorize the state board
to convene an advisory group and to consider any   other
recommendations or testimony provided during the regulation adoption
process. The bill would authorize the state board to adopt  
reasonable fees payable by a holder of an NPDES permit to recover
costs incurred in administering these provisions.  
   This bill would require a holder of a NPDES permit authorizing the
discharge of wastewater through an ocean outfall as of January 1,
2016, to submit, on or before July 1, 2020, a prescribed plan to meet
these provisions, directly or by contract, to the executive director
of the state board and would require the plan to be updated on or
before January 1, 2024. This bill, on or before January 1, 2017, and
by January 1 every 5 years thereafter, would require the holder of a
NPDES permit authorizing the discharge of wastewater through an ocean
outfall to submit a report to the executive director of the state
board summarizing the actions accomplished to date and the actions
remaining and proposed to meet the requirements of these provisions.
This bill would require the state board to submit a report to the
Governor and the Legislature on the implementation of these
provisions on or before July 1, 2021, and by July 1 every 5 years
thereafter. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

   SECTION 1.    Section 13557.5 is added to the 
 Water Code   , to read:  
   13557.5.  (a) The Legislature hereby finds and declares that,
except in compliance with the provisions of this section, it is a
waste and unreasonable use of water within the meaning of Section 2
of Article X of the California Constitution to discharge treated
wastewater from an ocean or bay outfall, or for a water supplier or
water replenishment district to not take treated wastewater made
available to the supplier or district for groundwater recharge,
surface water augmentation, or landscape irrigation.
   (b) On or before January 1, 2020, the state board shall promulgate
regulations to require both of the following:
   (1) On or before January 1, 2023, each holder of an NPDES permit
to submit to the state board the permitholder's plans to achieve
beneficial reuse, to the maximum extent possible, of treated
wastewater that would otherwise be discharged through ocean or bay
outfalls.
   (2) On or before January 1, 2033, the beneficial reuse of at least
50 percent of treated wastewater that the NPDES permitholder would
otherwise discharge through ocean or bay outfalls relative to the
inflow to the treatment plant.
   (c) The regulations promulgated pursuant to subdivision (b) shall
provide operational and compliance flexibility in the event of an
emergency, scheduled maintenance or repairs, extreme weather events,
or any other factor that the board determines warrants consideration.

   (d) In developing the regulations pursuant to subdivision (b), the
state board may convene an advisory group for the purpose of
preparing a report or recommendations to the state board about how to
implement this section and the state board may consider any other
recommendations or testimony provided during the regulation adoption
process.
   (e) Consistent with Section 3 of Article XIII A of the California
Constitution, the state board may adopt reasonable fees payable by a
holder of an NPDES permit to recover costs incurred in administering
this section.  
  SECTION 1.    The Legislature finds and declares
all of the following:
   (a) Severe drought conditions have persisted for the last three
years in California, and 2013 was the state's driest calendar year on
record.
   (b) California's water supplies have dipped to alarmingly low
levels indicated by the very limited snowpack in the Sierra Nevada
Mountains, declining water levels in the state's largest water
reservoirs, reduced surface water flows in major river systems, and
historically low groundwater levels. These water supplies continue to
be severely depleted despite a limited amount of winter
precipitation in 2014.
   (c) The duration of the drought is unknown, but based on the
projected impact of climate change on California's snowpack,
extremely dry conditions will likely continue beyond this year and
occur more regularly in the future.
   (d) Continuous severe drought conditions present urgent challenges
across the state, including, but not limited to, water shortages in
communities and for agricultural production, increased risk of
wildfires, degraded habitat for fish and wildlife, and threat of
saltwater contamination in large fresh water supplies.
   (e) Water reuse is one of the most efficient and cost-effective
ways to improve the drought resilience of California communities.
   (f) The State Water Resources Control Board has established goals
of recycling 1,500,000 acre-feet of wastewater by 2020 and 2,500,000
acre-feet of wastewater by 2030. However, California is not on track
to meet the board's goals.
   (g) The discharge of treated wastewater from ocean outfalls
constitutes waste and unreasonable use of water within the meaning of
Section 2 of Article X of the California Constitution, in light of
the opportunities to recycle this water for further beneficial use.
   (h) By prohibiting ocean discharges from wastewater treatment
plants, California could dramatically accelerate the adoption of
water recycling and thus increase water supply available for
beneficial use.
   (i) Water recycling can reduce California's dependence on
diversions from surface rivers and streams that are subject to
variable climate and regulatory conditions.
   (j) In addition to water supply benefits, requiring water
recycling for further beneficial use eliminates ocean wastewater
discharges, decreasing pollutant loadings to ocean waters and
improving coastal water quality, thereby benefitting the aquatic
environment and local economies that depend on those coastal
resources.  
  SEC. 2.    Section 13557.5 is added to the Water
Code, to read:
   13557.5.  (a) The Legislature hereby finds and declares that the
discharge of treated wastewater from ocean outfalls, except in
compliance with the provisions of this section, is a waste and
unreasonable use of water within the meaning of Section 2 of Article
X of the California Constitution in light of the cost-effective
opportunities to recycle this water for further beneficial use,
including both potable and nonpotable uses.
   (b) On or before January 1, 2026, each wastewater treatment
facility that discharges through an ocean outfall shall achieve at
least 50 percent reuse of the facility's actual annual flow for
beneficial purposes.
   (c) On and after January 1, 2036:
   (1) A wastewater treatment facility shall not discharge treated
wastewater through ocean outfalls, except as a backup discharge. A
backup discharge may occur only during periods of reduced demand for
reclaimed water in the reuse system, such as a period of wet weather.

   (2) Each wastewater treatment facility shall achieve 100 percent
reuse of the facility's actual annual flow for further beneficial
use.
   (d) (1) A holder of a NPDES permit authorizing the discharge of
wastewater through an ocean outfall as of January 1, 2016, shall
submit, on or before July 1, 2020, a plan to meet the requirements of
this section, directly or by contract, to the executive director of
the state board that contains all of the following:
   (A) An identification of all land acquisition and facilities
necessary to provide for treatment, transport, and reuse of treated
wastewater.
   (B) An analysis of the costs to meet the requirements of this
section.
   (C) A financing plan for meeting the requirements of this section,
including identifying any actions necessary to implement the
financing plan, such as bond issuance or other borrowing,
assessments, rate increases, fees, charges, or other financing
mechanisms.
   (D) A detailed schedule for the completion of all necessary
actions.
   (E) Supporting data and other documentation accompanying the plan.

   (2) On or before January 1, 2024, the plan described in paragraph
(1) shall be updated and submitted to the executive director of the
state board by the permit holder to include any refinements or
changes in the costs, actions, or financing necessary to achieve full
recycling of all wastewater and thereby eliminate the ocean outfall
discharge in accordance with this section or a written statement that
the plan is current and accurate.
   (e) On or before January 1, 2017, and by January 1 every five
years thereafter, the holder of a NPDES permit authorizing the
discharge of wastewater through an ocean outfall shall submit to the
executive director of the state board a report summarizing the
actions accomplished to date and the actions remaining and proposed
to meet the requirements of this section. The report shall include
progress toward meeting the deadlines set forth in subdivisions (b)
to (d), inclusive, and specifically include the detailed schedule
for, and status of, the following:
   (1) Evaluation of reuse and disposal options.
   (2) Preparation of preliminary design reports.
   (3) Preparation and submission of permit applications.
   (4) Construction initiation.
   (5) Construction progress milestones.
   (6) Construction completion.
   (7) Initiation of operation.
   (8) Continuing operation and maintenance.
   (f) (1) On or before July 1, 2021, and by July 1 every five years
thereafter, the state board shall submit a report to the Governor and
the Legislature on the implementation of this section. The report
shall summarize the progress up to date, including the increased
amount of reclaimed water provided and potable water offsets
achieved, and shall identify any obstacles to continued progress,
including all instances of substantial noncompliance.
   (2) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.
   (g) (1) On and after January 1, 2022, a NPDES permitholder subject
to the requirements of this section, may petition the state board
for a partial exemption to the requirements of this section. The
petition shall include the information required in subdivisions (d)
and (e), and shall demonstrate that the NPDES permitholder cannot
comply with the requirements of this section for one of the following
reasons:
   (A) The state board has failed to adopt regulations that approve
the indirect potable reuse of wastewater.
   (B) Upgrading the wastewater treatment plant to achieve recycled
water standards produces recycled water that costs more than twice
the cost per-acre foot as compared with other new surface and
groundwater supplies.
   (C) The wastewater treatment plant has achieved water quality
standards for recycled water, but there is not sufficient demand for
this water within the region.
   (2) The state board shall determine, after notice and opportunity
for comment, whether the petition demonstrates that the NPDES
permitholder cannot comply with the requirements of this section
pursuant to paragraph (1). If the state board approves the partial
exemption to the requirements of this section, that exemption shall
be valid for a period of no more than five years, at which point the
NPDES permitholder shall reapply for an exemption or comply with the
requirements of this section.
   (3) A NPDES permitholder subject to the requirements of this
section shall not be eligible for state grants or loans if they
receive a partial exemption to the requirements of this section
pursuant to this subdivision, unless the state grant or loan is
solely for the purpose of achieving compliance with the requirements
of this section.
   (h) As used in this section:
   (1) "Actual annual flow" means the annual average flow of treated
wastewater discharging through a facility's ocean outfall as
determined by the state board using monitoring data available for
calendar years 2009 to 2014, inclusive.
   (2) "Backup discharge" means a surface water discharge that occurs
as part of a functioning reuse system that has been permitted in
accordance with the rules of the state board and that provides
reclaimed water for irrigation or public access areas, residential
properties, edible food crops, sea water barrier injection to protect
groundwater resources, groundwater replenishment, industrial
cooling, or other acceptable reuse purposes. "Backup discharge" may
also include releases to the ocean on an emergency basis, as approved
by a regional board, for a duration not to exceed 90 days and only
in the quantities as are necessary in the event of a storm or other
cause that impedes groundwater replenishment.