Possible Changes in Water Industry Regulations; AB 990 and SB 1035
Pending Bills AB 990 and SB 1035 Could Change Construction Requirements
Legislation Under Review
At present, there are two bills under review in Sacramento which would result in new industry regulations, AB 990, and SB 1035. Each of these reflects a changing climate, and our region’s drought history. Given that the water outlook for our state has already been difficult for some time, and is predicted to become even more challenging, the importance of these bills is clear. Whether these bills are the optimal way to address the challenge is undecided.
Assembly Bill 990 would require all new construction projects in California to be designed and built to capture and reuse stormwater. This could impact the construction process by requiring builders to install stormwater capture systems and by requiring them to modify their construction methods to minimize stormwater runoff.
Senate Bill 1035 would require all new commercial and industrial buildings in California to be equipped with water-efficient fixtures. This could impact the construction process by requiring builders to install water-efficient toilets, faucets, and showers.
Introduced in the California State Assembly in January 2023, AB 990, or the Water Quality: Waste Discharge Requirements: Infill Housing Projects bill would require the regional water board, with oversight in the San Francisco Bay region, to initiate modifications to its waste discharge requirements for infill housing projects. This would be required by July 1, 2024.
Specific requirements would include:
- The capture and reuse of stormwater in infill housing projects.
- Establishment of minimum standards for treatment of stormwater runoff from infill housing projects.
- Develop and implementation of a stormwater management plan for infill housing projects.
The bill would also require the same regional water board to report to provide the Legislature with an update on how the new plan is being implemented; the update must occur by January 1, 2026. Currently, AB 990 is currently pending in the Assembly’s Water, Parks, and Wildlife Committee.
Some of the potential impacts of AB 990 include:
- Increased costs for infill housing projects.
- Increased stormwater capture and treatment infrastructure.
- Improved water quality in the San Francisco Bay.
- Reduced stormwater runoff pollution.
So far, the proposed bill has received mixed responses from the various community stakeholders. Environmental groups believe it is a necessary step in safeguarding water quality in the San Francisco Bay. However, there is also pushback from local developers who point out the potential costs of the bill and what those costs could mean to the availability of affordable housing.
See a short presentation regarding MWD’s Pure Water California water recycling program.
State Bill 1035
The California Department of Water Resources (DWR) estimates that at least 7% of residential accessed water, or at least 84 billion gallons, is lost every year to known leaks. This ie enough water to flood more than 191,000 football fields one foot deep. Again, with the water scarcity that climate change is already bringing, the Senate has introduced SB 1035, the Water Conservation: Commercial and Industrial Water Efficient Fixtures bill.
SB 1035 would require all new commercial and industrial buildings in California to be equipped with water-efficient fixtures. While the scope of this bill does not directly impact those of us working in the water treatment infrastructure industry, it does represent change for any builders working on new commercial and industrial buildings. Specific features of the bill include:
- Commercial and industrial properties would be required to install water efficient fixtures in all new and renovated restrooms.
- The fixtures would need to meet or exceed the water efficiency standards set by the California Energy Commission.
- The bill would provide financial assistance to help commercial and industrial properties pay for the installation of water efficient fixtures.
- All new commercial and industrial buildings would need to have a water efficiency plan, detailing how the building will conserve water.
Potential impacts that flow from SB 1035 include:
- Increased costs for new commercial and industrial buildings.
- Increased water conservation in commercial and industrial sectors.
- Reduced water demand in California.
- Improved water quality in California.
Like AB 990, SB 1035 has also been met with mixed responses, for basically the same reasons; the environmentalists are in support of the way such a law would conserve more water while businesses are concerned about how higher costs would impact their profitability. To address this concern, the bill does include a provision for a new water conservation fund to help businesses comply with the new requirements.
In its current form, the proposed law would apply to all new commercial and industrial buildings larger than 5,000 square feet in size and built after January 1, 2025. The bill does include exemptions for certain buildings, including hospitals and schools.
General Advantages and Disadvantages
Like all legislation, there are a few advantages and disadvantages associated with each of these two proposed laws. We’ll address each bill separately, here.
AB 990, or the Water Quality: Waste Discharge Requirements: Infill Housing Projects bill
Advantages
Stormwater runoff is a major source of pollution in the San Francisco Bay, since it can carry pollutants like sediment, bacteria, and chemicals. AB 990 would require infill housing projects to capture and treat stormwater runoff before it reaches the bay by requiring infill housing projects to capture and treat stormwater runoff.
By requiring infill housing projects to capture and treat stormwater runoff, the amount of stormwater capture and treatment infrastructure in California would increase, improving water quality and reducing flooding.
By increasing the amount of stormwater that is captured and reused, California’s reliance on imported water will decline.
Disadvantages
- Increased costs for infill housing projects. AB 990 would require infill housing projects to capture and treat stormwater runoff. This would increase the costs of these projects, which could make it more difficult to build affordable housing.
- Developers may be less likely to build affordable housing if it is more expensive to build.
- Stormwater capture and treatment systems can have environmental impacts, such as the release of greenhouse gases. However, these impacts can be minimized if the systems are properly designed and operated.
Senate Bill 1035: Water Conservation: Commercial and Industrial Water Efficient Fixtures Bill
Advantages:
- SB 1035 will improve the efficiency of water use in new commercial and industrial buildings. These two sectors consume more than 17% of all fresh water in California.
By improving the efficiency of water use in these buildings, SB 1035 would reduce overall water demand in our increasingly parched state. - By reducing the overall amount of water used in commercial and industrial buildings, less water is available to carry pollutants into waterways.
- The bill elevates awareness of water conservation in the commercial and industrial sectors. This could lead to more businesses voluntarily adopting additional water-efficient practices.
- SB 1035 could lead to more job creation, potentially in the water conservation industry.
- Businesses that adopt more water-efficient practices could save money on their water bills.
Disadvantages:
- Unfortunately, more water efficient fixtures come at a higher price than traditional ones. The required use of these fixtures will make construction more expensive.
- Increased construction costs could have a negative impact on business profitability, and possibly lead to price inflation as commercial buildings pass the expenses along to their customers.
- Higher operating costs could drive more businesses out of California. In some places, California has already developed an ‘anti-business’ reputation, a reason why many companies have relocated to more business-friendly states such as Texas and Nevada in recent years.
- At the moment, it is not clear how this bill would be implemented. Unless this situation improves, this could lead to uncertainty and confusion among businesses and regulators.
Possible Economic Impact
The potential economic impact that passage of either or both of these bills could have is difficult to predict. The actual economic impact depends on such factors as how the new laws would be implemented and how the water market responds. However, there are several possibilities that should be considered.
Positive impacts
- Increased water conservation: These bills could lead to increased water conservation in California, which could save the state money on its water bills.
- Creation of new jobs: These bills could lead to the creation of new jobs in the water conservation and construction industries.
- Improved water quality: These bills could lead to improved water quality in California, which could benefit public health and the environment.
Negative impacts:
- Increased costs: These bills could increase the costs of construction and water use in California, which could have a negative impact on businesses and consumers.
- Delays in development: These bills could lead to delays in the development of new housing, businesses, and water storage projects and this would also mean stalling the economic benefits that such projects could deliver.
- Unintended consequences: These bills could have unintended consequences, such as the displacement of businesses or the disruption of wildlife habitats.
What if These Bills Do Not Become Laws?
Failure of either of these bills to pass into law could lead to various complications.
These include:
- Increased water scarcity: California is already facing a water shortage. If the current bills do not pass, the state could face even greater water scarcity in the short term.
- Increased costs: The lack of new water conservation and water storage measures could lead to increased costs for businesses and consumers.
- Delays in development: The lack of new water conservation and water storage measures could lead to delays in the development of new housing, businesses, and water storage projects.
- Environmental impacts: The lack of new water conservation and water storage measures could have negative environmental impacts, such as the degradation of water quality and the loss of wetlands.
- Public health impacts: The lack of water could have a negative impact on public health, leading to the spread of disease and the degradation of water quality.
Caliagua is a family-owned business, proud to be in the second and third-generations of management. Staying on top of the legislation that impacts the water infrastructure industry is part of how we serve our clients with excellence. We believe that participating in the political process is more than just good business. It’s a privilege that we value and take seriously. We encourage your comments regarding this blog, and we look forward to hearing from you!