BILL ANALYSIS AB 2717 Page 1 GOVERNOR'S ITEM VETO AB 2717 (Hertzberg) As Amended August 26, 2002 2/3 vote ASSEMBLY: 67-1 (May 2, 2002) SENATE: 28-2 (August 28, 2002) ASSEMBLY: 76-1 (August 29, 2002) Original Committee Reference: W., P. & W. SUMMARY : Requires the Department of Water Resources (DWR) to report to the Legislature on potential opportunities for the use of seawater and brackish water desalination in California, not later than July 1, 2004. The Senate amendments : 1)Change the reporting agency from the Legislative Analyst to DWR and add details of the Water Desalination Task Force to be formed to prepare the report. 2)Appropriate $600,000 from the Bosco-Keene Renewable Resources Investment Fund (Fund) to DWR for the purpose of establishing the Water Desalination Task Force (Task Force). EXISTING LAW authorizes DWR to conduct a program of investigation, study, and evaluation in the field of seawater desalination, to provide assistance to those seeking to construct desalination facilities, and after submission of a written report and upon appropriation from the Legislature, to finance, construct, and operate desalination facilities. AS PASSED BY THE ASSEMBLY , this bill required the Legislative Analyst Office (LAO) to submit a report to the Legislature, no later than July 1, 2003, a study on potential opportunities and existing impediments for promoting the development of seawater desalination in California. FISCAL EFFECT : $600,000 from the Fund to DWR for the purpose of establishing the Task Force. AB 2717 Page 2 COMMENTS: The Senate version of this bill achieves the same objective of a study of desalination opportunities in the state, but changes the responsible agency from LAO to DWR, adds the requirement of forming a Task Force, and appropriates funds. GOVERNOR'S ITEM VETO MESSAGE : I am signing Assembly Bill 2717, however, I am reducing the appropriation from the renewable Resources Investment Fund to $100,000. This bill would require the Department of Water Resources to convene a Water Desalination task force to make recommendations related to potential opportunities for the use of seawater and brackish water desalination. The revenues from the Renewable Resources Investment Fund are below projections and the fund is expected to have a significant shortfall this year. At a time when the state is dealing with a $24 billion shortfall, any available funds should be used for on-going environmental activities and programs now supported by the General Fund that would otherwise be reduced or eliminated. Studying the potential opportunities and impediments for the use of water desalination is an important step toward helping the state meet its water needs. Therefore, I am directing the Department of Water Resources to explore funding partnerships with interested local and private entities to accomplish this goal. Analysis Prepared by: Jeff Volberg / W., P. & W. / (916) 319-2096 AB 2717 Page 3 FN: 0008092