BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 732|
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                                 THIRD READING


          Bill No:  SB 732
          Author:   Steinberg (D), et al
          Amended:  6/4/07
          Vote:     21

           
           SENATE NATURAL RES. & WATER COMMITTEE  :  5-2, 04/24/07
          AYES:  Steinberg, Kehoe, Kuehl, Machado, Migden
          NOES:  Margett, Hollingsworth
          NO VOTE RECORDED:  Cogdill

          SENATE APPROPRIATIONS COMMITTEE  :  10-6, 5/31/07
          AYES:  Torlakson, Cedillo, Corbett, Florez, Kuehl, Oropeza,  
            Ridley-Thomas, Simitian, Steinberg, Yee
          NOES:  Cox, Aanestad, Ashburn, Dutton, Runner, Wyland
          NO VOTE RECORDED:  Battin


           SUBJECT  :    Safe Drinking Water, Water Quality and Supply,  
          Flood
                      Control, River and Coastal Protection Board Act  
          of 2006

           SOURCE  :     Author


           DIGEST  :    This bill provides statutory direction and  
          requirements with regard to the implementation of the Safe  
          Drinking Water, Water Quality and Supply, Food Control,  
          River and Coastal Protection Bond Act of 2006.

           ANALYSIS  :    

                                                           CONTINUED





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          Existing law:

          On November 7, 2006, the voters approved the voter  
          initiative titled The Safe Drinking Water, Water Quality  
          and Supply, Flood Control, River and Coastal Protection  
          Bond Act of 2006 (Proposition 84).  Proposition 84  
          authorizes the state to sell about $5.4 billion in general  
          obligation bonds for safe drinking water, water quality,  
          and water supply; flood control; natural resource  
          protection; and park improvements, as follows:

          $1,525 M  Safe Drinking Water and Water Quality Projects
                    $1,000 M  Integrated regional water management
                         380 MSafe drinking water
                         145 MDelta and agriculture water quality

          $928 MProtection of Rivers, Lakes, and Streams
                       $279 MRegional conservancies
                         189 MPublic access, river parkways, urban  
          streams, &
                              other projects
                         180 MDelta and coastal fisheries restoration
                         100 MRestoration of the San Joaquin River
                           90 MRestoration projects related to the  
          Colorado River
                           90 MStormwater pollution prevention

          $800 MFlood Control
                        $315 MState flood control projects
                          275 MFlood control projects in the Delta
                          180 MLocal flood control subventions
                            30 MFloodplain mapping and assistance for  
          local land
                              use planning

          $580 MSustainable Communities and Climate Change Reduction
                        $400 MLocal and regional parks
                            90 MUrban water and energy conservation  
          projects
                            90 MIncentives for conservation in local  
          planning

          $540 MProtection of Beaches, Bays, and Coastal Waters
                        $360 MProtection of various coastal areas and  







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          watersheds
                            90 MClean Beaches Program
                            90 MMarine resources, sustainable  
          fisheries, & marine
                              wildlife conservation

          $500 MParks and Natural Education Facilities
                         $400 MState park system acquisition,  
          development, and
                              restoration
                           100 MNature education and research  
          facilities

          $450 MForest and Wildlife Conservation
                        $225 MWildlife habitat protection
                          180 MForest conservation
                            45 MProtection of ranches, farms, and oak  
          woodlands

          $65 MStatewide Water Planning
                          $65 MPlanning for future water needs
          $5,388 M  Total

          Some of the funding authorized in Proposition 84 can be  
          allocated through existing programs.  However, there are a  
          number of funding categories that require new programs. 

          This bill provides a comprehensive statutory framework to  
          implement the new programs under Proposition 84 and will  
          address several issues raised by the Legislative Analyst's  
          Office (LAO).  Specifically, this bill establishes the  
          following elements:

          1.General provisions:
          Each state agency distributing a grant or loan from  
            Proposition 84 fund must develop project solicitation and  
            evaluation guidelines by March 15, 2008. The guidelines  
            must be developed with public participation through at  
            least one geographically appropriate meeting.  The  
            guidelines may include a limitation on grant or loan  
            award amount.  Alternatively to creating new guidelines,  
            agencies may use applicable guidelines that were in  
            existence on January 1, 2007.








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          2.Reporting requirements:
          Each state agency responsible for allocating a portion of  
            Proposition 84 monies will be required to submit to the  
            Legislature an annual report that will include the  
            recipient, purpose, and amount of each project, grant, or  
            loan awarded during the previous fiscal year.  The  
            information shall also include data on the balance of the  
            fund available for expenditures in future fiscal years.

          3.Eligibility of investor-owned utilities:
          Investor-owned utilities will be eligible for public funds  
            under Proposition 84 if the funds benefit the ratepayers  
            and not the investors.

          4.Statewide Water Planning and Design:
          This bill requires the Department of Water Resources, in  
            collaboration with others, to conduct a study to reduce  
            flood risks and increase water supply reliability by  
            reoperating the existing flood management and water  
            supply facilities. 

          5.Integrated Regional Water Management:
          This bill establishes statewide priorities for integrated  
            regional water management plans and clarifies that  
            investor-owned utilities may participate in the  
            development of such plans.

          6.Nature Education and Natural History Museums:
          This bill directs the Department of Parks and Recreation  
            (DPR) to develop guidelines for a multi-year competitive  
            grant program for natural history museums, aquariums, and  
            nature education facilities. 

          Grants shall not be awarded for interpretation or ongoing  
            activities. Additional consideration to projects that: 

             A.   Serve underserved communities such as those with  
               high rates of poverty and limited park access.
            B.   Cooperate with public education institutions.
            C.   Provide matching funds from non-state sources, and 
            D.   Utilize the US Green Council's building standards.

          7.Local Park Assistance Program:
          This bill directs DPR to develop guidelines to implement a  







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            new competitive local parks program that will fund both  
            new parks and new park opportunities and a balance of  
            passive and active recreation.  This program will also  
            serve as the framework for the administration of park  
            funds made available by Proposition 1C in the  
            Urban-Suburban-Rural Account (Section 53545(d) of the  
            Health and Safety Code).

          The guidelines must allow departmental oversight and  
            require applicants to illustrate how they are meeting the  
            intent of the bond.  Cities, counties, special districts,  
            and nonprofits are eligible applicants.

          Projects will compete against projects in similar-sized  
            counties.  Preference and additional consideration will  
            be given to projects that:

             A.   Create parks in neighborhoods where none currently  
               exist or that expand overused parks.
             B.   Satisfy the most urgent recreation needs, with an  
               emphasis on unmet needs in the most heavily populated  
               and economically disadvantaged communities.
             C.   Projects that facilitate partnerships of public  
               resources and investment.
            D.   Actively involve community based groups.
            E.   Facilitate joint use of public resources and  
          investment.
            F.   Provide efficient uses of natural resources, and 
            G.   Comply with existing local plans. 

          8.Sustainable Communities Council (SCC):
          This bill creates the Sustainable Communities Council to  
            coordinate the activities of various state agencies that  
            aim to improve air and water quality, natural resource  
            protection, affordable housing, and transportation  
            through land use planning. The Council will consist of  
            the Secretary of Resources (chair), the Secretary of  
            Environmental Protection, the Secretary of Business,  
            Transportation, and Housing, and two members of the  
            public appointed by the Governor.

          The SCC will develop the following five types of programs  
            for various grants and loans:








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             A.   Grants and loans to cities and counties for  
               preparing and adopting or implementing general plans.
             B.   Grants and loans to councils of governments,  
               countywide authorities, and metropolitan planning  
               organizations to support the preparation, adoption,  
               and implementation of regional blueprint planning  
               programs or regional growth plans that will serve as  
               the preferred growth strategy for the region and the  
               basis for all land use allocation and regional  
               transportation plans.
             C.   Grants and loans to counties and the cities in  
               those counties, if any, to prepare collaborative  
               strategic growth plans, which align general plans with  
               regional plans.
             D.   Grant programs for urban greening projects, which  
               are defined to be projects that provide multiple  
               community benefits.
             E.   A local assistance grant program for the  
               development of parks associated with housing for the  
               purpose of distributing funds made available by  
               Proposition 1C.  This program shall build on the  
               guidelines and structure established in the Statewide  
               Parks Act.
          9.Declares the Legislative intent to provide grants or  
            loans to help local agencies complete or update local  
            coastal programs.

           San Francisco Bay Area Conservancy
           
          Allows the San Francisco Bay Area Conservancy to use  
          conservancy funds to restore and develop the salt ponds in  
          the San Francisco Bay.


           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions                2007-08     2008-09     
           2009-10   Fund  
          Bonuses for early projects    Unknown, potentially  







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          significant                                       BF*
          Sustainable Communities   $4            $8        $8   BF*
            Council
          Administrative costs                             $270,000  
          over life of bond                            BF*

          *Proposition 84

           SUPPORT  :   (Verified  6/5/07)

          Aquarium of the Pacific
          California Park and Recreation Society
          California ReLeaf
          City of Claremont
          City of Glendale
          City of San Carlos
          City of Vista
          Peninsula Open Space Trust
          Sacramento Tree Foundation
          The Nature Conservancy
          TreePeople

           OPPOSITION  :    (Verified  6/5/07)

          Department of Finance
          East Bay Municipal Utility District
          Friant Water Authority

           ARGUMENTS IN SUPPORT  :    Supporters claim the bill benefits  
          urban forestry and other urban greening activities, and  
          that the bill is important to ensure the administration of  
          Proposition 84 funds, such as direct funding to areas in  
          the state with the greatest deficiencies in park land.

           ARGUMENTS IN OPPOSITION  :    The Friant Water Authority is  
          opposed unless amended to this bill because they are  
          concerned that the definition of 'statewide priorities'  
          would, "not allow projects developed by the Authority or  
          its Member Districts for the purpose of mitigating water  
          supply losses associated with implementation of the San  
          Joaquin River settlement."  
           

          CTW:nl  6/5/07   Senate Floor Analyses 







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                         SUPPORT/OPPOSITION:  SEE ABOVE

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