BILL ANALYSIS
-----------------------------------------------------------------
| |
| SENATE COMMITTEE ON NATURAL RESOURCES AND WATER |
| Senator Fran Pavley, Chair |
| 2009-2010 Regular Session |
| |
-----------------------------------------------------------------
BILL NO: AB 1265 HEARING DATE: August 9, 2010
AUTHOR: Caballero URGENCY: Yes
VERSION: August 5, 2010 CONSULTANT: Dennis O'Connor
DUAL REFERRAL: No FISCAL: Yes
SUBJECT: Safe, Clean, and Reliable Drinking Water Supply Act of
2012
BACKGROUND AND EXISTING LAW
1.A part of the water package passed in the 2009/10 7th
Extraordinary Session was SBX7 2 (Cogdill). That bill enacted
the Safe, Clean, and Reliable Drinking Water Supply Act of
2010, which, if approved by the voters in November 2010, would
authorize $11.14 billion in general obligation bonds to fund
various water resources programs and project. The funding by
chapter is as follows:
$455 M Chapter 5. Drought Relief
$1,050 Chapter 6.Water Supply Reliability
$2,250 Chapter 7.Delta Sustainability
$3,000 Chapter 8.Statewide Water System
Operational Improvement
$1,785 Chapter 9.Conservation And Watershed
Protection
$1,000 Chapter 10.Groundwater Protection And
Water Quality
$1,250 Chapter 11.Water Recycling Program
$11,140 M Total
2.Chapter 8 would continuously appropriate $3.0 B to the
California Water Commission for surface and groundwater
storage projects. Chapter 8 specified, among other things,
that funds allocated for construction of surface storage
projects identified in the CALFED Bay-Delta Record of Decision
may be provided for those purposes to local joint powers
authorities formed by irrigation districts and other local
water districts and local governments within the applicable
1
hydrologic region to design, acquire, and construct those
projects.
3.Chapter 8 further specifies that the joint powers authorities
(JPA) could include in their membership governmental and
nongovernmental partners that are not located within their
respective hydrologic regions in financing the surface storage
projects, including, as appropriate, cost share participation
or equity participation. Also the Department of Water
Resources (DWR) would be an ex-officio member of each joint
powers authority subject to this section, but the DWR would be
prohibited from controlling the governance, management, or
operation of the surface water storage projects.
4.Chapter 8 further requires that the California Water
Commission, by December 15, 2012, develop and adopt
regulations establishing methods for quantifying and managing
public benefits associated with the water storage projects.
5.Chapter 8 prohibits the Water Commission from allocating funds
provided by that chapter before by December 15, 2012, unless
specific requirements have been met. These include:
The Water Commission has adopted the regulations
described above in 4.
The Water Commission has quantified and made public the
cost of the public benefits associated with the project.
The Department of Water Resources (DWR) has entered into
contracts that ensure the project sponsor(s) will pay its
share of the total costs of the project.
DWR has entered into contracts with the appropriate
public agency(s) to ensure that the public contribution of
funds pursuant to this chapter achieves the public benefits
identified for the project.
Feasibility studies have been completed.
All environmental documentation associated with the
project has been completed, and all other federal, state,
and local approvals, certifications, and agreements
required to be completed have been obtained.
These provisions do not apply to grants for completing
environmental documentation and permitting of a project.
1.Chapter 8 further prohibits the Water Commission from
allocating funds provided by that chapter unless, by January
1, 2018, all of the following conditions are met:
All feasibility studies are complete and draft
environmental documentation is available for public review.
2
The Water Commission makes a finding that the project is
feasible, and will advance the long-term objectives of
restoring ecological health and improving water management
for beneficial uses of the Delta.
The director of DWR receives commitments for not less
than 75 percent of the nonpublic benefit cost share of the
project.
PROPOSED LAW
This bill would:
1.Amend SBX7 2 to delay the placement of the measure before
voters to the November 6, 2012 general election, and would
make conforming changes throughout the measure.
2.Change the language in Chapter 8 governing the JPA, to clarify
that the JPA could not include in their membership any
for-profit corporation, or any mutual water company whose
shareholders and members include a for-profit corporation or
any other private entity.
3.Declare that the bill is an urgency measure, the facts
constituting the necessity being:
In order to enable the Secretary of State to make the changes
required by this act at the earliest possible date, and to
ensure that the Safe, Clean, and Reliable Drinking Water
Supply Act of 2012 is submitted to the voters at the November
6, 2012, statewide general election, it is necessary that this
act take effect immediately.
4.Delete an incorrect reference to the elections code in the
provisions of SBX7 2 governing placing the measure on the
ballot.
ARGUMENTS IN SUPPORT
None Received
ARGUMENTS IN OPPOSITION
None Received
COMMENTS
Delays Many, But Not All Dates. While the bill proposes to
change the dates governing the title of the measure, when the
measure would be placed before the voters, etc, it does not
3
change all of the operative dates established in SBX7 2. Five
dates in particular are not proposed to be changed.
1.Area of Origin Provisions. The general provisions of SBX7 2
establish, in 79713(b), that for purposes of this bond
measure, an area outside of the Sacramento River hydrologic
region or the Delta that receives water exported from the
Sacramento River hydrologic region shall not be deemed to be
immediately adjacent to or capable of being conveniently
supplied with water therefrom if that water is delivered via
facilities constructed for that purpose after January 1, 2010.
It is not clear whether or not it is necessary or desirable to
delay the application of the area of origin provision to 2012.
2.Promulgating Regulations. Chapter 8, in 79744, requires that
the Water Commission, by December 15, 2012, develop and adopt
regulations establishing methods for quantifying and managing
public benefits associated with the water storage projects.
That requirement does not become operative until ratified by
the voters.
If the voters approve the bond in the November 2012 general
election, the Water Commission would have at most a matter of
days to develop and adopt such regulations, regulations that
often take years to develop and adopt. This seems highly
unlikely. (See Amendment 1).
3.Early Allocations. Chapter 8, in 79745, prohibits the Water
Commission from allocating funds provided by that chapter
before by December 15, 2012, unless specific requirements have
been met. These requirements include promulgating regulations
(see 2. above). After that date, the more general
requirements that must be met by January 1, 2018 are the only
restrictions on the Water Commission's ability to allocate the
funds continuously appropriated to them through Chapter 8.
If the voters approve the bond in the November 2012 general
election, the restrictions on early allocations would be in
place for at most a matter of days. Given that it will take
the Water Commission some time to develop the regulations
necessary to implement Chapter 8, extending the provisions
governing early allocations also seems desirable. (See
Amendment 2).
4.Completed Storage Requirements. Chapter 8, in 79747,
4
prohibits the Water Commission from allocating funds provided
by that chapter unless, by January 1, 2018, specific
requirements have been met.
If the voters approve the bond in the November 2012 general
election, sponsors of storage projects would have six years to
meet all the necessary requirements. It is not clear whether
or not it is necessary or desirable to delay the final
completion date two years to 2020.
5.Staged Release of Funds. The fiscal provisions of SBX7 2, in
79824, prohibit the Treasurer from selling more than half of
the bonds authorized by SBX7 2 before July 1, 2015.
It is not clear whether or not it is necessary or desirable to
extend the date limiting the sale of bonds.
Are These The Only Corrections Needed? The press periodically
reports on one group or another asserting that the bond includes
too much pork, is tilted too much towards environmental
programs, includes too much money for traditional water
projects, includes too many carve outs, or is simply too large.
It is not clear whether additional amendments to the bond are
necessary or desirable to address other perceived deficiencies.
Related Bills
AB 2775 (Huffman) would change the language in Chapter 8
governing the JPA, to clarify that the JPA could not
include in their membership any for-profit corporation, or
any mutual water company whose shareholders and members
include a for-profit corporation or any other private
entity. The relevant language AB1265 is identical to the
language in the current (June 29, 2010) version of AB 2775.
AB1260 (Fuller) would extend the terms of all the
California Water Commissioners to May 15, 2014, and then
resume the staggered terms established under current law.
SUGGESTED AMENDMENTS
AMENDMENT 1: On page 5, following line 4, insert:
SEC. 5. Section 79744 of the Water Code, as added by
Section 1 of Chapter 3 of the Seventh Extraordinary Session
of the Statutes of 2009, is amended to read:
79744. In consultation with the Department of Fish and
Game, the State Water Resources Control Board, and the
5
department, the commission shall develop and adopt, by
regulation, methods for quantification and management of
public benefits described in Section 79743 by December 15,
2012 2014 . The regulations shall include the priorities and
relative environmental value of ecosystem benefits as
provided by the Department of Fish and Game and the
priorities and relative environmental value of water
quality benefits as provided by the State Water Resources
Control Board.
AMENDMENT 2: On page 5, before line 5, insert:
SEC. 6. Section 79745 of the Water Code, as added by
Section 1 of Chapter 3 of the Seventh Extraordinary Session
of the Statutes of 2009, is amended to read:
79745. (a) Except as provided in subdivision (c), no
funds allocated pursuant to this chapter may be allocated
for a project before December 15, 2012 2014 , and until the
commission approves the project based on the commission's
determination that all of the following have occurred:
(1) The commission has adopted the regulations specified
in Section 79744 and specifically quantified and made
public the cost of the public benefits associated with the
project.
(2) The department has entered into a contract with each
party that will derive benefits, other than public
benefits, as defined in Section 79743, from the project
that ensures the party will pay its share of the total
costs of the project. The benefits available to a party
shall be consistent with that party's share of total
project costs.
(3) The department has entered into a contract with each
public agency identified in Section 79744 that administers
the public benefits, after that agency makes a finding that
the public benefits of the project for which that agency is
responsible meet all the requirements of this chapter, to
ensure that the public contribution of funds pursuant to
this chapter achieves the public benefits identified for
the project.
(4) The commission has held a public hearing for the
purposes of providing an opportunity for the public to
review and comment on the information required to be
prepared pursuant to this subdivision.
(5) All of the following additional conditions are met:
(A) Feasibility studies have been completed.
(B) The commission has found and determined that the
project is feasible, is consistent with all applicable laws
and regulations, and will advance the long-term objectives
6
of restoring ecological health and improving water
management for beneficial uses of the Delta.
(C) All environmental documentation associated with the
project has been completed, and all other federal, state,
and local approvals, certifications, and agreements
required to be completed have been obtained.
(b) The commission shall submit to the Legislature its
findings for each of the criteria identified in subdivision
(a) for a project funded pursuant to this chapter.
(c) Notwithstanding subdivision (a), funds may be made
available under this chapter for the completion of
environmental documentation and permitting of a project.
AMENDMENT 3: Revise Section numbers on pages 5 through 8 as
appropriate
SUPPORT
None Received
OPPOSITION
None Received
7