BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1265|
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THIRD READING
Bill No: AB 1265
Author: Caballero (D), et al
Amended: 8/5/10 in Senate
Vote: 27 - Urgency
SENATE NATURAL RES. & WATER COMMITTEE : 8-1, 8/9/10
AYES: Pavley, Cogdill, Hollingsworth, Huff, Kehoe,
Lowenthal, Padilla, Simitian
NOES: Wolk
SENATE FLOOR : 27-7, 8/9/10
AYES: Aanestad, Alquist, Ashburn, Cedillo, Cogdill,
Correa, Denham, Ducheny, Dutton, Emmerson, Florez,
Harman, Hollingsworth, Huff, Kehoe, Liu, Lowenthal,
Negrete McLeod, Padilla, Pavley, Price, Romero, Simitian,
Steinberg, Strickland, Wright, Wyland
NOES: Corbett, DeSaulnier, Hancock, Leno, Runner, Wolk,
Yee
NO VOTE RECORDED: Calderon, Oropeza, Walters, Wiggins,
Vacancy, Vacancy
ASSEMBLY FLOOR : 54-22, 8/9/10 - See last page for vote
SUBJECT : Safe, Clean, and Reliable Drinking Water Supply
Act of
2012: surface storage projects: submission to
voters
SOURCE : Author
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DIGEST : This bill amends SB 2 X7 (Cogdill), Chapter 3,
Statutes of 2009-10, Seventh Extraordinary Session, to
delay the placement of the measure before voters to the
November 6, 2012 general election, and makes conforming
changes throughout the measure.
ANALYSIS :
Existing Law
1. A part of the water package passed in the 2009-10
Seventh Extraordinary Session was SB 2 X7. The bill
enacted the Safe, Clean, and Reliable Drinking Water
Supply Act of 2010, which, if approved by the voters in
November 2010, authorizes $11.14 billion in general
obligation bonds to fund various water resources
programs and project. The funding (in millions) by
chapter is as follows:
$455 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 Total
2. Chapter 8 would continuously appropriate $3.0 billion 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
hydrologic region to design, acquire, and construct
those projects.
3. Chapter 8 further specifies that the joint powers
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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 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:
A. The Water Commission has adopted the regulations
described above in #4.
B. The Water Commission has quantified and made
public the cost of the public benefits associated
with the project.
C. DWR has entered into contracts that ensure the
project sponsor(s) will pay its share of the total
costs of the project.
D. 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.
E. Feasibility studies have been completed.
F. All environmental documentation associated with
the project has been completed, and all other
federal, state, and local approvals, certifications,
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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.
6. 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:
A. All feasibility studies are complete and draft
environmental documentation is available for public
review.
B. 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.
C. The Director of DWR receives commitments for not
less than 75 percent of the nonpublic benefit cost
share of the project.
This bill:
1. Amends SB 2 X7 to delay the placement of the measure
before voters to the November 6, 2012 general election,
and make conforming changes throughout the measure.
2. Changes 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. Deletes an incorrect reference to the elections code in
the provisions of SB 2 X7 governing placing the measure
on the ballot.
Background
Area of Origin Provisions . The general provisions of SB 2
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X7 establish, in Section 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.
Promulgating Regulations . Chapter 8, in Section 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.
Early Allocations . Chapter 8, in Section 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. 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.
Completed Storage Requirements . Chapter 8, in Section
79747, 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
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final completion date two years to 2020.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/9/10)
Association of California Water Agencies
California Building Industry Association
California Chamber of Commerce
California Farm Bureau Federation
California Municipal Utilities Association
Dublin San Ramon Services District
Eastern Municipal Water District
Friant Water Authority
Helix Water District
Kern County Water Agency
San Diego County Water Authority
WateReuse California
Western Municipal Water District
ARGUMENTS IN SUPPORT : A coalition of supporters (see
list above) writes the following:
"While the decision to seek a delay is a difficult one,
it should not affect the momentum surrounding
implementation of the 2009 Delta legislative package.
The successful implementation of the 2009 Delta
legislative package, including a bond to provide
appropriate public financing, is of paramount importance
to the future of California. We continue to support
the package and its implementation moving forward.
"We recognize that this decision was very difficult to
make. However, given the current economic climate and the
need to focus on the state's dire budget shortfall, we
recognize that the decision is intended to maximize
chances of success for the water package over the next
decade."
ASSEMBLY FLOOR :
AYES: Adams, Arambula, Bass, Beall, Tom Berryhill,
Blakeslee, Block, Blumenfield, Bradford, Brownley,
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Caballero, Carter, Conway, Cook, Coto, Davis, De La
Torre, De Leon, Eng, Feuer, Fletcher, Fuentes, Fuller,
Furutani, Galgiani, Garrick, Gatto, Gilmore, Hagman,
Hall, Harkey, Hernandez, Jeffries, Lieu, Bonnie
Lowenthal, Ma, Mendoza, Miller, Nava, Nestande, Nielsen,
V. Manuel Perez, Portantino, Ruskin, Salas, Silva, Smyth,
Solorio, Audra Strickland, Swanson, Torres, Torrico,
Villines, John A. Perez
NOES: Ammiano, Anderson, Bill Berryhill, Buchanan,
Chesbro, DeVore, Evans, Fong, Gaines, Hayashi, Hill,
Huber, Huffman, Knight, Logue, Monning, Niello, Norby,
Saldana, Skinner, Torlakson, Yamada
NO VOTE RECORDED: Charles Calderon, Jones, Tran, Vacancy
CTW:mw 8/10/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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