BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 808| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 808 Author: Wolk (D), et al Amended: 1/25/10 Vote: 27 - Urgency SENATE NATURAL RES. & WATER COMMITTEE : 9-0, 1/12/10 AYES: Pavley, Cogdill, Hollingsworth, Huff, Kehoe, Leno, Padilla, Simitian, Wolk SENATE APPROPRIATIONS COMMITTEE : 9-0, 1/21/10 AYES: Kehoe, Cox, Corbett, Denham, Leno, Liu, Price, Walters, Yee SUBJECT : Delta levee maintenance SOURCE : Author DIGEST : This bill extends the sunset on the current Delta levee maintenance subvention programs 75 percent-25 percent reimbursement rate from July 1, 2010 to July 1, 2013. ANALYSIS : Existing law 1. Establishes a delta levee maintenance program pursuant to which a local agency may request reimbursement for costs incurred in connection with the maintenance or improvement of project or nonproject levees in the CONTINUED SB 808 Page 2 Sacramento-San Joaquin Delta. 2. Declares legislative intent to reimburse eligible local agencies under this program, until July 1, 2010, in an amount not to exceed 75 percent of those costs that are incurred in excess of $1,000 per mile of levee, and on and after that date, in an amount not to exceed 50 percent of those described costs. 3. Authorizes, until July 1, 2001, the Central Valley Flood Protection Baord to provide funds to an eligible local agency under this program in the form of an advance in an amount that does not exceed 75 percent of the estimated state shares. This bill extends the sunset on the current Delta levee maintenance subvention program's 75 percent, 25 percent reimbursement rate from July 1, 2010 to July 1, 2013, and directs the program to reflect specified priorities and be consistent with the Delta plan. Background The Delta levees help maintain the Delta in its current state and are essential for the protection from flooding of human life, property (e.g. buildings, equipment, and crops, among others), water quality and wildlife habitat. While the Delta levees are mostly private, the State relies upon them to maintain the Delta in its current state as a water conveyance system for the State Water Project (SWP) and the federal Central Valley Project (CVP). The Delta levee maintenance subvention program was created by SB 541 (Way), Chapter 717, Statutes of 1973. The program has been modified periodically since its inception and currently provides reimbursement funds to local agencies for costs incurred in any year for the maintenance or improvement of project or non-project levees. Until June 30, 2010 the reimbursement rate is: (1) zero if the entire cost incurred per mile of levee is $1,000 or less; and (2) up to 75 percent of any costs incurred in excess of $1,000 per mile of levee would be paid by the State based upon an assessment of the agency's ability to pay. SB 808 Page 3 On July 1, 2010 the reimbursement rate will become: (1) zero if the entire cost incurred per mile of levee is $1,000 or less (no change); and (2) 50 percent of any costs incurred in excess of $1,000 per mile of levee would be paid by the State. General Fund contributions to this program are capped at $2 million per year. Comments The Delta Plan - AB 798 (Wolk), Chapter 548, Statutes of 2006 provided a four-year extension (2006 to 2010) to the Delta levee maintenance subventions program. The 2010 sunset date in AB 798 was based on the anticipated completion of levee funding priorities, as required by AB 1200 (Laird), Chapter 573, Statutes of 2005. AB 1200 required the Department of Water Resources (DWR) to study the risks posed to the integrity of the Delta by various hazards (see Water Code sections 139.2 and 139.4) and to prioritize options for their mitigation. This report, produced in January 2008, provided the preliminary results of Delta Risk Management Strategy (DRMS). DWR, in collaboration with other organizations, created DRMS in response to AB 1200. Phase I of DRMS - an analysis of the various risks to levees and the local and statewide consequences of levee failure - was completed in early 2009. Phase II of the DRMS, which identifies and analyzes various scenarios to reduce the risks and consequences of levee failure, is not yet completed. According to DWR, the timeline for completion of Phase II is uncertain at this point due to the State's budget issues. Last November, SB7X 1 (Simitian), Chapter 5, Statutes of the 7th Extraordinary Session '09 established a new planning framework for the Delta - the Delta Plan. The Delta Plan will likely incorporate the levee risk management results of the DRMS studies and is due in January 2012. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee analysis: SB 808 Page 4 Fiscal Impact (in thousands) Major Provisions 2010-11 2011-12 2012-13 Fund Bond fund availability Cost pressures in the millions Bonds* *Propositions 1E and 84 ARGUMENTS IN SUPPORT : According to the author's office, "the Delta levee system serves both local and substantial State interests. Regardless of future decisions on [water] conveyance within the Delta, in the near term, Delta levees will continue to be the sole tool for water conveyance for the SWP and CVP. The Delta Levee Subvention Program's 75-25 cost-sharing formula has allowed local reclamation districts to afford to maintain and improve their levees, thereby protecting the system. If the formula returns to a 50-50 split, then the many small districts with a limited economic base would not be able to afford to maintain the Delta levees adequately." "The Delta Levee Subventions Program needs a 6-year extension (to 2016) in order to sustain Delta maintenance programs during a time of transition. Last year, the Legislature required [the] newly-created Delta Stewardship Council to develop priorities for levee investments within the Delta as part of the Delta Plan. The Delta Plan is due January 1, 2012." An extension of the program through 2016 "will allow the subventions and Delta levee maintenance to continue while the Delta Stewardship Council develops and begins to implement the [Delta] plan." This bill continues the Delta Levee Subventions program and supports levee maintenance while "the State reassesses the direction it will pursue in protecting the Delta." CTW:do 1/25/10 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END **** SB 808 Page 5