BILL ANALYSIS SB 808 Page 1 Date of Hearing: April 27, 2010 ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE Jared William Huffman, Chair SB 808 (Wolk) - As Amended: January 25, 2010 SENATE VOTE : 35-0 SUBJECT : Delta levee maintenance SUMMARY : This bill extends the inoperative date on the current Delta levee maintenance subvention program from July 1, 2010 to July 1, 2013. Specifically, this bill : 1)Extends the current reimbursement rates, which allow the State to pay local agencies up to 75% of levee maintenance costs which exceed $1,000 per mile, to July 1, 2013. 2)Requires reimbursements to reflect the priorities of, and be consistent with, the Delta Plan. 3)Amends the existing inoperative date of July 1, 2010 as an urgency statute to take effect immediately. EXISTING LAW: 1)Requires DWR to study the risks posed to the integrity of the Delta by various hazards and to prioritize options for their mitigation. This effort is known as the Delta Risk Management Strategy (DRMS). 2)Establishes a planning framework for the Delta: the Delta Plan. The Delta Plan is due January 2012 and will likely incorporate the DRMS levee risk management results. FISCAL EFFECT : According to the Senate Appropriations Committee analysis, because the bill will increase the maximum state cost share, it will put pressure on existing bond funds, which can be used for a variety of flood control projects, including Delta subventions. The total cost pressures are unknown, because the number and size of future funding requests from local districts are unknown, but are anticipated to be in the millions of dollars (Propositions 1E and 84). COMMENTS : The Delta levees are the key physical element SB 808 Page 2 maintaining 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 and Federal governments also rely upon them to maintain the use of the Delta 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 in 1973 (Way, c. 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: zero if the entire cost incurred per mile of levee is $1,000 or less up to 75% 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. In the absence of this legislation, the reimbursement rate will become the following on July 1, 2010: zero if the entire cost incurred per mile of levee is $1,000 or less (no change) 50% of any costs incurred in excess of $1,000 per mile of levee would be paid by the State. According to the author, "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." Last year's historic Delta legislation SB7X 1 (Simitian, c. 5, Statutes of the 7th Extraordinary Session, 2009 - 2010) creates the Delta Stewardship Council (Council) and requires the Council SB 808 Page 3 to develop a Delta Plan which includes priorities for levee investments within the Delta. The Delta Plan is due January 1, 2012. Although the author's office originally sought a 6-year extension of the program, "in order to sustain Delta maintenance programs" during the transition to the Delta Plan, the author's office subsequently amended the bill to extend the date to 2013 and include Delta Plan consistency language. As the author states, SB 808 continues the Delta Levee Subventions program and supports levee maintenance while "the State reassesses the direction it will pursue in protecting the Delta." General Fund contributions to this program are capped at $2 million per year. REGISTERED SUPPORT / OPPOSITION : Support Association of California Water Agencies California Central Valley Flood Control Association California Partnership for the San Joaquin Valley Contra Costa County County of Sacramento East Bay Municipal Utility District Five-Delta County Coalition North Delta Water Agency Regional Council of Rural Counties San Diego County Water Authority Valley Ag Water Coalition Opposition None on file. Analysis Prepared by : Tina Leahy / W., P. & W. / (916) 319-2096