BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair 1006 (Pavley) Hearing Date: 05/10/2010 Amended: 04/27/2010 Consultant: Brendan McCarthy Policy Vote: EQ 4-2, NR&W 6-3 SB 1006 (Pavley), Page 2 _________________________________________________________________ ____ BILL SUMMARY: SB 1006 requires the Strategic Growth Council to provide guidelines and information to local governments to assist with the development of climate change adaptation strategies and projects. The bill also expands the eligible recipients of existing bond funds for sustainable community planning to include special districts, councils of governments, metropolitan planning organizations, and joint powers authorities. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2010-11 2011-12 2012-13 Fund Guideline development $300 General Cost pressure on bond funds Unknown Bond * * Proposition 84. _________________________________________________________________ ____ STAFF COMMENTS: This bill meets the criteria for referral to the Suspense File. Under current law, the Strategic Growth Council is made up of the Secretaries or Directors of several state agencies and one public member. The Council is required to coordinate activities of the member agencies to better improve air and water quality, protect natural resources and agricultural lands, increase affordable housing, and promote public health. The Council is required to provide information to local governments that will assist in developing sustainable communities. The Council is also authorized to provide planning incentives to local governments and provide grants and loans to local governments for the development of sustainable communities. Proposition 84 authorizes $90 million for planning incentives and $90 million for sustainable communities (of the latter amount, $21 million is for urban forestry projects overseen by the Department of Forestry and Fire Protection). To date, the Council has released criteria for these projects, but has not yet awarded any grants or loans. SB 1006 (Pavley), Page 2 SB 1006 requires the Council to provide guidelines and distribute information to local governments that will assist with the development of climate change adaptation strategies and projects. The strategies and projects are intended to protect natural ecosystem functions, protect communities, and avoid environmental degradation and greenhouse gas emissions. SB 1006 expands the eligible recipients of Proposition 84-funded grants and loans for sustainable communities. In addition to the currently eligible cities, counties and non-profit organizations, this bill authorizes special districts, councils of governments, metropolitan planning organizations, and joint powers authorities to receive financial assistance for sustainable communities. The Council estimates that the cost to provide additional guidelines and information to local governments will require one additional position and about $200,000 in contract funds. Because these activities are not directly project related, the administration indicates that these activities are not appropriately funded with bond funds. Therefore, these activities are likely to be funded from the General Fund. In addition to the direct costs of the bill, there may be cost pressures on existing Proposition 84 bond funds. By expanding the universe of eligible recipients of financial assistance, the bill may put pressure on existing funds to provide additional financial assistance to local governments. The scope of this cost pressure is unknown. SB 1445 (DeSaulnier) requires the Council to consult with and coordinate its recommendations with the Planning Advisory and Assistance Council (within the Office of Planning and Research). That bill will be heard in this committee.