BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1006 (Pavley)
          
          Hearing Date:  05/27/2010           Amended: 04/27/2010
          Consultant:  Brendan McCarthy   Policy Vote: EQ 4-2, NR&W 6-3














































          SB 1006 (Pavley), Page 2


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          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.
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                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           
          Providing information  Absorbable within existing resourcesBond  
          *
             to local governments

          Cost pressure on bond funds       Unknown               Bond *

          * Proposition 84.
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          STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
          
          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.

          As proposed to be amended by the author, the bill would not  
          require the Council to develop any additional guidelines and  
          clarifies what information should be provided to local  
          governments.