BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1006
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    SB 1006 (Pavley) - As Amended:  June 21, 2010 

          Policy Committee:                              Natural  
          ResourcesVote:5-3
                       Local Government                       6-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill adds climate adaptation strategies to the types of  
          information to be provided by the Strategic Growth Council and  
          makes other related changes.  Specifically, this bill:

          1)Adds climate change adaptation to the types of information the  
            council is to provide to local governments and regional  
            agencies.

          2)Adds special districts and qualifying joint powers  
            associations (JPAs) to the list of entities to which the  
            council provides financial assistance.

          3)Defines "financial assistance" that current law directs the  
            council to provide to specified entities to mean a revolving  
            loan, a grant if the awardee cannot carry out the project  
            without the grant, and certain planning incentives.  

           FISCAL EFFECT  

          1)Minor costs, ranging from the tens of thousands of dollars to  
            a couple hundred thousand dollars, to the council to provide  
            information on climate change adaptation to local governments  
            and JPAs.  (Proposition 84 bond funds)

          2)Cost pressure of an unknown amount but potentially in the  
            millions of dollars resulting from expansion of the types of  
            entities that may receive financial assistance from the  
            council.  (Proposition 84 bond funds)









                                                                  SB 1006
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           COMMENTS  

           1)Rationale  .  The author describes this bill as providing  
            clarification to the responsibilities of the council-that the  
            council should disseminate climate adaptation information and  
            that the entities eligible to receive financial assistance  
            from the council include special districts and JPAs.  The  
            author contends this clarification does not represent  
            additional responsibilities for the council.

           2)Background  .  

              a)   The Strategic Growth Council.   The council is made up of  
               the secretaries or directors of several state agencies and  
               one public member. Established by SB 732, Steinberg  
               (Chapter 729, Statutes of 2008), the council coordinates  
               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.

              b)   Proposition 84 and Sustainable Communities  .  In 2006,  
               voters approved Proposition 84, which authorizes $90  
               million for planning incentives and $90 million for "urban  
               greening projects."  The proposition describes the purpose  
               of the urban greening monies as to "reduce energy  
               consumption, conserve water, improve air and water quality,  
               and provide other community benefits."  It seems reasonable  
               to include climate change adaptation among the community  
               benefits envisions by the proposition, as this bill does.   
               Nonetheless, the Department of Finance contends the  
               activities assigned to the council by this bill may not be  
               appropriately funded from Proposition 84 monies and  
               therefore cites the need to fund this bill from the General  
               Fund. 

           3)Support  .  This bill is supported by environmental groups who  
            contend the bill simply clarifies the duties of the council in  
            a way consistent with its existing statutory authority.









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           4)Opposition  .   The policy committee cites opposition from  
            industry groups who argue the bill conflicts with actions and  
            processes already underway in state government and focuses  
            solely on achieving environmental benefits without considering  
            economic factors.

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081