BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair AB 1221 (Alejo) Hearing Date: 08/25/2011 Amended: 06/28/2011 Consultant: Brendan McCarthy Policy Vote: EQ 7-0 _________________________________________________________________ ____ BILL SUMMARY: AB 1221 authorizes the State Water Resources Control Board to provide grant funds for the cleanup of water pollution to certain not-for-profit organizations and tribal governments. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Additional grants Unknown cost pressures. Special * * Cleanup and Abatement Account within the State Water Quality Control Fund _________________________________________________________________ ____ STAFF COMMENTS: SUSPENSE FILE. Under current law, the State Water Resources Control Board (State Water Board) provides funds to local governments to pay for water pollution cleanup when the party responsible for the pollution is unknown or unable to pay for the cleanup. Grants may be provided to public agencies, and are funded from fines and penalties assessed by the State Water Board. In 2010, the State Water Board provided $9.3 million in grants. AB 1221 defines a not-for-profit organization as an organization that is operated on a not-for-profit basis, including a cooperative, association, or private corporation that is a public water system, and that is either controlled by a local public body or has a broadly based ownership or membership in the local community. The bill authorizes the State Water Board to provide grants to a not-for-profit organization or a tribal government for the cleanup of water pollution. In order to receive those funds, a > (>) Page 1 tribal government must waive its sovereign immunity for the purpose of allowing the State Water Board to regulate the cleanup and water quality issues. By authorizing additional parties to receive funds, the bill will put cost pressures on existing funds, reducing available funds to other applicants. However, in some cases, the bill may only shift project funding from project applications made by a local government on behalf of a not-for profit organization or tribal government to applications made directly by a non-profit or tribal government. In those cases, the net demand on the fund will not increase. Because the Cleanup and Abatement Account is continuously appropriated, this bill makes an appropriation.