BILL ANALYSIS                                                                                                                                                                                                    Ó






                  SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
                                Mark Leno, Chair
                                        
          Bill No:       AB 1478
          Author:        Committee on Budget
          As Amended:    June 22, 2012
          Consultant:    Catherine Freeman
          Fiscal:        Yes
          Hearing Date:  June 25, 2012
          
          Subject:  Resources Omnibus Trailer Bill

          Summary:  This bill makes various changes to implement the 
          Energy, Resources, Environmental Protection and Agriculture 
          budget actions adopted as part of the 2012-13 budget 
          package.  

          Background:  As part of the 2012-13 budget package, AB 1478 
          makes various statutory changes to implement the budget 
          act.

          Proposed Law:  This bill includes the following key 
          changes:

          1.Provides funding flexibility for state parks by creating 
            a two-year continuous appropriation from the State Parks 
            and Recreation Fund for revenue generating activities, 
            creates an Enterprise Fund for entrepreneurial capital 
            projects, increases flexibility of existing funding 
            sources for all state parks, and includes language to 
            allow state parks to access funding from the Clean Water 
            Revolving Loan Fund for needed water and wastewater 
            projects.

          2.Reduces the number of members on each regional water 
            quality control board from nine to seven, eliminates 
            categorical selection of individuals who may serve on a 
            board, and revises conflict of interest rules for board 
            members to more closely mirror the Political Reform Act 
            of 1974.  An amendment clarifies that for appointments 
            from the nonpublic sector, the Governor shall consider 
            including members from key economic sectors in a given 
            region.

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          3.Establishes new legislative oversight and controls over 
            the Air Resources Board including: the creation of a 
            separate expenditure fund for proceeds from the auction 
            or sale of allowances pursuant to the market-based 
            compliance mechanism (Cap and Trade program); the 
            establishment of a separate Cost of Implementation Fee 
            account for oversight and tracking of funds; oversight of 
            actions taken on behalf of the State of California 
            related to market-based compliance and auctions, specific 
            to the Western Climate Initiative and Western Climate 
            Initiative, Incorporated; and provides for return of 
            certain funds to ratepayers of Investor Owned Utilities 
            from funds related to the auction or sale of allowances.

          4.Allows for the creation of an Electricity Procurement 
            Investment Charge (EPIC) fund for the sole purpose of 
            creating an investment plan for proceeds of the EPIC 
            proceeding at the California Public Utilities Commission. 
             Provides for the elimination of defunct statutes funded 
            under the previous Public Goods Charge.  An amendment 
            clarifies that no single program is prioritized in 
            statute for expenditure of funds under the budget act.

          5.Requires payments to the Beverage Container Recycling 
            Fund, as of July 1, 2012, to be made no later than the 
            last day of the month following the sale of a qualifying 
            beverage.  Provides necessary amendments to require a 
            business that generates four cubic yards or more of 
            commercial solid waste per week to arrange for required 
            recycling services.  Shifts enforcement of electronic 
            waste primarily to the Department of Resources Recycling 
            and Recovery from the Department of Toxic Substances 
            Control.

          6.Provides necessary statutory changes to reduce 
            un-utilized and under- utilized program activities funded 
            by the Department of Toxic Substances Control.  Provides 
            necessary statutory changes from budget reductions and 
            adjustments to the Toxic Substances Control Account.  
            Eliminates statutory references to the now defunct 
            Registered Environmental Assessor program.

          7.Reduces bond indebtedness for certain bonds over 10 years 
            old in accordance with Constitutional provisions.  
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            Deletes defunct provisions related to the Department of 
            General Services and State Public Works Board relative to 
            specific completed facilities.

          8.Provides for expanded permitting and inspection fee 
            requirements, and revised assessment of fees related to 
            production, licensing and inspection of milk and dairy 
            products. 

          9.Provides statutory changes to allow for an ongoing 
            transfer of funds from the Harbors and Watercraft 
            Revolving Loan Fund for reimbursement of costs of the 
            State Water Resources Development system incurred for 
            related recreation and fish and wildlife enhancements, 
            including, in particular, for ongoing obligations for 
            boating and fishing related activities at facilities 
            within the system.  Provides for a legislative hearing 
            and notification for new long-term water contract terms 
            and conditions prior to final approval by the parties. 

          10.Within the Fish and Game Code, provides for the 
            elimination of the Salton Sea Restoration Council on 
            January 1, 2013.  Requires the Department of Fish and 
            Game to provide certification of the full mitigation of 
            identified significant environmental impacts and for a 
            fee structure to fully cover all costs of the department 
            prior to administering permits to operate vacuum or 
            suction dredge equipment. 

          11.Provides necessary changes to adjust expenditure 
            authority for the purpose of hazardous or idle-deserted 
            wells in a given year; extends the period of liquidation 
            in the School District Act from the Underground Storage 
            Tank Cleanup Fund; and requires local unexpended bond 
            funds from the Lower-Emission School Bus Program to be 
            reallocated locally rather than revert to the state 
            program.

          12.Provides necessary cleanup to provisions related to the 
            San Gabriel and Lower Los Angeles Rivers and Mountains 
            Conservancy relative to appointment of state personnel.

          Fiscal Effect:  This bill should not result in any changes 
          to the budget act or related budget actions.
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          Support:   Unknown

          Opposed:  Unknown

          Comments:  This bill provides the necessary statutory 
          references to enact the 2012-13 budget related to 
          resources, environmental protection, energy and 
          agriculture.


































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