BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1478| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1478 Author: Assembly Budget Committee Amended: 6/25/12 in Senate Vote: 21 ASSEMBLY FLOOR : Not relevant SUBJECT : Resources Omnibus Trailer Bill SOURCE : Author DIGEST : 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. ANALYSIS : As part of the 2012-13 Budget package, this bill makes various statutory changes to implement the Budget Act. 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 CONTINUED AB 1478 Page 2 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. 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 CONTINUED AB 1478 Page 3 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. 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 CONTINUED AB 1478 Page 4 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. Comments This bill provides the necessary statutory references to enact the 2012-13 Budget related to resources, environmental protection, energy and agriculture. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: Yes According to the Senate Budget and Fiscal Review Committee, this bill should not result in any changes to the Budget Act or related budget actions. CTW:k 6/26/12 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END **** CONTINUED