BILL ANALYSIS                                                                                                                                                                                                    


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                              UNFINISHED BUSINESS

          Bill No:  SB 1018
          Author:   Senate Budget and Fiscal Review Committee
          Amended:  6/26/12
          Vote:     21


           ASSEMBLY FLOOR  :  Not available

           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 

           Assembly Amendments  delete the Senate version of the bill 
          and insert the above language.

           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, 


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             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 

          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 

          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 

          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 



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             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 

          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 

          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 



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             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 

          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.

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

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

          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:d  6/27/12   Senate Floor Analyses 


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