BILL ANALYSIS                                                                                                                                                                                                    �





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2013-2014 Regular Session                    |
          |                                                                 |
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          BILL NO: AB 716                    HEARING DATE: June 25, 2013  
          AUTHOR: Quirk-Silva                URGENCY: No  
          VERSION: June 18, 2013             CONSULTANT: Bill Craven  
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Infrastructure plan: state planning and funding.  
          
          BACKGROUND AND EXISTING LAW
          1. The Governor is required to submit a proposed five-year  
          infrastructure plan to the Legislature on an annual basis in  
          conjunction with the Governor's Budget. The last such report on  
          the Department of Finance website is for 2008. In general, the  
          plan is supposed to identify the infrastructure needs identified  
          by state agencies with particular attention paid to  
          transportation, K-12 public schools, and higher education. The  
          plan is supposed to provide an estimated cost of the identified  
          infrastructure needs and a proposal for funding and prioritizing  
          those needs. 

          "Infrastructure" is defined as real property including land and  
          improvements to land, structures, and equipment integral to the  
          operation of structures, easements, rights-of-way, and other  
          forms of interest in property, roadways, and water conveyances.  
          Any capital outlay or local assistance appropriations that are  
          intended to fund infrastructure projects are supposed to be  
          included in the infrastructure plan. 

          State agencies that request new, rehabilitated, modernized,  
          improved, or renovated infrastructure are required to specify  
          how that infrastructure is consistent with the state planning  
          priorities.

          2. The Strategic Growth Council consists of the director of the  
          Governor's Office of Planning and Research (OPR) and the  
          secretaries of the Resources Agency, the Environmental  
          Protection Agency, the Health and Human Services Agency, and the  
          Business, Transportation, and Housing Agency, and one member of  
          the public to be appointed by the Governor. The council is  
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          directed to identify and review activities and funding programs  
          of member state agencies. 
          One directive to the council is to review and comment on the  
          five-year infrastructure plan and the State Environmental Goals  
          and Policies Report (EGPR)  that OPR is required to prepare  
          every four years (Public Resources Code Section 75125). OPR is  
          said to be working on a new EGPR but the four-year cycle has  
          never been met. The first EGPR was released by Governor Jerry  
          Brown during his first term and a second draft EGPR was done  
          under Governor Gray Davis but it was never certified. 

          3. The EGPR was intended to provide a 20-30 year overview of  
          state growth and development. Concurrent with establishing the  
          EGPR and its required contents, the Legislature also established  
          the state planning priorities, which are intended to promote  
          equity, strengthen the economy, protect the environment, and  
          promote public health and safety in the state, in the following  
          ways:  

               a) To promote infill development and equity by  
          rehabilitating, maintaining, and improving existing  
          infrastructure that supports infill development and appropriate  
          reuse and redevelopment of previously developed, underutilized  
          land that is presently served by transit, streets, water, sewer,  
          and other essential services, particularly in underserved areas,  
          and to preserve cultural and historic resources; 

               b) To protect environmental and agricultural resources by  
          protecting, preserving, and enhancing the state's most valuable  
          natural resources, including working landscapes such as farm,  
          range, and forest lands, natural lands such as wetlands,  
          watersheds, wildlife habitats, and other wild `lands, recreation  
          lands such as parks, trails, greenbelts, and other open space,  
          and landscapes with locally unique features and areas identified  
          by the state as deserving special protection; and 

               c) To encourage efficient development patterns by ensuring  
          that any infrastructure associated with development, other than  
          infill development, supports new development that does all of  
          the following: uses land efficiently, is built adjacent to  
          existing developed areas to the extent consistent with the need  
          to protect environmental and agricultural resources, is located  
          in an area appropriately planned for growth, is served by  
          adequate transportation and other essential utilities and  
          services, and minimizes ongoing costs to taxpayers. 

          PROPOSED LAW
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          AB 716 would make the following changes: 

          1. It would add a language to the infrastructure report that the  
          plan shall also provide for the "coordination of investment." 

          2. It would add housing to the definition of infrastructure. 

          3. It would provide that the infrastructure which is funded  
          shall "demonstrate consistency" with the state planning  
          priorities, rather than "be consistent" with those priorities. 

          4. It would direct the Strategic Growth Council to hold a public  
          hearing on the infrastructure plan before it is released by the  
          governor. The council would be directed to submit its comments  
          on the plan to the Legislature and in particular to identify how  
          the plan would improve air and water quality, improve natural  
          resource protection, increase the availability of affordable  
          housing, improve transportation, meet the goals of AB 32,  
          encourage sustainable land use planning, and revitalize urban  
          and community centers in a sustainable manner. 

          ARGUMENTS IN SUPPORT
          Housing California notes that the state's housing stock shares a  
          number of characteristics with transit, schools, and other  
          traditional infrastructure included in the plan. The location of  
          housing can help reduce greenhouse gas emissions and can  
          "democratize" infrastructure investments by making sure all  
          segments of the state have greater access to these public  
          investments. 

          The Non-Profit Housing Association of Northern California  
          appreciates the recognition in the bill of the connection  
          between housing and other vital components of infrastructure. 

          ARGUMENTS IN OPPOSITION
          The Department of Finance opposes the public hearing provision  
          in the 4/2/13 version of the bill. 

          COMMENTS 
          The amendments in the current version of the bill were developed  
          in coordination with the author. The first amendment would  
          include the Strategic Growth Council in the development of the  
          infrastructure reports. It avoids the timing issues that caused  
          concerns with the Department of Finance. The most recent  
          amendments delete the provision that caused those concerns. 

          Another recent amendment adds a new provision to the  
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          infrastructure reports that requires an analysis of investment  
          coordination opportunities for capital outlay projects. This is  
          important in its own right and seems overdue. It is intended to  
          complement the purpose and work of the Strategic Growth Council  
          which recommends strategies and investments that involve  
          multiple agencies with multiple subjects within their respective  
          jurisdictions. Another amendment restores existing law on the  
          point that the infrastructure priorities used to select projects  
          shall "be consistent" with state planning priorities. 

          SUPPORT
          American Planning Association 
          Housing California
          American Planning Association, California Chapter
          American society of Civil Engineers - Region 9

          OPPOSITION
          Department of Finance





























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