BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair AB 1249 (Salas) - Integrated regional water management plans: nitrate, arsenic, perchlorate, or hexavalent chromium contamination. Amended: June 30, 2014 Policy Vote: EQ 7-0 Urgency: No Mandate: No Hearing Date: August 4, 2014 Consultant: Marie Liu This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 1249 would require that integrated regional water management plans (IRWMPs) include information regarding nitrate, arsenic, perchlorate, or hexavalent chromium, should those contaminants existing within the boundaries of the plan. Fiscal Impact: Cost pressures at least in the millions of dollars to existing and future bond monies available for IRWMP development and implementation. Background: Under the Integrated Water Management Planning Act of 2002, a regional water management group is authorized, but not required, to prepare and adopt an IRWMP. The act lists regional projects or programs that can be included in an IRWMP, such as a project or program that would accomplish reduced water demand through efficiency, increased water supplies for any beneficial use, operational efficiency and water supply reliability, and improved water quality. Proposed Law: This bill would require that if the area within the boundaries of the plan has nitrate, arsenic, perchlorate, or hexavalent chromium contamination, than that area's IWRMP must include the location and the extent of that contamination in the region, the impacts caused to communities in the region by the contamination, and existing efforts being undertaken to address the impacts. Furthermore, for IRWMP implementation grant applications, this bill would require that the regional water management group include information on how the project will help address the contamination or explain why the application does not include AB 1249 (Salas) Page 1 that kind of project. Related Legislation: SB 1049 (Pavley) would expand the possible issues that may be addressed in an integrated regional water management plan (IRWMP) and specifies who should be part of a regional water management group that prepares such a plan. (Held under submission by the Senate Appropriations Committee) AB 1731 (Perea) - would require at least 10% of the funding in each IRWM region be used to facilitate and support the participation of disadvantaged communities IRWM planning and for projects that address the critical water supply or water quality needs of those communities. (Currently in Senate Natural Resources and Water) AB 1874 (Gonzalez) - would require DWR to develop, by October 1, 2015, a streamlined application process for the funding of regional projects and programs for regional water management groups that met specified criteria. (Held under submission by the Assembly Appropriations Committee) AB 2725 (Brown) - would add urban waterway restoration projects, as defined, to the list of programs and projects eligible to be included in an IRWMP. (Currently in Assembly Water, Parks, and Wildlife) Staff Comments: The state has funded both IWRMP plan development and implementation with past bonds including Proposition 84 and 1E. Future bonds are likely to likely include IRWMP funding as well. By adding an additional required element to an IRWMP, this bill potentially increases the amount requested for IRWMP planning grants because of the increased scope of an IRWMP. There may also be an increase in the size and number of implementation grant applications. Both these cost pressures are unknown, but given that past bonds have offered hundreds of millions of dollars of assistance for IRWMP planning and implementation and that clean-up projects are generally very costly, it is conceivable that the cost pressures may be in the millions of dollars.