BILL ANALYSIS Ó
AB 1331
Page 1
ASSEMBLY THIRD READING
AB 1331 (Water, Parks & Wildlife Committee)
As Amended May 21, 2013
Majority vote
WATER, PARKS & WILDLIFE 10-0 APPROPRIATIONS 12-0
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|Ayes:|Rendon, Blumenfield, |Ayes:|Gatto, Bocanegra, |
| |Bocanegra, Fong, Frazier, | |Bradford, |
| |Gatto, Gomez, Gray, | |Ian Calderon, Campos, |
| |Yamada, Bloom | |Eggman, Gomez, Hall, |
| | | |Ammiano, Pan, Quirk, |
| | | |Weber |
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SUMMARY : Acknowledges there is currently an $11.14 bond measure
on the November 2014 ballot to fund water-related projects
(Water Bond) and that the Legislature requires additional
information in order to assess the levels of currently available
public funding and evaluate the additional amount of public
investment needed to meet essential water-related public
priorities. Specifically, this bill :
1)Declares that a bond measure for $11.14 billion to fund
projects related to water supply reliability, water quality,
Sacramento-San Joaquin Delta sustainability, watershed
conservation and protection, and water recycling is currently
set for the November 4, 2014, statewide general election.
2)States that the freshwater resources of California are limited
and if the state is to remain economically competitive and
environmentally rich, public investment is needed to modernize
water infrastructure, integrate water management, advance
water resource protection, and improve flood management.
3)Asserts that many Californians lack access to clean, safe, and
affordable drinking water and that in some communities,
economic conditions prevent the community from generating
sufficient funding to correct water system deficiencies or
source water quality.
4)States that the watersheds and aquatic ecosystems of
California are unique and irreplaceable environmental and
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economic resources, including the Sacramento-San Joaquin
Delta, the largest estuary on the west coast and that
investments in the state's watersheds can provide regional and
statewide benefits for cities, farms, industries, and
wildlife, including protecting water quality and
sustainability, improving flood control, and providing habitat
and recreation.
5)Holds that it is in the public interest to pass a general
obligation bond that includes, but is not limited to, grants
and loans to state and local agencies to help meet critical
funding needs related to improving water infrastructure,
integrating water management, protecting water resources,
addressing flood management, advancing water reuse, ensuring
safe drinking water, and restoring and protecting watersheds
and aquatic ecosystems, including in the Sacramento-San
Joaquin Delta.
6)Asserts that in order to evaluate and prioritize the amount of
state funding necessary to meet essential water-related public
priorities, the Legislature requires additional information.
7)Tasks each of the following agencies with reporting to the
Legislature by July 1, 2014, on the existing levels of public
funding and the estimated additional level of public
investment needed in each of the following areas:
a) The Natural Resources Agency shall evaluate
infrastructure, integrated water management, water supply
reliability, water recycling, flood management, and
watershed and aquatic ecosystem conservation and protection
needs.
b) The State Water Resources Control Board (SWRCB) and the
Drinking Water and Environmental Management Division of the
State Department of Public Health (DPH) shall evaluate
needs related to ensuring all Californian's have access to
safe drinking water and prioritize the projects necessary
to achieve this goal.
c) The Delta Stewardship Council (DSC) shall evaluate Delta
Plan implementation needs.
8)Imposes conforming requirements with regard to reporting.
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EXISTING LAW:
1)Authorizes the issuance of $11.14 billion in general
obligation bonds if the Water Bond is approved by the voters
in the November 4, 2014, statewide general election.
2)Creates the California Water Commission (CWC), a nine-member
body of gubernatorial appointees who are confirmed by the
Senate. Extends the terms of the current members of the CWC
to May 14, 2014.
3)Specifies that if the current Water Bond is approved, $3
billion in general obligation bonds shall not be subject to
Legislative appropriation but shall be continuously
appropriated to the CWC to pay for the public benefits of
water storage projects.
4)Authorizes the CWC to quantify the public benefits of water
storage projects under specified criteria, including that such
projects must improve the Sacramento-San Joaquin Delta (Delta)
ecosystem or tributaries to the Delta.
FISCAL EFFECT : According to the Assembly Appropriations
Committee there are costs to:
1)Department of Water Resources (DWR) potentially in the
millions of dollars, to recompile and update existing data.
2)DSC to expedite existing study requirements that are already
funded in the current budget.
3)SWRCB and DPH, potentially in the millions of dollars to
standardize data and provide the necessary public system
funding information.
Assembly Appropriations Committee notes that since all three
reports are due by July 1, 2014, the compressed timeline may
significantly increase the costs to the state agencies
performing the studies even if much of the data exists.
COMMENTS : In 2009, former Governor Schwarzenegger convened the
Legislature in extraordinary session to take up issues related
to protecting and restoring the Delta ecosystem and improving
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water reliability and management, including addressing water
conveyance, storage, conservation and groundwater and
considering a general obligation bond. Subsequently, an
historic five-bill package of water legislation was passed and
signed, including SB 2 X7 (Cogdill), Chapter 3, Statutes of the
2009-10 Seventh Extraordinary Session (SB 2 X7).
SB 2 X7 called for the Water Bond to be placed on the November
2010 ballot. If approved by the voters, the Water Bond would
have authorized the issuance of $11.14 billion in general
obligation bonds for a wide range of projects and purposes
including water conservation and efficiency, groundwater
protection and cleanup, integrated regional water management,
ecosystem and watershed protection and restoration, water
recycling, and water storage.
With the passage of SB 2 X7, the former Governor also took the
CWC, a dormant entity, and made nine new appointments that, if
the Water Bond passed, would then be tasked with quantifying the
public benefits of water storage projects and making the initial
allocations of general obligation bonds for those benefits.
However, in 2010, supporters of the Water Bond recognized that a
sluggish economy coupled with the state's need to focus on its
dire budget shortfall meant that delaying the bond vote could
increase its chances of success. Subsequently, AB 1265
(Caballero), Chapter 126, Statutes of 2010, was signed into law
and moved the Water Bond to the 2012 general election. AB 1265
both changed the timing of the Water Bond vote and deleted a
provision allowing for-profit entities to be members of joint
powers authorities for bond-funded surface water storage
projects.
At the same time that AB 1265 was approved, AB 1260 (Fuller),
Chapter 125, Statutes of 2010, was also approved. AB 1260
extended the terms of the CWC members appointed by then Governor
Schwarzenegger to May 14, 2014, if confirmed by the Senate.
This meant that even after Governor Schwarzenegger left office
on January 3, 2011, his appointees, if confirmed by the Senate,
would still make the public benefits determination for surface
storage projects and control the initial allocation of $3
billion in general obligation bond funds towards those benefits.
After Governor Jerry Brown assumed office in 2011 he requested
the Senate not set the confirmation hearings for two
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Schwarzenegger appointees. And when those appointments lapsed,
he did not fill them. As a result, the CWC is currently seven
members appointed by former Governor Schwarzenegger.
In 2012, polling revealed that an incomplete economic recovery
meant the Water Bond was still unlikely to pass. In response,
AB 1422 (Perea), Chapter 74, Statutes of 2012, moved the Water
Bond to the November 4, 2014, statewide general election but
otherwise left the text unchanged, including the title.
In 2013, discussions have already begun regarding whether the
Water Bond needs to be reduced or otherwise changed. In the
Senate, the Natural Resources and Water Committee held two
oversight hearings on the subject. Issues identified in the
first hearing included the state's current level of debt
service, the projected $565 million annual cost of paying off an
$11.14 billion bond over a 40-year repayment period, and the
potential for debt service to decrease funds that could be spent
on other programs. The second hearing explored what
modifications, if any, should be made to the Water Bond in light
of circumstances which may have changed since it was originally
approved by the Legislature in 2009. One of the highlighted
changes was AB 685 (Eng), Chapter 524, which was passed in 2012
and made it the established policy of the state that every human
being has the right to safe, clean, affordable, and accessible
water adequate for human consumption, cooking, and sanitary
purposes. Other changes included: the end of the 2007-2009
drought; the status of such large Delta planning processes as
the DSC's Delta Plan, the Bay Delta Conservation Plan, and a new
effort known as the Coalition To Support Delta Projects; and,
the successful efforts by some local water districts to increase
their surface storage without the support of general obligation
bonds.
Four other Water Bond-related bills have been referred to
legislative policy committees, besides this one. AB 142 and AB
295 (Assembly Water, Parks and Wildlife Committee) both call for
additional studies in order to inform continuing water bond
discussions. The principles of both AB 142 and AB 295 are
amended into this bill.
In the Senate, SB 40 (Pavley) declares it is the intent of the
Legislature to reduce and potentially refocus the Water Bond and
also updates its title and related internal references. SB 42
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(Wolk) repeals the existing Water Bond and enacts the California
Clean, Secure Water Supply and Delta Recovery Act of 2014.
Notably, SB 42 makes all bond funds, if approved by the voters,
subject to legislative appropriation. It does not contain the
continuous appropriation language found in the current Water
Bond with regard to water storage projects.
Analysis Prepared by : Tina Cannon Leahy / W., P. & W. / (916)
319-2096
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