BILL ANALYSIS Ó SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW Mark Leno, Chair Bill No: AB 1466 Author: Committee on Budget As Amended: As proposed to be amended June 15, 2014 Consultant: Catherine Freeman Fiscal: Yes Hearing Date: June 15, 2014 Subject: Resources Omnibus Trailer Bill Summary: This bill makes various changes to implement the resources, environmental protection, energy, and agriculture budget actions adopted as part of the 2014-15 budget package. Background: As part of the 2014-15 budget package, AB 1466 makes various statutory changes to implement the budget act. Proposed Law: This bill includes the following key changes. 1. Amendment for New Solar Homes Partnership. Includes a technical amendment taken by committee on June 15, 2014 related to the financial components of the California Solar Initiative, including the New Solar Homes Partnership, and the Electric Program Investment Charge. The amendment would require the Public Utilities Commission to be notified by the Energy Commission that other funding sources for the program have been exhausted before requiring those electrical corporations to continue administration of the program until the monetary limit is reached. 2. Climate Resilience Account. Establishes the Climate Resilience Account to provide additional funding to specifically address the risk and impacts of climate change, sea level rise, and associated extreme events. 3. Climate Assessment. Allows the Environmental License Plate Fund to be used for climate assessment. -1- 4. Drinking Water Reorganization. Provides the necessary statutory authority to transfer the drinking water program from the Department of Public Health to the State Water Resources Control Board including merging of loan programs. 5. Seismic Mapping. Allows the Strong-Motion Instrumentation and Seismic Hazards Mapping Fund to fund the Alquist-Priolo seismic mapping program and increases the amount assessed on building permit fees that provide revenues to the fund. 6. Oil Spill Response. Authorizes the Oil Spill Prevention and Administration Fund to be used for inland oil response, eliminates the fee sunset, and expands the fee base to include all crude oil entering the state. 7. Hydraulic Fracturing. Provides necessary statutory cleanup related to hydraulic fracturing regulations at the State Water Resources Control Board including specifying that regulations finalized on or before January 1, 2015, become effective July 1, 2015, and makes technical changes to the authority of the board related to area-specific ground water monitoring programs. 8. Enforcement of Marijuana Cultivation. Allows the Waste Discharge Permit Fund and Department of Fish and Wildlife civil penalty revenues to be used to pay back a loan from the Timber Regulation and Forest Restoration Fund, which is to be used for the enforcement of environmental damage from marijuana activities over the next three years. 9. Recycling Audits. Allows for audits of beverage manufacturers and distributors to be reviewed every five years, rather than three years, allowed under current statute. 10. Rubberized Tire Chip Seals. Clarifies that rubberized chip seal projects are eligible for project funding, in addition to currently allowed asphalt -2- concrete, within the tire recycling programs. 11. Parks Revenue Generation and Capital Projects. Extends the revenue generation program at the Department of Parks and Recreation for five years and re-establishes the Parks Project Revolving Fund to allow capital outlay funds longer encumbrance periods upon transfer to the fund. Clarifies that the State Park Contingent Fund, used for private donations to parks, is continued. 12. Fisheries Restoration Grants. Specifies that existing restoration grants be prioritized to the Fisheries Restoration Grant Program at the Department of Fish and Wildlife and to grant programs administered by state conservancies. 13. Coastal Permitting. Authorizes the California Coastal Commission to impose an administrative civil penalty, by majority vote and at a duly noticed public hearing, on a person who intentionally and knowingly violates the public access provisions of the California Coastal Act. 14. Lumber Assessment. Codifies the Board of Equalization retailer reimbursement regulations that were approved on September 10, 2013. 15. Local Conservation Corps. Diversifies the Local Conservation Corps funding under the Department of Resources Recycling and Recovery, and creates a separate statutory section to continue the program. 16. Environmental Justice Grants. Increases the cap on environmental justice grants distributed by the Secretary for Environmental Protection from $20,000 to $50,000 and authorizes the award of up to $1.5 million for this purpose. 17. Self-Generated Incentive Program. Extends the sunset date for the program by five years and makes various technical changes and program reforms to specify eligibility for incentives under the program limited to distributed energy resource technologies. -3- Fiscal Effect: This bill should not result in any changes to the budget act or related budget actions. Support: Unknown Opposed: Unknown Comments: This bill provides the necessary statutory references to enact the 2014-15 budget related to resources, environmental protection, energy, and agriculture. -4-