BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  SB 630
          Author:   Pavley (D) and Steinberg (D)
          Amended:  5/24/13
          Vote:     21

           
           SENATE NATURAL RESOURCES AND WATER COMMITTEE  :  7-2, 4/9/13
          AYES:  Pavley, Evans, Hueso, Jackson, Lara, Monning, Wolk
          NOES:  Cannella, Fuller

           SENATE APPROPRIATIONS COMMITTEE  :  4-1, 5/23/13
          AYES:  De León, Gaines, Hill, Padilla
          NOES:  Walters
          NO VOTE RECORDED:  Lara, Steinberg


           SUBJECT  :    California Tahoe Regional Planning Agency

           SOURCE  :     Author


           DIGEST  :    This bill declares an agreement between the Governors  
          of the States of Nevada and California covering the  
          implementation of the Tahoe Regional Planning Compact (TRPC),  
          and declares that the State of Nevada has agreed to repeal its  
          2011 statutory provisions requiring its withdrawal from the  
          TRPC.

           ANALYSIS  :    

          Existing law:

          1. Ratifies the TRPC, a bilateral agreement between the States  
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             of Nevada and California to regulate development in the Lake  
             Tahoe basin.  The compact established Tahoe Regional Planning  
             Agency (TRPA) as a separate legal entity, comprised of  
             members from the States of Nevada and California, responsible  
             for implementing a "regional plan," as defined, regulating  
             development in the Lake Tahoe region, as defined.

          2. Creates TRPA as a separate legal entity and as a political  
             subdivision of the State of California, and prescribes the  
             membership, functions, and duties of the TRPA, as specified.

          3. Requires the TRPA, within 18 months of its formation, to  
             prepare, adopt, and review and maintain a comprehensive  
             long-term general plan for the development of the Tahoe  
             region, referred to as the "regional plan," as prescribed.

          4. Requires that within one year after adoption of environmental  
             threshold carrying capacities for the Tahoe region, the TRPA  
             to amend its regional plan so that, at a minimum, the plan  
             and all of its elements, as implemented through agency  
             ordinances, rules, and regulations, achieves and maintains  
             the adopted environmental threshold carrying capacities, and  
             requires that the advisory planning commission appointed by  
             the TRPA and the governing body of the TRPA continuously  
             review and maintain the regional plan.  This provision is  
             contained in the bistate TRPC in the Government Code.

          This bill:

          1. Declares an agreement between the Governors of the States of  
             Nevada and California covering the implementation of the TRPC  
             that was jointly announced by the Governors of these states  
             on May 14, 2013, which is proposed to be codified in  
             specified legislation in Nevada and California. 

          2. Declares that the State of Nevada has agreed to repeal its  
             2011 statutory provisions requiring its withdrawal from the  
             TRPC and proposing a change in the voting structure of the  
             TRPA.

          3. Revises TRPC to require that, in reviewing and maintaining  
             the plan, the planning commission and the governing body also  
             ensure that the regional plan reflects changing economic  
             conditions and the economic effect of regulation on commerce.  

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          4. Revises TRPC to require that, when adopting or amending a  
             regional plan or taking an action or making a decision, the  
             TRPA act in accordance with the requirements of the TRPC and  
             its implementing ordinances, rules, and regulations and to  
             place upon a party challenging any element of the regional  
             plan, or an action or decision of the TRPA, the burden of  
             showing that the regional plan is not in conformance with  
             those requirements.

          5. Provides that this bill will not become effective unless, on  
             or before January 1, 2014, the Governor issues a written  
             declaration stating that the State of Nevada has enacted  
             substantially similar legislation to this bill, and that the  
             Nevada legislation became effective on or before January 1,  
             2014.

           Background
           
          TRPA was first created in 1969 through a bi-state compact  
          between California and Nevada that was also ratified by the  
          United States Congress.  The compact was revised in 1980 and  
          gave TRPA authority to adopt environmental quality standards  
          (called "thresholds").  Thresholds on various environmental  
          indicators were first adopted in 1982. 

          The TRPA board consists of seven voting members from each state  
          and one federal member.  The members represent local governments  
          and the public.  Development project approvals require five  
          affirmative votes from the state in which the project is located  
          and a total of at least nine affirmative votes.  To amend the  
          regional plan or the ordinances of the TRPA, four votes are  
          required from each state. 

          The compact allows either California or Nevada to withdraw based  
          on passage of a statute to that effect. 

          Prior to TRPA, both California and Nevada had state-only Tahoe  
          regional planning agencies:  NTRPA and CTRPA.  The NTRPA still  
          exists, but has virtually no workload.  The CTRPA statutes are  
          still in the California code, but are basically a relic.  Those  
          statutes have not been effective since the Legislature approved  
          the TRPA compact. 

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          The states' share of funding TRPA was intended to be split so  
          that 2/3 would be provided by California and 1/3 by Nevada, with  
          additional federal funding not a part of that formula.  Nevada,  
          although hard hit by the recession, is lagging, although there  
          are indications it may increase its contributions in the next  
          fiscal year.  Currently, of the $14.7 million TRPA budget,  
          California contributes $4.1 million (28%) and Nevada contributes  
          $1.3 million (9%).  Federal funds and other sources contribute  
          $6.6 million (63%). 

          A long-range regional plan was adopted by TRPA in 1984, and,  
          after litigation and protracted negotiations, a successor  
          regional plan was adopted in 1987.  The regional plan is the  
          overall approach TRPA will use to achieve the thresholds.  That  
          plan remained in effect until December, 2012, when a new  
          regional plan update was approved.  Despite several prolonged  
          attempts, TRPA itself was never able successfully to complete  
          negotiations for a new regional plan after 1987.  The 2012  
          update resulted in large part from marathon negotiations on the  
          part of several key leaders and TRPA board members from both  
          states who established negotiations parallel to the TRPA  
          process.  Those efforts resulted in amendments to the draft that  
          TRPA had proposed and the resulting regional plan update  
          modified TRPA's original proposal. 

          The 2012 update makes several significant changes that will have  
          the effect of expanding or expediting development projects many  
          of which were sought by Nevada interests or local governments.

           SB 271 in Nevada  .  The discontent with TRPA in Nevada has been  
          historic but most recently culminated with the passage of SB 271  
          in 2011.  That law demanded that a new regional plan be  
          approved, and, as indicated earlier, that occurred.  That law  
          stated that Nevada would withdraw from the compact as early as  
          2015 (but with a possible extension to 2017) unless California  
          changed its laws regarding the voting structure of TRPA for both  
          the approval of regional plan amendments as well as approval of  
          projects.  In both cases, Nevada and some local governments from  
          both sides of the state line desire a pro-development voting  
          structure.  These items would constitute amendments to the  
          compact and would require both states to adopt the same language  
          and Congress to ratify that language. 


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          SB 271 also has two other requirements.  One is that the new  
          regional plan reflects Lake Tahoe's economic conditions (both  
          the compact and the regional plan already do this).  The second  
          is that a party challenging the regional plan has the burden of  
          proof to show that the plan violates the compact.  Some legal  
          authorities believe this requirement re-states existing law.   
          California may be open to a compromise that allows the retention  
          of those provisions provided the voting structure provisions of  
          SB 271 are repealed. 

          There is no indication that California has any interest in  
          changing the voting structure.  Even if it did, that change  
          would have to be approved by Congress and there is no indication  
          that Congress has any interest in the topic or that any such  
          congressional action would occur prior to the deadlines in SB  
          271. 

          SB 229 in Nevada  .  Based on conversations and unofficial  
          statements from various Nevada officials, many in California  
          believed that the successful adoption of the regional plan  
          update ended any real need of, or utility for, SB 271.   
          Apparently that is also the case with some in Nevada.  To that  
          end, SB 229, introduced in the 2013 Nevada legislature, repeals  
          SB 271.  However, at a hearing on April 2, various elected and  
          appointed Nevada officials, some representing its governor, and  
          including two Nevada TRPA board members, said that the  
          administration opposed  SB 229 in its current form.  Many of the  
          speakers at the hearing openly acknowledged that SB 271 was  
          considered effective leverage over California.  Negotiations are  
          still underway to determine if some successful way can be  
          achieved to amend SB 229 in a way that could be acceptable in  
          both states.

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

          According to the Senate Appropriations Committee, there are  
          minor costs, if any.

           SUPPORT  :   (Verified  5/24/13)

          League to Save Lake Tahoe

           OPPOSITION  :    (Verified  5/24/13)

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          South Tahoe Association of Realtors

           ARGUMENTS IN SUPPORT  :    According to the League to Save Lake  
          Tahoe (League), California needs a contingency plan for  
          protecting Lake Tahoe in case SB 271 in Nevada remains in effect  
          and Nevada fulfills is commitment to withdraw from the bi-state  
          compact.  The League states that TRPA, as controversial as it  
          has been, has been the single most important entity to help  
          protect Lake Tahoe.  They point out that environmental issues in  
          the Tahoe Basin do not respect state lines, and offers as an  
          example TRPA's successful program to checks boats for quagga and  
          zebra mussels. 

          While a single environmental regulator like TRPA is still the  
          best way to protect Lake Tahoe, the League believes that if  
          Nevada exits the compact in 2015, California needs a plan in  
          place and there is a seamless transition to a new CTRPA should  
          that become necessary. 

           ARGUMENTS IN OPPOSITION  :    The South Tahoe Association of  
          Realtors states if Nevada withdraws from the compact they will  
          support a CTRPA that adopts completely the most recent regional  
          plan update.  It characterizes this bill as 
          allowing California to withdraw from the compact if Nevada does  
          not act during the remainder of its 2013 legislative session.   
          They also suggest that this bill is the product of special  
          interests who are not interested in bi-state cooperation.  
           

          RM:k  5/25/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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