BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 630| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 CONTINUED SB 630 Page 2 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. CONTINUED SB 630 Page 3 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. CONTINUED SB 630 Page 4 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. CONTINUED SB 630 Page 5 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) CONTINUED SB 630 Page 6 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 **** END **** CONTINUED