BILL ANALYSIS Ó SB 630 Page 1 Date of Hearing: August 30, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 630 (Pavley) - As Amended: August 26, 2013 Policy Committee: Natural Resources Vote: 9-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill amends the Tahoe Regional Compact as negotiated with Nevada. This bill also appropriates proceeds from the pier fees at Lake Tahoe to the Natural Resources Agency for a variety of science-based programs and projects in Lake Tahoe. Specifically, this bill: 1)Clarifies that a party challenging the Tahoe Regional Planning Agency's (TRPA) regional plan or an action of TRPA has the burden of proof. 2)Directs TRPA to ensure that the regional plan reflects economic considerations in the Lake Tahoe Basin. FISCAL EFFECT GF revenue losses of approximately $330,000 annually. Existing law requires most rental income received from the surface use of lands under the jurisdiction of the State Lands Commission (SLC) to be deposited in the General Fund. This bill redirects pier fees on Lake Tahoe state lands to the Natural Resources Agency to establish a bi-state science advisory council and fund projects to advance the attainment of TRPA's environmental thresholds. According to SLC, this would redirect approximately $330,000 for this purpose. COMMENTS 1)Rationale. In 1968, California and Nevada entered into a SB 630 Page 2 bi-state agreement (compact) designed to protect natural resources and control development in the Lake Tahoe Basin. The compact, created the Tahoe Regional Planning Agency (TRPA) to serve as the environmental and land use regulatory agency for the Lake Tahoe region. TRPA consists of a California delegation, a Nevada delegation and one non-voting federal member. The seven member California delegation includes representatives from El Dorado and Placer counties, the City of Lake Tahoe, two gubernatorial appointees, and two legislative appointees (one by the Speaker, one by the Senate Rules Committee). In 1980 the compact was significantly amended to provide additional environmental protections and required TRPA to approve all proposed projects within the region. TRPA was also required to establish environmental standards including thresholds for air quality, water quality, soil conservation, vegetation preservation and noise. In 1987, TRPA adopted a regional plan based on the established thresholds. Developers and others in Nevada argued that the 1987 compact and regional plan were too restrictive. This resulted in to the passage of Nevada state legislation in 2011, SB 291 which requires Nevada to withdraw from the compact as early as 2015 if California does not agree to modifications and the adoption of a new regional plan. In 2012, TRPA approved an update to the regional plan intended to preserve the compact and ensure Nevada's continuing participation. This May, Nevada Governor Sandoval and California Governor Brown reached an agreement which includes the repeal of SB 271 by Nevada and the agreement by California to require consideration of economic conditions and establish a burden of proof for TRPA development decisions. This bill fulfills California's part of the agreement. 2)Technical Amendments. The author is proposing technical amendments that further clarify the expenditures including requiring public, collaborative processes and limiting activities to public lands or lands with willing landowners. Analysis Prepared by : Jennifer Galehouse / APPR. / (916) 319-2081 SB 630 Page 3