BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 630
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          SENATE THIRD READING
          SB 630 (Pavley, et al.)
          As Amended  September 3, 2013
          Majority vote 

           SENATE VOTE  :39-0  
           
           NATURAL RESOURCES   9-0         APPROPRIATIONS      17-0        
           
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          |Ayes:|Chesbro, Grove, Bigelow,  |Ayes:|Gatto, Harkey, Bigelow,   |
          |     |Garcia, Muratsuchi,       |     |Bocanegra, Bradford, Ian  |
          |     |Patterson, Skinner,       |     |Calderon, Campos,         |
          |     |Stone, Williams           |     |Donnelly, Eggman, Gomez,  |
          |     |                          |     |Hall, Holden, Linder,     |
          |     |                          |     |Pan, Quirk, Wagner, Weber |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Amends the Tahoe Regional Planning Compact (Compact),  
          which requires ratification by Congress, to 1) clarify that a  
          party challenging the Tahoe Regional Planning Agency's (TRPA)  
          regional plan or an action of TRPA has the burden of proof and  
          2) direct TRPA to ensure that the regional plan reflects  
          economic considerations in the Lake Tahoe Basin.   Specifically,  
           this bill:  

          1)Makes several findings and declarations, including the  
            following:

             a)   The State of California, by and through the Governor,  
               agrees to cooperate with the State of Nevada in seeking to  
               have Congress ratify the amendments to the Compact made by  
               this bill.

             b)   The State of California supports the full implementation  
               of the regional plan update (RPU) adopted by TRPA in  
               December 2012.

          2)Amends the Compact, which requires ratification by Congress,  
            to clarify that a party challenging the TRPA regional plan or  
            an action of TRPA has the burden of proof and to direct TRPA  
            to ensure that the regional plan reflects economic  
            considerations in the Lake Tahoe Basin.








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          3)Creates the Lake Tahoe Science and Lake Improvement Account  
            (Account), which will be funded by rental income from surface  
            uses for public trust lands at Lake Tahoe.  Authorizes the  
            Account to fund, among other things, the creation of a bistate  
            science-based advisory council which is required to focus on  
            activities that will advance attainment of environmental  
            thresholds as provided in the Compact.

           EXISTING LAW  :

          1)Ratifies the Compact, which is a bilateral agreement between  
            the States of Nevada and California to regulate development in  
            the Lake Tahoe Basin.  Establishes TRPA as a separate legal  
            entity, comprised of members from the States of Nevada and  
            California, responsible for implementing a regional plan  
            regulating development in the Lake Tahoe region.

          2)Requires TRPA to establish environmental threshold carrying  
            capacities and to adopt and enforce a regional plan and  
            implementing ordinances that will achieve and maintain such  
            capacities while providing opportunities for orderly growth  
            and development consistent with such capacities.

          3)Requires that the governing body of TRPA to consist of a  
            California delegation, a Nevada delegation, and one non-voting  
            federal member.  Requires the California delegation to consist  
            of seven members:  one from El Dorado County, one from Placer  
            County, one from the City of South Lake Tahoe, two appointed  
            by the Governor of California, one appointed by the Speaker of  
            the California Assembly, and one appointed by the California  
            Senate Rules Committee.  Requires the Nevada delegation to  
            consist of seven members:  none from Douglas County, one from  
            Washoe County, one from Carson City, two appointed by the  
            Governor of Nevada, one appointed by the Speaker of the Nevada  
            Assembly, and one appointed by the Majority Leader of the  
            Nevada Senate.  

          4)Requires, for development project approvals, five affirmative  
            votes from the state in which the project is located and a  
            total of at least nine affirmative votes.  Requires, for  
            amendments to the regional plan or the ordinances of TRPA,  
            four affirmative votes from each state.
           








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          FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, General Fund revenue losses of approximately $330,000  
          per year.

           COMMENTS  :

           TRPA Background  .  In 1968, California and Nevada entered into a  
          bi-state agreement designed to protect natural resources and  
          control development in the Lake Tahoe Basin.  The agreement  
          (i.e., the Compact), created TRPA to serve as the land use and  
          environmental protection agency for the Lake Tahoe region and  
          became effective by Congressional authorization in December  
          1969.  But the 1969 Compact failed to provide the powerful  
          environmental protection mechanism that it was intended to be.   
          As a result, the states extensively amended the Compact, and  
          Congress authorized these amendments in December 1980.  One of  
          the most significant changes in the 1980 Compact was its  
          requirement that one regional body, TRPA, review and approve all  
          projects within the region.

          The 1980 Compact recognized that "[i]ncreasing urbanization is  
          threatening the ecological values of the region and threatening  
          the public opportunities for use of the public lands."  To  
          preserve these values, it empowered TRPA "to establish  
          environmental threshold carrying capacities," or "thresholds,"  
          which are "environmental standard[s] necessary to maintain a  
          significant scenic, recreational, educational, scientific or  
          natural value of the region or to maintain public health and  
          safety within the region."  These thresholds include "standards  
          for air quality, water quality, soil conservation, vegetation  
          preservation and noise."

          Once these thresholds were established, the 1980 Compact  
          required TRPA "to adopt and enforce a regional plan and  
          implementing ordinances which will achieve and maintain such  
          [thresholds] while providing opportunities for orderly growth  
          and development consistent with such capacities."  As such, in  
          1987, after establishing the thresholds, TRPA adopted a new  
          regional plan that provided the framework for ensuring that all  
          development would be consistent with achieving and maintaining  
          these thresholds.  

          While the 1987 regional plan has not actually succeeded in  
          attaining many of the environmental thresholds, including lake  








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          clarity, it has more or less controlled urbanization of the  
          Tahoe Region.

           Nevada threatens to withdraw  .  Developers and other powerful  
          business interests in Nevada have long complained that the  
          Compact and the 1987 regional plan's land-use and environmental  
          regulations were too restrictive.  In June 2011, pressure from  
          these interests led to passage of Nevada Senate Bill 271 (SB  
          271), which would have required Nevada to withdraw from the  
          Compact as early as 2015 if California did not agree to certain  
          changes in the Compact and TRPA did not adopt a new regional  
          plan. 

          SB 271 specifically sought changes to the Compact that would  
          have:  1) manipulated TRPA's voting structure to essentially  
          make it easier to approve pro-development measures; 2) required  
          TRPA to consider the changing economic conditions of the Lake  
          Tahoe Basin and amend the Regional Plan accordingly; and 3) set  
          forth that any person who legally challenged the Regional Plan  
          had the burden of proving the Regional Plan does not comply with  
          the provisions of the Compact. 

           The 2012 RPU  .  A year before the passage of SB 271, TRPA  
          undertook efforts to update the 1987 regional plan.  After much  
          controversy, marathon negotiations, and compromise, the RPU was  
          finalized and adopted by TRPA in December 2012 with a 12-1 vote,  
          with one member, Byron Sher, abstaining.  

          Many support the RPU because it does all of the following:

          1)Retains the established regional growth control system in the  
            1987 regional plan.  Under this system, rampant  
            overdevelopment was stopped and open spaces preserved.

          2)Encourages property owners to transfer development rights from  
            sensitive or outlying areas to existing town centers with the  
            goal of restoring these lands.

          3)Integrates with the Regional Transportation Plan to support  
            sidewalk and bike trail projects that reduce automobile  
            dependency and increase walkability and safety.

          4)Continues to deliver restoration projects under what is called  
            "the Environmental Improvement Program" that achieve erosion  








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            control on roadways and restore forests and wetlands.

          5)Continues to limit development in recreation areas.  Without  
            this, local jurisdiction could approve development more wildly  
            in those areas.  (It should be noted that an earlier draft of  
            the RPU would have eliminated this protection.)

          6)Protects TRPA's invasive species program.

          In a press release, TRPA claimed that the RPU "achieves  
          environmental standards while allowing orderly growth and  
          development in the Region."

          The executive director of the League to Save Lake Tahoe issued  
          the following statement in support of the RPU: 

               While the plan is not perfect, it is a product of  
               community collaboration and compromise, and is  
               designed to be adaptive.  It also ensures that we  
               continue protecting the regional environment through a  
               federally approved bi-state compact that contains  
               important environmental thresholds? Preserving the  
               compact and implementing the RPU will provide the  
               greatest long-term benefit to the lake and its  
               communities.

          Critics of the RPU, such as the Sierra Club and Friends of the  
          West Shore, feel that SB 271 and political pressure to "save the  
          Compact" compromised the RPU.  These groups object to the RPU's  
          environmental planning document, which they say lacked an  
          analysis of the actual environmental impacts, such as impacts to  
          water quality.  Additionally, they raise concerns related to  
          provisions in the RPU that delegate planning decisions and  
          environmental protection measures from TRPA to local  
          governments.  An attorney for Earthjustice stated, "[t]here is  
          no reason to believe that cash-strapped local governments would  
          adopt and enforce adequate environmental protection measures in  
          the face of lucrative development proposals." 

           May 14, 2013 Agreement  .  Although a new RPU was approved by  
          TRPA, the threat of Nevada withdrawing from the Compact was  
          still present because of the passage of SB 271 in 2011.  In  
          fact, a previous version of the bill at hand included a backup  
          plan in the event of the withdrawal of Nevada from the bi-state  








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          compact.

          However, on May 14, 2013, Nevada Governor Brian Sandoval and  
          California Governor Jerry Brown announced an agreement to  
          preserve the Compact.

          Under this agreement, Nevada would repeal SB 271 and give up its  
          demand to change TRPA's voting structure.  California agreed to  
          require consideration of economic conditions in adopting and  
          implementing regional plans, as well as establishing a burden of  
          proof for challenging a regional plan and TRPA decisions.

          The Nevada legislature passed SB 229, which includes the terms  
          of the deal and Governor Sandoval signed the bill into law in  
          early June.  This bill is California's attempt to fulfill its  
          end of the bargain.


           Analysis Prepared by  :    Mario DeBernardo / NAT. RES. / (916)  
          319-2092 


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