BILL ANALYSIS Ó SB 861 Page 1 ( Without Reference to File ) SENATE THIRD READING SB 861 (Budget and Fiscal Review Committee) As Amended June 13, 2014 Majority vote. Budget Bill Appropriation Takes Effect Immediately SENATE VOTE :Vote not relevant SUMMARY : Contains necessary statutory and technical changes to implement the Budget Act of 2014 related to resources. Specifically, this bill : 1)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. 2)Allows the Environmental License Plate Fund to be used for climate assessment. 3)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. 4)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. 5)Authorizes the Oil Spill Prevention and Administration Fund to be used for inland oil response, provides for statutory changes to the fee structure, eliminates the fee sunset, and expands the fee base to include all crude oil entering the state. 6)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. SB 861 Page 2 7)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. 8)Clarifies that rubberized chip seal projects are eligible for project funding, in addition to currently allowed asphalt concrete, within the tire recycling programs. 9)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. 10)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. 11)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. 12)Codifies the Board of Equalization retailer reimbursement regulations that were approved on September 10, 2013. 13)Diversifies the Local Conservation Corps funding under the Department of Resources Recycling and Recovery, and creates a separate statutory section to continue the program. 14)Increases the cap on environmental justice grants distributed by the Secretary for Environmental Protection from $20,000 to $50,000 and authorizes up to $1.5 million for this purpose. 15)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. 16)Authorizes the California Public Utilities Commission to order electrical corporations to continue to administer the SB 861 Page 3 New Solar Homes Partnership Program, regardless of the source of funds for this program, until the $400 million funding limit is reached. COMMENTS : This bill provides the necessary statutory references to enact the 2014-15 budget related to resources, environmental protection, energy, and agriculture. Analysis Prepared by : Gabrielle Meindl / BUDGET / (916) 319-2099 FN: 0003979