BILL ANALYSIS Ó AB 18 Page 1 Date of Hearing: April 8, 2015 ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION Adam Gray, Chair AB 18 Dodd - As Amended March 12, 2015 SUBJECT: Disaster relief: South Napa Earthquake SUMMARY: This urgency measure, adds the South Napa Earthquake that occurred on August 24, 2014 to the list of disasters eligible for full state reimbursement of the local agency costs under the California Disaster Assistance Act (CDAA or Act). Specifically, this bill: 1) Adds the South Napa Earthquake in August 2014, to the list of disasters for which the state share of state eligible costs is 100 percent under the Act. 2) Contains an urgency clause. EXISTING LAW: AB 18 Page 2 1) Provides under the Act, that the state must pay 75% of the non-federal share of eligible costs for any state-declared emergency. 2) Prohibits the state share for any eligible project from exceeding 75% of total state eligible costs unless the local agency is located within a city, county, or city and county that has adopted a local hazard mitigation plan, in accordance with the federal Disaster Mitigation Act of 2000, as part of the safety element of its general plan, as specified. 3) Provides for certain disasters that allow the state to cover up to 100% of the non-federal eligible costs. (e.g., 1989 Loma Prieta earthquake, 1991 East Bay Fire, 1994 Northridge earthquake, the 2001 Southern California wildfires, and the 2003 San Simeon earthquake). FISCAL EFFECT: Unknown COMMENTS: The California Disaster Assistance Act (Act) is California's state disaster assistance program. The Act reimburses local governments for debris removal, emergency work, and repair or AB 18 Page 3 replacement of public facilities damaged by a disaster upon a Governor's proclamation. The state share of eligible expenses is 75%, and local jurisdictions are responsible for the remaining 25%. When there is a federal declaration, the Federal Emergency Management Agency (FEMA) pays 75% and the state pays 75% of the remaining 25%. In recent federally declared disasters, it has been the Legislature's practice to increase the Act funding to 100% so that the state would pay the entire remaining 25% nonfederal share of eligible costs. The Legislature usually has not increased the Act funding to 100% for state-only disasters that are not federally declared. In 2006, the Legislature enacted AB 2140 (Hancock) Chapter 739, Statutes of 2006, which was designed to promote the adoption of local hazard mitigation plans (LHMP) that meet specified federal standards. Under this provision, a local jurisdiction is not eligible for the 100% cost share under the Act unless it is located within a city and/or county that has adopted an LHMP as part of the safety element of its general plan. According to the author's office, Napa and Sonoma County have adopted an LHMP pursuant to existing law, and are eligible to receive the full 100% share of costs. Purpose of the bill : On August 24, 2014, a 6.1 magnitude earthquake centered in Napa County caused severe damage in that county and the surrounding counties of Solano and Sonoma. The earthquake caused structural damage to public and private buildings. The quake was the strongest to hit the San Francisco Bay area since a magnitude-6.9 earthquake in 1989. The quake AB 18 Page 4 damaged critical infrastructure, including power lines, water mains and gas lines and sparked gas-fed fires that destroyed several mobile homes. The worst damage came near the epicenter in downtown Napa, where a post office, library and a 141-room hotel were among 150 homes and buildings deemed unsafe to occupy. On the day of the earthquake, Governor Brown issued an emergency proclamation for the state of California due to the effects of the earthquake and continued aftershocks. The Governor declared, "Under the provisions of the California Government Code, I find that conditions of extreme peril to the safety of persons and property exists in Napa, Solano, and Sonoma counties due to these events." On September 11, 2014, President Obama declared an earthquake emergency that made federal dollars available to public agencies for earthquake damage. The federal government will pay 75 percent of eligible costs. Of the remaining 25 percent, the state is to pay 75 percent and local agencies 25 percent. The City of Napa estimates the earthquake caused at least $300 million in damage to privately owned homes and commercial properties, and $58 million in damage to public infrastructure. According to information provided by the author's office, the remaining 25 percent of non-federally reimbursed costs to Napa and Solano Counties, as well as the cities of Vallejo and Napa, AB 18 Page 5 could approach $5 million. Without disaster relief assistance, it will be difficult for the impacted cities to pay for damage repairs that are were not covered by federal and state disaster assistance. According to the author's office, this bill will continue a well-established practice of the state that has been in place after previous major disasters, such as the Loma Prieta and Northridge earthquakes, as well as the 1991 East Bay Fire. This recent disaster came at a time when local governments are financially strapped and this measure is intended to ensure that local costs are reimbursed for the events surrounding the earthquake. It is only fitting that the state covers the costs of the local agencies in this disaster as has been done in many previous disasters in other areas. Prior legislation : AB 1429 (Chesbro), 2011-12 Legislative Session, vetoed by Governor Brown. Would have added the tsunami that affected Del Norte County in March 2011 to the list of disasters eligible for full state reimbursement of the local agency costs under the Act. Governor Brown's veto message stated: "This measure would require the state pay 100 percent of the total state eligible costs for damages sustained to Del Norte County by the March 2011 tsunami. "The state has not paid for a local government's share of disaster costs since 2006 and this measure would cost AB 18 Page 6 the state over $1 million. In addition, if I sign this measure, other counties that sustain similar damages would likely request the same relief-a precedent that the state currently cannot afford." SB 1537 (Kehoe), Chapter 355, Statutes of 2008. Added the wildfires that occurred in southern California, commencing on or about October 20, 2007, to the list of disasters eligible for full state reimbursement of local agency costs under the Act. SB 1764 (Kehoe), 2007-08 Session. Would have required a local agency, on or after January 1, 2010, to obtain an annual certification by the State Fire Marshal (SFM) to be eligible to receive a percentage for a state share in excess of 75 percent. Also, would have required the SFM to specify the possible percentage a local agency may receive in excess of the 75 percent based upon certain criteria and regulations to be promulgated by SFM on or before July 1, 2009. (Vetoed by Governor Schwarzenegger) SB 1308 (Cox), Chapter 400, Statutes of 2008. Included the Angora Fire, which occurred in the Lake Tahoe Basin commencing June 24, 2007, to the list of disasters eligible for full state reimbursement of local agency costs under the Act. AB 18 Page 7 AB 49 (Arambula), 2007-08 Session. Would have amended the CDA Act by adding the extreme cold weather that occurred throughout California during the month of January 2007 to the list of specific events eligible for full state reimbursement of local agency costs. (Held in Assembly Appropriations Committee.) AB 1798 (Berg), Chapter 896, Statutes of 2006. Added the severe rainstorms that occurred in selected counties in Northern California from December 17, 2005 to January 3, 2006, to the list of disasters eligible for full state reimbursement of local agency costs under the Act. AB 2140 (Hancock), Chapter 739, Statutes of 2006. Prohibited the state share for any eligible project from exceeding 75 percent of total state eligible costs unless the local agency is located within a city, county, or city and county that has adopted a local hazard mitigation plan as part of the safety element of its general plan, as specified. AB 2735 (Nava), Chapter 897, Statutes of 2006. Added the severe rainstorms that occurred in selected counties in Northern California from December 17, 2005, to January 3, 2006, to the list of disasters eligible for full state reimbursement of local agency costs under the Act. AB 18 Page 8 AB 164 (Nava and Bass), Chapter 623, Statutes of 2005. Added the severe storms, flooding, debris flows, and mudslides that occurred in the Counties of Kern, Los Angeles, Santa Barbara and Ventura in December 2004, January 2005, February 2005, and March 2005, to the list of disasters eligible for full state reimbursement of local agency costs under the Act. SB 457 (Kehoe), Chapter 622, Statutes of 2005. Added the severe rainstorms, floods, mudslides, and other events that occurred in the Counties of Orange, Riverside, San Bernardino, and San Diego during December 2004, January 2005, February 2005, March 2005, and June 2005 to the list of disasters eligible for full state reimbursement of local agency costs under the Act. AB 1510 (Kehoe), Chapter 772, Statutes of 2004. Added the Southern California wildfires that occurred during October and November 2003 and the San Simeon earthquake that occurred during December 2003 to the list of disasters eligible for full state reimbursement of local agency costs under the Act. SB 438 (Soto and Hollingsworth), 2003-04 Session. Would have added the wildfires that occurred in Southern California beginning October 21, 2003, and the December 22, 2003, San AB 18 Page 9 Simeon earthquake to the list of disasters eligible for full state reimbursement of local agency costs. (Vetoed by the Governor Schwarzenegger) REGISTERED SUPPORT / OPPOSITION: Support California Professional Firefighters City of Napa Napa County Board of Supervisors Napa County Transportation Planning Agency Napa Valley Vintners Opposition None on file Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531 AB 18 Page 10