BILL ANALYSIS                                                                                                                                                                                                    Ó




           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                         AB 91|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 


                                   THIRD READING 


          Bill No:  AB 91
          Author:   Committee on Budget  
          Amended:  3/24/15 in Senate
          Vote:     21  

           SENATE BUDGET & FISCAL REVIEW COMMITTEE:  13-0, 3/25/15
           AYES:  Leno, Allen, Anderson, Beall, Block, Hancock, Mitchell,  
            Monning, Nguyen, Pan, Pavley, Roth, Wolk 
           NO VOTE RECORDED:  Nielsen, Morrell, Stone 

          ASSEMBLY FLOOR:  51-27, 3/23/15 - See last page for vote

           SUBJECT:   Budget Act of 2015


          SOURCE:    Author


          DIGEST:  This bill contains amendments to the 2014 Budget Act to  
          include new appropriations to address the states urgent drought  
          needs.


          ANALYSIS: 

          This bill:

           1. Accelerates the appropriation of $131.7 million (Proposition  
             1) for the State Water Resources Control Board's (SWRCB)  
             building for the existing water recycling grant program.   
             Potential projects include feasibility studies, demonstration  
             projects, and larger scale water recycling projects.

           2. Accelerates the appropriation of $135.5 million (Proposition  
             1) for the SWRCB to improve access to clean drinking water  








                                                                      AB 91  
                                                                    Page  2



             for disadvantaged communities ($69 million) and help small  
             communities pay for wastewater treatment ($66 million). 

           3. Accelerates the appropriation of $14.6 million ($11.4  
             million General Fund and $3.2 million Fish and Game  
             Preservation Fund) for the Department of Fish and Wildlife  
             (DFW) to continue critical state operations related to  
             drought, such as fish rescues, hatchery operations, fish and  
             wildlife monitoring, and responding to problems of  
             human/wildlife conflict from animals seeking food and water.

           4. Accelerates the appropriation of $11.6 million (General  
             Fund) for the Department of Water Resources (DWR) to continue  
             to assess current surface and groundwater conditions,  
             expedite water transfers, provide technical guidance to local  
             water agencies, and provide additional public outreach  
             through the Save Our Water campaign.  

           5. Accelerates the appropriation of $6.7 million (General Fund)  
             and $15.9 million (Cleanup and Abatement Account) for the  
             SWRCB to continue enforcement of drought-related water rights  
             and water curtailment actions and provide grants ($15  
             million) for emergency drinking water projects, including  
             hauled water, bottled water, design and construction of  
             connections to adjacent public water systems, new wells and  
             well rehabilitation.  

           6. Appropriates $4 million (Cleanup and Abatement Account) for  
             the SWRCB to provide emergency safe drinking water to  
             disadvantaged communities affected by the drought.

           7. Accelerates the appropriation of $4.4 million (General Fund)  
             to the Office of Emergency Services for the State Operations  
             Center to continue to provide local communities with  
             technical guidance and disaster recovery support related to  
             the drought.

           8. Accelerates the appropriation of $20 million (Greenhouse Gas  
             Reduction Fund) to the DWR for state and local water use  
             efficiency programs which reduce greenhouse gas (GHG)  
             emissions.









                                                                      AB 91  
                                                                    Page  3



           9. Accelerates the appropriation of $10 million (Greenhouse Gas  
             Reduction Fund) to the California Department of Food and  
             Agriculture (CDFA) for agricultural water efficiency projects  
             that reduce GHG emissions.

           10.Appropriates $17 million and reappropriates $7 million  
             (General Fund), to the Department of Social Services to  
             expand food assistance to persons affected by the drought to  
             include the Counties of Imperial, San Luis Obispo, Santa  
             Barbara, Ventura, and Coachella Valley in Riverside County.

           11.Appropriates $3 million (General Fund) for the Department of  
             Forestry and Fire Protection to address critical  
             infrastructure deficiencies at remote fire stations that have  
             run out of water.

           12.Appropriates $2 million (General Fund) to the DFW for  
             maximizing water delivery and efficiency to key endangered  
             species habitat, endangered species, native fish and Delta  
             monitoring, and water delivery system projects.

           13.Appropriates $7.4 million (General Fund) to the DWR for  
             additional public outreach through the Save Our Water  
             campaign, refining the modeling of turbidity flows in the  
             Delta, and Local Assistance ($5 million) to provide emergency  
             drinking water support for small communities, including  
             addressing private well shortages. 

           14.Authorizes funds for the removal of emergency rock barriers  
             and actions to minimize impacts of the barriers on affected  
             aquatic species in the Sacramento-San Joaquin Delta, if  
             necessary.

           15.Accelerates the appropriation of $4 million (Harbors and  
             Watercraft Fund) to the Department of Parks and Recreation,  
             Division of Boating and Waterways for efforts to manage and  
             control invasive aquatic plants within the Sacramento-San  
             Joaquin River Delta, its tributaries and the Suisun Marsh  
             which threaten water supply intake structures.

           16.Accelerates the appropriation of $200,000 (General Fund) to  
             the CDFA for economic analysis studies to determine the  








                                                                      AB 91  
                                                                    Page  4



             ongoing impacts of California's drought on the state's  
             agriculture sector and identify potential solutions.

           17.Appropriates $4 million (General Fund) for the SWRCB and the  
             DFW to enhance instream flows in at least five stream systems  
             that support critical habitat for anadromous fish.  

           18.Accelerates the appropriation of $660 million (Proposition  
             1E) for the DWR to support flood protection activities.   
             Expenditures of these bond funds will be allocated to program  
             categories that are consistent with the resource allocation  
             recommendations of the Central Valley Flood Protection Plan  
             for prioritizing flood management projects.  Specifies that  
             funds shall be available for encumbrance and expenditure  
             until June 30, 2020, and June 30, 2023, respectively.

           19.Approves side agreement recently entered into by the  
             Administration and state Bargaining Unit 19, represented by  
             the American Federation of State, County, and Municipal  
             Employees, Health and Social Services/Professional.  The  
             addendum would compensate Senior Psychologists,  
             Psychologists, and Licensed Clinical Social Workers working  
             at the California Department of Corrections and  
             Rehabilitation institutions for certain standby and call back  
             duties.  These agreements amend existing Memoranda of  
             Understandings (MOUs) but do not constitute new MOUs.  The  
             department is absorbing costs in the current year and no  
             additional appropriation authority is being requested at this  
             time.
          
          Comments:  California is experiencing its fourth dry year in a  
          row -- the worst drought in modern U.S. history and driest  
          January since the state began keeping records in 1895.  The  
          Sierra Nevada snowpack, which Californians rely on heavily  
          during the dry summer months for their water needs, is at a near  
          record low. Only in 1991 has the water content of the snow been  
          lower. 

          California's drought conditions have resulted in dangerously low  
          levels of water in our reservoirs and groundwater aquifers and  
          have impacted every aspect of our environment and economy. The  
          drought has imperiled drinking water supplies, our agricultural  








                                                                      AB 91  
                                                                    Page  5



          sector, sensitive habitats, and greatly increased our risk of  
          wildfire.  Some have estimated the state has only about one year  
          of water left in its reservoirs.

          Since last February, the state has pledged over $870 million to  
          support drought relief, including money for food to workers  
          directly impacted by the drought, funding to secure emergency  
          drinking water supplies for drought impacted communities and  
          bond funds for projects that will help local communities save  
          water and make their water systems more resilient to drought. 

          Last fall, the Legislature approved and the Governor signed  
          legislation requiring local, sustainable groundwater management  
          as well as legislation to put a $7.5 billion water bond before  
          voters, which won bipartisan approval in the Legislature and was  
          approved overwhelmingly at the polls. 

          The purpose of this urgency drought relief package is to provide  
          immediate funding to help communities deal with the devastating  
          dry conditions affecting the state and to increase local water  
          supplies.  This bill accelerates many drought-related proposals  
          in the Governor's Budget and other Water Action Plan proposals  
          aimed at improving the state's water supply and storage through  
          infrastructure investments, improving the management of  
          groundwater, and addressing water quality issues, particularly  
          in disadvantaged communities.  This bill also includes  
          additional emergency funding for drinking water supplies for  
          disadvantaged communities, food assistance, conservation  
          education and outreach activities, and urgent fish and stream  
          needs related to the drought.  

          This bill includes more than $1 billion for local drought relief  
          and infrastructure projects to make the state's water  
          infrastructure more resilient to extreme weather events.  
          Specifically, this bill does the following: 

           1. Accelerates $267 million from Proposition 1 Water Bond  
             funding for safe drinking water and water recycling from the  
             Governor's January budget proposal.

           2. Accelerates drought-related expenditures from the Governor's  
             January budget proposal augmented by $31 million in targeted  








                                                                      AB 91  
                                                                    Page  6



             additional expenditures ($132 million total), including  
             efforts to implement the Water Action Plan and provide direct  
             assistance to workers and communities impacted by drought.

           3. The additional $31 million in new targeted expenditure items  
             which were not included in the Governor's January budget  
             proposal include the following:

                   $17 million in additional funding to support emergency  
                food aid to 29 counties most impacted by the drought;

                   $4 million for emergency drinking water in  
                disadvantaged communities;

                   $5 million to the DWR to provide emergency drinking  
                water support for small communities, including addressing  
                private wells;

                   $1.4 million to the DWR to increase advertising and  
                public relations related to the Save Our Water campaign;

                   $2.8 million to the DWR and DFW for additional  
                modeling support and species tracking in the Delta and  
                greater Central Valley to support efficient management of  
                the state's water system; and

                   $1 million to address critical infrastructure  
                deficiencies at remote fire stations that have run out of  
                water.

           1. Accelerates $660 million from the Governor's January budget  
             proposal of Proposition 1E bond monies for flood protection  
             in urban and rural areas to make the state's infrastructure  
             more resilient to climate change and flood events.

           2. Accelerates $30 million from the Governor's January budget  
             proposal of cap-and-trade auction revenue to DWR ($20  
             million) and CDFA ($10 million) for programs that provide a  
             reduction of GHG emissions and also deliver state and local  
             water use efficiency and agricultural water use efficiency.   
             Both proposals were part of last year's agreement on  
             cap-and-trade expenditures.  








                                                                      AB 91  
                                                                    Page  7




          FISCAL EFFECT:   Appropriation:    Yes         Fiscal  
          Com.:YesLocal:   No

          This bill, along with the companion trailer bill, AB 92  
          (Committee on Budget, 2015), proposes expenditures of $1,059  
          million for drought-related activities.


          SUPPORT:   (Verified3/24/15)


          None received


          OPPOSITION:   (Verified3/24/15)


          None received




          ASSEMBLY FLOOR:  51-27, 3/23/15
          AYES:  Alejo, Bloom, Bonilla, Bonta, Brown, Burke, Calderon,  
            Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd,  
            Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gatto,  
            Gipson, Gomez, Gonzalez, Gordon, Roger Hernández, Holden,  
            Irwin, Jones-Sawyer, Levine, Lopez, Low, McCarty, Medina,  
            Mullin, Nazarian, O'Donnell, Perea, Quirk, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone,  
            Thurmond, Ting, Weber, Williams, Wood, Atkins
          NOES:  Achadjian, Travis Allen, Baker, Bigelow, Chang, Chávez,  
            Dahle, Beth Gaines, Gallagher, Grove, Hadley, Harper, Jones,  
            Kim, Lackey, Linder, Maienschein, Mathis, Mayes, Melendez,  
            Obernolte, Olsen, Patterson, Steinorth, Wagner, Waldron, Wilk
          NO VOTE RECORDED:  Brough, Gray


          Prepared by:Catherine Freeman / B. & F.R. / (916) 651-4103
          3/25/15 16:13:51









                                                                      AB 91  
                                                                    Page  8




                                   ****  END  ****