BILL ANALYSIS Ó AB 91 Page 1 (Without Reference to File) CONCURRENCE IN SENATE AMENDMENTS AB 91 (Committee on Budget) As Amended March 24, 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | | March 23, |SENATE: |35-1 | March 25, 2015 | | | |2015 | | | | | | | | | | | | | | | | | | -------------------------------------------------------------------- (vote not relevant) Original Committee Reference: BUDGET SUMMARY: Amends the 2014-15 Budget Act to include new appropriations to address the state's urgent drought needs. This bill, along with the companion trailer bill, AB 92 (Budget Committee) of the current legislative session, proposes expenditures of $1.059 million for drought-related activities. The Senate amendments delete the Assembly version of this bill, and instead: AB 91 Page 2 1)Accelerate the appropriation of $131.7 million (Proposition 1 of 2014) for the State Water Resources Control Board (SWRCB) to build on the existing water recycling grant program. Potential projects include feasibility studies, demonstration projects, and larger scale water recycling projects. 2)Accelerate the appropriation of $135.5 million (Proposition 1 of 2014) for the SWRCB to improve access to clean drinking water for disadvantaged communities ($69 million) and help small communities pay for wastewater treatment ($66 million). 3)Accelerate 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)Accelerate 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)Accelerate 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)Appropriate $4 million (Cleanup and Abatement Account) for the SWRCB to provide emergency safe drinking water to disadvantaged AB 91 Page 3 communities impacted by the drought. 7)Accelerate 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)Accelerate 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. 9)Accelerate 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)Appropriate $17 million and reappropriate $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)Appropriate $3 million (General Fund) for the Department of Forestry and Fire Protection (CAL FIRE) to address critical infrastructure deficiencies at remote fire stations that have run out of water. 12)Appropriate $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)Appropriate $7.4 million (General Fund) to the DWR for additional public outreach through the Save Our Water campaign, AB 91 Page 4 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)Authorize 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)Accelerate 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)Accelerate the appropriation of $200,000 (General Fund) to the CDFA for economic analysis studies to determine the ongoing impacts of California's drought on the state's agriculture sector and identify potential solutions. 17)Appropriate $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)Accelerate the appropriation of $660 million (Proposition 1E of 2006) 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. Approve side agreement recently entered into by the administration and state Bargaining Unit 19, represented by the American AB 91 Page 5 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 United States 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 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 AB 91 Page 6 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. The legislation 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, the legislation does the following: 1)Accelerates $267 million from Proposition 1 of 2014, 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 additional expenditures ($132 million total), including efforts to implement the Water Action Plan and provide direct assistance to workers and communities impacted by drought. AB 91 Page 7 3)The additional $31 million in new targeted expenditure items which were not included in the Governor's January budget proposal include the following: a) Seventeen million dollars in additional funding to support emergency food aid to 29 counties most impacted by the drought; b) Four million dollars for emergency drinking water in disadvantaged communities; c) Five million dollars to the DWR to provide emergency drinking water support for small communities, including addressing private wells; d) One million four hundred thousand dollars to the DWR to increase advertising and public relations related to the Save Our Water campaign; e) Two million eight hundred thousand dollars to the DWR and CDFW 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 f) One million dollars to address critical infrastructure deficiencies at remote fire stations that have run out of water. AB 91 Page 8 4)Accelerates $660 million from the Governor's January budget proposal of Proposition 1E of 2006, bond monies for flood protection in urban and rural areas to make the state's infrastructure more resilient to climate change and flood events. 5)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. This bill is an important first step in addressing urgent needs brought on by the extreme drought. It contains critical funding for emergency water and food services and gets a start on big projects - such as water recycling - that help provide local water supply reliability that can help with future or ongoing drought. Analysis Prepared by: Gabrielle Meindl / BUDGET / 916-319-2099 FN: 0000082