BILL ANALYSIS Ó
SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
Senator Mark Leno, Chair
2015 - 2016 Regular
Bill No: AB 92 Hearing Date: March 25,
2015
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|Author: |Committee on Budget |
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|Version: |March 24, 2015 > |
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|Urgency: |Yes |Fiscal: |Yes |
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|Consultant|Catherine Freeman |
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Subject: Budget Act of 2015
Summary: Contains necessary statutory and technical changes to implement
AB 92 (Committee on Budget), which amends the 2014-15 Budget Act
related to urgent drought relief. This bill, along with AB 91,
proposes expenditures of $1,059 million for drought-related
activities.
Provisions: This bill, along with AB 91, proposes expenditures of $1,059
million for drought-related activities.
1)Require DFW to notify the owner of a new diversion, which is
deleterious to salmon and steelhead, that it must be screened
and to submit to the owner, within 30 days or upon a mutually
agreed upon timeframe, proposals for protective measures.
2)Allow DFW to assess civil penalties, including administrative
penalties, for obstructing fish passage with separate
provisions for obstructions associated with marijuana
cultivation. Require DFW adopt emergency regulations to
implement the penalty provisions and amend the Timber and
Forest Restoration Fund to allow for the receipt of penalty
monies.
3)Allow DFW to initiate a complaint before the State Water Board
for a violation or trespass in connection with an unauthorized
diversion or use of water that harms fish and wildlife
resources.
AB 92 (Committee on Budget) Page 2
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4)Establish the Office of Sustainable Water Solutions within the
State Water Resources Control Board to promote permanent and
sustainable drinking water and wastewater treatment solutions
to ensure effective and efficient provision of safe, clean,
affordable, and reliable drinking water and wastewater
treatment services.
5)Expand the use of the Cleanup and Abatement Account for uses
beyond mitigation of waste and unreasonable use to include
urgent drinking water needs. Also, expands the entities
eligible to receive funds to public agencies. This change
would allow local water districts to be eligible to receive
funds to address emergency drinking water needs. These
provisions will sunset on July 1, 2018.
6)Transfer to CalConserve Revolving Fund $10 million of the
proceeds of Proposition 1 to fund two water conservation and
water use efficiency pilot programs that will provide loans at
below market rates or zero interest to urban water suppliers
in order to: 1) install water efficiency upgrades to eligible
residents at no upfront cost; and, 2) provide low-interest
loans to customers to finance leak repairs. Both could be
repaid through customers' utility bills.
7)Expedite emergency drought response time by suspending
contracting provisions of the Government Code and Public
Contract Code for actions related to Governor's declaration of
a drought emergency that address human health and safety
impacts, fish and wildlife resources, and provision of water
to persons or communities. Identify and list any contracts
approved under the suspended state contracting provisions on
the California Drought Internet Web site.
8)Amends the Government Code to ensure that funding provided to
local governments in response to an emergency is not subject
to the eligibility restrictions of Section 1782 of the Labor
Code.
9)Directs agencies receiving moneys from the 2014-15 Budget Act
related to urgent drought relief to use the services of the
California Conservation Corps or a certified community
conservation corps, where feasible, for restoration, ecosystem
restoration projects, or other similar work.
AB 92 (Committee on Budget) Page 3
of ?
Fiscal
Effect: Expenditures of $1,059 million for drought-related activities.
Support: None on file.
Opposed: None on file.
Comments: This bill contains the statutory changes necessary to
implement SB 75, the urgent drought relief legislation. It
contains five main components:
1)Enhanced Department of Fish and Wildlife Authorities,
particularly with regard to illegal marijuana grows. The
fourth year of drought is straining resources and affecting
fish and wildlife in catastrophic ways. This strain is
exacerbated by illegal marijuana growing operations that are
diverting water directly out of streams or using trucks to
siphon it from water bodies and carry it to their operations.
Illegal actions are affecting fish and wildlife populations
and making it harder for legal actors to comply. The bill
provides DFW three new tools.
Existing law requires the owner of a new diversion in salmon
or steelhead waters to notify DFW so that DFW can determine
whether or not the diversion is affecting salmon or steelhead
and proscribe proper screening measures, if necessary. The
bill instead allows DFW to provide notification to only those
owners whose diversions are affecting salmon or steelhead and
requires DFW to recommend screening measures within 30 days or
upon a mutually agreeable time frame.
This bill authorizes DFW to impose civil penalties, including
administratively, where diversions are obstructing fish
passage with separate provisions for illegal grows. The bill
requires DFW to initiate an emergency rulemaking process to
develop and implement due process procedures to implement its
administrative penalty provisions.
This bill enhances the effectiveness of wardens by allowing
those who observe unauthorized water diversions that harm fish
and wildlife to initiate a complaint to the State Water
Resources Control Board and remain a party to the proceeding.
AB 92 (Committee on Budget) Page 4
of ?
2)Creation of the Office of Sustainable Water Solutions. The
bill creates a first-of-its-kind Office of Sustainable Water
Solutions as a new unit within the drinking water program at
the State Water Resources Control Board.
One of the most challenging problems with water supply
reliability and water quality throughout the state is the lack
of help offered to small communities (small cities, rural
counties, and unincorporated areas) that have small rate
bases, little or no local funds, huge water infrastructure
needs and few staff to help meet those needs.
The Office will help small communities apply for state and
federal funds to help clean up drinking water and provide
greater access to treatment technologies. It will also help
communities that want to consolidate to better apportion costs
of water system upgrades to prevent or mitigate huge local
rate increases. Finally, the Office will provide basic
technical assistance to small communities that, in many cases
do not have a city manager or staff to work on providing clean
drinking water to its residents.
3)Creation of CalConserve Revolving Fund Water Efficiency Pilot
Projects. Water conservation is one of the only tools
immediately available in a drought to help try to stretch
existing supplies. Communities like the Town of Windsor have
experienced terrific water conservation success with
"Efficiency Pays" programs. Under those programs the water
supplier installs water efficient upgrades such as washing
machines or dishwashers at no upfront cost to the eligible
homeowner and the homeowner repays them on their utility bill.
After the upgrades the bill is often less even with the
repayment obligation included.
In addition to stretching supplies is preserving existing
supplies. DWR estimates leakage to be from 5 percent to 50
percent in many water systems. Traditional revolving funds,
such as those at the State Water Resources Control Board,
address leaks in the public water system but do not address
leaks on private property. This pilot project would bridge
that gap through a low-interest loan program administered by
local agencies to their customers.
4)Suspension of State Contracting Provisions for Drought
AB 92 (Committee on Budget) Page 5
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Emergencies. Some communities in California have literally
run out of water and, as the fourth year of drought continues,
there are likely to be more. The environment has also been
devastated by the dry weather. Traditional state contracting
provisions require agencies to engage in many procedures,
including advertising contracts and selecting from multiple
bids. This bill allows contracts for projects that are
related to the Governor's declaration of a state of emergency
to be expedited by waiving traditional contracting provisions.
However, it also ensures accountability and public oversight
by listing on the California Drought Internet Web site
sufficient information to identify which agencies and which
contracts utilized the provision.
5)Emergency Funding and Financial Assistance Not Subject to
Certain Eligibility Restrictions. Local governments have
raised concerns that they would not be eligible to receive
money from the State's Disaster Relief Fund in the event of a
calamity, like an earthquake, wildfire or flood, because they
are not in compliance with the eligibility restrictions of
Section 1782 of the Labor Code, which concern payment of
prevailing wages and use of apprentices on municipal projects.
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