BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                         AB 92|
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                                   THIRD READING 


          Bill No:  AB 92
          Author:   Committee on Budget  
          Amended:  3/24/15 in Senate
          Vote:     21  

           SENATE BUDGET & FISCAL REVIEW COMMITTEE:  11-4, 3/25/15
           AYES: Leno, Allen, Beall, Block, Hancock, Mitchell, Monning,  
            Pan, Pavley, Roth, Wolk
           NOES: Nielsen, Anderson, Morrell, Nguyen
           NO VOTE RECORDED: Stone

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

           SUBJECT:   Water


          SOURCE:    Author


          DIGEST:  This bill contains necessary statutory and technical  
          changes to implement AB 91 (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.  


          ANALYSIS:  This bill, along with AB 91, proposes expenditures of  
          $1,059 million for drought-related activities. 

          1.Requires the Department of Fish and Wildlife (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  








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            timeframe, proposals for protective measures.  

          2.Allows DFW to assess civil penalties, including administrative  
            penalties, for obstructing fish passage with separate  
            provisions for obstructions associated with marijuana  
            cultivation.  Requires DFW adopt emergency regulations to  
            implement the penalty provisions and amends the Timber and  
            Forest Restoration Fund to allow for the receipt of penalty  
            monies.

          3.Allows DFW to initiate a complaint before the State Water  
            Resources Control Board (SWRCB) for a violation or trespass in  
            connection with an unauthorized diversion or use of water that  
            harms fish and wildlife resources.

          4.Establishes the Office of Sustainable Water Solutions within  
            the SWRCB 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.Expands 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.Transfers 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.Expedites 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.  Identifies and lists any contracts  







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            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.

          Comments:  This bill contains the statutory changes necessary to  
          implement AB 91, 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.  This 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.  This  
            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.  This bill  
            requires DFW to initiate an emergency rulemaking process to  
            develop and implement due process procedures to implement its  
            administrative penalty provisions.







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            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 SWRCB and remain a  
            party to the proceeding.

          2.Creation of the Office of Sustainable Water Solutions.  This  
            bill creates a first-of-its-kind Office of Sustainable Water  
            Solutions (Office) as a new unit within the drinking water  
            program at the SWRCB.

            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% to 50% in many  
            water systems.  Traditional revolving funds, such as those at  
            the SWRCB, address leaks in the public water system but do not  







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

          Expenditures of $1,059 million for drought-related activities.


          SUPPORT:   (Verified3/24/15)


          None received


          OPPOSITION:   (Verified3/24/15)


          None received







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          ASSEMBLY FLOOR:  51-27, 3/23/15
          AYES:  Wood, Dodd, McCarty, Cooley, Cooper, Levine, Frazier,  
            Eggman, Bonilla, Thurmond, Chiu, Bonta, Ting, Quirk, Mullin,  
            Gordon, Chu, Campos, Low, Mark Stone, Alejo, Perea, Salas,  
            Williams, Lopez, Holden, Gatto, Irwin, Dababneh, Nazarian,  
            Brown, Roger Hernández, Chau, Bloom, Gomez, Rodriguez,  
            Santiago, Ridley-Thomas, Eduardo Garcia, Calderon, Cristina  
            Garcia, Jones-Sawyer, Medina, Burke, Rendon, Gipson, Daly,  
            O'Donnell, Weber, Gonzalez, 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 16:13:53


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