BILL ANALYSIS Ó AB 92 Page 1 (Without Reference to File) CONCURRENCE IN SENATE AMENDMENTS AB 92 (Committee on Budget) As Amended March 24, 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | |March 23, 2015 |SENATE: | |March 25, 2015 | | | | | |24-14 | | | | | | | | | | | | | | | | -------------------------------------------------------------------- (vote not relevant) Original Committee Reference: BUDGET SUMMARY: Contains necessary statutory and technical changes to implement AB 91 (Budget Committee) of the current legislative session, 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. The Senate amendments delete the Assembly version of this bill, and instead: AB 92 Page 2 1)Require 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 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. 4)Establish the Office of Sustainable Water Solutions (Office) 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 of 2014, to fund two water AB 92 Page 3 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: a) install water efficiency upgrades to eligible residents at no upfront cost; and, b) 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 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 Labor Code Section 1782. 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 AB 92 Page 4 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. 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. 2)Creation of the Office of Sustainable Water Solutions. This bill creates a first-of-its-kind Office 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. AB 92 Page 5 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 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 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 AB 92 Page 6 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 Labor Code Section 1782, which concern payment of prevailing wages and use of apprentices on municipal projects. Analysis Prepared by: Gabrielle Meindl / BUDGET /916-319-2099 FN: 0000083