BILL ANALYSIS Ó AB 935 Page 1 Date of Hearing: April 28, 2015 ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE Marc Levine, Chair AB 935 (Salas) - As Amended March 26, 2015 SUBJECT: Integrated Regional Water Management Plans: conveyance projects: grants and expenditures SUMMARY: Requires the Department of Water Resources (DWR) to provide grants and expenditures for the planning, design, and construction of local and regional conveyance projects that support regional and interregional connectivity and other listed benefits. Specifically, this bill: 1)Requires DWR to provide grants and expenditures for local and regional conveyance projects that are consistent with an adopted integrated regional water management plan (IRWM) and also provide one or more of the following: a) Improve regional or interregional water supply reliability. b) Mitigate conditions of groundwater overdraft, groundwater quality, or land subsidence. AB 935 Page 2 c) Adapt to the impacts of hydrologic changes. d) Improve water security from drought, natural disasters, and other events that interrupt water supplies. e) Provide safe drinking water for disadvantaged communities and economically distressed areas. 2)Requires a local cost-share of not less than 50% unless the area is a disadvantaged community or an economically distressed area. 3)Authorizes DWR to adopt regulations to the implement the regional conveyance grant and expenditure program. EXISTING LAW: 1)Authorizes $7.545 billion in general obligation funding for water-related projects and programs in Proposition 1, the Safe Drinking Water, Quality, and Infrastructure Act of 2014 (Prop. 1) includes, among other funding: a) $2.7 billion for surface and groundwater storage projects, continuously appropriated to the California Water Commission; and, b) $810 million for IRWM projects, including regional water conveyance facilities that improve integration of separate AB 935 Page 3 water systems. 2)Prop. 1 defines a disadvantaged community as a community with an annual median household income that is less than 80 % of the statewide annual median household income. 3)Prop. 1 defines an economically distressed area as the following: a) A municipality with a population of 20,000 persons or less or a rural county, or a reasonably isolated and divisible segment of a larger municipality where the segment of the population is 20,000 persons or less; b) The area has an annual median household income that is less than 85% of the statewide median household income; and, c) DWR finds the area has one or more of the following conditions: is in financial hardship; unemployed at a rate that is 2% higher than the statewide average; or, has a low population density. FISCAL EFFECT: Unknown COMMENTS: This bill would require DWR to fund conveyance projects, as specified. AB 935 Page 4 1)Author's statement: The author states that conveyance is necessary in order to fully realize the benefits of virtually every type of local water management, such as desalination, recycling, use efficiency, and storage projects. The author notes that the water bond has money allocated in it for surface water storage and groundwater storage projects and that, in order to create the greatest possible statewide benefit, it will be necessary to have adequate connections between both. 2)Prior and related legislation: AB 1471 (Rendon), Chapter 188, Statutes of 2014 placed Proposition 1 on the November 2014 ballot where it passed with over 67% of the vote. 3)Supporting arguments: Supporters state that this bill could help benefit agencies in terms of the study, design, and construction of a physical connection to the State Water Project and that this bill would provide for up to a 50% state match for the total project costs. REGISTERED SUPPORT / OPPOSITION: Support Desert Water Agency Opposition AB 935 Page 5 None on file Analysis Prepared by:Tina Cannon Leahy / W., P., & W. / (916) 319-2096