BILL ANALYSIS Ó AB 935 Page 1 Date of Hearing: May 6, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 935 (Salas) - As Amended March 26, 2015 ----------------------------------------------------------------- |Policy |Water, Parks and Wildlife |Vote:|15 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires the Department of Water Resources (DWR) to AB 935 Page 2 provide grants and expenditures for the planning, design, and construction of local and regional conveyance projects as specified. Specifically, this bill: 1)Requires grants and expenditures to be consistent with an adopted integrated regional water management plan (IRWM) and achieve one or more of the following benefits: a) Improved regional or interregional water supply reliability. b) Mitigation of conditions of groundwater overdraft and subsidence, and improved groundwater quality. c) Adaptation to the impacts of hydrologic changes. d) Improved water security from drought, natural disasters, and other events that interrupt water supplies. e) Providing 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. FISCAL EFFECT: AB 935 Page 3 1)Unknown, potentially significant, funding shifts from other water management activities to local and regional conveyance projects (IRWMP bond funding). 2)Increased costs of $250,000 to $350,000 for DWR to develop regulations (IRWMP bond funding). COMMENTS: 1)Purpose. According to the author, conveyance is necessary to fully realize the benefits of virtually every type of local water management project, such as desalination, recycling, water use efficiency, and storage projects. The author further contends that the recently passed water bond, Proposition 1 (AB 1471, Chapter 188, Statutes of 2014), provides funding for surface water storage and groundwater storage projects , however, in order to create the greatest possible statewide benefit, it will be necessary to have adequate connections between both. 2)Proposition 1 IRWMP funding. Proposition 1, the Safe Drinking AB 935 Page 4 Water, Quality, and Infrastructure Act of 2014, authorizes $7.545 billion in general obligation funding for water-related projects and programs. Proposition 1 includes $510 million for the IRWM program and specifically carves out at least $51 million for direct expenditure or non-competitive grants to ensure the involvement of disadvantaged communities in the IRWM process. Proposition 1 also requires at least another $51 million be expended within the IRWM regions on projects that benefit disadvantaged communities. Bond issuance and audit costs are approximately 7%, so this bill would be funded from the remaining approximately $375 million for planning and implementation grants within the IRWM funding category. 3) Disadvantaged Communities and Economically Distressed Areas. Proposition 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. Proposition 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. c) An area DWR finds to be in financial hardship, an area with unemployed at a rate that is 2% higher than the statewide average; or, an area with a low population density. AB 935 Page 5 Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081