BILL ANALYSIS Ó AB 935 Page 1 ASSEMBLY THIRD READING AB 935 (Salas) As Amended March 26, 2015 Majority vote ------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+---------------------+---------------------| |Water |15-0 |Levine, Bigelow, | | | | |Dababneh, Dahle, | | | | |Dodd, Beth Gaines, | | | | |Cristina Garcia, | | | | |Gomez, Harper, | | | | |Lopez, Mathis, | | | | |Medina, Rendon, | | | | |Salas, Williams | | | | | | | |----------------+------+---------------------+---------------------| |Appropriations |17-0 |Gomez, Bigelow, | | | | |Bonta, Calderon, | | | | |Chang, Daly, Eggman, | | | | |Gallagher, | | | | | | | | | | | | | | |Eduardo Garcia, | | | | |Gordon, Holden, | | | | |Jones, Quirk, | | | | |Rendon, Wagner, | | AB 935 Page 2 | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------- 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. 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. AB 935 Page 3 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 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 (Proposition 1) including, 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 with $100 million of that amount directed at water conservation and $200 million of that amount dedicated to stormwater management. 2)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. 3)Proposition 1 defines an economically distressed area as an area that meets the following: AB 935 Page 4 a) A municipality with a population of 20,000 persons or less, 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: According to the Assembly Appropriations Committee, unknown, potentially significant, funding shifts from other water management activities to local and regional conveyance projects (IRWMP bond funding). Also, increased costs to DWR of $250,000 to $350,000 to develop regulations (IRWMP bond funding). COMMENTS: This bill would require DWR to fund conveyance projects, as specified. The Assembly Appropriations Committee analysis notes that approximately $375 million for planning and implementation grants within the IRWM funding category could be used to fund this bill. That figure is based on the $510 million of Proposition 1 IRWM funds that are eligible to fund conveyance projects less bond issuance costs, audit costs, and funds dedicated to addressing the needs of disadvantaged communities. 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 recently-passed AB 935 Page 5 Proposition 1 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. Other 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. There is no known opposition to this bill. Analysis Prepared by: Tina Leahy / W., P., & W. / (916) 319-2096 FN: 0000767