BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 965


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          ASSEMBLY THIRD READING


          AB  
          965 (Eduardo Garcia)


          As Amended  May 4, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                |Noes                  |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Environmental   |6-0   |Alejo, Dahle,       |                      |
          |Safety          |      |Gallagher,          |                      |
          |                |      |Gonzalez, Gray,     |                      |
          |                |      |McCarty             |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |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,  |                      |
          |                |      |                    |                      |








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          |                |      |                    |                      |
          |                |      |Eduardo Garcia,     |                      |
          |                |      |Gordon, Holden,     |                      |
          |                |      |Jones, Quirk,       |                      |
          |                |      |Rendon, Wagner,     |                      |
          |                |      |Weber, Wood         |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
           ------------------------------------------------------------------- 


          SUMMARY:  Requires the California-Mexico Border Relations Council  
          (Border Relations Council) to establish the New River Water  
          Quality, Public Health, and River Parkway Development Program (New  
          River Program) to coordinate funding for, and the implementation  
          of, the recommendations from the New River Strategic Plan.   
          Provides the Border Relations Council with a consultative and  
          coordinating role on the development, implementation and funding  
          of specified border-related projects.  Specifically, this bill:  
          1)Deletes the statutory reference to the California Border  
            Environmental Cooperation Committee (Cal BECC).
          2)Changes the definition of the California-Baja California border  
            region from the region "described in Chapter IV of the US-Mexico  
            Border XXI Program, Framework Document, published October 1996"  
            to the region "to the north and south of the international  
            border between California and Baja California described in  
            Article 4 of the La Paz Agreement, signed August 14, 1983,  
            between the United States and Mexico." 


          3)Clarifies that funds from the Water Quality, Supply, and  
            Infrastructure Improvement Act of 2014 (Proposition 1) may be  
            deposited into the California Border Environmental and Public  
            Health Protection Fund (Fund).


          4)Requires the Secretary for Environmental Protection to consult  
            with the Border Relations Council, instead of Cal BECC, when  
            awarding grants to remediate environmental, public health, or  








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            natural resource concerns due to cross-border transmission of  
            environmental pollutants or toxics.


          5)Provides that the Secretary for Environmental Protection, on  
            behalf of the Border Relations Council, instead of on behalf of  
            Cal BECC, shall accept donations for distribution to  
            governmental entities, community-based nonprofit organizations,  
            and educational institutions located in the border region if the  
            donations can be shown to contribute to the protection of the  
            environment, public health, or natural resources of the  
            California border region.


          6)Requires the Border Relations Council to establish the New River  
            Program to coordinate funding for, and the implementation of,  
            the recommendations from the New River Strategic Plan and the  
            projects identified pursuant to the statutory guidelines of the  
            Fund.


          7)Requires a state agency that funds the activities of the New  
            River Program to make all necessary efforts to integrate and  
            align its contractual and administrative requirements for  
            grants, loans, and other forms of financial support to meet the  
            goals of the Program.


          8)Updates the definition of urban creek protection, restoration,  
            and enhancement to include the reduction of water quality  
            impairments and nonpoint source water pollution, and the  
            establishment of parkways for public use that benefit flood  
            control and water quality.


          9)Requires the Department of Water Resources (DWR) to consult with  
            the Border Relations Council to establish criteria to fund  
            projects that improve conditions for cross-border urban creeks.









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          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee: 


          1)Potential unknown additional cost pressures on the Urban Streams  
            Restoration Program and increased competition for funding. 


            The 2014 grant cycle approved projects totally $7.9 million from  
            previous water and resources bonds (Proposition 84 of 2006 and  
            Proposition 13 of 2000).  DWR received a total of 57 proposals  
            for over $41 million in requested funds.  Thirteen proposals  
            were recommended for funding and eight contingency proposals  
            were identified in the event additional funds become available. 


          2)Absorbable costs for CalEPA and DWR. 


          3)Unknown costs for state agencies to align contractual and  
            administrative requirements for New River Projects. 


          COMMENTS:  


          Need for the bill:  According to the author, "California has  
          developed a Strategic Plan to begin a comprehensive cleanup and  
          restoration effort for the New River.  Further statutory  
          clarification is needed to define how the strategic plan will be  
          implemented and funded by state agencies.  Improved coordination  
          and a strategic funding will help remediate the health and safety  
          issues posed by the New River."

          California - Mexico Border Relations:  The issues affecting the  
          United States - Mexico border region are complex and challenging.   
          Communities on both sides of the border face rapid population  
          growth, urbanization, industrial expansion, and increasing flows  








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          of international trade, which in turn create challenges related to  
          the environment, public health, security, and land use.  To  
          improve statewide oversight and coordination of the state's  
          involvement with Mexico, the Legislature enacted AB 3021 (Núñez),  
          Chapter 621, Statutes of 2006, which created the Border Relations  
          Council to serve as the central organizing body overseeing and  
          collaborating on California-Mexico border issues.  

          The New River:  The New River flows north from near Cerro Prieto,  
          Mexico, through the city of Mexicali, into the United States  
          through the City of Calexico, California, and discharges into the  
          Salton Sea.  The river does not flow from a natural source, but  
          instead consists of urban runoff, untreated and partially treated  
          municipal wastes, untreated and partially treated industrial  
          wastes, and agricultural runoff.  While strides have been made  
          over the decades to improve the quality of the water in the New  
          River, it is still often referred to as one of the most severely  
          polluted rivers of its size in the United States.  


          AB 1079 (V. Manuel Perez), Chapter 382, Statutes of 2009, required  
          the Border Relations Council to create a strategic plan to study,  
          monitor, remediate, and enhance the New River's water quality to  
          protect human health and to develop a river parkway suitable for  
          public use and enjoyment.  Pursuant to provisions in AB 1079, the  
          Border Relations Council released the Strategic Plan: New River  
          Improvement Project (New River Strategic Plan) in December of  
          2011, which includes more than a dozen specific recommended  
          solutions to continue to clean up the New River.  While the  
          Colorado Basin Regional Water Quality Control Board, the main  
          entity responsible for New River water quality on the U.S. side of  
          the border, has taken steps to comply with the recommendations  
          laid out in the New River Strategic Plan, California entities face  
          statutory authority, resource, and other limitations to achieving  
          all of the recommendations.  


          California Border Environmental and Public Health Protection Fund  
          (Fund):  AB 2317 (Ducheny), Chapter 742, Statutes of 2000 created  








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          the Fund to implement projects to identify and resolve  
          environmental and public health problems that threaten California  
          residents or the sensitive natural resources of the California  
          border region.  While the Budget Act of 2000 appropriated $2.8  
          million to address environmental pollution at the Mexican border,  
          money was never allocated to the Fund and the Fund currently  
          remains unfunded.  This bill specifies that Proposition 1 funds  
          may be deposited in the Fund and requires CalEPA to coordinate  
          with the Border Relations Council when awarding grants from the  
          Fund to mitigate cross-border transmission of environmental  
          pollutants.  


          Assembly hearings on cross-border river water quality:  On March  
          19 and 20th, 2015, the Assembly Committee on Environmental Safety  
          and Toxic Materials held a series of hearings in Southern  
          California focusing on California's role in managing binational  
          river water quality issues and on ensuring that border  
          communities, especially disadvantaged communities, are not left  
          behind in water quality restoration efforts.  The first hearing  
          was held in Imperial Beach and focused on the progress on and  
          challenges to the Tijuana River recovery strategy.  The second  
          hearing was held in Calexico and focused on New River restoration  
          efforts.  


          Dozens of community members, local elected officials, members of  
          international bodies, and officials from the states of Baja  
          California and California attended the hearings.  Prioritization  
          of cross-border water quality issues, dedicated funds for water  
          quality enhancement that can be used on both sides of the border,  
          and delineating an entity to coordinate and collaborate on  
          cross-border water quality issues were common themes of the  
          testimony presented at the New River hearing.  


          This bill incorporates the testimony that called for a  
          coordinating body, designated by this bill as the Border Relations  
          Council, to implement the New River Strategic Plan.  In addition,  








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          the bill designates the Border Relations Council as a consultative  
          body on the disbursement of funds from the Fund, and requires DWR  
          to consult with the Border Relations Council on cross-border urban  
          creek projects.  All of these provisions are designed to create a  
          more coordinated effort for implementing and funding the  
          improvement of the New River.    




           Analysis Prepared by:                                               
                          Shannon McKinney / E.S. & T.M. / (916) 319-3965     
                                                                    FN:  
          0000577