BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 965 (Eduardo Garcia) - California and Mexico border: water  
          resources improvement.
          
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          |Version: June 16, 2015          |Policy Vote: N.R. & W. 8 - 0,   |
          |                                |          E.Q. 7 - 0            |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 24, 2015   |Consultant: Marie Liu           |
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          This bill meets the criteria for referral to the Suspense File. 


          Bill  
          Summary:  AB 965 would require the California-Mexico Border  
          Relations Council (council) to establish the New River Water  
          Quality, Public Health, and River Parkway Development Program.


          Fiscal  
          Impact:  
           Ongoing costs up to $125,000 annually to the General Fund for  
            the council to support the New River Water Quality, Public  
            Health, and River Parkway Development Program.
           Unknown cost pressures, potentially in the millions of  
            dollars, to the General Fund (Propositions 84 and 13) for the  
            expansion of the Urban Streams Restoration Program.
           Ongoing costs of up to $70,000 to the General Fund  
            (Proposition 1) for the Department of Fish and Wildlife (DFW)  
            to coordinate with the council in establishing criteria to  
            fund projects that improve conditions for the New River. 







          AB 965 (Eduardo Garcia)                                Page 1 of  
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          Background:  The New River flows north form Mexico, through Mexicali, Baja  
          California, and Calexico, to the Salton Sea is one of the most  
          polluted rivers in the country due to discharges from urban,  
          agricultural, and industrial sources in Mexico and in the US.  
          According to CalEPA, pollution in the New River threatens public  
          health, prevents the support of healthy ecosystems for wildlife  
          and other biological resources, contributes to water quality  
          problems in the Salton Sea, and hinders economic development in  
          Imperial County. 
          As authorized by AB 1079 (V.M. Perez) Chapter 382, Statutes of  
          2009, the council developed the New River Strategic Plan to  
          study, monitor, and enhance water quality in the river. The plan  
          was completed in December 2011. 


          Existing law establishes the California Border Environmental and  
          Public Health Protection Fund to receive funds from the state,  
          the federal government, and private sources to assist agencies  
          in California and Baja California to implement projects that  
          identify and resolve environmental and public health problems  
          that directly threaten the health or environmental quality of  
          California residents or resources of the California border  
          region. The fund may not be used to bring a person or facility  
          into compliance with environmental laws or to remediate  
          environmental damage. There is currently no balance in the fund.


          Existing law establishes the Urban Streams Restoration Program  
          to award competitive grants for urban creek protection,  
          restoration, and enhancement. The program has received funding  
          from Propositions 13 and 84.


          The Water Quality, Supply, and Infrastructure Improvement Act of  
          2014 (Proposition 1), approved by the voters in November 2014,  
          made available $285 million to DFW for watershed restoration  
          projects outside of the Delta.




          Proposed Law:  








          AB 965 (Eduardo Garcia)                                Page 2 of  
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            This bill would extend the membership of the California-Mexico  
          Border Relations Council to include the Secretary of State and  
          Consumer Services and nonvoting, ex-officio representative of  
          the Regional Administrator of the US Environmental Protection  
          Agency. The council would also be required to invite  
          representatives of the State of Baja California and the Mexican  
          government to participate. The council, instead of the  
          California Environmental Protection Agency, would administer the  
          California Border Environmental and Public Health Protection  
          Fund. 
          The council would be required to establish the New River Water  
          Quality, Public Health, and River Parkway Development Program to  
          coordinate funding for, and the implementation of, the  
          recommendations of the New River Strategic Plan.


          This bill would expand project eligibility in the Urban Streams  
          and Restoration Program to include projects that reduce water  
          quality impairments and nonpoint source water pollution and  
          projects that establish parkways for public use that benefit  
          flood control and water quality.


          This bill would amend Proposition1 to require DFW to consult  
          with the council to establish criteria to fund projects that  
          improve conditions for cross-border urban creeks and watersheds  
          with monies made available to DFW for watershed restoration  
          projects outside of the Delta.




          Staff  
          Comments:  CalEPA would likely need up to one position for the  
          council to coordinate fund and oversee the implementation of the  
          New River Strategic Plan under the New River Water Quality,  
          Public Health, and River Parkway Development Program at an  
          annual cost of $125,000. Staff notes that these costs are  
          potentially less as the New River Strategic Plan is being  
          already being partially implemented by the Region 7 Regional  
          Water Quality Control Board and the Calexico New River  
          Committee. However, some additional workload is necessary as a  
          result of this bill because the progress of the Calexico New  
          River Committee has been hindered by limited resources.








          AB 965 (Eduardo Garcia)                                Page 3 of  
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          The Urban Streams Restoration Program, administered by DWR, is  
          an oversubscribed program funded by limited bond funds. Staff  
          notes that 2014, the program had $7.9 million available for  
          allocation. DWR received a total of 57 proposals with $41  
          million in requested funds. To the extent that this bill allows  
          for the funding of projects that would not otherwise have been  
          eligible, this bill would create additional cost pressures on  
          the grant program, potentially in the millions of dollars.


          For DFW to coordinate with the council on development of  
          criteria to fund projects that improve conditions of the New  
          River, DFW anticipates having on-going annual costs of  
          approximately $70,000. While cost pressures already exist on the  
          specified Proposition 1 monies to fund projects that would  
          benefit the New River, by establishing explicit criteria to fund  
          New River projects, this bill magnifies the existing cost  
          pressures. 




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