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. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 16, 2015 |Policy Vote: N.R. & W. 8 - 0, | | | E.Q. 7 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 24, 2015 |Consultant: Marie Liu | | | | ----------------------------------------------------------------- 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 ? 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 ? 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 ? 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. -- END --