BILL ANALYSIS Ó
AB 1649
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Date of Hearing: April 27, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1649 (Salas) - As Amended April 5, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the Department of Water Resources (DWR) to
develop a state water policy that gives priority to the
formation and funding of joint powers authorities (JPAs)
established to address surface water storage needs, as
specified, within 60 days of enactment.
FISCAL EFFECT:
AB 1649
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Under the current requirements and timeline in this bill, DWR
estimates increased costs of $850,000 to develop a state policy
to form JPAs and $2.5 million to develop a state policy to fund
JPAs (GF or special funds.)
COMMENTS:
1)Purpose. According to the author, expanding and improving
California's water storage capacity is long overdue. The
author states that this bill urges the state to expedite water
storage projects.
2)Background. AB 1471 (Rendon), Chapter 188, Statutes of 2014,
placed Proposition 1, a $7.545 billion general obligation bond
for water-related projects and programs on the November 4,
2014, ballot where it passed with 67% of the vote.
Proposition 1 continuously appropriates $2.7 billion to the
California Water Commission (Commission) for storage. The
Proposition made those funds available for all of the
following projects:
Surface storage projects identified in the CALFED
Bay-Delta Program Record of Decision, except projects
prohibited by the California Wild and Scenic Rivers Act.
Groundwater storage projects and groundwater
contamination prevention or remediation projects that
provide water storage benefits.
Conjunctive use and reservoir reoperation projects.
Local and regional surface storage projects that improve
the operation of water systems in the state and provide
public benefits.
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The Commission consists of nine members appointed by the
Governor and confirmed by the Senate. Seven members are chosen
for their expertise in the control, storage, and beneficial
use of water and two are chosen for their knowledge of the
environment.
1)Implementation Concerns. The Commission advises the Director
of DWR, approves rules and regulations, and monitors and
reports on the construction and operation of the State Water
Project. In 2009, comprehensive water legislation was
enacted to give the Commission new responsibilities regarding
the distribution of public funds for water storage projects,
and the development of regulations for the quantification and
management of the public benefits associated with the
projects. Because of it regulatory authority, the Commission
is in a better position to adopt regulations on funding
surface water storage projects.
Additionally, establishing a state policy on funding JPA
projects would likely be subject to the regulatory process in
the Administrative Procedures Act (APA). Typically, it takes
about 18 months to adopt and approve regulations through the
Office of Administrative Law. Even with an APA exemption, the
60-day timeline in this bill will have significant costs.
Lastly, DWR does not have expertise or authority over joint
powers authorities which typically are formed between public
agencies under contractual agreement. DWR would likely
require outside legal counsel to formulate the policy and the
60-day deadline would not allow sufficient time for public
input.
AB 1649
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Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081