BILL ANALYSIS Ó AB 1649 Page 1 Date of Hearing: April 27, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1649 (Salas) - As Amended April 5, 2016 ----------------------------------------------------------------- |Policy |Water, Parks and Wildlife |Vote:|11 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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. AB 1649 Page 3 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 Page 4 Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081