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.











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          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081