BILL ANALYSIS Ó AB 1649 Page 1 ASSEMBLY THIRD READING AB 1649 (Salas and Gallagher) As Amended May 27, 2016 Majority ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Water |11-0 |Levine, Gallagher, | | | | |Bigelow, Dodd, | | | | |Eduardo Garcia, | | | | |Gomez, Lopez, Mathis, | | | | |Medina, Olsen, Salas | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |20-0 |Gonzalez, Bigelow, | | | | |Bloom, Bonilla, | | | | |Bonta, Calderon, | | | | |Chang, Daly, Eggman, | | | | |Gallagher, Eduardo | | | | |Garcia, Roger | | | | |Hernández, Holden, | | | | |Jones, Obernolte, | | | | |Quirk, Santiago, | | | | |Wagner, Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------ AB 1649 Page 2 SUMMARY: 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 by April 30, 2017. EXISTING LAW: 1)Establishes a Sacramento-San Joaquin Delta policy that among other things lists expanded statewide water storage as an objective. 2)Provides that surface storage projects identified in the CALFED Bay-Delta Program Record of Decision, except projects prohibited by the California Wild and Scenic Rivers Act, are eligible for funding under Proposition 1 of 2014. FISCAL EFFECT: According to the Assembly Appropriations Committee, 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 out of the General Fund or special funds. COMMENTS: 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: AB 1649 Page 3 1)Surface storage projects identified in the CALFED Bay-Delta Program Record of Decision, except projects prohibited by the California Wild and Scenic Rivers Act. 2)Groundwater storage projects and groundwater contamination prevention or remediation projects that provide water storage benefits. 3)Conjunctive use and reservoir reoperation projects. 4)Local and regional surface storage projects that improve the operation of water systems in the state and provide public benefits. 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. In addition to providing funding for storage, Proposition 1 conditioned funding on specific public benefits being met. Concerns have been raised about the ability to develop the policy in the necessary time frame. Additionally, a surface storage prioritization policy could hinder the ability to make the highest value investments with Water Bond funds. Analysis Prepared by: Ryan Ojakian / W., P., & W. / (916) 319-2096 FN: 0003357 AB 1649 Page 4