BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1649


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          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


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          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


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          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


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