BILL ANALYSIS Ó AB 2373 Page 1 ASSEMBLY THIRD READING AB 2373 (Gray) As Amended May 9, 2016 2/3 vote ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Water |12-0 |Levine, Gallagher, | | | | |Dababneh, Dodd, | | | | |Cristina Garcia, | | | | |Gomez, Lopez, Mathis, | | | | |Medina, Olsen, Salas, | | | | |Williams | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |14-0 |Gonzalez, Bloom, | | | | |McCarty, Bonta, | | | | |Calderon, Daly, | | | | |Eggman, Eduardo | | | | |Garcia, Roger | | | | |Hernández, Holden, | | | | |Quirk, Santiago, | | | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------ AB 2373 Page 2 SUMMARY: Appropriates $45,000 from the General Fund to the Merced Irrigation District (MID) to implement on-farm irrigation system and water use efficiency improvements for small communal farms in Merced County. Additionally, requires MID to report to the Legislature by April 30, 2018, for the purpose of determining the effectiveness of the appropriation and the cumulative impact on the County of Merced. EXSITING LAW: 1)Appropriates $35 million to the Department of Water Resources for agricultural water efficiency programs. 2)Requires agricultural water suppliers to develop water management plans and implement efficient water management practices. FISCAL EFFECT: According the Assembly Appropriations Committee, this bill appropriates $45,000 from the General Fund to MID. COMMENTS: The 2015-16 proposed budget for MID was $78 million with $86 million in revenue. MID encompasses 164,000 gross acres. Total irrigable lands in the MID are 138,000 acres. In 2007, 88,000 acres of land were supplied with water from MID. According to the author, dozens of Hmong refugee families have come together to share the cost and labor of farming. Unfortunately, these families lack capital to invest in their farms. Water pumps are in disrepair, which hinders the efficiency and energy use of irrigation. The modest sum appropriated in this bill will provide significant reductions in energy, fuel, and water use. AB 2373 Page 3 The 2015-16 budget appropriated $35 million to the Department of Water Resources to implement agricultural water efficiency programs. The Department of Water Resources has made $30 million available through competitive grants. The guidelines for these grants were completed January 27, 2016, and applications were due by March 30, 2016. Irrigation districts are among the eligible applicants for these grants. Project types to be funded are those that will produce potential benefits to the State including: technical assistance, training, education and public outreach. It is not clear if the communal farms that this bill would provide funding for would win an agricultural water use efficiency grant. However, MID is in a position to apply for future grants and appears to have the resources to apply. Additionally, if there is concern that a grant application focused solely on communal farms would not receive funding the potential exists for MID to build a larger application. A larger application could include communal farms and additional efficiencies such as addressing the 75% of the 825 miles of water distribution facilities that MID operates that are earthen lined channels. Analysis Prepared by: Ryan Ojakian / W., P., & W. / (916) 319-2096 FN: 0003064 AB 2373 Page 4