BILL ANALYSIS Ó AB 2444 Page 1 Date of Hearing: April 19, 2016 ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE Marc Levine, Chair AB 2444 (Eduardo Garcia) - As Amended April 13, 2016 SUBJECT: California Parks, Water, Climate, and Coastal Protection and Outdoor Access For All Act of 2016 SUMMARY: Enacts the California Parks, Water, Climate, and Coastal Protection and Outdoor Access For All Act of 2016, which, if approved by the voters, would authorize issuance of State General Obligation bonds, in an unspecified amount, to finance parks, water, climate adaptation, coastal protection, and outdoor access programs. Specifically, this bill: 1)States legislative findings and declarations regarding California's parks, natural resources and outdoor opportunities, and the scale of unmet need and demand for, and lack of equal access to, those resources and activities. States findings and declarations regarding the benefits of investments for these purposes to public health, and to state and local economies. 2)States that it is the intent of the people of the state that: a) Public investments authorized by this bill provide public benefits and address the most critical statewide needs and priorities; AB 2444 Page 2 b) Priority be given to projects that leverage other funding sources; c) The funding support implementation of recommendations of the Parks Forward Commission; d) Projects receiving funding include signage informing the public of the bond investments. 1)Includes a number of general provisions that apply to all of the articles included in the Act, including: a) Allows up to 10% of funds in each category to be used for planning and monitoring. Planning funds for projects in disadvantaged communities can exceed the 10% if needed. b) Requires at least 10% of funds in each article to be allocated to severely disadvantaged communities. c) Allows up to 10% of funds to go toward technical assistance. Technical assistance may exceed 10% for disadvantaged communities if needed. d) Requires agencies administering the bond to develop project solicitation and evaluation guidelines, to conduct 3 public meetings, and to publish draft guidelines on the Internet. e) Requires the Department of Finance to provide for an independent audit of expenditures. AB 2444 Page 3 f) Allows projects that use California Conservation Corps services or certified community conservation corps to be given preference for grants. g) Encourages administering entities when developing program guidelines for urban recreation and habitat projects, to give favorable consideration to projects that both provide urban recreation and protect or restore natural resources, to the extent practicable, and authorizes entities to pool funding for such purposes. h) Authorizes projects that include water efficiencies, stormwater capture, or carbon sequestration features in the project design to be given priority for grant funding. i) Authorizes the Legislature to enact legislation necessary to implement programs funded by the bond. 1)Authorizes funds to be available, in as yet unspecified amounts, and upon appropriation of the Legislature, for all of the following programs and purposes: a) Article 2. Safe Neighborhood Parks in Park-Poor Communities . For creation and expansion of safe neighborhood parks in park-poor communities, in accordance with the Statewide Park Development and Community Revitalization Act of 2008 competitive grant program [AB 31 (De León), Chapter 623, Statutes of 2008]. b) Article 3. Local & Regional Parks, Per Capita and Competitive programs. (i) For local park rehabilitation and improvement grants to local governments on a per capita basis. Requires a 20% local match unless the entity is a disadvantaged community. Describes the formula to be AB 2444 Page 4 used to allocate the per capita funds between cities, districts, counties, and regional park districts, based on population. (ii) For grants to regional park districts, counties, open space districts, open space authorities, and nonprofit organizations on a competitive basis to expand, rehabilitate, or restore parks and park facilities, including trails, that facilitate new or enhanced use. a) Article 4. State Parks . To the Department of Parks & Recreation (DPR) for restoration and preservation of existing state park facilities and units, to preserve and increase public access, and to protect natural, cultural and historic resources in the parks. Requires that at least 80% of the amount allocated under this article be used for capital improvements to address DPR's deferred maintenance backlog. Further specifies that a portion of the remaining 20% of funds in this article shall be available to DPR for enterprise projects to increase revenue generation, and a portion shall be available to DPR for grants to local agencies that operate state park units. d) Article 5. Trails and Waterfront Greenway Access. To the Natural Resources Agency for competitive grants to local agencies, conservancies, tribes, and nonprofit organizations for non-motorized access to parks, waterways, or other natural environments, to encourage health-related commuting. Authorizes 25% of the total for this program to be made available for innovative transportation programs for disadvantaged youth. AB 2444 Page 5 e) Article 6. Rural Parks and Recreation . For competitive grants to cities, counties and districts in non-urbanized areas, subject to specified considerations. Requires a 20% local share match, unless the entity is a disadvantaged community. Further requires that a specified percentage of the amount made available under this article shall be allocated for projects to protect and enhance the upper and lower Los Angeles River and its tributaries. f) Article 7. California Clean Water, Coastal and Watersheds. To the Natural Resource Agency for River Parkway grants. Requires a 20% match unless the entity is a disadvantaged community. g) Article 7.5. State Conservancies . To the following state conservancies and entities: i. Baldwin Hills Conservancy ii. California Tahoe Conservancy iii. Coachella Conservancy iv. Sacramento-San Joaquin Delta Conservancy v. Salton Sea Authority vi. San Diego River Conservancy vii. San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy viii. San Joaquin River Conservancy ix. Santa Monica Mountains Conservancy AB 2444 Page 6 x. State Coastal Conservancy States that the Legislature shall consider population size, land mass and natural resource significance as factors in determining the amount of funds to be given to these entities. a) Article 8. Climate Preparedness and Habitat Resiliency . For climate adaptation and resiliency projects that improve a community's ability to adapt to climate change, including projects to improve and protect coastal and rural economies, agricultural viability, wildlife corridors, or habitat, develop recreational opportunities, or enhance drought tolerance and water retention, including the following: i. To the Wildlife Conservation Board (WCB) for wildlife corridors, to improve climate change adaptation, and for existing open space corridors and trail linkages. ii. To the California Climate Resilience Account, for projects to assist coastal communities with climate change adaptation, including sea level rise and ocean acidification, and the Pacific Flyway. iii. For projects that improve agricultural and open-space soil health, improve carbon soil sequestration, water quality, and water retention, or to replace inefficient groundwater pumps. iv. For projects that reduce fire risk, improve forest health, and provide feedstock for compost, energy, or alternative fuels facilities. 1)Includes related fiscal provisions regarding sales of bonds and implementation of the Act pursuant to the State General Obligation Bond Law. Establishes a finance committee for the AB 2444 Page 7 bond composed of the Director of Finance, the Treasurer, and the Controller 2)Requires the Secretary of State to submit the bond act to the voters at the November 2016 statewide general election, and includes related instructions regarding preparing ballot pamphlets and statements. Provides that this act shall take effect upon approval by the voters. EXISTING LAW: 1)Authorizes the Legislature to pass legislation, by a 2/3rds vote, to place a proposed general obligation bond measure before the voters on the statewide ballot, to authorize the sale of bonds to finance various state purposes. General obligation bonds have been one of the primary methods voters have used to fund the acquisition and improvement of parklands, open space, and wildlife areas; water conservation, recycling and infrastructure projects; and related purposes. 2)The California Clean Water, Clean Air, Safe Neighborhood Parks and Coastal Protection Act of 2002 (Proposition 40), a legislative ballot measure approved by the voters in 2002, authorized $2.6 billion in bond expenditures for parks and other resource related purposes. 3)The Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000 (Proposition 12), a legislative ballot measure approved by the voters in 2000, authorized expenditures of $2.1 billion for parks and other resource related purposes. 4)The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Act of 2006 (Proposition 84), an initiative measure approved by the voters in 2006, authorized bond expenditures of $5.4 billion, of which AB 2444 Page 8 approximately $875 million was for parks. FISCAL EFFECT: Unknown COMMENTS: This bill proposes to place a park bond on the November 2016 statewide ballot, to fund parks, other outdoor open spaces, waterways, wildlife corridors, climate change adaptation, and other natural resource projects. A major priority focus of this bill is addressing the needs of park-poor and disadvantaged communities. The main categories of funding proposed in the bond are: 1) safe neighborhood parks in park-poor communities; 2) local and regional parks, with funds to be distributed both on a per capita basis (statewide, based on population ratios) and competitively; 3) state parks, with a focus on deferred maintenance in existing parks; 4) trails and waterfront access; 5) rural community recreational needs; 6) river parkways; 7) state conservancies; and 8) wildlife habitat needs, including wildlife corridors and climate change adaptation. 1)Author's Statement: The author notes, to maintain a high quality of life for California's growing population requires a continuing investment in parks, recreation facilities, and protection of the state's natural and historical resources. It has been 14 years since California last approved a "true park bond". The 2008 economic downturn had a disproportionate impact on local, regional and state park infrastructure. There is a high unmet demand for park investment, as witnessed by the 8-1 ratio of grant application requests vs. available grant dollars for park grants awarded under the AB 31 Statewide Parks Program. Demand has been particularly high in both urban and rural disadvantaged communities where many still lack access to safe parks, trails, and recreation areas. AB 2444 Page 9 The author notes that according to the Statewide Comprehensive Outdoor Plan of 2015 (SCORP), 38% of Californians still live in areas with less than 3 acres of parkland per 1,000 population, a recognized standard for adequate parks, and 9 million people do not have a park within a half mile of their home. The SCORP action plan highlights the need for increasing park access to residents in underserved communities by encouraging park development within a half mile of park deficient neighborhoods, creating new trails and greenways to provide active transportation corridors for commuting, and expanding transportation opportunities to larger parks. The author also notes the findings of the Parks Forward Commission which highlighted the need to prioritize protection of natural and cultural resources for future generations, expand access to parks for underserved communities and younger generations, and to address state park deferred maintenance. Investing in parks and trails will help ensure all Californians have access to safe places to exercise and recreate. Additionally, continued investment in the state's natural resources and greening of urban areas will help mitigate the impacts of climate change and provide access to natural resources for future generations. The author also emphasizes that a priority throughout the bond will be to address the needs of park-poor and severely disadvantaged communities. 2)Background: Park and water bonds have been a primary source of state funding for the acquisition and improvement of parks, open space, and wildlife areas in California; and for many water conservation, water recycling, flood management, and water supply needs. Past bond acts have funded a variety of state, regional, and local parks, recreation, conservation, and water-related projects. Bond acts have included funding for support of California's 280 unit state park system, for local and regional parks, for projects to provide public access to the coast and other public lands, and to fund wildlife habitat conservation needs. Bonds have also provided funding for state conservancies and for river AB 2444 Page 10 restoration projects. a) Prior Bond Act history: Since 2000, California voters have approved three park bonds. The last legislatively crafted park bond was Proposition 40, which was approved by the voters fourteen years ago in 2002. The six park and/or water-related bonds approved by the voters since 2000 are: Proposition 12 (2000-Legislative) Safe Neighborhood Parks, Clean Water, Clean Air and Coastal Protection Act. Total $2.1 billion, including $780 million for local, regional parks primarily through block grants, and $400 million for state parks deferred maintenance and acquisition. Proposition 13 (2000-Legislative) Safe Drinking Water, Clean Water, Watershed Protection, and Flood Protection Act. Total $1.97 billion. Prop. 13 was primarily a water bond. Proposition 40 (2002-Legislative) California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act. Total $2.6 billion, including $964 million for local, regional parks through both block grants and competitive grant awards, and $250 million for state parks deferred maintenance and acquisition. Proposition 50 (2002-Initiative) Water Quality, Supply, and Safe Drinking Water Projects Act. Total, $3.4 billion. Proposition 50 was primarily a water bond. Proposition 84 (2006-Initiative) Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act. Total, $5.4 billion, including $457 million for safe neighborhood parks in park-poor and disadvantaged communities and nature centers, and $400 million for state park deferred maintenance and acquisition. Proposition 84 was primarily a water and flood control bond, but also included funding for watershed and ecosystem restoration, and for habitat conservation. AB 2444 Page 11 Proposition 1 (2014-Legislative) Water Quality, Supply, and Infrastructure Improvement Act. Total, $7.12 billion. Proposition 1 was primarily a water bond but also included funding for watersheds and ecosystem restoration. b) Assessing Unmet Needs for park and natural resource investments: To measure the national need for public outdoor recreation facilities and parkland acquisitions at the state and local level, the National Park Service annually, as part of the Land and Water Conservation Fund program, requests each state partner to estimate the total cost of desired outdoor recreation facility development and parklands acquisition projects that cannot be met with available levels of funding. The 2012 report found there was a $3.6 billion total in unmet needs for state and local parks in California in 2011, and $4.85 billion in 2012. State Parks: DPR has estimated the state's backlog of deferred maintenance at state parks alone is over $1.2 billion. The Governor's proposed budget for 2016/17 would appropriate $60 million for state park deferred maintenance. Local and Regional Parks: The California Park & Recreation Society conducted a survey of local and regional park districts to assess unmet need. 45 out of 500 agencies responded to the survey (a 15 to 20% sampling) and estimated a total unmet need of $1.826 billion for local parks. Park-Poor and Disadvantaged Communities: DPR awarded $360 million in competitive grants for safe neighborhood parks in park-poor communities through Proposition 84 and the AB 31 (De León) Statewide Park Program. DPR reported that they received applications for over $3 billion in funds for the program. Rural Communities: While many park poor communities are located in heavily populated urban areas, many rural communities also are park-poor and economically disadvantaged. As an example, DPR in 2009 released a report called the AB 2444 Page 12 Central Valley Vision, which assessed unmet park and recreation needs in the Central Valley. The report found that compared to other California regions, the Central Valley lacks parks for residents and visitors. Major trends, including population growth projected for the region, pointed to the need for significant investment in improving park and recreation access. Projected costs to implement the Central Valley Vision plan were $272 million over 20 years. River Parkways, Trails and Active Transportation: The River Parkways Program, including Proposition 50 and Proposition 84 dollars combined, received applications totaling over $700 million for $151 million in awarded funds, a 5 to 1 ratio. The Recreation Trails Program in 2015 was able to fund $8.4 million out of $60 million requested. The Active Transportation Program received grant requests totaling over $1 billion for their first two rounds of funding, of which $300 million in available funding was awarded. State Conservancies, Wildlife Corridors, Climate Change Adaptation, and other Natural Resource Needs: The total needs for wildlife habitat conservation, climate change adaptation, and other natural resource needs is unknown. Restoration of the Los Angeles River alone is anticipated to be in the billions of dollars. Proposition 1 provided $100 million for this purpose. The WCB receives a significant portion of its funding from state bond funds, in addition to the Habitat Conservation Fund and the Wildlife Restoration Fund. The Habitat Conservation Fund is set to expire in 2020 unless extended. The WCB's strategic plan indicates that available state bond funds for wildlife habitat from prior bonds are dwindling, and that future bond funds will be needed. Existing bond funds will likely be exhausted by the 2019/20 fiscal year. The WCB estimates the state's five year unmet and unfunded need for prioritized wildlife habitat conservation for the WCB alone at about $864 million. Proposition 1 provided some funding for watershed and ecosystem restoration, both within and outside the Delta. The climate change adaptation needs identified in this bill, such as sea level AB 2444 Page 13 rise and ocean acidification, are unknown but also significant. The funding in Proposition 1 for state conservancies was limited to water related needs. Other areas of the state not covered by conservancies also have natural resource conservation needs. For example, the Cascade Mountains, including Mount Shasta and Mount Lassen, are not covered by a conservancy. Another example of such an area is the Salton Sea, which is facing significant challenges in the very near future for habitat restoration needs as the Sea recedes. Estimated costs for restoration at the Salton Sea have ranged from $2 billion to $8 billion. Forest management needs throughout the state to reduce wild fire risk and for watershed restoration and maintenance are also significant. c) Issues for Consideration: i. What should the overall dollar amount of this bond be? As currently drafted, this bill does not specify the total amount of funding that would be authorized, or how those funds would be allocated among the various park and resource needs identified in the bond. The author has indicated his desire to gather input from the committee, legislative colleagues, stakeholders, and the administration to help inform what those dollar levels should be. As the estimates cited above indicate, the unmet need far exceeds the amount of funding that can be provided in a single bond measure, particularly in light of the state's other funding needs and debt obligations. Suggested Amendment: While this bill is clearly a work in progress and will be further fleshed out as it moves through the legislative process, the committee may wish to consider amending this bill at this time to identify the total dollar amount for the bond, and perhaps how those funds would be allocated between the three major categories of the bond. Most proposals for a AB 2444 Page 14 statewide 2016 park bond fall in the $2.4 to $3 billion range. As one option, the committee might consider amending this bill to provide a total dollar amount of $2.985 billion in authorized bond funding. In order to implement the author's and the Legislature's intent in prioritizing the bond funding, the $2.985 billion could be further allocated between three major categories in the bond as follows: 1. Park-poor and disadvantaged community parks (Article 2): $995 million 2. Other state, local, regional, and rural parks, and trails (Articles 3-6): $995 million 3. River Parkways, conservancies, wildlife, climate, resources (Articles 7- 8): $995 million Total: $2.985 billion ii. What types of expenditures should be prioritized in this bond? Acquisitions vs. enhancement and maintenance of existing lands and facilities: Recent bonds have committed substantial funding to new land acquisition, while existing parks continue to deteriorate. As stated above, DPR has estimated the total deferred maintenance backlog at state parks at over $1.2 billion. According to the Statewide Comprehensive Outdoor Plan of 2015, in a survey of 300 local and regional park directors, 55% cited rehabilitation of existing parks as the highest priority, versus 19% for new park development, and 17% for new facilities in existing parks. For these reasons, the Legislature may want to consider prioritizing deferred maintenance and rehabilitation or enhancement of existing AB 2444 Page 15 parks over new acquisitions in this bond. Disadvantaged communities vs. per capita or block grants: The author of this bill has identified addressing the park, recreation and open space needs of park-poor urban and rural disadvantaged communities as a high priority in this bond. The Parks Forward Commission also recommended expanding park access for California's underserved communities and urban populations, and engaging California's younger generations. However, local and regional parks throughout the state have also identified significant unmet park and recreation investment needs. While this bill includes provisions for funding both purposes, the relative dollar amounts allocated to each have not been determined. The Legislature will need to decide how best to balance the needs of underserved communities with statewide needs in prioritizing and allocating funding in this proposal. California Conservation Corps and Local Conservation Corps: Prior bonds have included funding for projects of the California Conservation Corps (CCC) and local conservation corps. This bill allows but does not require preference to be given in awarding grants to projects that utilize the services of the CCC or certified community corps. Suggested Amendment: The committee and author may wish to consider an amendment specifically allocating funding to the CCC and local conservation corps as follows: "The sum of ________ shall be available to the California Conservation Corps for projects to rehabilitate or improve parks and restore watersheds, including regional and community fuel load reduction projects on public lands, and stream and river restoration projects. Not less than 50% of these funds shall be in the form of grants to local conservation corps." iii. River parkways: This bill includes a category for funding of river parkways, and specifies that a portion of the AB 2444 Page 16 funding allocated for this purpose shall be allocated to restoration efforts on the upper and lower Los Angeles River. Proposition 1 allocated $100 million for this purpose. How to allocate appropriation of these funds is an issue that is currently before the Assembly Budget Subcommittee #3 on Resources. The Legislative Analyst's Office (LAO), in its review of the Governor's budget proposal observed that the overall plan for the Los Angeles River lacked some detail. The LAO recommended that the Legislature develop a multiyear plan for allocating funding for Los Angeles River restoration efforts. The Assembly Budget Subcommittee in materials prepared for subcommittee hearings this month agrees with the LAO and recommends that budget trailer bill language be considered specifying that the Proposition 1 funding for the Los Angeles River be equally divided between the upper and lower river and the two conservancies. Suggested Amendment: In light of the proposed Budget Committee action regarding the Proposition 1 funding, the committee and author might wish to consider a similar amendment to the funding proposed in this bill for the Los Angeles River, to specify that the grant funds shall be equally divided between projects in the upper river and lower river regions. 3)Prior and Related Legislation: SB 317 (De León) of 2015 proposed to authorize $2.45 billion in bond expenditures, including $1.45 billion for parks. The $1.45 billion was further divided to provide $800 million for safe neighborhood parks in park-poor communities, $200 million for local park rehabilitation, $200 million for regional parks, $200 million for state parks, and $50 million to DPR for revenue generation activities. SB 317 also proposed $370 million for rivers, lakes and streams; $350 million for coastal and ocean protection; and $280 million for climate resilience. SB 317 also included funding for the Coastal Conservancy, Santa Monica Mountains Conservancy, and the California Tahoe Conservancy, but not for the other conservancies or for the Salton Sea. SB 317 failed passage on the Senate floor. AB 2444 Page 17 4)Support Arguments: Supporters assert that this bill will provide an important opportunity for California to invest in critically needed park and open space programs while providing climate and habitat resiliency in our natural systems. This bill provides a framework to infuse much needed financial resources into all neighborhood, regional and state parks. Supporters, in general, support the overall framework of the bond, and emphasize support for particular components. Some supporters highlight support for funding of local parks and recreation, including funding for both park-poor communities, and per capita funding. Several supporters express support for funding of wildlife corridors, coastal and sierra resources, state park deferred maintenance, and for the WCB. With regard to conservancies, some entities support this bill in concept, but point out large portions of the state fall outside of the boundaries of the existing state conservancies, and urge that an allocation be added to the WCB to be used for projects outside the boundaries of the named conservancies. Others urge inclusion of a specific funding allocation for services performed by the California Conservation Corps (CCC) and local conservation corps. 5)Opposition Arguments: None received. REGISTERED SUPPORT / OPPOSITION: Support Audubon California Big Sur Land Trust AB 2444 Page 18 Bolsa Chica Land Trust California Association of Park & Recreation Commissioners & Board Members California Association of Park Districts (in concept) California Association of Recreation and Park Districts California Council of Land Trusts California Park & Recreation Society East Bay Regional Park District El Dorado Irrigation District Land Trust of Santa Cruz County Latino Outdoors Midpeninsula Regional Open Space District Napa County Regional Park and Open Space District Pacific Forest Trust (in concept) AB 2444 Page 19 Peninsula Open Space Trust Rails to Trails Conservancy San Francisco Parks Alliance Santa Clara Valley Open Space Authority Save the Redwoods League Sonoma County Agricultural Preservation and Open Space District Sonoma County Regional Parks Sonoma County Water Agency State Park Partners Coalition The Nature Conservancy Watershed Conservation Authority Opposition None on file AB 2444 Page 20 Analysis Prepared by:Diane Colborn / W., P., & W. / (916) 319-2096