BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
                             Senator Fran Pavley, Chair
                                2015 - 2016  Regular 

          Bill No:            AB 2444         Hearing Date:    June 28,  
          2016
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          |Author:    |Eduardo Garcia         |           |                 |
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          |Version:   |June 23, 2016    Amended                             |
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          |Urgency:   |Yes                    |Fiscal:    |Yes              |
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          |Consultant:|William Craven                                       |
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               Subject:  California Parks, Water, Climate, and Coastal  
                  Protection and Outdoor Access For All Act of 2016


          BACKGROUND AND EXISTING LAW
          
          1) Authorizes the Legislature to pass legislation, by a 2/3  
          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 park lands, open space,  
          and wildlife areas; water conservation 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 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  
          approximately $875 million was for parks. 








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          PROPOSED LAW
          This bill would enact 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  
          $3.12 billion in State General Obligation bonds 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. It contains 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; 


              b) Priority be given to projects that leverage other funding  
              sources; 


              c) Projects receiving funding include signage informing the  
              public of the bond investments; 


              d) Administering entities be encouraged 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. 


          3) Includes a number of general provisions that apply to all of  
          the articles included in the Act, including: 








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              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 20% 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. 


              f) Requires projects that use California Conservation Corps  
              services or certified community conservation corps to be  
              given preference for grants where feasible. 


              g) Authorizes projects that include water efficiencies,  
              stormwater capture, or carbon sequestration features in the  
              project design to be given priority for grant funding. 


              h) Authorizes the Legislature to enact legislation necessary  
              to implement programs funded by the bond. 


          4) Authorizes funds to be available, upon appropriation of the  
          Legislature, for all of the following programs and purpose as  
          identified in each article of the bill: 










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              a) Article 2 which would make available $995 million 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 would provide $1.070 billion for local and  
              regional outdoor spaces as follows: 

                 i) $450 million 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 used  
                 to allocate the per capita funds between cities,  
                 districts, counties, and regional park districts, based  
                 on population. 


                 ii) $35 million for grants to cities and districts of  
                 less than 200,000 population in urbanized counties of  
                 less than 500,000 total population. A 20% match is  
                 required except for disadvantaged communities. 


                 iii) 60% of the $450 million is to go to cities and  
                 districts that are not regional park districts on a per  
                 capita basis except each jurisdiction receives a minimum  
                 of $250,000. 


                 iv) 40% of the $450 million is to go to counties and  
                 regional park districts on a per capita basis. 


                 There is a prohibition on recipients reducing their local  
                 expenditures after receiving bond funding. Grants must be  
                 consistent with local general plans or parks plans. There  
                 is a three year provision on encumbering a grant. 


              c) Article 4 contains $350 million in funding for state  
              parks, as follows: 








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                 i) These funds are limited to existing parks for  
                 restoration and preservation, and to increase public  
                 access. No less than 80% of these funds must be directed  
                 to capital improvements that address deferred  
                 maintenance. 


                 ii) $20 million for enterprise projects for new user  
                 experiences and revenue generation projects. 


                 iii) $20million for grants to local agencies that operate  
                 state parks for deferred maintenance. A 25% match is  
                 required except for disadvantaged communities. 


                 iv) $70 million for infrastructure repairs at state parks  
                 through new regional programs at state parks with $10  
                 million in the Central Valley, $10 million on the Central  
                 Coast in Ventura County, $15 million in the East Bay, $10  
                 for the Inland Empire, and $15 million for San Diego. 


                 v) $50 million for direct distribution by the department  
                 to its existing 12 districts to address historic  
                 underinvestment. 


              d) Article 5 contains $50 million for the California Natural  
              Resources Agency for Trails and Waterfront Greenway  
              investments. These funds would be for competitive grants to  
              local agencies, conservancies, tribes, and nonprofit  
              organizations for trails and 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. 


              e) Article 6 contains $50 million for competitive grants for  
              rural recreation and tourism to rural entities eligible for  
              under criteria established in the Roberti, Z-Berg, Harris  








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              grants program. 


              f) Article 7 contains $210 million for clean water and  
              coastal programs including urban creeks of which a minimum  
              of 5% ($10.5 million) goes to the Santa Ana River program of  
              the Coastal Conservancy. The remainder is equally divided  
              between the Rivers and Mountains Conservancy and the Santa  
              Monica Mountains Conservancy. 


              g) Article 7.5 contains proposed funding for state  
              conservancies, as follows: 


                 i) Baldwin Hills Conservancy, $5 million 


                 ii) California Tahoe Conservancy, $17.5 million 


                 ii) Coachella Conservancy, $10 million 


                 iv) Sacramento-San Joaquin Delta Conservancy, $15 million  



                 v) Salton Sea Authority, $25 million 


                 vi) San Diego River Conservancy, $15 million 


                 vii) San Gabriel and Lower Los Angeles Rivers and  
                 Mountains Conservancy, $25 million 


                 viii) San Joaquin River Conservancy, $10 million 


                 ix) Santa Monica Mountains Conservancy, $20 million 










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                 x) Sierra Nevada Conservancy, $22.5 million


                 xi) State Coastal Conservancy, $80 million of which 40%  
                 of this amount would be allocated to the Bay Area  
                 program. 

              (h) Article 8 contains proposed expenditures for climate  
              preparedness and habitat resiliency, as follows: 

                 i) $615 million 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, recreational  
                 opportunities, or drought tolerance and water retention,  
                 as follows: 

                 ii) $340 million to the Wildlife Conservation Board (WCB)  
                 for wildlife corridors and open space, for climate change  
                 adaptation, for species habitat, and for existing open  
                 space corridors and trail linkages of which $55 million  
                 would go to the implementation of natural community  
                 conservation plans and $10 million would go to nonprofit  
                 wildlife rehabilitation facilities. 

                 iii) $80 million would go to the Climate Resilience  
                 Account to assist local communities and commercial  
                 fisheries adapt to climate change, address ocean  
                 acidification, sea level rise, or habitat protection  
                 along the Pacific flyway. 

                 iv) $15 million for projects that improve agricultural  
                 and open-space soil health, to improve carbon soil  
                 sequestration, erosion control, water quality, and water  
                 retention.

                 v) $60 million for forest projects to reduce fuel  
                 loading, and to invest in forest management practices  
                 that increase the resilience of forests to wildlife and  
                 climate change. These funds would be administered jointly  
                 by the Department of Forestry and the Sierra Nevada  
                 Conservancy, with $5 million available to the Tahoe  
                 Conservancy. 








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                 vi) $40 million would be available to the California  
                 Conservation Corps, with half of that available as grants  
                 to local conservation corps, for projects in parks,  
                 forests, and stream and river restoration. 

                 vii) $80 million would be available to the California  
                 Natural Resources Agency for grants to local agencies,  
                 tribes, and others for restoration protection and  
                 acquisition of natural, cultural, and historic sites.  
                 Also eligible are projects to repurpose former fossil  
                 fuel power plants as permanent open space and projects  
                 that enhance natural resource protections in those areas  
                 of the state not within the jurisdiction of a state  
                 conservancy.  A match of 20 percent is required. 

          5) 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  
          bond composed of the Director of Finance, the Treasurer, and the  
          Controller. 


          6) 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. 


          7) Includes an urgency clause providing that it is necessary  
          that this bill take effect immediately in order to fund a  
          California parks, water, climate, and coastal protection and  
          outdoor access for all program at the earliest possible date. 


          ARGUMENTS IN SUPPORT
          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  








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          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. 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. 

          There is a huge list of supporters of this measure. The general  
          theme is to support public investment in local and state parks  
          and resource protection that has not been able to be achieved  
          because of the recession and because earlier bond funds have  
          largely been depleted. There is also widespread support for the  
          emphasis on increasing access to parks by disadvantaged  
          communities and especially disadvantaged youth. 


          ARGUMENTS IN OPPOSITION
          The Howard Jarvis Taxpayers Association opposes increasing the  
          state's indebtedness and questions whether improvements in parks  
          will endure for the life of the bond. 









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          COMMENTS
          1.This is an important measure that arrived in the Senate on  
            Thursday, June 23, and, despite this hearing, has not been  
            fully considered by members of this Committee or the Senate as  
            a whole. While staff is recommending amendments below, it  
            seems clear that the Committee will ask the author to agree to  
            a subsequent hearing after the July recess if the measure is  
            still pending. 

          2.The author wishes to add as co-authors: Assemblymembers Kevin  
            McCarty, Lorena Gonzalez, Luis Alejo (Principal), Susan  
            Eggman, and Marc Levine(Principal).


            The following are recommended Committee amendments: 


          3.There should be an additional general provision added in  
            Section 5880.080 (taken from the parks bond proposal of  
            Senator De Leon) that directs the use of conservation  
            easements and voluntary landowner participation including but  
            not limited to the use of easements pursuant to Division  
            10.2(commencing with Section 10200) and Division 10.4  
            (commencing with Section 10330) of the Public Resources Code  
            and voluntary habitat credit exchange mechanisms.
          4.Section 5880.07 should be broadened to include other youth  
            conservation organizations that serve at-risk youth. 
          5.Section 5880.075 should delete the term "whenever feasible." 
          6.Section 5884 should include as an eligible recipient the DWR  
            Riverine Stewardship Program that enters into partnerships  
            with local communities to enhance and restore waterways. 
          7.Section 5886 should include an allocation for the American  
            River Program of the Wildlife Conservation Board, provided  
            that AB 1716 (McCarty) becomes law. 
          8.This same section is intended to allocate 5% of $210,000,000  
            to the Santa Ana River and also to equally divide the balance  
            between the Santa Monica Mountains Conservancy and the San  
            Gabriel and Lower Los Angeles Rivers and Mountains Conservancy  
            for their work on the rivers in the Los Angeles region. An  
            amendment is necessary to fulfill the author's intent as well  
            as to provide funding for the American River Program. Staff  
            recommends a $5 million increase in this category and a  
            provision that the American River Program (if it becomes law)  
            and the Santa Ana River Program each receive 4% of the total.   








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            If the American River Program is not created, the Santa Ana  
            Program would be allocated $6 million and the remainder  
            divided as proposed by the author. 
          9.Existing allocations in this section would not provide any  
            funding for other urban stream projects in other parts of the  
            state. Staff recommends $15 million for competitive grants for  
            multi-benefit urban stream projects not otherwise funded. 
          10.                                Section 5887 allocates  
            funding to conservancies and contains an odd $5 million  
            discrepancy that disfavors the Santa Monica Mountains  
            Conservancy ($20 million) in comparison to the San Gabriel and  
            Lower LA Rivers and Mountains Conservancy ($25 million). Both  
            should be treated equally under the current or a future  
            conservancy funding proposal. 
          11.                                Overall conservancy funding  
            should be increased proportionally by the sum of $100 million.  

          12.This same section proposes $25 million to the Salton Sea  
            Authority. While not a conservancy, the Salton Sea Authority  
            does play a leadership role in fulfilling the conservation and  
            restoration work required by state law in that region. Staff  
            recommends that funding should specify that it is for capital  
            outlay projects that (1) provide air quality and habitat  
            benefits and (2) implement the California Natural Resources  
            Agency's Salton Sea Management Program.
          13.Section 5888 should increase proposed funding to the WCB by  
            $60 million. 
          14.                                Section 5888 should  
            cross-reference the Natural Community Conservation Planning  
            Act's citation at Section 2800 of the Fish and Game Code. It  
            should also prohibit, as have previous bonds, the use of NCCP  
            funding to offset mitigation obligations so that the funding  
            is entirely used for the implementation of NCCPs. Because the  
            unmet needs of existing NCCPs are so extensive, staff  
            recommends an increase in this category of $20 million so that  
            the category would contain $75 million. 
          15.                                That same section should  
            clarify that the wildlife corridor funding shall provide a  
            priority to wildlife corridors threatened by urban  
            development. 
          16.                                Also in this section should  
            be an additional urban forestry category (taken directly from  
            SB 317 of Senator DeLeon) of $30 million. 
          17.                                 This section should also  








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            contain funding for the Department of Conservation to continue  
            its funding of watershed restoration and conservation projects  
            on agricultural lands pursuant to section 9084 of the Public  
            Resources Code. Staff recommends $10 million for this purpose.  

          18.                                The Ocean Protection Council  
                                                                                  should receive an allocation of $40 million to be expended in  
            a manner consistent with the California Ocean Protection Act  
            and other state laws the direct the work of the Council. 

            These amendments add a total of $290 million to the proposal. 


          SUGGESTED AMENDMENTS 
          
          AMENDMENTS
               Comments 2-17are recommended Committee and author  
               amendments that will be processed after the hearing in  
               Governance and Finance Committee. 

               
          SUPPORT
          Association of California Water Agencies
          Audubon California
          Azul
          Bay Area Open Space Council
          Big Sur Land Trust
          Bolsa Chica Land Trust
          Bronzan Consulting
          Calcoast
          California Association of Local Conservation Corps
          California Association of Museums
          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 Center for Public Health Advocacy 
          California Coastal Protection Network
          California League of Conservation Voters
          California Native Plant Society
          California Park & Recreation Society
          California ReLeaf
          California Special Districts Association








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          California State Parks Foundation
          California Tahoe Alliance
          California Urban Streams Partnership
          California Wilderness Coalition
          Carmichael Recreation and Park District
          City of American Canyon Parks and Recreation Department
          City of Chino
          City of Dublin
          City of Fountain Valley
          City of Imperial
          City of Morgan Hill
          City of Poway
          City of Torrance 
          City of Tustin Parks & Recreation Department
          City of Lafayette
          City of Milpitas 
          City of Montebello
          City of Portola
          City of Selma
          City of Westminster
          City of Victorville
          Children's Defense Fund
          County of Placer
          Consumnes Community Services District Park & Recreation  
          Department 
          Defenders of Wildlife
          Desert Recreation District |
          Desert Valley Builders Association
          East Bay Regional Park District
          El Cerrito Recreation
          El Dorado Irrigation District
          Fathers & Families of San Joaquin
          Friends of Harbors, Beaches, and parks
          Fulton-El Camino Recreation & Park District
          Golden Gate National parks Conservancy 
          Greater Vallejo Recreation District
          Hesperia Recreation & Park District 
          Hetch Hetchy Regional Water System
          Hills for Everyone
          John Muir Land Trust
          Laguna Greenbelt, Inc
          Land Paths
          Land Trust of Santa Cruz County
          Latino Outdoors








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          Livermore Area Recreation and Park District
          Mammoth Lakes California
          Marin Agricultural Land Trust
          Marin County Parks 
          Midpeninsula Regional Open Space District
          Mono Lake Community
          Napa County Regional Park and Open Space District
          Sierra Business Council
          Orangevale Recreation & Park District 
          Outdoors Access for All(With Revisions)
          Pacific Forest Trust 
          Paradise Recreation & Park District 
          Pathways for Wildlife
          Peninsula Open Space Trust****
          Pleasant Hill Recreation and Park District
          Policy Link
          Rails to Trails Conservancy
          Rancho Simi Recreation and Park District
          San Diego County Water Authority(Support if Amended)
          San Francisco Parks Alliance
          Santa Clara County Board of Supervisors
          Santa Clara Valley Open Space Authority
          Save Mount Diablo
          Save the Redwoods League
          Sierra Business Council
          Sierra Club California
          Sierra Institute for Community and Environment
          Sierra Nevada Alliance 
          Sierra Water Workgroup
          Solano Land Trust
          Sonoma County Agricultural Preservation and Open Space District
          Sonoma County Regional Parks
          Sonoma County Water Agency
          Sonoma Land Trust
          State Park Partners Coalition
          Tahoe Mountain Sports 
          The City Project(With Revisions)
          The Greenlining Institute
          The Nature Conservancy
          The Trust for Public Land
          TODEC Legal Center 
          TreePeople
          United Ways of California
          Watershed Conservation Authority








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          OPPOSITION
          Howard Jarvis Taxpayers

          
                                      -- END --