BILL ANALYSIS Ó
AB 2480
Page 1
ASSEMBLY THIRD READING
AB
2480 (Bloom)
As Amended May 31, 2016
Majority vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Water |9-6 |Levine, Dodd, Eggman, |Gallagher, Bigelow, |
| | |Cristina Garcia, |Harper, Mathis, |
| | | |Olsen, Salas |
| | | | |
| | |Eduardo Garcia, | |
| | |Gomez, Lopez, Medina, | |
| | |Williams | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |14-6 |Gonzalez, Bloom, |Bigelow, Chang, |
| | |Bonilla, Bonta, |Gallagher, Jones, |
| | |Calderon, Daly, |Obernolte, Wagner |
| | |Eggman, Eduardo | |
| | |Garcia, Roger | |
| | |Hernández, Holden, | |
| | |Quirk, Santiago, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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AB 2480
Page 2
SUMMARY: Declares a state policy that source watersheds are
recognized and defined as integral components of California's
water system, and that, to the extent feasible, the maintenance
and repair of source watersheds and associated projects shall
receive financing consideration on the same basis as other water
collection and treatment infrastructure. Specifically, this
bill:
1)Declares it to be established policy of the state that source
watersheds are recognized and defined as an integral component
of California's water system, and that, to the extent
feasible, the maintenance and repair of source watersheds and
associated projects shall receive financing consideration on
the same basis as other water collection and treatment
infrastructure.
2)Limits eligible maintenance and repair activities to the
following forest ecosystem management activities:
a) Upland vegetation management to restore watershed
productivity and resilience.
b) Wet and dry meadow restoration.
c) Road removal and repair.
d) Stream channel restoration.
e) Conservation of private forests to preserve
watershed integrity through permanent prevention of
conversion and degradation, achieved through conservation
easements.
f) Other projects with a demonstrated likelihood of
AB 2480
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increasing conditions for water and snow attraction,
retention, and release under changing climate conditions.
EXISTING LAW:
1)Authorizes Department of Water Resources (DWR) to operate and
maintain the State Water Project (SWP) that provides water
supplies for urban and some agricultural uses in the state.
Funds from the sale of general obligation and revenue bonds
have provided about 78% of the financing for construction of
the SWP, repayment of which is made by the SWP beneficiaries.
The contractors repay water supply related costs of the SWP
that include about 94% of the annual costs for operation and
maintenance of the SWP facilities. Authorizes the issuance of
bonds and loans to finance expenditures of the SWP, and
authorizes the DWR to enter into contracts and establish
prices, rates, and charges to produce the revenues needed to
pay for the costs of operation and maintenance of the SWP.
2)Authorizes the Central Valley Project (CVP), a federal water
project operated by the United States Bureau of Reclamation
that provides water primarily for agricultural purposes but
also supplies water for some urban uses in the state.
3)Authorizes the DWR to use revenue bonds or other funds
available for the purposes of the SWP to finance, in whole or
in part, water conservation programs and facilities that
reduce demands by the sponsoring contractor for project water
from the system and increase the supply of project water
available in the Delta for distribution.
AB 2480
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4)Includes a state policy that the Legislature consider other
works as may be necessary to develop water to satisfy the
requirements of the watershed in which water originates
whenever the Legislature authorizes the construction or
acquisition of a project that will develop water for use
outside that watershed.
FISCAL EFFECT: According to the Assembly Appropriations
Committee analysis:
1)Potential cost pressures in the hundreds of millions of
dollars or more to finance watershed maintenance and repair.
Based on watershed restoration projects in Denver and New
York, the DWR estimates a per acre restoration cost of between
$430 to $1,500. The Klamath-Cascade Range spans more than 10
million acres. If restoration costs are similar to projects
in Denver and New York, costs may be somewhere in the $4.3 to
$10 billion range, which the State Water Project would likely
be able to pass on to its ratepayers (General Fund or special
fund).
2)Unknown increased ongoing State Water Resource Control Board
(SWRCB) costs to provide guidance and oversight on watershed
funding applications.
COMMENTS: This bill establishes a state policy that source
watersheds are recognized as essential components of the state's
water systems and that their maintenance and repair may be
AB 2480
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financed similarly to the ways in which other water collection
and treatment infrastructure is financed.
The author of this bill emphasizes that California's complex
water system, which includes the built infrastructure of dams,
reservoirs, canals, pumps and pipes that deliver water
throughout the state, rely on a suite of financing options that
provide the funding for necessary infrastructure costs.
However, these projects rely on more than the built
infrastructure to function. They also rely on the five
watersheds above the dams to collect, treat and deliver that
water to the dams. These watersheds include the Feather, Pit,
McCloud, Upper Sacramento and Trinity River watersheds. While
there is recognition that watersheds serve these functions,
there is no policy or system of support for this natural
infrastructure which is integral to, and supplies and
complements, the built infrastructure. The author asserts these
watersheds are essential to ensuring the future of a
well-functioning water system. There is also scientific
recognition that watershed condition affects the quality and
quantity of water delivered by watersheds to dams. Enhancing
the conditions of the watersheds would increase water quality by
reducing sediment and lowering temperatures, and can also
increase water quantity by as much as 5% to 20% depending on
conditions. The goal of this bill is to recognize the
fundamental role of source watersheds, and set the foundation
for a comprehensive plan of restoration and conservation, with
the potential of future financing such as revenue bonds and
other financing mechanisms, similar to those available for the
built infrastructure.
Supporters assert that watersheds are an essential part of the
state's water systems, constituting the natural infrastructure
that collects, treats, and transports water to reservoirs.
Supporters emphasize that watersheds in California are in
AB 2480
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sub-optimal condition, threatening water security. They assert
this is especially true with the increased stresses of on-going
drought and climate change. Watershed restoration and
conservation will help prevent degradation, maintain and enhance
water reliability, improve water quality, and, in some cases,
increase the quantity of water flowing into the state's
reservoirs. Healthier watersheds can also help regulate the
timing of flows into reservoirs, extending flows later into the
year.
Opponents to this bill, unless amended, expressed opposition to
the insertion of the SWRCB into a role in the development of
watershed financing investment plans. The amendments to this
bill taken in the Assembly Appropriations Committee deleted that
provision. Opponents also indicated that while they support
some forms of watershed funding, such as the General Fund or
general obligation bonds, they would oppose others, such as a
public goods charge or statewide water tax, whether such methods
were used to fund watersheds or other priorities.
Analysis Prepared by:
Diane Colborn / W., P., & W. / (916) 319-2096
FN:
0003312