BILL ANALYSIS Ó
AB 2480
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CONCURRENCE IN SENATE AMENDMENTS
AB
2480 (Bloom)
As Amended August 15, 2016
Majority vote
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|ASSEMBLY: |50-25 |(June 2, 2016) |SENATE: |23-13 |(August 23, |
| | | | | |2016) |
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Original Committee Reference: W., P., & W.
SUMMARY: Declares it to be state policy that source watersheds
are recognized and defined as integral components of
California's water infrastructure, and that maintenance and
repair of source watersheds is eligible for the same forms of
financing as other water collection and treatment
infrastructure, as specified.
The Senate amendments:
1)Declare that as climate change advances source watersheds that
provide the majority of the state's drinking and irrigated
agricultural water are of particular importance to maintaining
the reliability, quantity, timing, and quality of California's
environmental, drinking, and agricultural water supply.
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2)Provide that, recognizing the critical role of source
watersheds in enhancing water supply reliability, the
maintenance and repair of source watersheds is eligible for
the same forms of financing as other water collection and
treatment infrastructure.
3)Provide that nothing in this bill is intended to constrain
financing for source watersheds, to supersede federal
eligibility requirements, to alter funding criteria or
guidelines established for a bond or other measure enacted by
the voters, or to alter funding programs related to pollution
control or public health emergencies.
4)Change a reference to ecosystem management activities to
instead refer to ecosystem restoration and conservation
activities as eligible maintenance and repair activities.
Clarify one of those eligible maintenance and repair
activities includes conservation of private forests to
preserve watershed integrity through prevention of land use
conversion and improved land management secured with
conservation easements.
EXISTING LAW:
1)Authorizes the Department of Water Resources (DWR) to operate
and maintain the State Water Project (SWP) that supplies water
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 SWP beneficiaries. SWP
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.
2)Authorizes the issuance of bonds and loans to finance
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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.
3)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.
4)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.
5)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 Senate Appropriations Committee
analysis, this bill as amended will help watershed maintenance
or repair projects access the same forms of financing available
to other water infrastructure projects (special fund). To the
extent that these projects compete with water infrastructure
projects for funding, these projects will result in cost
pressures in the millions.
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COMMENTS: This bill establishes a state policy that source
watersheds are recognized as essential components of the state's
water infrastructure, and that their maintenance and repair is
eligible for the same forms of financing as other water
collection and treatment infrastructure. The Assembly version
of this bill provided that, to the extent feasible, the
maintenance and repair of source watersheds and associated
projects shall receive financing consideration on the same basis
with other water collection and treatment infrastructure. The
Senate amendments modify and clarify this declaration to instead
provide that source watersheds shall be eligible for the same
forms of financing as other water collection and treatment
infrastructure. The Senate amendments also add additional
findings regarding the importance of source watersheds, and add
other clarifying provisions.
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. 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
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other financing mechanisms, similar to those available for the
built infrastructure.
Analysis Prepared by:
Diane Colborn / W., P., & W. / (916) 319-2096
FN:
0004262