BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          Bill No:            SB 554          Hearing Date:    January 12,  
          2016
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          |Author:    |Wolk                   |           |                 |
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          |Version:   |January 4, 2016                                      |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Dennis O'Connor                                      |
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                          Subject:  Delta levee maintenance


          BACKGROUND AND EXISTING LAW
          1.The Delta levee maintenance subvention program provides  
            reimbursement funds to local agencies for costs of maintaining  
            or improving project or nonproject levees.  

            In 1996, the Legislature established the reimbursement rate  
            for the subsequent ten years to be up to 75 percent of any  
            costs incurred in excess of $1,000 per mile, based on an  
            assessment of the agency's ability to pay.  

            At the end of the 10 year period, (July 1, 2006), the  
            reimbursement rate would become 50 percent of any costs  
            incurred in excess of one thousand dollars $1,000 per mile.  

            Also, the maximum annual reimbursements from the General Fund  
            would be capped at $2 M.

          2.In 2005, the Legislature required the Department of Water  
            Resources (DWR) to conduct a study of the potential impacts of  
            subsidence, earthquakes, floods, and climate change on the  
            Delta and evaluate options for addressing those impacts.  That  
            study, known as the Delta Risk Management Study (DRMS), was to  
            be completed by January 1, 2008.

          3.In 2006, the Legislature passed and the Governor signed AB 798  
            (Wolk).  That bill, among other things, extended the 75  







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            percent reimbursement rate for the Delta subvention rate to  
            July 2010.  Part of the justification was that changing the  
            rate was premature, given that DWR had not completed the DRMS.

          4.In 2009, the Legislature passed and the Governor signed SBX7 1  
            (Simitian).  That bill, among other things, created the Delta  
            Stewardship Council (Council) and required it to adopt a Delta  
            Plan by January 1, 2012.  That plan, among other things, was  
            to include "priorities for state investments in levee  
            operation, maintenance, and improvements in the Delta,  
            including both levees that are a part of the State Plan of  
            Flood Control and nonproject levees."

          5.In 2010, the Legislature passed and the Governor signed SB 808  
            (Wolk).  That bill, among other things, extended the 75  
            percent reimbursement rate for the Delta subvention rate to  
            July 2014.  Part of the justification was that changing the  
            rate was premature, given that the Delta Stewardship Council  
            had not had sufficient time to complete the Delta Plan.
          6.In 2012, the Legislature passed and the Governor signed SB 200  
            (Wolk). That bill, among other things, extended the 75 percent  
            reimbursement rate for the Delta subvention rate to July 2014.  
             Part of the justification was that because of the dire  
            financial conditions of most local Delta levee agencies, and  
            the important tie to California's drinking water supply and  
            other infrastructure, the 75% state cost-share was necessary  
            to continue protecting Delta levees

          PROPOSED LAW
          SB 554 makes permanent the current 75 percent reimbursement rate  
          for Delta levee maintenance costs in excess of $1,000 per mile.   
          Specifically, this bill:
          1.Eliminates the July 1, 2018, sunset on the current  
            authorization of a 75 percent state cost-share in Delta levee  
            maintenance or improvement projects.
          2.Extends the life of the Delta Flood Protection Fund.
          3.Eliminates the effective date for returning to a 50% State  
            cost-share.

          ARGUMENTS IN SUPPORT
          According to the author, "By continuing the current cost share  
          formula, SB 554 ensures that Delta reclamation districts can  
          afford to maintain and improve Delta levees. Maintenance of the  
          Delta levees is important to reduce flood risk and ensure the  








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          Delta can continue to serve its many valuable uses - as fertile  
          farmland, a water conveyance, and a rich estuary ecosystem."
          
          ARGUMENTS IN OPPOSITION: None Received

          COMMENTS
           One Of The Few Delta Bright Spots.   The 2010 Public Policy  
          Institute of California (PPIC) publication Comparing Futures for  
          the Sacramento - San Joaquin Delta noted, "The Delta Levee  
          Subventions Program, in particular, has significantly reduced  
          levee failures and is the most important state investments in  
          Delta levees today."  It is still true five years later.   
          Moreover, it is also one of the few Delta programs that have  
          shown tangible results.  
           
          SUGGESTED AMENDMENTS: None
          
          SUPPORT
          California Central Valley Flood Control Association

          OPPOSITION
          None Received

          
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