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 ----------------------------------------------------------------- |Author: |Wolk | | | ----------------------------------------------------------------- ----------------------------------------------------------------- |Version: |January 4, 2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Dennis O'Connor | | | | ----------------------------------------------------------------- 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 SB 554 (Wolk) Page 2 of ? 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 SB 554 (Wolk) Page 3 of ? 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 -- END --