BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        SB 554|
          |Office of Senate Floor Analyses   |                              |
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                                   THIRD READING 


          Bill No:  SB 554
          Author:   Wolk (D) 
          Amended:  1/4/16  
          Vote:     21  

           SENATE NATURAL RES. & WATER COMMITTEE:  9-0, 1/12/16
           AYES:  Pavley, Stone, Allen, Hertzberg, Hueso, Jackson,  
            Monning, Vidak, Wolk

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 1/21/16
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           SUBJECT:   Delta levee maintenance


          SOURCE:    Author


          DIGEST:  This bill makes permanent the state's 75 percent  
          maximum cost share for Delta levee maintenance costs in excess  
          of $1,000 per mile.


          ANALYSIS:   


          Existing law:


          1)Creates the Delta levee maintenance subvention program.  This  
            program provides reimbursement funds to local agencies for  
            costs of maintaining or improving project or nonproject  
            levees.










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          2)Provides that the reimbursement rate is 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.  


          3)Provides that the 75 percent reimbursement rate ends July 1,  
            2018, at which time the reimbursement rate would become 50  
            percent of any costs incurred in excess of $1,000 per mile.  


          This bill 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)Eliminates the effective date for returning to a 50 percent  
            state cost-share.


          Background


          Legislature has extended the 75 percent reimbursement rate three  
          times.  The Legislature created the Delta levee subvention  
          program in 1996.  The 75 percent reimbursement rate was to be in  
          effect for 10 years, at which time the rate would drop to 50  
          percent.  The Legislature has subsequently delayed the reduction  
          in the reimbursement rate in 2006, 2010, and 2012.


          Comments


          One of the few Delta bright spots.  The 2010 Public Policy  
          Institute of California publication Comparing Futures for the  
          Sacramento - San Joaquin Delta noted, "The Delta Levee  
          Subventions Program, in particular, has significantly reduced  








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          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.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          According to the Senate Appropriations Committee, this bill  
          creates annual cost pressures in the millions of dollars  
          (General Fund) to fund local projects to improve and maintain  
          levees.


          SUPPORT:   (Verified1/22/16)


          California Central Valley Flood Control Association


          OPPOSITION:   (Verified1/22/16)


          None received


          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 Delta can continue to serve its  
          many valuable uses - as fertile farmland, a water conveyance,  
          and a rich estuary ecosystem."



          Prepared by:Dennis O'Connor / N.R. & W. / (916) 651-4116
          1/25/16 16:16:47










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