BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 554|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
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UNFINISHED BUSINESS
Bill No: SB 554
Author: Wolk (D)
Amended: 8/17/16
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
SENATE FLOOR: 39-0, 1/27/16
AYES: Allen, Anderson, Bates, Beall, Block, Cannella, De León,
Fuller, Gaines, Galgiani, Glazer, Hall, Hancock, Hernandez,
Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu,
McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell,
Nguyen, Nielsen, Pan, Pavley, Roth, Runner, Stone, Vidak,
Wieckowski, Wolk
NO VOTE RECORDED: Berryhill
ASSEMBLY FLOOR: 72-4, 8/24/16 - See last page for vote
SUBJECT: Delta levee maintenance
SOURCE: Central Valley Flood Control Association
DIGEST: This bill extends the July 1, 2018, sunset date for the
Delta Levee Subventions program by two years. Specifically,
this bill maintains the state's 75% maximum share for Delta
levee maintenance costs in excess of $1,000 per mile until July
1, 2020.
SB 554
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Assembly Amendments reinstate a sunset on the Delta Levee
Subventions program's 75 percent reimbursement rate and set the
sunset to be July 1, 2020.
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.
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 extends the current 75 percent reimbursement rate for
Delta levee maintenance costs in excess of $1,000 per mile to
July 1, 2020.
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.
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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
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 Assembly Appropriations Committee, "Potential
annual cost pressures, likely in the millions of dollars (GF),
to fund local projects to improve and maintain levees. Without
this bill, the state cost share formula would decrease from 75%
to 50% on July 1, 2018."
SUPPORT: (Verified8/24/16)
Central Valley Flood Control Association (source)
Association of California Water Agencies
Bethel Island Municipal Improvement District
California State Association of Counties
Collinsville Levee District
Contra Costa County
Delta Counties Coalition
Delta Protection Commission
East Bay Municipal Utilities Commission
Reclamation District No. 3
Reclamation District No. 150
Reclamation District No. 548
Reclamation District No. 756
SB 554
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Reclamation District No. 799
Reclamation District No. 2025
Reclamation District No. 2026
Reclamation District No. 2028
Reclamation District No. 2029
Reclamation District No. 2041
Reclamation District No. 2044
Reclamation District No. 2060
Reclamation District No. 2065
Rural County Representatives of California
San Joaquin County
Solano County
Solano County Farm Bureau
Yolo County Farm Bureau
OPPOSITION: (Verified8/24/16)
Calleguas Municipal Water District
Cucamonga Valley Water District
East Orange County Water District
Eastern Municipal Water District
Inland Empire Utilities Agency
Las Virgenes Municipal Water District
Long Beach Water Commission
Mesa Water District
Metropolitan Water District of Southern California
Municipal Water District of Orange County
Santa Margarita Water District
South Coast Water District
Three Valleys Municipal Water District
Upper San Gabriel Valley Municipal Water District
Walnut Valley Water District
Yorba Linda Water District
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
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rich estuary ecosystem."
ARGUMENTS IN OPPOSITION: According to a coalition of
Southern California water agencies, "We recommend that a further
amendment be made to SB 554 to direct DWR to enlist an
independent entity, with financial expertise, to conduct an
affordability and benefits assessment for the Delta Levee
Subventions Program. It is simply unclear which Delta islands,
if any, lack the economic standing to underwrite their own levee
maintenance, and whether statewide interests merit a public
subsidy for those levee improvements.
"We, the undersigned agree with the author, that levee
improvements in the Delta are important to protect public health
and safety, critical infrastructure and the fragile ecosystem.
But it is also important to ensure the best use of limited state
resources. An assessment of the program and accountability for
the level of funding expended to date and in the future is long
overdue.
"Absent the further amendment as noted above, we urge your NO
vote on SB 554."
ASSEMBLY FLOOR: 72-4, 8/24/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos,
Chang, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,
Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
Gordon, Gray, Grove, Hadley, Roger Hernández, Holden, Jones,
Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,
Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Nazarian,
Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas,
Salas, Santiago, Mark Stone, Thurmond, Ting, Wagner, Waldron,
Weber, Wilk, Williams, Wood, Rendon
NOES: Bigelow, Harper, Irwin, Melendez
NO VOTE RECORDED: Chau, Daly, Rodriguez, Steinorth
SB 554
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Prepared by:Dennis O'Connor / N.R. & W. / (916) 651-4116
8/25/16 17:30:42
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