BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2529
                                                                  Page  1

          Date of Hearing:   May 12, 2004 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                    AB 2529 (Kehoe) - As Amended:  April 22, 2004 

          Policy Committee:                              Water, Parks &  
          Wildlife     Vote:                            9-6
                        Natural Resources                     7-4

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill enhances and updates the State Water Resources Control  
          Board's (water board's) efforts to protect the quality of the  
          state's coastal ocean waters.  Specifically, this bill requires  
          the water board to:

          1)Administer a grant program to fund local agencies' and  
            nonprofit organizations' projects to restore and protect the  
            water quality and environment of marine managed areas.

          2)Update, by February 1, 2006, the California Ocean Plan (COP)  
            to include, as beneficial uses of ocean waters, marine  
            protected areas and marine life reserves, state marine  
            reserves, state marine parks, state marine conservation areas,  
            state marine cultural preservation areas and state marine  
            recreational management areas.

          3)Include in the COP, by July 1, 2007, numeric standards to  
            protect the beneficial uses listed in #2 above.

           FISCAL EFFECT 

          1)Moderate costs, about $250,000 in FY 2004-05, to the water  
            board to develop and implement the grant program.  (GF or  
            Proposition 50 bond proceeds.)

          2)Moderate costs, perhaps $250,000 primarily in FY 2006-07, to  
            the water board to update the COP and to develop standards to  
            protect the additional beneficial uses covered by the plan.   
            (GF)  








                                                                  AB 2529
                                                                  Page  2


           COMMENTS  

           1)Rationale .  The author believes that the $80 million in Prop  
            50  bond proceeds earmarked to finance projects that restore  
            and protect coastal waters and groundwater should be allocated  
            through a competitive grant program administered by the water  
            board, as proposed by this bill.  The author also contends  
            that the COP should be expanded to include several other state  
            marine-related areas as beneficial uses of coastal waters and  
            to contain standards to protect those uses.
           
           2)Prop 50 Earmark  .  The Water Security, Clean Drinking Water,  
             Coastal and Beach Protection Act of 2002, approved as  
             Proposition 50 on the November 2002 statewide ballot,   
             allocates $100 million for projects that restore and protect  
             coastal water quality and environment, with at least $20  
             million of this amount earmarked for San Monica Bay  
             Restoration.  This leaves $80 million available for other  
             eligible projects along the coast.

            3)The California Ocean Plan  was adopted in 1972 as the water  
             board's water quality control plan for coastal waters.  The  
             plan lists beneficial uses of ocean waters that need to be  
             protected, establishes water quality objectives, and sets  
             forth a program of implementation to ensure these objectives  
             are met.  The COP has been revised by the water board five  
             times, most recently in March 1997.  Adding several  
             additional marine areas to the list of beneficial uses of  
             coastal waters means that thousands of square miles more of  
             coastal waters may become subject to the water board's  
             implementation options.

           Analysis Prepared by  :    Steve Archibald / APPR. / (916)  
          319-2081