BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           2529 (Kehoe)
          
          Hearing Date:  8/4/04           Amended: 6/29/04       
          Consultant: Miriam Barcellona Ingenito            Policy  
          Vote: NR&W 6-3           
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          BILL SUMMARY:  AB 2529 would establish a Marine Managed  
          Areas Program (MMAP) under the State Water Resources  
          Control Board (SWRCB) for the purpose of awarding grants  
          for capital projects that would restore and protect the  
          water quality and environment of protected marine areas.
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                          Fiscal Impact (in thousands)

           Major Provisions                    2004-05             2005-06   
                      2006-07            Fund

           Program establishment     >  $300, depending on size of  
          program          Unknown
          Program implementation   >  $200, depending on size of program  
            Unknown
          MMAP Grants             significant cost pressure            
                               GF/BF
          Task force                         unknown             
          Unknown
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          STAFF COMMENTS:  This bill meets the criteria for referral  
          to the Suspense file.
          
          AB 2529 would (1) establish a MMAP under SWRCB and (2)  
          amend the intent language of the Watershed, Clean Beaches,  
          and Water Quality Act (Act) to include the Legislature's  
          intent to invest in clean water projects that improve water  
          quality in coastal and marine waters, especially those that  
          affect marine protected areas and marine-managed areas. The  
          stated purpose of the Act is to establish a statutory  
          framework for funding water quality, clean beaches, and  
          watershed protection projects from the proceeds derived  
          from the issuance and sale of bonds and other revenue  
          sources. In order to implement AB 2529, SWRCB would require  










          at least three positions to develop the program and grant  
          guidelines. Additionally, depending on the amount of funds  
          appropriated by the Legislature for this program, SWRCB  
          would likely require at least two grant manager positions.  
          The grants under the MMAP would be limited to a maximum of  
          $1 million each. AB 2529 places a significant cost pressure  
          on existing bond funds and future bond funds, at the cost  
          of other programs (as well as the General Fund) to provide  
          funding for MMAP grants. STAFF NOTES that Proposition 50  
          allocates $100 million for projects that restore and  
          protect coastal water quality and environment.  Of these  
          funds, $66 million has not yet been appropriated and  
          potentially could be used for the purposes of AB 2529.  

          AB 2529 also would require SWRCB, in consultation with the  
          California Coastal Commission, to appoint a marine managed  
          area water quality task force that would review all MMAP  
          grant proposals and make recommendations on the issuing of  
          these grants to SWRCB.  AB 2529 does not specify the size  
          of the task force nor specify whether the members would be  
          compensated in any form.  Costs associated with the task  
          force are unknown.