BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  AB 2529|
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                                 THIRD READING


          Bill No:  AB 2529
          Author:   Kehoe (D), et al
          Amended:  6/29/04 in Senate
          Vote:     21

           
           SENATE NATURAL RES. & WILD. COMMITTEE  :  6-3, 6/22/04
          AYES:  Kuehl, Alpert, Bowen, Ortiz, Sher, Torlakson
          NOES:  Oller, Denham, Hollingsworth
           
          SENATE APPROPRIATIONS COMMITTEE  :  7-5, 8/12/04
          AYES:  Alpert, Bowen, Burton, Karnette, Machado, Murray,  
            Speier
          NOES:  Battin, Aanestad, Ashburn, Johnson, Poochigian
          NO VOTE RECORDED:  Escutia

           ASSEMBLY FLOOR  :  51-25, 5/25/04 - See last page for vote


           SUBJECT  :    Water quality:  marine managed areas

           SOURCE  :     Author


           DIGEST  :    This bill establishes a Marine Managed Areas  
          Program to grant monetary awards for capital projects that  
          would restore and protect the water quality and environment  
          of protected marine areas.

           ANALYSIS  :    The Legislature passed the Marine Managed  
          Areas Improvement Act in 2000 [AB 2800 (Shelley), Chapter  
          385, Statutes of 2000], to "streamline the process for  
          identifying and protecting special marine waters and  
          habitats." 
                                                           CONTINUED





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          In 2002, voters approved the Water Security, Clean Drinking  
          Water, Coastal and Beach Protection Act (also known as  
          Proposition 50).  One purpose of the Act, under Section  
          79501 (h) of the Water Code, recognizes the state's  
          responsibility to keep "coastal waters safe from water  
          pollution, and to provide the wildlife and plant habitat  
          and riparian and wetlands areas needed to support  
          functioning coastal?ecosystems for the benefit of the  
          people of California."
          
          This bill establishes a Marine Managed Areas Program (MMAP)  
          to allocate Proposition 50 money as grants to projects, not  
          exceeding $1 million per project, designed to improve water  
          quality in marine managed areas (MMA), with priorities  
          given to projects that "treat or otherwise remove existing  
          waste discharges, or prevent probable waste discharges,  
          into areas of special biological significance."  This bill  
          also sets forth procedures for the MMAP to follow in  
          awarding money to projects.  In addition, this bill  
          requires the recipients of funding to submit reports to  
          indicate "whether the purposes of the project(s) have been  
          met."

          The bill requires the State Water Resources Control Board  
          (SWRCB), in consultation with the California Coastal  
          Commission, to appoint a MMA water quality task force  
          comprised of individuals representing the breadth and  
          diversity of coastal communities, interested nonprofit  
          groups, and marine resource users to review proposals for  
          grant funding.  The task force may recommend projects to  
          the SWRCB for funding consideration.
          
           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

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

           Program establishment           >  $300, depending on size of  
           program              Unknown







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           Program implementation          >  $200, depending on size of  
           program              Unknown

           MMAP grants          significant cost pressure      GF/BF

           Task force           unknown                         
           Unknown              

           SUPPORT  :   (Verified  8/12/04)

          The Ocean Conservancy (source)
          Advocates for Wild, Healthy Oceans
          City of Berkeley
          Defenders of Wildlife
          Environment California
          Natural Resources Defense Council
          Planning and Conservation League
          San Diego Bay Keeper
          Sierra Club of California

           OPPOSITION  :    (Verified  8/12/04)

          State Department of Finance

           ARGUMENTS IN SUPPORT  :    The Ocean Conservancy writes that  
          the program proposed in the bill will "ensure that the  
          standards set to protect the uses of marine managed areas  
          will be implemented in a cost effective manner, and would  
          provide lasting benefits for the coast and the millions of  
          Californians who visit and use it."

          The Planning and Conservation League notes that the MMAP  
          ensures that all protection efforts are "implemented in a  
          cost effective manner."

          The Defenders of Wildlife states that the bill will  
          "provide for the increased opportunity to protect the water  
          quality of [the] marine managed areas by establishing a  
          grant program to fund projects that restore and protect  
          water quality."

          ARGUMENTS IN OPPOSITION  :    The State Department of Finance  
          is opposed to this bill for the following reasons:







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          1. Although the Administration supports efforts to improve  
             the conditions of our ocean, this bill imposes a  
             significant cost at a time when resources are not  
             sufficient to cover existing programs.

          2. The SWRCB requires resources to address the  
             implementation of the new program, and although the bill  
             does not include an appropriation for the awarding of  
             grant money in 2004-05, pressure on the General Fund to  
             implement the requirements of the bill could arise in  
             subsequent years.

          3. This bill may impose additional costs on the State  
             Coastal Conservancy and the State Department of Fish and  
             Game since the bill requires the SWRCB to consult with  
             those departments to determine water quality needs for  
             the affected MMA.

          4. The bill expands the size of state government by  
             creating a new program.  
           

           ASSEMBLY FLOOR  :
          AYES:  Berg, Bermudez, Calderon, Canciamilla, Chan, Chavez,  
            Chu, Cohn, Corbett, Correa, Diaz, Dutra, Dymally,  
            Firebaugh, Frommer, Goldberg, Hancock, Jerome Horton,  
            Shirley Horton, Jackson, Kehoe, Koretz, Laird, Leno,  
            Levine, Lieber, Liu, Longville, Lowenthal, Maddox,  
            Maldonado, Matthews, Montanez, Mullin, Nakano, Nation,  
            Negrete McLeod, Oropeza, Parra, Pavley, Reyes,  
            Ridley-Thomas, Salinas, Simitian, Steinberg, Vargas,  
            Wesson, Wiggins, Wolk, Yee, Nunez
          NOES:  Aghazarian, Bates, Bogh, Cogdill, Cox, Dutton,  
            Garcia, Harman, Haynes, Houston, Keene, La Malfa, La  
            Suer, Maze, McCarthy, Mountjoy, Nakanishi, Pacheco,  
            Plescia, Richman, Runner, Samuelian, Spitzer, Strickland,  
            Wyland
          NO VOTE RECORDED:  Benoit, Campbell, Daucher, Leslie


          CP:mel  8/13/04   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE







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