BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2501
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 2501 (Wolk)
          As Amended April 17, 2008
          Majority vote 

           WATER, PARKS & WILDLIFE       9-4                   NATURAL  
          RESOURCES           6-2         
           
           ----------------------------------------------------------------- 
          |Ayes:|Wolk, Caballero, Charles  |Ayes:|Hancock, Brownley,        |
          |     |Calderon, Furutani,       |     |Fuentes, Laird, Saldana,  |
          |     |Huffman, Lieu, Mullin,    |     |Wolk                      |
          |     |Parra, Salas              |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Fuller, Anderson,         |Nays:|La Malfa, Keene           |
          |     |Berryhill, La Malfa       |     |                          |
           ----------------------------------------------------------------- 

           APPROPRIATIONS      12-5                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Leno, Caballero, Davis,   |     |                          |
          |     |DeSaulnier, Eng, Huffman, |     |                          |
          |     |Berg, Krekorian, Lieu,    |     |                          |
          |     |Ma, Nava, Solorio         |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Walters, Emmerson, La     |     |                          |
          |     |Malfa, Nakanishi, Sharon  |     |                          |
          |     |Runner                    |     |                          |
           ----------------------------------------------------------------- 

           SUMMARY  :  Enacts the Climate Change and Water Resource  
          Protection Act of 2008 and makes appropriations of existing bond  
          funding for high-priority water projects.  Specifically,  this  
          bill  :

          1)Requires the Department of Water Resources (DWR) to include  
            climate change analysis, to the extent applicable, in all its  
            water management reports and plans, including the State Water  
            Project (SWP) delivery capability report California Water  
            Plan, and reports related to the Sacramento-San Joaquin Delta  
            (Delta).  








                                                                  AB 2501
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          2)Requires DWR to identify and make available, by July 2009,  
            peer-reviewed information or best available scientific  
            information about climate change and water resources in the  
            state.  

          3)Prohibits DWR from approving, after January 1, 2011,  
            integrated regional water management grants for plans that do  
            not include climate change analysis, unless climate change  
            information is not available or does not apply to a particular  
            planning area.

          4)Requires DWR, in collaboration with other state agencies, to  
            prepare a report by January 2009 quantifying the energy  
            savings and greenhouse gas (GHG) emission reductions  
            associated with water supply development alternatives,  
            including recycled water.  

          5)Requires the State Water Resources Control Board (SWRCB) and  
            all regional water quality control boards to consider  
            reasonably foreseeable effects of climate change in basin  
            water quality plans triennial reviews required by the federal  
            Clean Water Act. 

          6)Requires urban water suppliers, starting in July 2009, and  
            agricultural water suppliers, starting in January 2010, to  
            request climate change information from DWR and consider that  
            information in preparing urban or agricultural water  
            management plans, unless climate change information is  
            unavailable or inapplicable.

          7)Appropriates $610,160,000 of bond funds as follows:

             a)   From Proposition 1E (2006 flood bond measure): 
               i)     $54 million to DWR for emergency preparedness in the  
                 Delta; and,
               ii)    $150 million to DWR for stormwater flood management  
                 projects.

             b)   From Proposition 84 (2006):
               i)     $50 million to the State Department of Public Health  
                 (DPH) for small community safe drinking water  
                 infrastructure;
               ii)    $50.4 million to DPH for projects to prevent or  








                                                                  AB 2501
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                 reduce groundwater contamination of drinking water  
                 supplies (including $2 million for pilot projects in  
                 Salinas and Tulare);
               iii)   $40 million to DWR for planning and local  
                 groundwater assistance;
               iv)    $55 million to DWR for improving drinking water from  
                 the Delta;
               v)     $60 million to DWR and the Central Valley Flood  
                 Protection Board (CVFPB) to respond to levee breaches and  
                 reduce the potential for levee failure in the Delta;
               vi)    $100 million to DWR/CVFPB for the protection of  
                 Delta resources, consistent with the Delta Vision,  
                 including but not limited to certain identified projects;  
                  
               vii)   $12 million to DWR for planning and feasibility  
                 studies for new surface storage under the California  
                 Bay-Delta Program;
                viii) $15 million to DWR for studies on use of the state's  
                  existing flood protection and water supply systems.   
                  Studies must include climate change information;
               ix)    $10 million (and up to 10 additional authorized  
                 personnel) to DWR for climate change planning (including  
                 $2 million for SWRCB); and,
               x)     $10 million to DWR for studies to implement the  
                 Delta Vision.

             c)   From Proposition 13 (2000): $3,490,000 to DWR for  
               surface storage studies under the California Bay-Delta  
               Program.

          8)Requires SWRCB, with specified agencies, to develop pilot  
            projects in Tulare Lake Basin and Salinas Valley to improve  
            understanding of groundwater contamination issues.  

          9)Imposes deadline of June 30, 2010 for encumbrance of the  
            appropriated funds.

          10)Requires programs receiving these funds to report to the  
            Legislature about committed and anticipated expenditures by  
            January 10, 2009.

          11)Makes legislative findings regarding climate change and water  
            resources.









                                                                  AB 2501
                                                                  Page  4


           EXISTING LAW  authorizes and/or directs DWR and local water  
          agencies to prepare water planning documents and otherwise.  The  
          California Global Warming Solutions Act of 2006 (AB 32) requires  
          all state agencies to consider and implement strategies to  
          reduce GHG emissions.  

           FISCAL EFFECT  :  Assembly Appropriations Committee estimates  
          $500,000 in 2008-09 costs and $1 million thereafter for the  
          climate change actions.  The bill also appropriates $610,160,000  
          in currently authorized bond funds.

           COMMENTS  :  This bill reflects two different - but complementary  
          - efforts to address urgent water issues facing California.  The  
          first incorporates climate change into existing water planning  
          efforts by state and local agencies, as well as requires a study  
          of GHG emissions from water supply development alternatives.   
          The second appropriates currently authorized bond funds to  
          address some of the most urgent water resource challenges,  
          particularly in the Delta.

          Climate Change:  Water managers increasingly have recognized  
          climate change as a major threat to western water supply  
          reliability and, conversely, that water use is a significant  
          contributor of GHG emissions that lead to climate change.  This  
          bill focuses on state and local agency adaptation of water  
          resources climate change, as opposed to mitigation of GHG  
          impacts.  It takes the first step of requiring state and local  
          agencies to incorporate climate change information into existing  
          water planning efforts.  It fosters local efforts by requiring  
          DWR to identify currently available climate change information,  
          resolving local uncertainties as to which information is  
          reliable.

          Study of Greenhouse Gas Effects of Water Supply Development:   
          The bill also provides for state agencies to examine the other  
          side of the climate change issue - mitigation of climate change  
          impacts from water use.  Under DWR leadership, state agencies  
          will assess the GHG effects and reductions arising out of water  
          supply development alternatives, including water recycling and  
          conservation.  In recent months, state agencies have increased  
          their activities related to climate change and water resources,  
          establishing the "WETCAT" - the water and energy sub-team of the  
          climate action team, co-chaired by SWRCB Member Frances  
          Spivy-Weber and DWR Deputy Director Mark Cowin.  








                                                                  AB 2501
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          Existing Bond Appropriations:  The other major element of AB  
          2501 appropriates existing bond funds to address various water  
          issues, which the author believes are some of the top priorities  
          for immediate funding.  The Delta receives special attention in  
          these appropriations, which the author suggests is the most  
          important water issue facing California today.  The  
          appropriations originated in last year's SB 1002 (Perata), which  
          Governor Schwarzenegger vetoed after Senator Perata's proposed  
          bond measure failed to pass off the Senate floor during last  
          fall's 2nd Extraordinary Session on water.  Senator Perata also  
          authored SB 1XX on this issue.  This bill has made some changes  
          to the appropriations in the Perata bills, but this bill remains  
          similar to the Perata legislation.

          Budget Connection?  While this bill's appropriations reflect  
          some similarities to the Governor's budget proposals, there is  
          no direct connection between AB 2501 and the State Budget.  The  
          bill focuses only on the most critical priorities for  
          appropriating existing water bond funding and does not address  
          all the water issues that arise in the budget.  In public  
          meetings sponsored by the author, some stakeholders proposed  
          additional spending of water bond funds, and there was broad  
          support for additional spending on integrated regional water  
          management projects, which is being considered by Budget  
          Committee.


           Analysis Prepared by  :    Alf W. Brandt/ W., P. & W. / (916)  
          319-2096 



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