BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           74 (Chesbro)
          
          Hearing Date:  06/29/2009           Amended: 05/26/2009
          Consultant:  Brendan McCarthy   Policy Vote: NR&W 11-0
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          BILL SUMMARY: This bill would authorize state participation in  
          two local flood control projects, located in Lake and Glenn  
          counties. 
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           
          Subvention funding     About $10,500 for both projects  Bonds *

          * Proposition 1E.
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          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense file. 
          
          Under current law, the state may participate in the funding of  
          flood control projects that meet certain criteria, including  
          authorization for funding from the federal government, annual  
          benefits that exceed annual costs of providing flood control,  
          local compliance with federal floodplain management rules, and  
          other requirements. Under current law, the state share of the  
          non-federal cost for authorized flood control projects is  
          between 50 percent and 70 percent, depending on several factors,  
          including the public safety and environmental benefits of the  
          project.

          AB 74 would authorize state participation in two flood control  
          projects that have been authorized by the federal government  
          under the Water Resources Development Act of 2007.

          The Middle Creek project is located in Lake County and would  
          provide flood damage reduction and environmental restoration  
          benefits. The total project cost is $45 million. The state has  
          previously provided funding for this project under the  










          Department of Water Resources' Flood Corridor Program. These  
          previous funds count towards any state cost share. The remaining  
          state cost share is anticipated to be $7.5 million.

          The Hamilton City project is located in Glenn County and would  
          provide flood damage reduction and environmental restoration.  
          The total project cost is $52 million. The state has previously  
          provided funding for this project under the Department of Water  
          Resources' Flood Corridor Program. These previous funds count  
          towards any state cost share. The remaining state costs share is  
          anticipated to be about $3 million. 

          Currently, there are about $82 million in claims for subventions  
          for approved flood control projects. There is about $333 million  
          remaining in unappropriated Proposition 1E funds for flood  
          control subventions.