BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 626
                                                                  Page  1

          Date of Hearing:   April 28, 2009

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                            Jared William Huffman, Chair
                      AB 626 (Eng) - As Amended:  April 13, 2009
          
          SUBJECT  :   Bond revenues:  grants. 

           SUMMARY  :   Directs the Department of Water Resources (DWR) to  
          achieve the 10% statewide allocation of Prop 84 implementation  
          grants, planning grants, local groundwater assistance grants,  
          and CALFED scientific research grants to address the critical  
          water supply needs of disadvantaged communities required by  
          current state law by awarding the grants for those purposes to  
          disadvantaged communities within a hydrologic region in a total  
          dollar amount that is equivalent to 10% of the total dollar  
          amount of grants awarded in that region. 

           EXISTING LAW  appropriates $181,971,000 of Prop 84 bond funds to  
          DWR for integrated regional water management activities.  Of  
          that appropriation, $100 million is allocated for implementation  
          grants and $39 million for planning grants, local groundwater  
          assistance grants, and CALFED scientific research grants.  Of  
          that $139 million, existing law requires that DWR allocate not  
          less than 10% to address the critical water supply needs of  
          disadvantaged communities and to facilitate participation of  
          those communities in integrated regional water management  
          planning.  

           FISCAL EFFECT  :   Unknown. 

           COMMENTS  :  AB 626 addresses the section of SB 1XX (Perata),  
          chaptered in the 2008 Second Extraordinary session, which  
          applies to integrated regional water management plan (IRWMP)  
          fund allocations for disadvantaged communities.  AB 626 directs  
          that the funds targeted to disadvantaged community projects be  
          distributed in a manner proportionate to the amount of the funds  
          that each region receives from the total IRWMP appropriation,  
          specifically 10% of each hydrologic region's total Prop 84 IRWMP  
          funds. 

          SB 1XX was the outcome of a comprehensive bicameral effort to  
          spend previously appropriated bond funds approved by voters and  
          make consistent in law the provisions of Prop 50 and Prop 84.   
          The needs of disadvantaged communities played a large role in  








                                                                  AB 626
                                                                  Page  2

          the crafting of SB 1XX, for example:
                 $50 million to State Department of Public Health (DPH)  
               for grants for small community drinking water system  
               infrastructure improvements with first priority given to  
               disadvantaged or severely disadvantaged communities.  
                 $50.4 million to DPH for projects to prevent or reduce  
               contamination of groundwater used for drinking water, with  
               prioritized funding for projects that serve disadvantaged  
               communities.
                 Not less than 10% of $139 million in IRWMP planning and  
               implementation grant funds to projects that address the  
               critical water supply and water quality needs for  
               disadvantaged communities. 
                 $2 million to Tulare County for development of an  
               integrated water quality and wastewater treatment program  
               plan to address the drinking water and wastewater needs of  
               disadvantaged communities in the Tulare Lake Basin.
                 Outreach to disadvantaged communities to assist in the  
               creation of IRWMPs.
                 Requirements that all IRWMP's identify and consider the  
               water related needs of disadvantaged communities.  
                 Requirements that the development and implementation of  
               an IRWMP include a public process that provides outreach  
               and an opportunity for disadvantaged community members and  
               representatives including environmental justice  
               organizations, neighborhood councils and social justice  
               organizations to participate. 

          AB 626 may delay the issuance of some grants by DWR as they  
          apply the new allocation requirements.  SB 1XX just took effect  
          on March 1, 2009, and DWR has begun to process IRWMP grants.  On  
          the other hand, AB 626 may prove to be moot, as it would take  
          effect on January 1, 2010, at which point the bulk of IRWMP  
          planning and implementation grants may have already been issued  
          without the allocation requirements proposed by this bill.  The  
          sponsors note that AB 626 is not intended to delay the  
          distribution of allocated IRWMP funds to the regions, and argue  
          that the bill will provide a tangible and measurable investment  
          in disadvantaged communities as part of receiving these  
          allocations. 

          AB 626 will not increase funding for disadvantaged communities,  
          but rather direct how the funds dedicated to disadvantaged  
          communities in SB1XX will be distributed by region.  The  
          sponsors argue that the prioritization of disadvantaged  








                                                                  AB 626
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          communities in each region will give disadvantaged communities a  
          'seat at the table'.  However, SB 1XX already requires the  
          involvement and consideration of the needs of disadvantaged  
          communities in the planning and implementation of all IRWMPs as  
          noted above.  

          In addition, there is some inconsistency between the language of  
          AB 626 and SB 1XX.  SB 1XX requires that DWR allocate not less  
          than 10 percent of the IRWMP implementation and planning grants  
          to facilitate and support participation of disadvantaged and  
          address the critical water supply or water quality needs of  
          disadvantaged communities.  AB 626 requires that the department  
          achieve that 10 percent allocation by awarding grants for those  
          purposes in a total dollar amount equivalent to 10 percent of  
          the total dollar amount of grants awarded in each region.  In  
          practical effect this inconsistency results in a cap at 10% per  
          region of IRWMP grants for disadvantaged communities, no matter  
          then needs of the communities in each region, and in conflict of  
          SB 1XX which allocates not less than 10%  to these communities.   
          To address this inconsistency, the committee may wish to  
          consider the following amendment:
          Page 6, lines 18 - 23:  "The department shall achieve  that 10  
          percent statewide  the allocation  for the disadvantaged community  
          purposes  described in clause (i) by awarding grants for those  
          purposes to disadvantaged communities within a hydrologic region  
          in a total dollar amount  equivalent to  not less than 10 percent  
          of the total dollar amount of grants awarded within the region."  
            

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           Environmental Justice Coalition for Water (Co-Sponsor)
          California Rural Legal Assistance Foundation (Co-Sponsor)
          Sierra Nevada Alliance  

           Opposition:   None submitted
           
          Analysis Prepared by  :    Lindsey Scott-Florez / W., P. & W. /  
          (916) 319-2096