BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 626
                                                                  Page  1

          Date of Hearing:   May 20, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                       AB 626 (Eng) - As Amended:  May 4, 2009 

          Policy Committee:                              WPW  Vote:9-4

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          Current law requires the Department of Water Resources (DWR) to  
          award 10% of certain grants funds to address the critical water  
          supply needs of disadvantaged communities.  This bill directs  
          DWR to achieve this requirement by awarding 10% of these grants  
          funds to severely disadvantaged communities within each  
          hydrologic region in which DWR awards such grants funds.

           FISCAL EFFECT  

          Cost pressures, likely in the millions of dollars, to DWR to  
          award grant monies to disadvantaged communities in each  
          hydrologic region that receives grant funding.  Actual grant  
          awards, however, might be no different, or only somewhat  
          different than the grant awards DWR would have made absent this  
          bill.  (Proposition 84)

           COMMENTS  

           1)Rationale.   The sponsors argue that the prioritization of  
            disadvantaged communities in each region will better achieve  
            the existing state goal of benefiting and including  
            disadvantaged communities through the awarding of Proposition  
            84 grants.

           2)Background.   

              a)   Proposition 84  (The Safe Drinking Water, Water Quality  
               and Supply, Flood Control, River and Coastal Protection  
               Bond Act of 2006) allocates $5.4 billion in general  
               obligation bonds to fund safe drinking water, water quality  
               and supply, flood control, waterway and natural resource  








                                                                  AB 626
                                                                  Page  2

               protection, water pollution and contamination control,  
               state and local park improvements, public access to natural  
               resources, and water conservation efforts. Implementing  
               legislation (SB 1XX of 2008) allocates $182 million of  
               those funds to DWR for integrated regional water management  
               activities.  

              b)   Percentage of Grant Funds Must Go to "Disadvantaged"  
               Communities.   Of that $182 million appropriation for  
               integrated regional water management activities, $100  
               million is for implementation grants.  Another $39 million  
               is for planning grants, local groundwater assistance  
               grants, and CALFED scientific research grants.  SB 1XX  
               states that DWR must allocate not less than 10% of that  
               $139 million in grants to address the critical water supply  
               needs of disadvantaged communities and to facilitate  
               participation of those communities in integrated regional  
               water management planning.  

           3)10% Statewide Versus 10% in Each Region  .  As described above,  
            existing law directs DWR to allocate at least 10% of certain  
            of Proposition 84 bond fund grants to disadvantaged  
            communities.  The sponsors of this bill are concerned that,  
            consistent with the law, DWR could choose to award 10% of such  
            grants to a disadvantaged community or communities in only one  
            or a few hydrologic regions.  This bill specifies that 10% of  
            applicable Proposition 84 grants made in any hydrologic region  
            be awarded to disadvantaged communities.  In this way, the  
            bill better ensures that disadvantaged communities from  
            throughout the state will benefit from the 10% of Proposition  
            84 bond funds dedicated to those communities.  

          4)Supporters  -certain environmental justice and human rights  
            groups-fear that DWR may, in keeping with the letter but not  
            the intent of current law, concentrate Proposition 84 grants  
            that must go to disadvantaged communities in one or a few  
            hydrologic regions.  These proponents of the bill believe it  
            more just and more beneficial to use Proposition 84 funds to  
            help disadvantaged communities throughout the state.  

             There are no registered opponents to this bill.

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081