BILL ANALYSIS                                                                                                                                                                                                    





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2009-2010 Regular Session                    |
          |                                                                 |
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          BILL NO: AB 626                    HEARING DATE: July 6, 2009  
          AUTHOR: Eng                        URGENCY: No  
          VERSION: May 4, 2009               CONSULTANT: Dennis O'Connor  
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Bond revenues: integrated regional water management:  
          grants.  
          
          BACKGROUND AND EXISTING LAW

          1.On November 7, 2006, the voters approved the Safe Drinking  
            Water, Water Quality and Supply, Flood Control, River and  
            Coastal Protection Bond Act of 2006, (Proposition 84).  Among  
            other things, Proposition 84 authorized the issuance of $5.4  
            billion in general obligation bonds, of which $1.0 billion is  
            available for Integrated Regional Water Management programs  
            and projects.  Proposition 84 further allocated the $900  
            million by region, the other $100 million was designated as  
            Inter-regional/Unallocated, and were to be expended by the  
            Department of Water Resources (DWR) to address multiregional  
            water needs or water issues of statewide significance.

          2.Last session, the Legislature passed and the Governor signed  
            SB 1XX (Perata).  That bill, among other things, appropriated  
            funds to DWR for integrated regional water management  
            activities, including:
                 $100 million for implementation grants.
                 $39 million for planning grants, local groundwater  
               assistance grants, and CALFED scientific research grants.

            SB 1XX further specified that of the $139 million  
            appropriation, DWR was to allocate not less than 10 percent to  
            facilitate and support the participation of disadvantaged  
            communities in integrated regional water management planning  
            and for projects that address critical water supply or water  
            quality needs for disadvantaged communities.

          PROPOSED LAW
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          This bill would:
           Clarify that the 10 percent minimum funding requirement for  
            disadvantaged communities was to be applied to each region.
           Require DWR to implement the allocation with due diligence,  
            but only to the extent that the implementation does not affect  
            the expeditious allocation of funds. 
           Require DWR to submit a report to the Legislature by July 1,  
            2010, regarding the implementation of the 10 percent minimum  
            funding requirement.

          This bill would also make technical corrections to SB 1XX. 


          ARGUMENTS IN SUPPORT

          According to the author, "Disadvantaged communities around the  
          state struggle to meet basic water related public health  
          functions including supplying safe drinking water to their  
          communities and maintaining basic wastewater infrastructure.  
          These communities lack, entirely, the capacity to engage in  
          water use efficiency programs, low impact development standards,  
          recycled water opportunities, etc. The IRWMP program provides an  
          opportunity for these communities to be part of regional  
          solutions that bring water-related agencies together to develop  
          integrated water management plans that benefit from the  
          efficiencies possible when multiple agencies work together."

          "AB 626 will ensure that disadvantaged communities in every  
          region have equitable access to these funds and to the IRWMP  
          process. SB 1XX (Perata, 2008) required that no less than 10% of  
          the $139 million appropriated for the IRWMP program be used to  
          fund projects that provide direct benefits to disadvantaged  
          communities."

          ARGUMENTS IN OPPOSITION: None

          COMMENTS 
           
          Spreads The Wealth.    SB 1XX could be interpreted to allow DWR  
          to award the entire 10 percent for disadvantaged communities in  
          one region, and none in any of the other regions.  AB 626 would  
          require DWR to apply the 10 percent requirement to each region  
          individually.

           May Not Affect Grants.   SB 1XX became effective on March 1,  
          2009, and DWR has begun the process of awarding IRWMP grants.   
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          Should this bill be chaptered this year, it would take effect on  
          January 1, 2010.  It is possible, but not at all certain, that  
          by January 1, DWR either will have awarded or will be about to  
          award the bulk of the IRWMP grants.

          SUGGESTED AMENDMENTS: None

          SUPPORT
          California Rural Legal Assistance Foundation
          Clean Water Action
          Community Water Center
          Environmental Justice Coalition for Water
          Organization of Chinese Americans
          Sierra Nevada Alliance

          OPPOSITION
          None Received






























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