BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AB 1615
          Author:   Assembly Budget Committee 
          Amended:  10/6/10 in Senate
          Vote:     27 - Urgency

           
          PRIOR VOTES NOT RELEVANT 


           SUBJECT  :    Resources Budget Trailer Bill 

           SOURCE  :     Author


           DIGEST  :     Senate Floor Amendments  of 10/6/10 delete the  
          prior version of the bill which expressed the intent of the  
          Legislature to enact statutory changes relating to the  
          Budget Act of 2010, and add the current content relating to  
          Resources.

          This bill is now the Resources Budget Trailer bill which  
          contains provisions necessary to implement the 2010-11  
          Budget.

           ANALYSIS  :    This bill includes the following key changes  
          to implement the 2010-11 State Budget:

          1.  Renewable Energy Generation Siting  .  Increases the  
             minimum and maximum levels for siting application and  
             compliance fees for construction of a thermal powerplant  
             or electric transmission line.  Additionally, deletes  
             the existing siting application fee exemption for  
             renewable generation, and requires a report to the  
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             Legislature by July 1, 2012 on the impact of these  
             changes.  Revenues from siting application and  
             compliance fees support application processing and  
             compliance monitoring at the California Energy  
             Commission (CEC).

          2.  Clean and Renewable Energy Revolving Loan Program  .   
             Authorizes the CEC to implement the Clean and Renewable  
             Energy Business Financing Revolving Loan Program to  
             provide low interest loans to California clean and  
             renewable energy manufacturing businesses, and to use  
             federal funds made available by the American Recovery  
             and Reinvestment Act of 2009 for this purpose.   
             Additionally, creates the Clean and Renewable Energy  
             Business Financing Revolving Loan Fund, which is  
             continuously appropriated for the purposes of the  
             Program.

          3.  Alternative and Renewable Fuel and Vehicle Technology  
             Program (AB 118) Investment Plan  .  Requires the CEC to  
             submit to the Legislature, in coordination with the  
             Governor's Budget, the annual investment plan (plan)  
             required by AB 118 (Nunez), Chapter 750, Statutes of  
             2007.  On March 15, 2011, and each January thereafter,  
             the draft plan is to be submitted for legislative  
             review, followed by the final plan at the time of the  
             Governor's May Revision.  Additionally, the Legislature  
             is to be notified of any significant changes made  
             thereafter, as defined.

          4.  Greening Ethanol  .  Places various requirements on  
             biorefiners receiving loans from the CEC's proposed  
             California Ethanol Producer Incentive Program under AB  
             118, including that they develop plans and secure  
             funding for refinery improvements (that either reduce  
             greenhouse gas emissions and/or allow for the use of  
             alternative feedstocks) within a specified time period.

          5.  Energy Assistance Fund Extensions  .  Extends, until  
             January 1, 2013 and January 1, 2016, respectively, the  
             State Energy Conservation Assistance Account and the  
             Local Jurisdiction Energy Assistance Account.

          6.  Orphan Oil Facility Fee Sunset  .  Clarifies that any  

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             increased fees imposed by the Department of Conservation  
             for the accelerated remediation of orphaned oil  
             facilities, for the purposes of completing workload  
             requested in the 2010-11 Budget Act, shall last for only  
             four years.

          7.  Underground Injection Control Program Reporting  .   
             Requires the Department of Conservation to provide the  
             Legislature with annual reporting on the Underground  
             Injection Control Program, including progress in  
             implementing the program's action plan.

          8.  Beverage Container Recycling Fund Reporting  .  Specifies  
             the information to be provided in the Department of  
             Resources Recycling and Recovery's quarterly report to  
             the Legislature on the condition of the Beverage  
             Container Recycling Fund.

          9.  Align SB 8 X7 Appropriations with Existing Law  .  Reverts  
             $522 million in Proposition 1E and Proposition 84 funds  
             originally appropriated in 
          SB 8 X7 (Steinberg), Chapter 2, Statutes of 2009-10,  
             Seventh Extraordinary Session, and appropriates those  
             dollars anew with certain requirements designed to  
             better align the funding with existing law, including:   
             (1) broadening Proposition 1E and Proposition 84 flood  
             control project eligibility; (2) linking  
             stormwater-flood funding to 
          SB 790 (Pavley), Chapter 620, Statutes of 2009; and (3)  
             making integrated regional water management  
             appropriation language consistent with existing grant  
             guidelines.

          10.  Environmental Education Initiative Contributions  .   
             Authorizes, until January 1, 2013, the Secretary of  
             Environmental Protection to enter into a contract with  
             an "external fiscal agent," as defined, in order to  
             direct the expenditure of private contributions made to  
             the external fiscal agent for the purposes of carrying  
             out the Environmental Education Initiative.

          11.  Green Building Standards Reporting  .  Requires the  
             Department of Forestry and Fire Protection (CAL FIRE) to  
             report to the Legislature by January 1, 2012, on the  

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             steps taken by the Office of the State Fire Marshal to  
             improve fire and panic safety with respect to green  
             building standards, and to better coordinate work on  
             green building standards code development with the  
             California Building Standards Commission and the  
             Department of Housing and Community Development.

          12.  Department of Forestry and Fire Prevention Emergency  
             Fund, Schedule A, and Fire Prevention Reporting  .   
             Requires CAL FIRE to report on Emergency Fund (E-Fund)  
             expenditures and Schedule A contracts, and clarifies  
             existing requirements for reporting on fire prevention  
             activities.  Additionally, specifies that the Governor  
             is to submit a zero-based budget for CAL FIRE  
             expenditures previously supported from the E-Fund in  
             fiscal year 2009-10 (but subsequently included in the  
             base budget for 2010-11).

          13.  Property Acquisition for Parks and Off-Highway Vehicles  .  
              Specifies the terms under which the "Freeman Property,"  
             a portion of land abutting both Anza-Borrego Desert  
             State Park (park) and Ocotillo-Wells State Vehicular  
             Recreation Area (OWSVRA), may be acquired and divided  
             between the park and OWSVRA.  Waives the California  
             Environmental Quality Act (CEQA) review process for the  
             purposes of the acquisition, but not for any general  
             plan that is required for the acquisition or any  
             subsequent project approved for the property.

          14.  Avoid Conflict of Interest in Delta Contracting  .   
             Declares the Legislature's intent that the Delta  
             Stewardship Council, in entering contracts for the  
             completion of the Delta Plan and the Bay Delta  
             Conservation Plan (BDCP) avoid any actual or apparent  
             conflict of interest by including contract provisions to  
             ensure the independence of the contractor's work on the  
             Delta Plan with respect to any work that contractor may  
             do on the BDCP.

          15.  Zero-Based Delta Expenditures  .  Requires the Governor to  
             submit a zero-based budget for fiscal year 2011-12 for  
             all state agency programs that implement water and  
             ecosystem restoration activities in the Sacramento-San  
             Joaquin Delta, including those related to the CALFED  

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             Bay-Delta Program.

          16.  Information Made Public During Rule-Making Process  .   
             Clarifies the intent of AB 1085 (Mendoza), Chapter 384,  
             Statutes of 2009, which specified that the Air Resources  
             Board (ARB) must make available to the public certain  
             information associated with the rule-making process  
             prior to the beginning of the comment period for any  
             regulation proposed for adoption.  Originally, the  
             stated intent of AB 1085 was to require the provision of  
             certain information such that interested parties could  
             "easily and without undue effort reproduce and verify  
             all aspects of" ARB staff analyses.  The revised  
             language would state the Legislature's intent that "the  
             public is provided all of the information relied on" by  
             the ARB in the rule-making process.

          17.  Zero-Based AB 32 Expenditures  .  Requires the Governor to  
             submit a zero-based fiscal year 2011-12 budget for all  
             California Global Warming Solutions Act of 2006 (AB 32  
             [Nunez], Chapter 488, Statutes of 2006) programs and  
             expenditures.

          18.  Establish New State Water Board Fund  .  Establishes the  
             Wastewater Operator Certification Fund as a repository  
             for revenues from fees (authorized under current law)  
             charged to certified operators of wastewater treatment  
             plants, applicants to become certified operators, and  
             contract operators for various services associated with  
             certification.  The Operator Certification historically  
             operated on a reimbursement basis, but continues to  
             grow, resulting in the need to create a special fund to  
             receive growing revenues.

          19.  Support for Water Quality Monitoring at Landfills  .   
             Clarifies and conforms existing solid waste landfill fee  
             provisions to related provisions in the Clean Water Act  
             by specifying that, if revenues from solid waste  
             disposal "tipping fees" are insufficient to fund state  
             water board and regional water board regulatory  
             activities for solid waste landfills, then the current  
             waste discharge permit fee shall not be waived (as has  
             been the custom and practice for a number of years when  
             tipping fees were sufficient to fund water quality  

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             activities). Requires the State Water Resources Control  
             Board (SWRCB) to perform an analysis and report on the  
             costs of regulating water quality at active landfills,  
             and directs the board, on a one-time basis, to collect  
             (the full-year value of) the Waste Discharge Fee from  
             permittees in the second half of the 2010-11 fiscal  
             year.

          20.  Environmental Consultant Pilot Program Reporting  .   
             Requires the SWRCB to submit to the Joint Legislative  
             Budget Committee, no later than July 1, 2013, a report  
             on the effectiveness of a pilot program to directly  
             contract with environmental consultants to prepare  
             required CEQA documents for water rights applicants and  
             petitioners.

          21.  Leaded Products Enforcement and Penalties  .  Provides for  
             the deposit of penalties collected to enforce the  
             requirements of the hazardous waste control laws  
             regarding lead-containing jewelry, toxic packaging, and  
             wheel weights in the Toxic Substances Control Account,  
             where they are to be expended by the Department of Toxic  
             Substances Control to implement and enforce the  
             provisions of those laws.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  Yes

          CTW:mw  10/6/10   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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