BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2092
                                                                  Page  1

          Date of Hearing:   May 12, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 2092 (Huffman) - As Amended:  April 20, 2010 

          Policy Committee:                              Water, Parks and  
          Wildlife     Vote:                            8-3

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

           SUMMARY  


          This bill requires the Delta Stewardship Council (DSC) to  
          develop a long-term financing plan for implementing the Delta  
          Plan.  Specifically, this bill:


          1)Directs the DSC, by January 1, 2013, to develop a long-term  
            financing plan. Specifies the plan is to identify and evaluate  
            the benefits to all groups resulting from the implementation  
            of the Delta Plan, including, but not limited to:


             a)   The public.


             b)   Urban and agricultural water users diverting water in  
               the Delta and in the Bay-Delta tributaries and watershed.


             c)   Delta landowners, recreational users and commercial  
               fishers.


             d)   Dischargers into the Delta or its tributaries, including  
               wastewater dischargers.


             e)   Other interests with infrastructure or operations in the  
               Delta.









                                                                  AB 2092
                                                                  Page  2


          2)Calls for the plan to include a fee, based on the "beneficiary  
            pays principle," for implementing the Delta Plan and for  
            ongoing administration by DSC. 


          3)Prohibits DSC from adopting the fee unless directed to do so  
            by law.


          4)Directs DSC, before imposing the fee, to seek funding from  
            private groups that may benefit from the Delta Plan and to  
            credit those contributions against future fees or funding  
            requirements


           FISCAL EFFECT  

          Negligible costs to DSC, which already has funding to develop  
          the Delta Plan.

           COMMENTS  

           1)Rationale  .  Recent legislation established the coequal goals  
            of protecting the Delta ecosystem and ensuring a reliable  
            water supply for California.  The legislation created DSC and  
            called for the adoption of a Delta Plan to achieve the coequal  
            goals.  The author contends a long-term funding plan is  
            critical to development of the plan and achievement of the  
            coequal goals.  He intends this bill to provide for  
            development of such a fee that might be implemented later.  

           2)Background  .  In November of last year, the Legislature passed  
            SBX7 1 (Chapter 5, Simitian) to address the long troubled and  
            deteriorating Sacramento-San Joaquin Delta.  Among other  
            things, the bill established the DSC-a seven member body  
            charged with developing, adopting, and commencing  
            implementation of a comprehensive management plan for the  
            Delta by January 1, 2012. 

           3)Support  .  This bill is supported by several conservation  
            groups, who believe it critical to establish a funding plan  
            for development of the Delta Plan and conclude it appropriate  
            to pay for the plan with fees on those who will benefit from  
            its implementation.








                                                                  AB 2092
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           4)Opposition  .  This bill, as heard in policy committee, was  
            opposed by a variety of local government organizations, water  
            agencies and agricultural groups who expressed concern about  
            application of the "beneficiary pays principle," under which,  
            ideally, those who benefit from a proposed governmental action  
            pay for the public cost of that action.  The bill was  
            substantially amended by the policy committee; it is not clear  
            whether these groups remain opposed to the bill.

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