BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           2202 (V. M. Perez)
          
          Hearing Date:  06/28/2010           Amended: 06/09/2010
          Consultant:  Brendan McCarthy   Policy Vote: EQ 6-0
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          ____
          BILL SUMMARY: AB 2202 requires that any funds from the proposed  
          new water bond allocated for the cleanup of the New River only  
          be spent consistent with a strategic plan that is in  
          development. The bill requires the Secretary for Environmental  
          Protection to oversee the expenditure of those bond funds.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           
          Bond fund implementation          About $1,000 over the life of  
          the program            Bond *     

          * Proposed new water bond. These costs would be incurred by  
          whatever agency is designated by the Legislature to implement  
          the bond funds.
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          ____

          STAFF COMMENTS: 
          
          Under current law (AB 1079, V. M. Perez, Chapter 382, Statutes  
          of 2009), the California-Mexico Border Relations Council is  
          required to develop a strategic plan for the cleanup of the New  
          River. The New River flows from Mexico into Imperial County,  
          eventually emptying into the Salton Sea. The New River is highly  
          polluted by agricultural and industrial runoff and untreated  
          sewage.

          The proposed Safe, Clean, and Reliable Drinking Water Supply Act  
          of 2010 (to be voted on at the November 2010 election) includes  
          $20 million for water quality and public health projects on the  
          New River.

          AB 2202 states legislative intent not to appropriate funds from  
          the proposed water bond for the New River until the strategic  










          plan is developed or until January 2013. The bill requires any  
          funds from the proposed water bond for the New River to be spent  
          consistent with the strategic plan. AB 2202 specifies that the  
          Secretary for Environmental Protection shall oversee the  
          expenditure of these bond funds.

          Because current law already requires the development of the  
          strategic plan, requiring bond funds to be spent consistent with  
          such a plan should not create additional cost pressures on the  
          $20 million for the New River allocated in the proposed bond.

          By requiring the Secretary for Environmental Protection to  
          oversee the expenditure of the proposed bond funds for the New  
          River, the bill will impose program delivery costs of about $1  
          million on the Office of the Secretary. However, because any  
          state agency that would be given program oversight  
          responsibilities for these funds would incur these costs, this  
          does not represent a new cost to the state.