BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           2598 (Brownley)
          
          Hearing Date:  08/12/2010           Amended: 07/15/2010
          Consultant:  Brendan McCarthy   Policy Vote: NR&W 5-3














































          AB 2598 (Brownley), Page 2


          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 2598 requires local government agencies that  
          have been granted public trust lands to develop a sea level  
          action plan.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           
          State Lands Commission Minor and absorbable             General
             review of plans

          Development of plans   Unknown, likely in the millions       
          Local *
             by local governments

          Cost pressure on Ocean Unknown, potentially in the millionsBond  
          **                     
             Protection Council funds

          * Non-reimbursable costs.
          ** Proposition 84.
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE.
          
          Under current law, the public trust doctrine holds that tide and  
          submerged lands and the beds of lakes, streams, and other  
          navigable waterways are "public trust lands" held by the state  
          for the benefit of the people of California.  These lands are  
          held to promote the public's interest in water or  
          water-dependent activities such as commerce, navigation,  
          fisheries, environmental preservation, and recreation. The State  
          Lands Commission is the steward of the state's public trust  
          lands. With Legislative approval, the Commission may grant  
          public trust lands to local government agencies, provided that  
          the local government agency manages the lands for public  
          benefit. The state has made more than 85 grants of public trust  
          land to local government agencies, including public trust lands  
          in and around some of the state's major ports.

          AB 2598 requires local government agencies that have been  
          granted public trust lands to develop a sea level action plan.  







          AB 2598 (Brownley), Page 2


          The plans must be submitted to the state by July 1, 2012. The  
          plans must consider the impact of sea level rise on granted  
          public trust lands, the financial impact of sea level rise on  
          those lands, and strategies to prevent or mitigate impacts from  
          sea level rise.

          The State Lands Commission is authorized to exempt a local  
          government agency from preparing the report if the Commission  
          finds that none of the agency's public trust lands are subject  
          to sea level rise or the cost to prepare the plan outweighs the  
          benefits that the plan would have in preventing economic or  
          environmental harm.

          The bill also authorizes the Commission to grant a deadline  
          extension or exempt a local government agency from the reporting  
          requirements if revenues derived from the public trust land or  
          funding made available to the local government agency from other  
          sources (including the Ocean Protection Council) are  
          insufficient to pay for the cost of developing the plan.

          The State Lands Commission indicates that any costs to review  
          requests for exemptions would be absorbable within existing  
          resources.

          The costs to local government agencies to develop the required  
          plans are unknown. Given the large number of grants the state  
          has made, the aggregate costs to develop the plans may be in the  
          millions. Because local government agencies have voluntarily  
          accepted the grant of those lands and because the bill  
          authorizes the Commission to delay or waive the requirement to  
          prepare the report, the bill does not impose a reimbursable  
          state mandate.

          To the extent that local government agencies do not have  
          sufficient revenues from granted public trust lands to prepare  
          the reports, it is likely that some local governments will apply  
          for funding from the Ocean Protection Council, which makes  
          grants for various projects relating to marine resources. The  
          extent of the resulting cost pressure on Ocean Protection  
          Council Funding is unknown, but could easily be in the millions  
          given the large number of grants of public lands made by the  
          state. Staff notes that the Ocean Protection Council's grant  
          program is largely supported from $90 million in general  
          obligation bonds authorized by Proposition 84. Of this amount,  
          about $25 million remains available for expenditure.








          AB 2598 (Brownley), Page 2


          
          AB 2125 (Ruskin) requires the Ocean Protection Council to  
          support other state agencies' use of geospatial information for  
          coastal- and ocean-related decision making and authorizes the  
          Ocean Protection Council to award grants to support this effort.  
          AB 2125 will be heard in this Committee.