BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2669
                                                                  Page  1

          Date of Hearing:   April 21, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

            AB 2669 (V. Manuel Perez) - As Introduced:  February 19, 2010 

          Policy Committee:                              Environmental  
          Safety and Toxic Materials                    Vote: 7-2

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

           SUMMARY  

          This bill appropriates $2 million in Proposition 84 bond funds  
          for allocation to Riverside County for an integrated water  
          quality and wastewater treatment program plan, primarily to  
          address arsenic contamination.  Specifically, this bill:

          1)Appropriates to the Department of Water Resources (DWR) $2  
            million dollars from the $100 million included in Proposition  
            84 specifically for "interregional/unallocated" purposes.

          2) Directs DWR to allocate the $2 million to Riverside County  
            for development of a water quality and wastewater treatment  
            program plan to address the drinking water and wastewater  
            needs-primarily arsenic contamination of drinking water-in  
            disadvantaged communities in unincorporated areas of the  
            county.

          3)Directs DWR, in consultation with DPH, to submit the plan to  
            the Legislature by January 1, 2013.

           FISCAL EFFECT  

          Appropriates to DWR, for specified use by Riverside County, $2  
          million of $100 million in Proposition 84 bond funds designated  
          as interregional/unallocated.  According to DWR,  the  
          interregional/unallocated Proposition 84 bond fund currently is  
          overappropriated by $4 million. 

           COMMENTS  

           1)Rationale  .  Proponents contend it is appropriate and  








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            precedented for the Legislature to direct DWR's allocation of  
            Proposition 84 bond funds to ensure that all California's  
            communities, including its most disadvantaged, have access to  
            clean, potable drinking water.

           2)Background  .  

              a)   Proposition 84  .  In 2006, voters approved Proposition  
               84, The Safe Drinking Water, Water Quality and Supply,  
               Flood Control, River and Coastal Protection Bond Act.   
               Proposition 84 authorizes $5.4 billion in bonds to  finance  
               programs for safe drinking water, water quality and supply,  
               flood control, and resource protection.  Of that amount, $1  
               billion is available to DWR, upon appropriation by the  
               Legislature, for grants for projects that assist local  
               public agencies to meet the long-term water needs of the  
               state, including the delivery of safe drinking water and  
               the protection of water quality and the environment.  From  
               this $1 billion, the proposition allocates specific dollar  
               amounts to each of the state's 12 hydrologic regions  
               identified in the California Water Plan.  In addition, the  
               proposition allocates $100 million of these funds for  
               interregional/ unallocated purposes.  This bill seeks to  
               appropriate money from these interregional/unallocated  
               funds.

              b)   Arsenic an Old Case in Riverside County  .  Arsenic is a  
               semi-metal that enters drinking water supplies from natural  
               deposits in the earth or from agricultural and industrial  
               practices.  The United States Environmental Protection  
               Agency sets the arsenic standard for drinking water at 10  
               parts per billion to protect consumers served by public  
               water systems from the effects of long-term, chronic  
               exposure. The element is commonly found in some areas of  
               Riverside County, where it regularly contaminates some  
               aquifers, including those serving certain mobile home parks  
               with many low-income residents, at concentrations well in  
               excess of federal standards.

           3)Sidestepping the Bond Fund Allocation Process-But Not the  
            First Time  .  Proposition 84 establishes funding amounts for  
            broad purposes, such as the $1 billion to assist local public  
            agencies to meet the long-term water needs of the state.   
            Generally, DWR allocates those monies in keeping with those  
            broad purposes and according to internal processes and set  








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            criteria.  
           
             Some question whether it is appropriate for the Legislature to  
            sidestep DWR's allocation process and note that there maybe  
            other communities in the state suffering from similar or even  
            worse drinking water contamination.  In one instance, however,  
            the Legislature already directed DWR's allocation of  
            Proposition 84 funds.  SB X2 1 (Perata, Chapter 1, Statutes of  
            2008) contained almost identical language to this bill, though  
            it directed money to Tulare County, not Riverside.

           4)Bond Funds Already Overappropriated  .  According to DWR, the  
            Legislature has already over-appropriated the $100 million of  
            Proposition 84 funding for interregional/ unallocated water  
            projects by $4 million.  The Governor's 2010-11 Budget Act  
            proposes reversion of a prior appropriation made by SB X7  
            1(Simitian, 2009) for the "Two-Gates Fish Protection  
            Demonstration Program," thereby benefiting the fund balance by  
            $28 million. The budget act, however, also proposes to  
            allocate $26 for implementation of the Delta plan described in  
            SB X7 1 and for the water conservation measures described in  
            SB X7 7 (Steinberg, 2009).  The author's office notes that,  
            while the funds may be overappropriated, the Legislature has  
            the authority to redirect DWR's bond fund allocations  
            according to its priorities.

           5)Support  .  The bill is supported by the California Rural Legal  
            Assistance Foundation and Poder Popular of the Coachella  
            Valley, who argue it is appropriate for the Legislature to  
            direct bond funds to ensure all Californians have access to  
            clean, potable drinking water.

           6)Opposition  .  There is no registered opposition on file to this  
            bill.  Some expressed concern during policy committee hearing,  
            however, that it might be inappropriate to sidestep DWR's  
            standard process for allocating bond funds consistent with the  
            broad goals and specific targets described in Proposition 84.

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