BILL ANALYSIS
-----------------------------------------------------------------
| |
| SENATE COMMITTEE ON NATURAL RESOURCES AND WATER |
| Senator Fran Pavley, Chair |
| 2009-2010 Regular Session |
| |
-----------------------------------------------------------------
BILL NO: SB 808 HEARING DATE: January 12,
2010
AUTHOR:Wolk URGENCY: Yes
VERSION: January 4, 2010 CONSULTANT: Katharine Moore
DUAL REFERRAL: No FISCAL: Yes
SUBJECT: Delta levee maintenance
BACKGROUND AND EXISTING LAW
The Delta levees are the key physical element maintaining the
Delta in its current state and are essential for the protection
from flooding of human life, property (e.g. buildings,
equipment, and crops, among others), water quality and wildlife
habitat. While the Delta levees are mostly private, the State
relies upon them to maintain the Delta in its current state as a
water conveyance system for the State Water Project (SWP) and
the federal Central Valley Project (CVP).
The Delta levee maintenance subvention program was created by SB
541 in 1973 (Way, c. 717, Statutes of 1973). The program has
been modified periodically since its inception and currently
provides reimbursement funds to local agencies for costs
incurred in any year for the maintenance or improvement of
project or non-project levees. Until June 30, 2010 the
reimbursement rate is:
zero if the entire cost incurred per mile of levee is
$1,000 or less
up to 75% of any costs incurred in excess of $1,000 per
mile of levee would be paid by the State based upon an
assessment of the agency's ability to pay.
On July 1, 2010 the reimbursement rate will become:
zero if the entire cost incurred per mile of levee is
$1,000 or less (no change)
50% of any costs incurred in excess of $1,000 per mile
of levee would be paid by the State.
General Fund contributions to this program are capped at $2
million per year.
1
PROPOSED LAW
This bill extends the sunset on the current Delta levee
maintenance subvention program's 75%-25% reimbursement rate from
July 1, 2010 to July 1, 2016.
ARGUMENTS IN SUPPORT
According to the author, "the Delta levee system serves both
local and substantial State interests. Regardless of future
decisions on [water] conveyance within the Delta, in the near
term, Delta levees will continue to be the sole tool for water
conveyance for the SWP and CVP. The Delta Levee Subvention
Program's 75-25 cost-sharing formula has allowed local
reclamation districts to afford to maintain and improve their
levees, thereby protecting the system. If the formula returns
to a 50-50 split, then the many small districts with a limited
economic base would not be able to afford to maintain the Delta
levees adequately."
"The Delta Levee Subventions Program needs a 6-year extension
(to 2016) in order to sustain Delta maintenance programs during
a time of transition. Last year, the Legislature required [the]
newly-created Delta Stewardship Council to develop priorities
for levee investments within the Delta as part of the Delta
Plan. The Delta Plan is due January 1, 2012." An extension of
the program through 2016 "will allow the subventions and Delta
levee maintenance to continue while the Delta Stewardship
Council develops and begins to implement the [Delta] plan." SB
808 continues the Delta Levee Subventions program and supports
levee maintenance while "the State reassesses the direction it
will pursue in protecting the Delta."
ARGUMENTS IN OPPOSITION
None received
COMMENTS
The Delta Plan - AB 798 (Wolk, c. 548, Statutes of 2006)
provided a 4-year extension (2006 to 2010) to the Delta levee
maintenance subventions program. The 2010 sunset date in AB 798
was based on the anticipated completion of levee funding
priorities, as required by AB 1200 (Laird, c. 573, Statutes of
2005).
AB 1200 required DWR to study the risks posed to the integrity
of the Delta by various hazards (see Water Code sections 139.2
and 139.4) and to prioritize options for their mitigation. This
report, produced in January 2008, provided the preliminary
results of Delta Risk Management Strategy (DRMS). DWR, in
2
collaboration with other organizations, created DRMS in response
to AB 1200. Phase I of DRMS - an analysis of the various risks
to levees and the local and statewide consequences of levee
failure - was completed in early 2009. Phase II of the DRMS,
which identifies and analyzes various scenarios to reduce the
risks and consequences of levee failure, is not yet completed.
According to DWR, the timeline for completion of Phase II is
uncertain at this point due to the State's budget issues.
Last November, SB7X 1 (Simitian, c. 5, Statutes of the 7th
extraordinary session, 2009 - 2010) established a new planning
framework for the Delta - the Delta Plan. The Delta Plan will
likely incorporate the levee risk management results of the DRMS
studies and is due in January 2012. The committee may wish to
consider that the Delta levee management subvention program be
required to be consistent with the Delta Plan upon the Plan's
completion. (see amendment 1)
Recent expenditures - From FY 1996 - 97 through FY 2007 - 08,
the total expenditure through the Delta levee maintenance
subventions program was approximately $131 million with the
State paying about 62% ($80 million) and the local agencies the
rest. The total cost-share for any particular project depends
upon how well it meets priorities established for the
subventions program and the availability of State funding. The
average total expenditure during this time period was about $9.8
million per year. The availability of bond funds due to the
passage of Propositions 84 and 1E in 2006 has increased funding
for this program. Between FY 2006 - 07 and FY 2007 - 08, the
State's annual expenditure increased from about $6 million to
$16 million.
SUGGESTED AMENDMENTS
AMENDMENT 1
On page 3, after line 31, insert:
(c) This program shall reflect the priorities and be
consistent with the Delta plan pursuant to chapter 1, part
4, division 35 of the California Water Code.
SUPPORT
None Received
OPPOSITION
None Received
3
4