BILL ANALYSIS                                                                                                                                                                                                    



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          SENATE THIRD READING
          SB 855 (Budget and Fiscal Review Committee)
          As Amended  October 7, 2010
          2/3 vote.  Urgency 

           SENATE VOTE  :Vote not relevant  
           
           SUMMARY  :  Enacts various changes in statute necessary to  
          implement the 2010-11 State Budget for Resources and  
          Environmental Protection.  Specifically,  this bill  :

          1)Provides that the penalties collected to enforce the  
            requirements of the hazardous waste control laws regarding  
            lead-containing jewelry, toxic packaging, and lead wheel  
            weights be deposited into the Toxic Substances Control  
            Account, where they are to be expended by the Department of  
            Toxic Substances Control to implement and enforce the  
            provisions of those laws.

          2)Places various requirements on biorefiners receiving loans  
            from the California Energy Commission's (CEC) proposed  
            California Ethanol Producer Incentive Program (CEPIP),  
            including developing plans and securing funding for refinery  
            improvements (that either reduce greenhouse gas emissions  
            and/or allow for the use of alternative feedstocks) within a  
            specified time period.

          3)Establishes a 2-year sunset on statutory requirements in this  
            bill that accelerates the development on non-corn-based  
            ethanol. 

          4)Requires the CEC to submit to the Legislature the annual  
            investment plan (plan) required by Chapter 750, Statutes of  
            2007 (AB 118) in coordination with the Governor's Budget.  On  
            March 15, 2011, and each January thereafter, the draft plan is  
            to be submitted for legislative review, followed by the final  
            plan at the time of the Governor's May Revision.   
            Additionally, the Legislature is to be notified of any  
            significant changes made thereafter, as defined.

          5)Clarifies that any increased fees imposed by the Department of  
            Conservation (DOC) for the accelerated remediation of orphaned  
            oil facilities, for the purposes of completing workload  
            requested in the 2010-11 Budget Act, shall last for only four  








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            years.

          6)Requires the Department of Forestry and Fire Protection (CAL  
            FIRE) to report to the Legislature by January 1, 2012 on the  
            steps taken by the Office of the State Fire Marshal to improve  
            fire and panic safety with respect to green building  
            standards, and to better coordinate work on green building  
            standards code development with the California Building  
            Standards Commission and the Department of Housing and  
            Community Development.

          7)Requires CAL FIRE to report on Emergency Fund (E-Fund)  
            expenditures and Schedule A contracts, and clarifies existing  
            requirements for reporting on fire prevention activities.   
            Additionally, specifies that the Governor is to submit a  
            zero-based budget for CAL FIRE expenditures previously  
            supported from the E-Fund in fiscal year 2009-10 (but  
            subsequently included in the base budget for 2010-11).

          8)Specifies the terms under which the "Freeman Property," a  
            portion of land abutting both Anza-Borrego Desert State Park  
            (park) and Ocotillo-Wells State Vehicular Recreation Area  
            (OWSVRA), may be acquired and divided between the OWSVRA.   
            Waives the California Environmental Quality Act review process  
            only for the purposes of the acquisition.  This bill does not  
            exempt any general plan amendments that are required for the  
            management of the lands or any subsequent project approved for  
            the property.

          9)Specifies the information to be provided in the Department of  
            Resources Recycling and Recovery's quarterly report to the  
            Legislature on the condition of the Beverage Container  
            Recycling Fund.

          10)         Extends, until January 1, 2013 and January 1, 2016,  
            respectively, the State Energy Conservation Assistance Account  
            and the Local Jurisdiction Energy Assistance Account.

          11)Authorizes the CEC to implement the Clean and Renewable  
            Energy Business Financing Revolving Loan Program to provide  
            low interest loans to California clean and renewable energy  
            manufacturing businesses, and to use federal funds made  
            available by the American Recovery and Reinvestment Act of  
            2009 for this purpose.  Additionally, creates the Clean and  








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            Renewable Energy Business Financing Revolving Loan Fund, which  
            is continuously appropriated for the purposes of the program.

          12)Increases the minimum and maximum levels for siting  
            application and compliance fees for construction of a thermal  
            powerplant or electric transmission line.  Additionally,  
            deletes the existing siting application fee exemption for  
            renewable generation, and requires a report to the Legislature  
            by July 1, 2012 on the impact of these changes.  Revenues from  
            siting application and compliance fees support application  
            processing and compliance monitoring at the California Energy  
            Commission.

          13)Clarifies and conforms existing solid waste landfill fee  
            provisions to related provisions in the clean water act by  
            specifying that, if revenues from solid waste disposal  
            "tipping fees" are insufficient to fund state water board and  
            regional water board regulatory activities for solid waste  
            landfills, then the current waste discharge permit fee shall  
            not be waived (as has been the custom and practice for quite a  
            number of years when tipping fees were sufficient to fund  
            water quality activities). Requires the State Water Resources  
            Control Board (Water Board) to perform an analysis and report  
            on the costs of regulating water quality at active landfills,  
            and directs the board, on a one-time basis, to collect the  
            full-year value of the Waste Discharge Fee from permitees in  
            the second half of the 2010-11 fiscal year.

          14)Authorizes, until January 1, 2013, the Secretary of  
            Environmental Protection to enter into a memorandum of  
            agreement with an "external fiscal agent," as defined, in  
            order to direct the expenditure of private contributions made  
            to that agent for the purposes of carrying out the  
            Environmental Education Initiative.

          15)Establishes the Wastewater Operator Certification Fund as a  
            repository for revenues from fees (authorized under current  
            law) charged to certified operators of wastewater treatment  
            plants, applicants to become certified operators, and contract  
            operators for various services associated with certification.   
            The Operator Certification historically operated on a  
            reimbursement basis, but continues to grow, resulting in the  
            need to create a special fund to receive growing revenues.









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          16)Declares the Legislature's intent that the Delta Stewardship  
            Council, in entering contracts for the completion of the Delta  
            Plan and the Bay Delta Conservation Plan (BDCP) avoid any  
            actual or apparent conflict of interest by including contract  
            provisions to ensure the independence of the contractor's work  
            on the Delta Plan with respect to any work that contractor may  
            do on the BDCP.

          17)Requires the Governor to submit a zero-based budget for  
            fiscal year 2011-12 for all state agency programs that  
            implement water and ecosystem restoration activities in the  
            Sacramento-San Joaquin Delta (Delta), including those related  
            to the CALFED Bay-Delta Program.

          18)Requires the Water Board to submit to the Joint Legislative  
            Budget Committee, no later than July 1, 2013, a report on the  
            effectiveness of a pilot program to directly contract with  
            environmental consultants to prepare required California  
            Environmental Protection Act documents for water rights  
            applicants and petitioners.

          19)Reverts $522 million in Proposition 1E and Proposition 84  
            funds originally appropriated in SB 8 X7 (Steinberg), Chapter  
            2, Statutes of 2009-10 Seventh Extraordinary Session, and  
            appropriates those dollars anew with certain requirements  
            designed to better align the funding with existing law,  
            including:   

             a)   Broaden Proposition 1E and Proposition 84 flood control  
               project eligibility;

             b)   Link storm water-flood funding to SB 790 (Pavley; 2009);  
               and,

             c)   Make integrated regional water management appropriation  
               language consistent with existing grant guidelines.

          20)Requires the DOC to provide the Legislature with annual  
            reporting on the Underground Injection Control Program,  
            including progress in implementing the program's action plan.

          21)Requires the Governor to submit a zero-based fiscal year  
            2011-12 budget for all California Global Warming Solution Act  
            of 2006 (AB 32) programs and expenditures.








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          22)Clarifies the intent of Chapter 384, Statutes of 2009 (AB  
            1085), which specified that the State Air Resources Board  
            (ARB) must make available to the public certain information  
            associated with the rule-making process prior to the beginning  
            of the comment period for any regulation proposed for  
            adoption.  Originally, the stated intent of AB 1085 was to  
            require the provision of certain information such that  
            interested parties could "easily and without undue effort  
            reproduce and verify all aspects of" ARB staff analyses.  The  
            revised language would state the Legislature's intent that  
            "the public is provided all of the information relied on" by  
            the ARB in the rule-making process.

          23)Provides that this bill contains an urgency clause allowing  
            the bill to take effect immediately.

          24)This bill is identical to AB 1615 (Budget Committee) with  
            exception to the inclusion of a 
          2-year sunset for statutory changes that accelerate the  
            production of non-corn-based ethanol. 

           Analysis Prepared by  :  Keali'i Bright / BUDGET / (916)  
          319-2099FN: 0007190