BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 991
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     SB 991 (Wolk) - As Amended:  August 2, 2010 

          Policy Committee:                              Water, Parks and  
          Wildlife     Vote:                            8-4

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

           SUMMARY  

          This bill appropriates $30 million from Proposition 1E bond  
          funds for flood control projects.  Specifically, this bill:

          1)Appropriates $30 million from the Disaster Preparedness and  
            Flood Prevention Bond Fund of 2006 (Proposition 1E) to the  
            Department of Water Resources (DWR) for flood protection  
            projects that improve the sustainability of the Delta,  
            including projects that reduce the risk of levee failure that  
            would jeopardize water conveyance.

          2)Directs DWR to expedite evaluation of nonurban levees on the  
            west bank of the Sacramento River that protect unincorporated  
            communities and consider a joint project with local  
            governments for improving flood bypass facilities.

           FISCAL EFFECT  

          1)One-time $30 million appropriation to DWR.  (Proposition 1E  
            bond funds)

          2)Cost pressure of an unknown amount, but potentially in the  
            millions of dollars, to fund projects for nonurban levees on  
            the west bank of the Sacramento River that protect  
            unincorporated communities and for a joint project with local  
            governments for improving flood bypass facilities.   
            (Proposition 1E bond funds)

           COMMENTS  

           1)Rationale  .  The author contends this bill will fund projects  








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            that better ensure the sustainability of the Delta, protect  
            the state's water supplies, contribute to flood protection for  
            small communities and family farms along the Sacramento River,  
            and create jobs, thereby providing multiple benefits from bond  
            expenditures.

           2)Background.   In November 2006, the voters passed Proposition  
            1E to authorize $4.1 billion in general obligation bonds to  
            pay for flood management.  The bond included $3 billion to (a)  
            evaluate, repair, and restore existing levees in the state's  
            Central Valley flood control system; (b) improve or add  
            facilities to increase flood protection for urban areas in the  
            state's Central Valley flood control system; and (c) reduce  
            the risk of levee failure in the Delta region through grants  
            to local agencies and direct spending by the state. To date,  
            approximately $2.1 billion of Proposition 1E funds have been  
            appropriated.  That amount includes $170 million appropriated  
            in last year's Delta water package to reduce risk of levee  
            failure in the Delta that would jeopardize water conveyance.   
            An additional $340 million is proposed for appropriation in  
            the Governor's 2010-11 budget.  

           3)Possible Change in Flood Control Policy.   Previous legislation  
            establishes flood control policy that seems to differ from the  
            policy of this bill.  Specifically, SB 5, Machado (Chapter  
            364, Statutes of 2007) prioritized projects that protect urban  
            areas, among other things.  In contrast, this bill directs DWR  
            to expedite evaluation of nonurban levees on the west bank of  
            the Sacramento River that protect unincorporated communities.   
            Because this direction to DWR is included in a bill that  
            appropriates bond money to DWR for flood prevention projects,  
            it is reasonable to infer that the bill prioritizes the  
            nonurban levee projects for funding from the $30 million  
            appropriation.  If the bill is interpreted in this way, it  
            represents a change in state flood control policy.

           4)Related Legislation  .

              a)   SB 8, Steinberg  (Chapter 2, Statutes of 2009-10 Seventh  
               Extraordinary Session) appropriated $170 million of  
               Proposition 1E funds to DWR to reduce the risk of levee  
               failure in the Delta that would jeopardize water  
               conveyance.

              b)   SB 5, Machado  (Chapter 364, Statutes of 2007)  








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               prioritized state flood protection for projects that  
               protect urban areas, that provide significant system-wide  
               benefits for managing flood risks, that reduce risk to  
               human life, health and safety, that protect pubic  
               infrastructure, and that meet multiple benefits.

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