BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          AB 1221 (Alejo)
          
          Hearing Date: 07/11/2011        Amended: 06/28/2011
          Consultant: Brendan McCarthy    Policy Vote: EQ 7-0
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          BILL SUMMARY: AB 1221 authorizes the State Water Resources 
          Control Board to provide grant funds for the cleanup of water 
          pollution to certain not-for-profit organizations and tribal 
          governments.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13      2013-14     Fund
           
          Additional grants      Unknown cost pressures.          Special 
          *                                                       
          * Cleanup and Abatement Account within the State Water Quality 
          Control Fund
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          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the 
          Suspense File. 

          Under current law, the State Water Resources Control Board 
          (State Water Board) provides funds to local governments to pay 
          for water pollution cleanup when the party responsible for the 
          pollution is unknown or unable to pay for the cleanup. Grants 
          may be provided to public agencies, and are funded from fines 
          and penalties assessed by the State Water Board. In 2010, the 
          State Water Board provided $9.3 million in grants.

          AB 1221 defines a not-for-profit organization as an organization 
          that is operated on a not-for-profit basis, including a 
          cooperative, association, or private corporation that is a 
          public water system, and that is either controlled by a local 
          public body or has a broadly based ownership or membership in 
          the local community.

          The bill authorizes the State Water Board to provide grants to a 
          not-for-profit organization or a tribal government for the 








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          cleanup of water pollution. In order to receive those funds, a 
          tribal government must waive its sovereign immunity for the 
          purpose of allowing the State Water Board to regulate the 
          cleanup and water quality issues.

          By authorizing additional parties to receive funds, the bill 
          will put cost pressures on existing funds, reducing available 
          funds to other applicants. However, in some cases, the bill may 
          only shift project funding from project applications made by a 
          local government on behalf of a not-for profit organization or 
          tribal government to applications made directly by a non-profit 
          or tribal government. In those cases, the net demand on the fund 
          will not increase. 

          Because the Cleanup and Abatement Account is continuously 
          appropriated, this bill makes an appropriation.