BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2443
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          Date of Hearing:   April 24, 2012

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                Jared Huffman, Chair
                   AB 2443 (Williams) - As Amended:  April 16, 2012
          
          SUBJECT  :   Vessels; Registration Fees; Quagga and Zebra Mussel 
          Infestation Prevention

           SUMMARY  :   Imposes a registration fee not to exceed $10 on 
          vessels to fund implementation and administration of a 
          dreissenid mussel monitoring, inspection and eradication 
          program.   Specifically,  this bill  :

          1)States legislative findings and declarations regarding the 
            immediate and significant threat posed by Quagga and Zebra 
            mussels, both of which are non-native invasive species, to 
            California's water supply, flood control, power generation and 
            aquatic recreation infrastructure, and the financial burden on 
            local governments and economies to prevent and respond to 
            infestations of these invasive species.

          2)Provides that the fees required by this bill shall be used 
            solely for the reasonable regulatory costs of performing 
            investigations and inspections necessary to prevent and 
            control infestation of California waters by Quagga and Zebra 
            mussels.  States legislative intent that the amount of the 
            fees shall not exceed the cumulative reasonable regulatory 
            costs of performing inspections and investigations necessary 
            to prevent infestation.

          3)Requires that a Quagga and Zebra mussel infestation prevention 
            fee be imposed in an amount determined by the Department of 
            Boating and Waterways (DBW) but not to exceed $10, on every 
            vessel subject to registration fees in California.  Requires 
            DBW in determining the amount of the fee to consult with a 
            technical advisory group appointed by the DBW director that 
            includes but is not limited to recreation boating and 
            reservoir operation representatives.

          4)Provides that the fee established by this bill shall not apply 
            to vessels that are used exclusively in marine waters.

          5)Requires DBW to adopt emergency regulations describing the 
            procedure for collection and use of the fees.








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          6)Provides that the fees shall be deposited into a Quagga and 
            Zebra Mussel Infestation Prevention Account which this bill 
            would create, and expended solely for the purposes of this 
            bill.  Funds in the Account would be available to DBW upon 
            appropriation of the Legislature for the following:
               a)     Grants to local governments, including cities, 
                 counties, special districts and joint power authorities 
                 for the reasonable regulatory costs of implementation of 
                 an adopted dreissenid mussel infestation plan that is 
                 consistent with existing law governing such plans.
               b)     To the Department of Fish and Game (DFG) for 
                 reasonable regulatory costs of implementing provisions of 
                 existing law which authorize DFG to conduct inspections 
                 and take other actions to prevent spread of dreissenid 
                 mussels in areas of the state where a dreissenid mussel 
                 infestation plan has not been adopted.

          7)Requires DBW in awarding grants for dreissenid mussel 
            infestation prevention to give priority to plans that include 
            visual and manual inspection standards and other infestation 
            prevention procedures consistent with DFG's Invasive Mussel 
            Guidebook for Recreational Water Managers and Users, or the 
            Natural Resource Agency's Aquatic Invasive Species Management 
            Plan.

          8)Provides that for purposes of this bill "reasonable regulatory 
            costs" include costs associated with investigations and 
            inspections of a conveyance (defined as a boat or other 
            watercraft and associated vehicles, containers, and trailers 
            that may carry or contain dreissenid mussels) for the presence 
            of dreissenid mussels prior to contact with a reservoir. 

           EXISTING LAW  :

          1)Makes it unlawful to possess, import, ship or transport 
            dreissenid mussels in California, or to place, plant or cause 
            to be placed or planted dreissenid mussels in any waters of 
            the state.

          2)Provides for regulation of dreissenid mussels as invasive 
            species.  Authorizes DFG to conduct inspections, order 
            quarantines, and take other actions as necessary to prevent 
            the spread of invasive mussels.









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          3)Requires water reservoir operators and managers where 
            recreational boating is allowed to conduct a vulnerability 
            assessment and to develop plans to prevent mussel infestation.

          4)Grants immunity from criminal or civil liability for mussel 
            infestation to operators of water storage and delivery 
            facilities that have adopted, and implemented, and kept up to 
            date an approved plan to control and eradicate dreissenid 
            mussels.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   The author has introduced this bill to establish a 
          dedicated funding source to cover the costs of inspections to 
          prevent the infestation or spread of infestation of Quagga and 
          Zebra mussels in California waters.  Quagga and Zebra mussels 
          are non-native dreissenid mussels which were introduced to the 
          United States from Europe in 1988.  They first appeared in the 
          Great Lakes region where they have caused billions of dollars in 
          economic damages.  Quagga mussels were first discovered in 
          California in Lake Havasu in 2007 and have since been identified 
          in 25 bodies of freshwater in California, mostly in the Southern 
          California region, and in the Colorado River Aqueduct.  Zebra 
          mussels were found in 2008 in San Justo Reservoir in San Benito 
          County.  Both mussels are highly invasive species that reproduce 
          rapidly and in large quantities, and can severely hinder water 
          delivery systems by clogging pipes, pumps and other water intake 
          structures.

          The author of this bill in background information provided to 
          the committee notes that Quagga and Zebra mussels pose an 
          immediate and significant threat to California's water supply, 
          flood control systems, power generation and aquatic recreation 
          infrastructure.  Facilities threatened with infestation include 
          agricultural water management infrastructure in the Central 
          Valley, drinking water facilities in the Central and North Coast 
          regions, power generation in the Sierra Nevada, and flood 
          control facilities throughout California's watersheds.  Quagga 
          and Zebra mussels are also filter feeders that consume large 
          quantities of microscopic plants and animals upon which other 
          species depend.  As a result, the ecological balance of an 
          entire water body can be disturbed, displacing native species. 

          Boating poses one of the largest risks of introducing mussels 
          and spreading infestations from one body of water to another.  








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          It is suspected that Quagga mussels were brought to the Western 
          United States in the hull of a recreational boat.  Between 2000 
          and 2010, widespread mussel infestation in the Great Lakes 
          region resulted in over $5 billion in economic impact.  Were it 
          to become infested, Lake Tahoe alone would likely incur economic 
          impacts over $20 million annually.  Prevention of infestation 
          and the spreading of infestation is a much more cost effective 
          approach than control or eradication once infested, which may 
          not be possible.

          Currently a number of local governments, but not all, are 
          conducting inspections of vessels before they are allowed to 
          enter a body of water.  Local governments that have instituted 
          inspection programs are incurring significant costs to do so.  
          For example, Monterey County Parks Department with assistance of 
          the Monterey County Water Agency implemented a mandatory mussel 
          inspection program at Lake San Antonio and Lake Nacimiento in 
          2010.  The start-up costs for the program were funded with a 
          one-time $100,000 grant from DFG.  Program costs are currently 
          being funded with a one-time revenue allotment from the Monterey 
          County Agricultural Commission's office, but a source of funding 
          for ongoing program costs has not been identified.  The Sonoma 
          County Water Agency is working with the Army Corps of Engineers 
          on vulnerability assessments for Lake Sonoma, Lake Mendocino and 
          the Russian River, but has not implemented a mandatory 
          inspection program due to a lack of funding.  

          The Metropolitan Water District (MWD) has spent $30 million in 
          the last 5 years on staffing costs to wash and scrape mussels 
          from pipes and water grates.  MWD employs two divers full-time, 
          eight hours a day at just one water plant in Riverside County to 
          scrape off the mussels, which can completely block water intakes 
          if left unchecked in just a matter of months.  One mussel can 
          generate one million eggs a day.

          While some counties have implemented inspection programs, the 
          author and sponsors of this bill assert that a statewide program 
          is needed to effectively prevent the spread of infestation and 
          to ensure consistency.  DFG has played a lead role in providing 
          training and public education to guide prevention and monitoring 
          efforts.  Among other things, DFG provides guidance to local 
          authorities, water managers and the public; developed 
          inspection, monitoring and decontamination training programs in 
          cooperation with the University of California Extension and the 
          U.S. Fish and Wildlife Service; developed monitoring protocols 








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          in cooperation with the Department of Water Resources; developed 
          a communications plan and multi-agency network to share 
          information; works with local agencies on developing response 
          plans; and has trained warden K9 units to assist in mussel 
          detection. However, while DFG provides guidance and training, 
          and has authority to conduct and require inspections, it does 
          not have the resources or capacity to conduct inspections itself 
          at all water bodies in the state.  This bill would make a stable 
          dedicated source of funding available for implementation of 
          local programs, and also provide a source of funding for DFG 
          oversight and response when necessary.

           Support Arguments  :  Supporters emphasize this bill is needed to 
          provide funding for implementation and administration of a 
          mussel program statewide to ensure they do not continue to 
          spread to unaffected water bodies.  In addition to the local 
          economic impacts, the Sonoma County Water Agency also notes that 
          invasive mussels represent an enormous risk for water supply 
          operations at reservoirs and hatchery facilities developed to 
          restore Coho Salmon.

          The Association of California Water Agencies supports this bill 
          if amended to ensure the bill does not impact existing water 
          agency inspection programs and accompanying fees, and to allow 
          existing programs to access grant monies that may become 
          available.

           Opposition Arguments  :  Opponents, while appreciating the need to 
          address the problem of dreissenid mussels, oppose using vessel 
          registration fees as the funding source.  By assessing fees on 
          all vessels, vessel owners that may never use a water body that 
          is the focus of control measures, would be required to pay fees. 
           Opponents indicate that if inspection fees are necessary to 
          fund mussel monitoring, inspections and eradication efforts on a 
          particular water body, a better approach would be to identify a 
          funding source directly connected with that location, such as a 
          local entrance or inspection fee.  Opponents also note that DFG 
          and the Department of Food and Agriculture already receive 
          funding for Quagga mussel regulatory activities from the Harbors 
          and Watercraft Revolving Fund.

           Needed Amendments  :  This bill provides that the revenues from 
          the fees shall be used for local grants, and that a percentage 
          of the revenues shall be made available to DFG to pay for 
          implementation costs incurred by DFG in areas of the state where 








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          a mussel infestation plan has not been adopted.  The bill 
          currently includes a blank and does not specify the portion of 
          the revenues that would be available to DFG.   The author 
          indicates that additional information is being sought to 
          determine the appropriate allocation.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Santa Barbara County (co-sponsor)
          San Luis Obispo County (co-sponsor)
          Humboldt Bay Municipal Water District
          Monterey County
          Redwood Valley County Water District
          Sonoma County Water Agency
          Association of California Water Agencies (if amended)


           Opposition 
           
          California Association of Harbor Masters and Port Captains
          California Marine Parks and Harbors Association
          California Yacht Brokers Association
          Marina Recreation Association
          Northern California Marina Association
          Western Boaters Safety Group
           
          Analysis Prepared by  :    Diane Colborn / W., P. & W. / (916) 
          319-2096