BILL ANALYSIS �
-----------------------------------------------------------------
| |
| SENATE COMMITTEE ON NATURAL RESOURCES AND WATER |
| Senator Fran Pavley, Chair |
| 2011-2012 Regular Session |
| |
-----------------------------------------------------------------
BILL NO: SB 200 HEARING DATE: January 10,
2012
AUTHOR: Wolk URGENCY: No
VERSION: January 4, 2012 CONSULTANT: Dennis O'Connor
DUAL REFERRAL: Environmental QualityFISCAL: Yes
SUBJECT: Delta Levee Maintenance
BACKGROUND AND EXISTING LAW
1.The Delta levee maintenance subvention program provides
reimbursement funds to local agencies for costs of maintaining
or improving project or nonproject levees.
In 1996, the Legislature established the following
reimbursement rate for the next ten years:
$0 if the entire cost incurred per mile of levee is
$1,000 or less.
Up to 75 percent of any costs incurred in excess of one
thousand dollars $1,000 per mile, based on an assessment of
the agency's ability to pay.
At the end of the 10 year period, (July 1, 2006), the
reimbursement rate would become:
$0 if the entire cost incurred per mile of levee is
$1,000 or less, (no change).
50 percent of any costs incurred in excess of one
thousand dollars $1,000 per mile.
Also, the maximum annual reimbursements from the General Fund
would be capped at $2 M.
1.In 2005, the Legislature required the Department of Water
Resources (DWR) to conduct a study of the potential impacts of
subsidence, earthquakes, floods, and climate change on the
Delta and evaluate options for addressing those impacts. That
study, known as the Delta Risk Management Study (DRMS), was to
be completed by January 1, 2008.
1
2.In 2006, the Legislature passed and the Governor signed AB 798
(Wolk). That bill, among other things, extended the 75
percent reimbursement rate for the Delta subvention rate to
July 2010. Part of the justification was that changing the
rate was premature, given that DWR had not completed the DRMS.
3.In 2009, the Legislature passed and the Governor signed SBX7 1
(Simitian). That bill, among other things, created the Delta
Stewardship Council (Council) and required it to adopt a Delta
Plan by January 1, 2012. That plan, among other things, was
to include "priorities for state investments in levee
operation, maintenance, and improvements in the Delta,
including both levees that are a part of the State Plan of
Flood Control and nonproject levees."
4.In 2010, the Legislature passed and the Governor signed SB 808
(Wolk). That bill, among other things, extended the 75
percent reimbursement rate for the Delta subvention rate to
July 2014. Part of the justification was that changing the
rate was premature, given that the Delta Stewardship Council
had not had sufficient time to complete the Delta Plan.
PROPOSED LAW
This bill would extend the 75 percent reimbursement rate for the
Delta subventions program until July 1, 2020, as follows:
Until July 1, 2020, the reimbursement rate would be:
$0 if the entire cost incurred per mile of levee is $1,000 or
less.
Up to 75 percent of any costs incurred in excess of one
thousand dollars $1,000 per mile, based on an assessment of
the agency's ability to pay.
On July 1, 2020, the reimbursement rate would become:
$0 if the entire cost incurred per mile of levee is $1,000 or
less, (no change).
50 percent of any costs incurred in excess of one thousand
dollars $1,000 per mile.
Also on July 1, 2020, the maximum annual reimbursements from the
General Fund would be capped at $2 M.
ARGUMENTS IN SUPPORT
According to the author, "SB 200 is necessary to continue the
current level of state support for the subventions program. The
current cost share formula ensures local reclamation districts,
2
particularly small ones, can afford to maintain and improve
their levees. Maintenance of the Delta levees in important to
reduce flood risk and ensure the Delta can continue to serve its
many valuable uses - as fertile farmland, a water conveyance,
and a rich estuary ecosystem."
ARGUMENTS IN OPPOSITION: None
COMMENTS
It's D�j� Vu All Over Again. If this bill is enacted, it will
mark the third time this author will have successfully extended
the expiration of the 75 percent reimbursement rate for the
Delta subvention program. In the author's defense, it is
because for the third time the Legislature has not received the
information it needs to rationally evaluate how funding for the
Delta subvention program fits within the priorities for funding
of a integrated flood management program for the Delta as a
whole.
What's The Hold-Up? When the Legislature was debating SBX7 1,
many expressed concern that the timelines established in the
bill were overly ambitious. On the other hand, there was also a
recognition that time was of the essence. Despite the Council's
best intention, the Delta Plan was not adopted by the January 1,
2012 deadline established in the statutes. The Council has
issued a Draft EIR on the plan which is out for comment until
through February 2, 2012. The final EIR and the Delta Plan
would be adopted sometime after that.
So When Will We Know? According to the fifth staff draft of the
Delta Plan, (which was the basis of the Draft EIR), DWR is
developing A Framework for Department of Water Resources
Investments in Delta Integrated Flood Management. This
Framework is to direct state investments for levee operation,
maintenance, and improvements in the Delta, and is expected to
be completed by January 1, 2013. Upon completion, the Council
will consider the Framework for adoption. If the Framework is
not completed by January 1, 2013, the Delta Stewardship Council
intends define a strategy for State investments.
What Is An Appropriate Extension? If the desire of the
committee is to maintain the current 75 percent reimbursement
rate until the Council adopts a strategy for State investments
in Delta flood management, some delay seems appropriate. Even
if DWR meets the January 2013 due date for its framework, and
the Council immediately adopted the framework, it would be
3
challenging to make any necessary statutory changes to the Delta
subventions program before the July 2013 reduction in the
reimbursement rate.
On the other hand, if the committee wishes to keep pressure on
DWR and the Council to develop and adopt a strategy for State
investments in Delta flood management, extending the current 75
percent reimbursement rate to 2020 might be imprudent.
It is not immediately clear what the appropriate extension
should be. Is a two year extension too short? A five year
extension too long? It is not clear. To provide the author
additional time to negotiate the most appropriate extension of
the 75 percent reimbursement, the committee might wish to
replace the dates in the current version of the bill and replace
them with blanks. (See suggested amendments)
Dual Referred To EQ. Based on the previous language in this
bill, the Rules Committee referred this bill to both this
committee and the Environmental Quality Committee.
SUGGESTED AMENDMENTS
AMENDMENT 1 On page 3 line 30, page 4 line 9, and page 4
line 25, delete "2020" and insert "____"
AMENDMENT 2 On page 3 line 31, page 3 line 32, page 4
line 26, and page 4 line 27, delete "2021" and insert
"____"
SUPPORT
Central Valley Flood Control Association (Sponsor)
Delta Counties Coalition
OPPOSITION
None Received
4