BILL ANALYSIS �
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THIRD READING
Bill No: SB 200
Author: Wolk (D), et al.
Amended: 1/24/12
Vote: 21
SENATE NATURAL RESOURCES & WATER COMM. : 9-0, 1/10/12
AYES: Pavley, La Malfa, Cannella, Evans, Fuller, Kehoe,
Padilla, Simitian, Wolk
SENATE APPROPRIATIONS COMMITTEE : 8-0, 1/19/12
AYES: Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley,
Price, Steinberg
NO VOTE RECORDED: Runner
SUBJECT : Delta levee maintenance
SOURCE : Central Valley Flood Control Association
DIGEST : This bill extends the current maximum state
contribution of 75 percent for levee maintenance projects
in the Delta until July 1, 2014.
ANALYSIS :
Existing law:
1. Establishes a delta levee maintenance program pursuant
to which a local agency may request reimbursement for
costs incurred in connection with the maintenance or
improvement of project or nonproject levees in the
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Sacramento-San Joaquin Delta.
2. Declares legislative intent to reimburse eligible local
agencies under this program, until July 1, 2013, in an
amount not to exceed 75 percent of those costs that are
incurred in excess of $1,000 per mile of levee, and on
and after that date, in an amount not to exceed 50
percent of those described costs.
3. Authorizes, until July 1, 2013, the board to provide
funds to an eligible local agency under this program in
the form of an advance in an amount that does not exceed
75 percent of the estimated state share.
This bill extends the 75 percent reimbursement rate for the
Delta subventions program until July 1, 2014.
The reimbursement rate will 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
$1,000 per mile, based on an assessment of the agency's
ability to pay.
The reimbursement rate will 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 $1,000 per
mile.
The maximum annual reimbursements from the General Fund
will be capped at $2 million.
Background
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 10 years:
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$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 $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
$1,000 per mile.
Also, the maximum annual reimbursements from the General
Fund would be capped at $2 million.
2. 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.
3. 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.
4. In 2009, the Legislature passed and the Governor signed
SB 1X7 (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."
5. In 2010, the Legislature passed and the Governor signed
SB 808 (Wolk), Chapter 23, which, among other things,
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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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2012-13 2013-14 2014-15 Fund
Bond fund availability Cost pressures in the
millions Bonds*
* Proposition 84 and 1E
SUPPORT : (Verified 1/24/12)
Central Valley Flood Control Association (source)
Delta Counties Coalition
Regional Council of Rural Counties
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, 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."
CTW:mw 1/24/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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