BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 200|
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                              UNFINISHED BUSINESS


          Bill No:  SB 200
          Author:   Wolk (D), et al.
          Amended:  6/25/12
          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

           SENATE FLOOR  :  38-0, 1/26/12
          AYES:  Alquist, Anderson, Berryhill, Blakeslee, Calderon, 
            Cannella, Corbett, Correa, De Le�n, DeSaulnier, Dutton, 
            Emmerson, Evans, Fuller, Gaines, Hancock, Harman, 
            Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu, Liu, 
            Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio, 
            Simitian, Steinberg, Strickland, Vargas, Walters, Wolk, 
            Wright, Yee
          NO VOTE RECORDED:  Runner, Wyland

           ASSEMBLY FLOOR  :  79-0, 8/23/12 - See last page for vote


           SUBJECT  :    Delta levee maintenance

           SOURCE  :     Central Valley Flood Control Association


                                                           CONTINUED





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           DIGEST  :    This bill extends, until July 1, 2018, the 
          authority of the Department of Water Resources (DWR) to 
          reimburse up to 75% of the costs in excess of $1,000 per 
          mile that are incurred in any year for Delta levee 
          maintenance, and requires that reimbursements be consistent 
          with the long-term management plan for the Sacramento-San 
          Joaquin Delta adopted and implemented by the Delta 
          Stewardship Council. 

           Assembly Amendments  extend the reimbursement date from July 
          1, 2014 to July 1, 2018.

           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 
             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, 2018.

          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.  







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          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:

                   $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 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.








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          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, 
             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  8/22/12)

          Central Valley Flood Control Association (source)
          Delta Counties Coalition
          Regional Council of Rural Counties







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           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."


           ASSEMBLY FLOOR  :  79-0, 8/23/12
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, 
            Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, 
            Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, 
            Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Hill, 
            Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, 
            Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, 
            Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, 
            Olsen, Pan, Perea, V. Manuel P�rez, Portantino, Silva, 
            Skinner, Smyth, Solorio, Swanson, Torres, Valadao, 
            Wagner, Wieckowski, Williams, Yamada, John A. P�rez
          NO VOTE RECORDED:  Roger Hern�ndez


          CTW:m  8/25/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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