BILL ANALYSIS �
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THIRD READING
Bill No: AB 1471
Author: Rendon (D) and Atkins (D)
Amended: 8/13/14 in Senate
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
SUBJECT : Water Quality, Supply, and Infrastructure
Improvement Act of
2014
SOURCE : Author
DIGEST : This bill removes the existing water bond from the
November 2014 ballot and replaces it with a new authorization
totaling $7.545 billion. This bill reauthorizes $425 million in
unissued bonds, in addition to authorizing $7.120 billion in new
general obligation bonds, all to fund water resources related
programs and projects.
Senate Floor Amendments of 8/13/14 delete the prior version of
the bill and create a vehicle to replace the $11.14 billion bond
currently on the ballot as Proposition 43 with a new $7.545
billion measure.
ANALYSIS : Existing law:
1.Approved by the voters, enacted the Water Quality, Supply and
Safe Drinking Water Projects Act (Proposition (Prop) 50),
which authorized $3.4 billion in general obligation bonds to
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fund a variety of water projects.
2.Approved by voters, enacted the Safe Drinking Water, Water
Quality and Supply, Flood Control, River and Coastal
Protection Act of 2006 (Prop 84), which authorized $5.388
billion in general obligation bonds to fund safe drinking
water, water quality and supply, flood control, waterway and
natural resource protection, water pollution and contamination
control, state and local park improvements, public access to
natural resources, and water conservation efforts.
3.Approved by the Legislature and currently On November 2014
Ballot, SB 2X7 (Cogdill, Chapter 3, Statutes of 2009) provided
for the submission of a bond act, the Safe, Clean, and
Reliable Drinking Water Supply Act of 2010, to the voters at
the November 2, 2010, statewide general election. However,
the bond act has been postponed twice and is currently
expected to be on the ballot for the November 4, 2014
election. SB 2X7 provides a total of $11.14 billion to
finance a safe drinking water and water supply reliability
programs.
This bill reallocates $425 million of unissued bonds (Prop 84
(2006): $105 million; Prop 50 (2002): $95 million; Prop 1E
(2006): $100 million; Prop 44 (1986): $13.5 million; Prop 204
(1996): $25.5 million Prop 13 (2000): $86 million) for the
purposes of a water quality, supply, and infrastructure
improvement program, subject to voter approval, and replaces the
$11.14 billion water bond that is currently on the November 2014
ballot with a new $7.120 billion general obligation bond Act as
follows:
1.Clean, Safe and Reliable Drinking Water. Authorizes $520
million for expenditures, grants and loans for projects that
improve water quality or help provide clean, safe, and
reliable drinking water to all Californians.
A. Provides that the projects eligible for funding pursuant
to this section shall help improve water quality for a
beneficial use. The purposes of this section are to:
Reduce contaminants in drinking water supplies
regardless of the source of the water or the
contamination.
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Assess and prioritize the risk of contamination to
drinking water supplies.
Address the critical and immediate needs of
disadvantaged, rural, or small communities that suffer
from contaminated drinking water supplies, including, but
not limited to, projects that address a public health
emergency.
Leverage other private, federal, state, and local
drinking water quality and wastewater treatment funds.
Reduce contaminants in discharges to, and improve
the quality of, waters of the state.
Prevent further contamination of drinking water
supplies.
Provide disadvantaged communities with public
drinking water infrastructure that provides clean, safe,
and reliable drinking water supplies that the community
can sustain over the long term.
Ensure access to clean, safe, reliable, and
affordable drinking water for California's communities.
Meet primary and secondary safe drinking water
standards or remove contaminants identified by the state
or federal government for development of a primary or
secondary drinking water standard.
A. $260 million shall be available for deposit into in the
State Water Pollution Control Revolving Fund Small
Community Grant Fund for grants for wastewater treatment
projects. Priority shall be given to projects that serve
disadvantaged communities and severely disadvantaged
communities, and to projects that address public health
hazards. Projects may include, but not be limited to,
projects that identify, plan, design, and implement
regional mechanisms to consolidate wastewater systems or
provide affordable treatment technologies.
B. $260 million shall be available for grants and loans for
public water system infrastructure improvements and related
actions to meet safe drinking water standards, ensure
affordable drinking water, or both. Priority shall be
given to projects that provide treatment for contamination
or access to an alternate drinking water source or sources
for small community water systems or state small water
systems in disadvantaged communities whose drinking water
source is impaired by chemical and nitrate contaminants and
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other health hazards identified by the State Water
Resources Control Board (Board).
C. Specifies that at least 10% of the funds must be
allocated for severely disadvantaged communities and up to
15% of the funds to must be allocated for technical
assistance to disadvantaged communities.
1.Protecting Rivers, Lakes, Streams, Coastal Waters, and
Watersheds . Authorizes $1.495 billion for competitive grants
for multibenefit ecosystem and watershed protection and
restoration projects in accordance with statewide priorities.
A. $327.5 million shall be available for multibenefit water
quality, water supply, and watershed protection and
restoration projects for the watersheds of the state in
accordance with the following schedule:
Baldwin Hills Conservancy, $10 million.
California Tahoe Conservancy, $15 million.
Coachella Valley Mountains Conservancy, $10 million.
Ocean Protection Council, $30 million.
San Diego River Conservancy, $17 million.
San Gabriel and Lower Los Angeles Rivers and
Mountains Conservancy, $30 million.
San Joaquin River Conservancy, $10 million.
Santa Monica Mountains Conservancy, $30 million.
Sierra Nevada Conservancy, $25 million.
State Coastal Conservancy, $100.5 million. (Eligible
watersheds for the funds allocated pursuant to this
subdivision include, but are not limited to, those that
are in the San Francisco Bay Conservancy region, the
Santa Ana River watershed, the Tijuana River watershed,
the Otay River watershed, Catalina Island, and the
central coast region)
Sacramento-San Joaquin Delta Conservancy, $50
million.
A. Provides that, in protecting and restoring California
rivers, lakes, streams, and watersheds, the purposes of
this section are to:
Protect and increase the economic benefits arising
from healthy watersheds, fishery resources, and instream
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flow.
Implement watershed adaptation projects in order to
reduce the impacts of climate change on California's
communities and ecosystems.
Restore river parkways throughout the state,
including, but not limited to, projects pursuant to the
California River Parkways Act of 2004, in the Urban
Streams Restoration Program and urban river greenways.
Protect and restore aquatic, wetland, and migratory
bird ecosystems, including fish and wildlife corridors
and the acquisition of water rights for instream flow.
Fulfill the obligations of the State of California
in complying with the terms of multiparty settlement
agreements related to water resources.
Remove barriers to fish passage.
Collaborate with federal agencies in the protection
of fish native to California and wetlands in the central
valley of California.
Implement fuel treatment projects to reduce wildfire
risks, protect watersheds tributary to water storage
facilities, and promote watershed health.
Protect and restore rural and urban watershed health
to improve watershed storage capacity, forest health,
protection of life and property, stormwater resource
management, and greenhouse gas reduction.
Protect and restore coastal watersheds, including,
but not limited to, bays, marine estuaries, and nearshore
ecosystems.
Reduce pollution or contamination of rivers, lakes,
streams, or coastal waters, prevent and remediate mercury
contamination from legacy mines, and protect or restore
natural system functions that contribute to water supply,
water quality, or flood management.
Assist in the recovery of endangered, threatened, or
migratory species by improving watershed health, instream
flows, fish passage, coastal or inland wetland
restoration, or other means, such as natural community
conservation plan and habitat conservation plan
implementation.
Assist in water-related agricultural sustainability
projects.
A. $200 million shall be administered by the Wildlife
Conservation Board for projects that result in enhanced
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stream flows.
B. $100 million shall be available, upon appropriation of
the Legislature, for projects to protect and enhance an
urban creek.
C. $20 million shall be made available to the Secretary of
the Natural Resources Agency for a competitive program to
fund multibenefit watershed and urban rivers enhancement
projects in urban watersheds that increase regional and
local water self-sufficiency and that meet at least two of
the following objectives:
Promote groundwater recharge and water reuse.
Reduce energy consumption.
Use soils, plants, and natural processes to treat
runoff.
Create or restore native habitat.
Increase regional and local resiliency and
adaptability to climate change.
Specifies that at least 25% of the funds listed in D
and E above, shall be allocated for projects that benefit
disadvantaged communities and up to 10% of the funds
available may be allocated for project planning.
A. $475 million shall be available to the Agency to support
projects that fulfill the obligations of the State of
California in complying with the terms of and of the
following:
Central Valley Project Improvement Act.
Intrastate compacts.
Intrastate or multiparty water quantification
settlement agreement provisions, including ecosystem
restoration projects.
The settlement agreement referenced.
Any intrastate or multiparty settlement agreement
related to water acted upon or before December 31, 2013.
Priority shall be given to projects that meet one or more
of the following criteria:
a) The project is of statewide significance.
b) The project restores natural aquatic or
riparian functions, or wetlands habitat for birds and
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aquatic species.
c) The project protects or promotes the
restoration of endangered or threatened species.
d) The project enhances the reliability of water
supplies on a regional or interregional basis.
e) The project provides significant regional or
statewide economic benefits.
A. $285 million shall be available to the Department of
Fish and Wildlife for watershed restoration projects
statewide.
B. $87.5 million shall be available to the Department of
Fish and Wildlife for water quality, ecosystem restoration,
and fish protection facilities that benefit the Delta, as
specified.
1.Regional Water Security, Climate and Drought Preparedness .
Authorizes $810 million, upon appropriation of the
Legislature, for expenditures on, and competitive grants and
loans to, projects that are included in and implemented in an
adopted integrated regional water management plan.
A. In order to improve regional water self-reliance
security and adapt to the effects on water supply arising
out of climate change, the purposes of this section is to:
Help water infrastructure systems adapt to climate
change, including, but not limited to, sea level rise.
Provide incentives for water agencies throughout
each watershed to collaborate in managing the region's
water resources and setting regional priorities for water
infrastructure.
Improve regional water self-reliance.
A. $510 million shall be allocated to the hydrologic
regions as identified in the California Water Plan. Funds
made available by this chapter shall be allocated as
follows:
$26.5 million for the North Coast hydrologic region.
$65 million for the San Francisco Bay hydrologic
region.
$43 million for the Central Coast hydrologic region.
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$98 million for the Los Angeles subregion.
$63 million for the Santa Ana subregion.
$52.5 million for the San Diego subregion.
$37 million for the Sacramento River hydrologic
region.
$31 million for the San Joaquin River hydrologic
region.
$34 million for the Tulare/Kern hydrologic region.
$24.5 million for the North/South Lahontan
hydrologic region.
$22.5 million for the Colorado River Basin
hydrologic region.
$13 million for the Mountain Counties Overlay.
A. Specifies that the Department of Water Resources shall
expend no less than 10% of funds from the regional
allocation of disadvantaged communities.
B. $100 million shall be available for direct expenditures,
and for grants and loans, for specified water conservation
and water-use efficiency plans, projects, and programs.
C. $200 million shall be available for grants for
multibenefit stormwater management projects. Eligible
projects may include, but shall not be limited to, green
infrastructure, rainwater and stormwater capture projects,
and stormwater treatment facilities. Development of plans
for stormwater projects shall address the entire watershed
and incorporate the perspectives of communities adjacent to
the affected waterways, especially disadvantaged
communities.
1.Statewide Water System Operational Improvement and Drought
Preparedness. Authorizes a $2.7 billion continuous
appropriation without regard to fiscal year for water storage,
to the California Water Commission for public benefits
associated with water storage projects that improve the
operation of the state water system, are cost effective, and
provide a net improvement in ecosystem and water quality
conditions.
A. Requires projects to be selected by the California Water
Commission through a competitive public process that ranks
potential projects based on the expected return for public
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investment as measured by the magnitude of the public
benefits provided, pursuant to specified criteria.
B. Specifies projects for which the public benefits are
eligible for funding under this section consist of only the
following:
Surface storage projects identified in the CALFED
Bay-Delta Program Record of Decision, dated August 28,
2000, except for specified prohibited projects.
Groundwater storage projects and groundwater
contamination prevention or remediation projects that
provide water storage benefits.
Conjunctive use and reservoir reoperation projects.
Local and regional surface storage projects that
improve the operation of water systems in the state and
provide public benefits.
1.Water Recycling . Authorizes $725 million to be made available
to the Legislature for water recycling and advanced treatment
technology projects.
A. Provides that the grants or loans for water recycling
and advanced treatment technology projects, including all
of the following:
Water recycling projects, include, but not limited
to, treatment, storage, conveyance, and distribution
facilities for potable and nonpotable recycling projects.
Contaminant and salt removal projects, including,
but not limited to, groundwater and seawater desalination
and associated treatment, storage, conveyance, and
distribution facilities.
Dedicated distribution infrastructure to serve
residential, commercial, agricultural, and industrial
end-user retrofit projects to allow use of recycled
water.
Pilot projects for new potable reuse and other salt
and contaminant removal technology.
Multibenefit recycled water projects that improve
water quality.
Technical assistance and grant writing assistance
for disadvantaged communities.
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A. Specifies that at least a 50% local cost share shall be
required for projects funded pursuant to this section.
That cost share may be suspended or reduced for
disadvantaged communities and economically distressed
areas.
B. Requires projects funded pursuant to this section to be
selected on a competitive basis, consistent with water
recycling programs, and considering all of the following
criteria:
Water supply reliability improvement.
Water quality and ecosystem benefits related to
decreased reliance on diversions from the Delta or
instream flows.
Public health benefits from improved drinking water
quality or supply.
Cost-effectiveness.
Energy efficiency and greenhouse gas emission
impacts.
Reasonable geographic allocation to eligible
projects throughout the state, including both northern
and southern California and coastal and inland regions.
1. Groundwater Sustainability . Authorizes $900 million to be
made available to the Legislature for expenditures on, and
competitive grants, and loans for, projects to prevent or
clean up the contamination of groundwater that serves or has
served as a source of drinking water. Funds appropriated
pursuant to this section shall be available to the State
Water Resources Control Board for projects necessary to
protect public health by preventing or reducing the
contamination of groundwater that serves or has served as a
major source of drinking water for a community.
A. Requires projects to be prioritized based upon the
following criteria:
The threat posed by groundwater contamination to the
affected community's overall drinking water supplies,
including an urgent need for treatment of alternative
supplies or increased water imports if groundwater is not
available due to contamination.
The potential for groundwater contamination to
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spread and impair drinking water supply and water storage
for nearby population areas.
The potential of the project, if fully implemented,
to enhance local water supply reliability.
The potential of the project to maximize
opportunities to recharge vulnerable, high-use
groundwater basins and optimize groundwater supplies.
The project addresses contamination at a site for
which the courts or the appropriate regulatory authority
has not yet identified responsible parties, or where the
identified responsible parties are unwilling or unable to
pay for the total cost of cleanup, including water supply
reliability improvement for critical urban water supplies
in designated superfund areas with groundwater
contamination listed on the National Priorities list.
A. Specifies that at least 10% of the funds shall be
allocated for projects serving severely disadvantaged
communities.
B. $80 million shall be available for grants for treatment
and remediation activities that prevent or reduce the
contamination of groundwater that serves as a source of
drinking water.
C. $100 million shall be made available for competitive
grants for projects that develop and implement groundwater
plans and projects in accordance with groundwater planning
requirements.
1. Flood Management . Authorizes $395 million shall be
available, upon appropriation by the Legislature from the
fund, to the Department of Water Resources and the Central
Valley Flood Protection Board for the purpose of statewide
flood management projects and activities. Funds shall be
allocated to multibenefit projects that achieve public safety
and include fish and wildlife habitat enhancement. The
Department of Water Resources shall make its best effort to
coordinate this funding with proceeds from Propositions 84
and 1E.
A. $295 million shall be available to reduce the risk of
levee failure and flood in the Delta for any of the
following:
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Local assistance under the Delta levee maintenance
subventions program, as specified.
Special flood protection projects, as specified.
Levee improvement projects that increase the
resiliency of levees within the Delta to withstand
earthquake, flooding, or sea level rise.
Emergency response and repair projects.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Annual debt service payments of $491 million (General Fund)
for 30 years for a total of $14.724 billion assuming an
interest rate of 5%.
Unknown potential costs, likely in the low millions, to the
General Fund for the printing and mailing of a supplemental
budget.
SUPPORT : (Verified 8/13/14)
American Rivers
Association of California Water Agencies
Audubon Society
Azul
Bay Area Business Council
California Alliance for Jobs
California Building Industry Association
California Chamber of Commerce
California Coalition of Utility Workers
California Coastal Protection Network
California Conference of Carpenters
California Farm Bureau Federation
California Labor Federation
California League of Conservation Voters
California State Pipe Trades
California Trout
California Waterfowl Association
California-Nevada Conference of Operating Engineers
Community Alliance with Family Farmers
Community Water Center
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Contra Costa Water District
Defenders of Wildlife
Ducks Unlimited
Metropolitan Water District of Southern California
Natural Resources Defense Council
Ocean Conservancy
San Diego County Water Authority
Santa Clara Valley Water District
Save Our Shores
Silicon Valley Leadership Group
Sonoma County Water Agency
State Association of Electrical Workers
State Building and Trades Council
State Council of Laborers
Surfrider Foundation
The Nature Conservancy
The Otter Project
Trout Unlimited
U.S. Green Building Council, California
Upper San Gabriel Valley Municipal Water District
Western Growers
Westlands Water District
WiLDCOAST
Yuba County Water Agency
RM:nl 8/13/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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