BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1731
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          ASSEMBLY THIRD READING
          AB 1731 (Perea)
          As Introduced  February 14, 2014
          Majority vote 

           WATER, PARKS & WILDLIFE    10-1                                 
           
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          |Ayes:|Bocanegra, Dahle, Fong,   |     |                          |
          |     |Frazier, Gatto, Gomez,    |     |                          |
          |     |Gonzalez, Gray,           |     |                          |
          |     |Rodriguez, Yamada         |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Patterson                 |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :   Requires that not less than 10% of the funding in  
          each integrated regional water management (IRWM) region be used  
          to facilitate and support the participation of disadvantaged  
          communities (DACs) in IRWM planning and for projects that  
          address the critical water supply or water quality needs of  
          those communities.  

           EXISTING LAW  :

          1)Provides $1 billion in Proposition 84 (Prop. 84) funds to the  
            Department of Water Resources (DWR) for IRWM projects.

          2)Divides that $1 billion of Prop. 84 IRWM funds and allocates  
            it by hydrologic region.

          3)Specifies that DWR shall allocate grants on a competitive  
            basis and give preference to proposals that satisfy six  
            criteria including ones that address critical water supply or  
            water quality needs for disadvantaged communities within a  
            region.

           FISCAL EFFECT  :  Unknown.  This bill is keyed non-fiscal by the  
          Legislative Counsel. 

           COMMENTS  :  This bill would require that 10% of any regional  
          funding for IRWMs go to DACs.  The goals of this bill are  
          similar to SB 1 (Perata), Chapter 2, Statues of 2008 Second  








                                                                  AB 1731
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          Extraordinary Session as modified by AB 626 (Eng), Chapter 367,  
          Statutes of 2009; and, SB 855 (Budget and Fiscal Review  
          Committee), Chapter 718, Statutes of 2010.  

          Among other actions, SB 1 repealed and re-enacted the division  
          of Water Code related to IRWMs and set certain minimum standards  
          for those plans.  SB 1 also appropriated $139 million in Prop.  
          84 IRWM funding to DWR for implementation and planning grants  
          and specified that not less than 10% be used to facilitate and  
          support the participation of disadvantaged communities in IRWM  
          planning and for projects that address critical water supply or  
          water quality needs for disadvantaged communities.

          AB 626 modified SB 1 to recognize that Prop. 84 funds are  
          divided by hydrologic region.  AB 626 clarified that funding to  
          DACs should be not less than 10% of the total amount of grants  
          awarded within each region.  AB 626 required DWR to implement  
          the 10% mandate with due diligence but only to the extent it did  
          not affect the expeditious allocation of IRWM grants.  AB 626  
          also required DWR to make a progress report to the Legislature  
          by July 1, 2010, with regard to the implementation of the DAC  
          requirement.

          On October 7, 2010, DWR issued a two-page report to the  
          Legislature stating that, at that time, grant proposal  
          solicitation efforts were still underway but that it would meet  
          the DAC allocation requirements of AB 626.

          SB 855 appropriated $250 million in Prop. 84 IRWM funds to DWR  
          and specified that at least 10% of the funds were to support the  
          participation of disadvantaged communities in IRWM planning and  
          for projects that address critical water supply or water quality  
          needs for those communities.

          SB 104 (Budget and Fiscal Review Committee), Chapter 3, Statutes  
          of 2014, was part of the package of urgency legislation  
          addressing the drought.  SB 104 appropriates, among other  
          measures, $472.5 million to DWR for IRWM grants.  SB 104  
          requires that DWR award $200 million through an expedited  
          solicitation round for drought-related projects and programs.   
          The remaining $250.7 million is not restricted to  
          drought-related projects and includes $21.8 million for projects  
          identified in previous grant rounds.  









                                                                  AB 1731
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          The author points to last year's State Water Resources Control  
          Board report Communities that Rely on a Contaminated Groundwater  
          Source for Drinking Water as an example of why it is important  
          to direct IRWM funds to disadvantaged communities.  That report  
          demonstrates that contaminated drinking water is a problem  
          confronting many small disadvantaged communities who are not  
          responsible for the pollution and least able to pay to remediate  
          it.  The report identifies IRWM grants as a primary remaining  
          source of public funding to address it. 

          Supporters state that the IRWM planning program is key to  
          developing sustainable communities through investments in local  
          water supply, stormwater management, environmental restoration  
          and job training.  However, supporters point out that, despite  
          previous mandates, over the history of the IRWM program DACs  
          have faced ongoing challenges accessing funding and  
          participating in the IRWM process.  Supporters state that this  
          bill is necessary so that DACs are better integrated and truly  
          benefit from the IRWM program.   

          Opponents oppose the bill unless it is amended.  Opponents  
          acknowledge that facilitating the participation of DACs in the  
          IRWM process of some regions, such as the San Joaquin Valley, is  
          a real issue.  But opponents question whether a 10% set-aside is  
          necessary for areas of the state that may not have those same  
          challenges.  For example, opponents state that some DACs are  
          part of cities in urban areas where facilitation has not been an  
          issue.


           Analysis Prepared by :    Tina Cannon Leahy / W., P. & W. / (916)  
          319-2096 


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