BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2108
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          Date of Hearing:   May 6, 2014

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                Anthony Rendon, Chair
              AB 2108 (Eggman) - As Proposed to Be Amended:  May 6, 2014
           
          SUBJECT  :   Flood protection

           SUMMARY  :  Provides two exceptions to the current prohibition on  
          a city or county approving projects in an area that does not  
          meet the urban level of flood protection.  Specifically,  this  
          bill  :  

          1)Allows a discretionary permit to be issued if it will not  
            result in more than a 50% increase in building occupancy; 

          2)Redefines "adequate progress" to include, at the sole  
            discretion of the Central Valley Flood Protection Board (Flood  
            Board), planning and design of flood protection system  
            improvements; and, 

          3)Provides the Flood Board discretion to allow two 18-month  
            periods where the city or county can continue issuing  
            development agreements, permits, and tentative maps in an area  
            that does not meet the urban level of flood protection if the  
            city or county demonstrates that there is adequate progress on  
            pre-construction planning and design of the flood protection  
            system improvements.

           EXISTING LAW  : 

          1)Requires protection of urban and urbanizing areas to a  
            1-in-200 chance of flooding (or lower) in any given year  
            (200-year flood protection standard), or the FEMA standard of  
            flood protection in nonurbanized areas.

          2)Prohibits a city or county from approving any new development  
            in an urban area of the Sacramento-San Joaquin Valley (also  
            called the "Central Valley") unless:

             a)   The area meets the urban level of flood protection;
             b)   The city or county has imposed conditions on the permit  
               or discretionary entitlement that will protect the project  
               to the urban level of flood protection;
             c)   The local flood management agency has made adequate  








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               progress on construction of a flood control system that  
               will result in flood protection that is greater than or  
               equal to the urban level of flood protection; or,
             d)   The property is in an area where the level of flood risk  
               has not been officially determined by State or Federal  
               government (undetermined risk area) but there is  
               substantial evidence in the record that the area does in  
               fact meet the urban level of flood protection. 

          3)Defines a "developed area," under Federal law, as an area of a  
            community that is a minimum of 20 contiguous acres with basic  
            infrastructure such as roads and utilities and where one of  
            the following applies:
             a)   There is a minimum of 20 contiguous acres and 75% of the  
               existing land already contains commercial, industrial, or  
               residential structures or uses;
             b)   There is a minimum of 20 contiguous acres and 75% of the  
               land contains at least two residences per acre;
             c)   The land is less than 20 acres and undeveloped but  
               touches land that meets a) or b) above on at least three  
               sides; or, 
             d)   The project is a subdivision on a minimum of 20  
               contiguous acres and construction has started on 10% of the  
               lots or remaining lots and, if it is a residential  
               development, the density is at least two residences per  
               acre.

           FISCAL EFFECT  :   Nonfiscal

           COMMENTS  :  This bill would allow cities and counties to issue  
          permits in areas that do not meet the required 200-year level of  
          flood protection as long as the new structure or remodel does  
          not increase occupancy by more than 50%.  This would allow, for  
          example, construction of cell towers or other unoccupied  
          structures or remodels of existing structures.  This bill would  
          also allow cities and counties that are making adequate progress  
          in pre-construction planning and designing of flood system  
          improvements to continue issuing development agreements,  
          permits, and tentative maps if the city or county has  
          demonstrated to the satisfaction of the Flood Board that it is  
          on its way to constructing improvements that will meet the  
          200-yr level of flood protection for the areas where the new  
          construction would occur.

          The standard of care applicable to the State for the protection  








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          and maintenance of the levee and flood system was gravely  
          increased by the landmark decision Paterno v. State of  
          California.  In February 1986, one of the greatest storms on  
          record in California occurred leading to major rains and  
          flooding raging throughout the State for more than a week.  In  
          Northern California, the Yuba River crested near the town of  
          Linda just upstream of Marysville and Yuba City reaching 76 feet  
          at a point where the maximum levee capacity was 80 feet.   
          However, while the waters were receding, the Linda levee began  
          to boil and then give way, eventually flooding hundreds of homes  
          and a shopping center in the City of Linda.  Approximately 3,000  
          plaintiffs then sued the state for failing to maintain the  
          levee. Although the courts found the levee failure was  
          originally due to poor design and construction by Yuba County,  
          in the end it did not matter.  The Third District Court of  
          Appeal held the state liable for playing a role in operating and  
          maintaining the system stating that "[w]hen a public entity  
          operates a flood control system built by someone else, it  
          accepts liability as if it had planned and built the system  
          itself."  As a result of the Paterno case, California had paid  
          $464 million in damages by 2007.  

          In addition to the liability created by Paterno, Hurricane  
          Katrina and its aftermath demonstrated the need for more  
          vigilant action in managing flood risk.  Hurricane Katrina was  
          one of the deadliest hurricanes ever to hit the United States.  
          An estimated 1,836 people died in the hurricane and the flooding  
          that followed in late August 2005, and millions of others were  
          left homeless along the Gulf Coast and in New Orleans, which  
          experienced the highest death toll.  In the wake of Hurricane  
          Katrina, most agreed that the flood management system in the  
          Sacramento-San Joaquin Valley provided an unacceptably low level  
          of protection for current and future citizens of the valley.  

          The citizens of California responded by approving two general  
          obligation bonds.  Proposition 1E, The Disaster Preparedness and  
          Flood Prevention Bond Act of 2006 allocated $4.1 billion for  
          various flood management activities including $3 billion  
          specifically for flood protection enhancements to protect the  
          Central Valley.  Proposition 84, The Safe Drinking Water, Water  
          Quality & Supply, Flood Control, River & Coastal Bond Act of  
          2006, provided an additional $800 million for flood control  
          projects and planning.










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          The Legislature also responded by passing a six-bill package of  
          flood legislation that was signed by former Governor  
          Schwarzenegger in 2007 and had as its general purpose  
          identifying the areas of the state with the greatest flood risk  
          and reducing those risks.  Among the package was SB 5  
          (Machado/2007), which required the Flood Board to adopt an  
          integrated flood management plan for the Sacramento-San Joaquin  
          River Flood Management System by July 1, 2012 (Flood Plan).  
          Within 24 months of the adoption of the Flood Plan (i.e. no  
          later than July 1, 2014), cities and counties are required to  
          amend their general plans to incorporate data and analysis from  
          the Flood Plan. And within 12 months of amending its general  
          plan (i.e. no later than July 1, 2015), a city or county must  
          also update their zoning ordinances to be consistent with the  
          revised general plan.  Once the general plan and zoning  
          ordinances have been updated, the local government is prohibited  
          from allowing development on property within a flood hazard zone  
          unless the city or county makes certain determinations.


          June 29, 2012 the Flood Board unanimously adopted the Central  
          Valley Flood Protection Plan which, as the Flood Board states,  
          "provides conceptual guidance to reduce the risk of flooding for  
          about one million people and $70 billion in infrastructure,  
          homes and businesses with a goal of providing 200-year (1 chance  
          in 200 of flooding in any year) protection to urban areas, and  
          reducing flood risks to small communities and rural agricultural  
          lands."  The Flood Board adoption of the Flood Plan in 2012  
          triggered city and county compliance and the prospect of a July  
          1, 2015 bar on new development in a flood hazard zone unless the  
          required levels of flood protection are, or will be, met.  

          Following adoption of the Flood Plan, the Governor signed SB  
          1278 (Wolk/2012).  SB 1278 recognized that some properties were  
          in a kind of a "no man's land."  No determination had been made  
          of the adequacy of their flood protection.  This didn't mean  
          flood protection was necessarily inadequate, just there was no  
          determination. These were called "undetermined risk areas."  SB  
          1278 created a limited exception to the building prohibition.   
          It allowed a city or county to approve a development agreement  
          in an "undetermined risk area" if a finding could be made, based  
          on substantial evidence in the record, that the property met the  
          urban level of flood protection.  

          AB 1259 (Olsen/2013) recognized that it was inconsistent to  








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          provide an exception for undetermined risk areas under  
          development agreements but not undetermined risk areas subject  
          to permits or tentative maps (approvals found in two other  
          sections of law).  So, AB 1259 extended the language of SB 1278  
          to permits and tentative maps.

           Supporting arguments  :  The author states that this bill is  
          needed because the 200-year flood protection standard is  
          "proving cost prohibitive to developers, and the affected  
          communities are not capable of financing sufficient flood  
          protection infrastructure on their own."  The author states that  
          the de facto moratorium that will occur is economically  
          devastating to these communities and undermines their smart  
          growth and sustainability policies.  Supporters state that this  
          bill "provides important accommodation to cities facing a  
          potential moratorium."



           
           REGISTERED SUPPORT / OPPOSITION  :   

          Support 
           
          California Infill Builders Federation
          City of Sacramento
          County of San Joaquin
          League of California Cities

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Tina Cannon Leahy / W., P. & W. / (916)  
          319-2096