BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2463
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          Date of Hearing:   May 7, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 2463 (Dickinson) - As Amended:  April 21, 2014 

          Policy Committee:                              Water, Parks and  
          Wildlife     Vote:                            10-5

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill requires the Department of Water Resources (DWR) to  
          partner with the Regional Water Authority (RWA), water suppliers  
          in El Dorado, Placer, Sacramento and Yolo counties, and other  
          interested agencies to develop a plan to improve water supply  
          reliability in the Sacramento region.  This bill requires DWR to  
          submit the plan to the Legislature by January 1, 2021.

           FISCAL EFFECT  

          1)Unknown costs, potentially over $1 million, for DWR to  
            complete the plan.

          2)Unknown, potentially significant, reimbursable local costs.

           COMMENTS  

           1)Rationale.   According to the author, historically severe  
            drought conditions in 2013 and 2014 demonstrate that the  
            Sacramento region is uniquely vulnerable to severe dry  
            conditions.  This January, the water levels in Folsom  
            Reservoir were dangerously close to going dry, jeopardizing  
            the municipal water supply that serves 500,000 people.  Water  
            levels downstream on the American River resulted in emergency  
            measures to allow for continued diversions by the City of  
            Sacramento.  

            The author states that regional and local water supply and  
            environmental needs cannot be met by the current statewide  
            water system.   This bill will require the state and locals to  
            develop a plan for new infrastructure that meets local needs  








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            while benefiting the statewide system.
           
          2)Background.   The RWA is a joint powers authority formed in  
            July 2001 as a forum to discuss and address regional water  
            issues in the Sacramento region.  RWA has 21 water suppliers  
            and three associate members from Sacramento, Yolo, Placer and  
            El Dorado counties.  RWA members include cities, water and  
            irrigation districts, mutual water companies, investor-owned  
            water utilities and community services districts.
             
            The RWA developed a comprehensive Water Forum Agreement (WFA)  
            over a six-year period and memorialized it in a Memorandum of  
            Understanding (MOU).  The MOU was signed by a diverse group of  
            40 business and agricultural leaders, citizens groups,  
            environmentalists, water managers and local governments  
            including the cities of Sacramento, Folsom, and Roseville and  
            the County of Sacramento.  

            The WFA is a comprehensive package of linked actions to  
            provide a reliable and safe water supply for the region's  
            economic health and planned development to the year 2030.  The  
            WFA also identifies actions necessary to preserve the fishery,  
            wildlife, recreational and aesthetic values of the lower  
            American River.  

            This bill requires a plan that will build upon the WFA by  
            incorporating current Delta and dry water conditions and  
            providing detailed analysis for infrastructure investments  
            including the identification of potential funding sources.

          3)The State's Role.   According to the RWA, the meetings,  
            hearings, studies and evaluations necessary to develop the  
            plan required by this bill are primarily intended to be the  
            responsibility of the local agencies.  However, the bill is  
            drafted to place that responsibility on DWR.  Because state  
            and federal governments control the operations of local  
            facilities, RWA indicates that the participation of DWR is  
            essential for developing the plan.  The author may wish to  
            consider revising the bill to clarify what is expected from  
            the state vs. participating local agencies and who will pay  
            for local efforts.


           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081 








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