The Barbed Wire - June 2, 2017

June 2, 2017
Supervisor Kevin Cann Installed as NACo Western Interstate Region Second Vice President
Senate Appropriations Committee Defeats Cannabis Cash-Handling Bill
SRA Amnesty Bill Stalls in Assembly
Groundwater Sustainability Agencies Organize Ahead of Deadline
Murkowski Opposes President’s Proposed Federal PILT Cuts
Senate Democrats Oppose President’s Proposed USDA Rural Development Cuts
Showcasing Rural Life: RCRC Seeking Local Photography for Instagram Account
KEEPING UP
BULLETIN BOARD
REGULATORY UPDATE

Supervisor Kevin Cann Installed as NACo Western Interstate Region Second Vice President

Last week, RCRC Delegate Supervisors Kevin Cann (Mariposa), Randy Hanvelt (Tuolumne), and Michael Kobseff (Siskiyou) joined RCRC staff at the National Association of Counties’ (NACo) Western Interstate Region (WIR) 2017 Conference in Deschutes County, Oregon, where Supervisor Cann was installed as Second Vice President.

WIR is dedicated to the promotion of western state interests, and the WIR Conference brings together county officials, federal, state, and regional policymakers to focus on unique pressing issues affecting rural communities.  This year’s conference covered a number of issues, including federal Payments in Lieu of Taxes, reauthorizing the Secure Rural Schools Act, and Waters of the United States.   

Cannabis also received much attention at the conference, and participants attended a tour of a cannabis grow/manufacturer site, immediately followed by a tour of a retail site.  This allowed for a first-hand viewing of Oregon’s licensing scheme, and the role municipal governments play.  A panel discussion was also held, whereby county personnel from Washington and Oregon provided their experiences within each state’s regulatory scheme.

Senate Appropriations Committee Defeats Cannabis Cash-Handling Bill

Last week, the Senate Appropriations Committee held Senate Bill 148, authored by Senator Scott Wiener (D-San Francisco), related to the collection of fees and taxes in association with commercial cannabis. 

To participate in the commercial cannabis market, a variety of fees and taxes must be paid from licensed cannabis entities to state and local regulatory agencies.  It is anticipated that much of these payments will be made in cash due to federal banking restrictions.  Supported by RCRC, SB 148 would have allowed the State Board of Equalization or a county to collect cash payments from cannabis-related businesses for state agencies that administer fees, fines, penalties, taxes, or other charges payable by a cannabis-related business.  In addition, the bill would have allowed the BOE to collect county-imposed regulatory fees and taxes.

RCRC will continue to look for opportunities to address the proper management of cash derived from licensed cannabis entities.  This will enable state and local licensing entities to collect monies from industry participants, and thus, improve the integrity of the overall regulatory framework which is slated to become fully operational in 2018. 

SRA Amnesty Bill Stalls in Assembly

Assembly Bill 288, the latest attempt by Assembly Member Jay Obernolte (R-Big Bear Lake) to provide residents paying the State Responsibility Area (SRA) fee with a longer payment deadline, was held in the Assembly Appropriations Committee last week after bipartisan support in previous committees.  The bill would have extended the deadline for fee payment from 30 to 60 days, and had also been broadened to include an amnesty program that would allow fee payers in arrears to make installment payments to make up for unpaid fees. 

A 30-day timeframe for SRA fee payment has been problematic in many rural communities, where physical mail can often be slow, and receipt of SRA bills can arrive with little time remaining to meet the payment deadline.  This is the third year that Assembly Member Obernolte has proposed legislation to bring relief to SRA fee payers in rural communities.

Groundwater Sustainability Agencies Organize Ahead of Deadline

Progress is being made by local agencies as they organize into locally-controlled Groundwater Sustainability Agencies (GSA) to meet the June 30, 2017 deadline established by the Sustainable Groundwater Management Act (SGMA).  As of May 31, 2017, 212 local agencies have submitted GSA formation notifications to the Department of Water Resources (DWR).  This includes the coordinated efforts by a combination of local agencies.  In addition, a number of agencies have submitted multiple notifications in multiple basins.  In all, this accounts for 332 separate areas in 124 basins. 

Of the 124 basins that are partially or completely covered by a GSA notification, 32 basins are designated as low, or very low priority, and 92 basins are medium, or high priority, subject to SGMA requirements.  A number of the GSA notifications are overlapping, but it is expected these overlaps will be resolved prior to the June 30, 2017 deadline.  Most counties have indicated that they will become the GSA in the unmanaged areas of high or medium priority basins, if needed.  Counties that have opted-out of being the presumed GSA for the unmanaged area of a basin are listed here.

For those areas that are currently considered “unmanaged” by either the county or a local agency, the State Water Resources Control Board (SWRCB) is authorized to step in.  Areas that fall into this category can be accessed here.  

Murkowski Opposes President’s Proposed Federal PILT Cuts

Senator Lisa Murkowski (R-AK), Chair of the Senate Energy and Natural Resources Committee, and Chair of the Interior and the Environment Appropriations Subcommittee, has indicated that she plans to oppose the President’s proposal to reduce Federal Payments in Lieu of Taxes (PILT) in his FY18 Budget proposal.  The President’s FY18 proposed Budget included $397 million for Federal PILT, a reduction of $68 million for FY17. 

Several Western Members on both sides of the aisle have also expressed their concerns about proposed cuts to Federal PILT.  The Federal PILT program is funded in the Interior and the Environment Appropriations bill, the same subcommittee that Murkowski chairs. 

Senate Democrats Oppose President’s Proposed USDA Rural Development Cuts

This week, 28 Senate Democrats sent a letter to the President expressing their concerns about the impacts the FY18 Budget proposal would have on rural America.  The letter specifically highlights the proposal to eliminate funding for rural water and wastewater projects, as well as the elimination of the position of Under Secretary of Rural Development. 

The President’s Budget proposal for USDA would result in a twenty percent reduction from spending and a loss of 5,000 jobs. 

Showcasing Rural Life: RCRC Seeking Local Photography for Instagram Account

We invite you to get out your camera and capture life in rural California by showcasing the beautiful landscape and scenery in your communities.  It might be a scenic waterway, wildlife, livestock, barns, snowy landscapes, seasons, farm and ranch photos – we’d love to see your photos and feature them on our Instagram! 

All photographs must be the original work of the participant, or must have the photographer’s written permission. By submitting a photo, you give RCRC the right to use the photo on our website or in future newsletters and publications.

Pictures can be emailed to Santinia Pasquini at spasquini@rcrcnet.org.  Please include a description of your photo.

KEEPING UP

Michael Carson, 57, of Newcastle, has been appointed to the 20th District Agricultural Association, Gold Country Fair Board of Directors. Carson has been an owner and consulting engineer at Michael Carson Development Inc. since 2007. He was a project manager at JTS Communities Inc. from 2000 to 2007, a project manager at Kaufman and Broad Inc. from 1995 to 2000 and an engineer at Morton and Pitalo Inc. from 1984 to 1994. Carson is a member of the Gold Country Fair Heritage Foundation, Leadership Auburn Board of Regents, Auburn Chamber of Commerce and the Newcastle Community Association. This position does not require Senate confirmation and there is no compensation. Carson is a Republican.

Julia Durand, 54, of Granite Bay, has been reappointed to the 20th District Agricultural Association, Gold Country Fair Board of Directors, where she has served since 2016. Durand served as deferred compensation director at the San Francisco Employees' Retirement system from 2013 to 2014, director of defined contribution plans at the California State Teachers’ Retirement System from 2007 to 2013 and held several positions at the California Public Employees’ Retirement System from 1988 to 2007, including call center supervisor and account manager. She is a member of the National Association of Government Defined Contribution Administrators. This position does not require Senate confirmation and there is no compensation. Durand is a Democrat. 

BULLETIN BOARD

2016-17 Sustainable Agricultural Lands Conservation Program: Technical Workshop Dates

Click here

Funding Available for Groundwater Sustainability Plans and Projects

Click here

REGULATORY UPDATE

RCRC members are encouraged to submit comments on regulatory matters to state and federal regulatory bodies, and to provide a copy to RCRC’s Government Affairs staff.  Click “Read More” to access information related to the current status of regulations impacting California’s rural counties.

Intention to Review and Rescind or Revise the Clean Water Rule.  The U.S. Environmental Protection Agency and U.S. Army Corps of Engineers are taking public comment on their review of the Clean Water Rule: Definition of “Waters of the United States,” which was finalized under the previous Administration.  The review is being conducted as a result of the February, 2017 Executive Order 13132 on Federalism, issued by President Trump.  The agencies are encouraging local governments to file comments on the review.  Agency: U.S. Environmental Protection Agency and U.S. Army Corps of Engineers. Status: Initial comments are due by June 19, 2017.  The Federal Register notice can be accessed here.  RCRC Comments: Staff is seeking input from member counties.  RCRC Advocate: Staci Heaton sheaton@rcrcnet.org

Draft Climate Change Work Plan.  The Climate Change Work Plan is a strategy to address climate-related issues impacting water in the Central Valley Region.  The Plan will both present current and proposed efforts to respond to climate change as well as prioritize major efforts to promote climate resiliency.  Agency: Central Valley Regional Water Quality Control Board.  Status: Comments on the initial draft are due by June 29, 2017.  The draft Plan can be accessed here.  RCRC Comments: Staff is seeking input from member counties.  RCRC Advocate: Staci Heaton sheaton@rcrcnet.org

Draft Surface Mining Operation Annual Inspections Regulations.  The proposed amended regulatory language is intended to implement the improvements and updates to Public Resources Code Section 2774 based upon the statutory changes made by Assembly Bill 1142 (Grey, 2016).  Agency: Department of Conservation State Mining and Geology Board Status: The draft was published April 28, 2017, with comments due by June 12, 2017.  The notice and draft update can be accessed here.  RCRC Comments: Staff is seeking input from member counties.  RCRC Advocate: Mary Pitto mpitto@rcrcnet.org

Draft Report Safeguarding California Plan:  2017 Update – California’s Climate Adaptation Strategy.  The Safeguarding California Plan: 2017 Update identifies overarching strategies for climate change adaptation.  The document outlines ongoing actions and cost-effective and achievable steps to make California more resilient to climate change across ten different policy areas: agriculture, biodiversity and habitat, forests, ocean and coast, water, emergency management, energy, land use and community development, public health, and transportation.  Agency: Natural Resources Agency Status: The draft was released on May 8, 2017.  Six public meetings are planned in May and June. The final version incorporating public comments is scheduled for release in July 2017.  The draft update and scheduled public meeting details can be accessed here.  RCRC Comments: Staff is seeking input from member counties.  RCRC Advocate: Staci Heaton sheaton@rcrcnet.org or Mary Pitto mpitto@rcrcnet.org

Draft 2017 Update to the Central Valley Flood Protection Plan (CVFPP).  The CVFPP is a long-range plan for improving flood risk management in the Sacramento and San Joaquin river Basins.  The plan provides a comprehensive framework for system-wide management and flood risk reduction planning and is required to update every five years.  This first update refines the overall near and long-term investment needs established in the CVFPP, and includes recommendations on policies and financing that support comprehensive flood risk management actions locally, regionally, and system-wide.  Agency: Department of Water Resources Status: The draft was released on December 30, 2016, with comments due by March 31, 2017.  Five public outreach hearings were held in February and March 2017 throughout the Central Valley.  The CVFP Board held four workshops in April and May 2017 and will be holding an additional workshop on June 9, 2017.  The draft update, draft Supplemental Program EIS, and scheduled workshop details can be accessed here.  RCRC Comments: Staff is seeking input from member counties.  RCRC Advocate: Mary Pitto mpitto@rcrcnet.org