The Barbed Wire - March 30, 2017

Governor and Democratic Leadership Unveil Transportation Package

On Wednesday, Governor Jerry Brown, President pro Tempore Kevin de León, and Assembly Speaker Anthony Rendon announced a ten-year, $5.2 billion road repair and transportation investment package, the largest potential overhaul of transportation funding in the state in more than 25 years.    

The $5 billion per year in new revenues will come from a 12-cent gasoline excise tax (effective November 2017), a new transportation improvement fee charged on vehicle registrations (based on the value of the vehicle), an additional $100 zero-emission vehicle fee (effective 2020), a 20-cent diesel excise tax (effective November 2017), and a 4 percent diesel sales tax increase.  The Governor stressed that the package comes with strict new accountability provisions to ensure funds can only be spent on transportation. 

The proposed package allocates $3 billion per year to fix-it-first road and highway maintenance projects, split evenly between state and local governments.  RCRC’s Board of Directors debated Senate Bill 1 (Beall)/Assembly Bill 1 (Frazier), the legislative transportation funding package introduced earlier this year, at the March Board of Directors meeting in Sacramento.  While this initial package proposed significant tax increases, SB1/AB1, like the recently unveiled transportation funding package, was thought to offer the best opportunity for rehabilitating rural county’s local roads and rural state highways.

The newly proposed deal is expected to be amended into Senate Bill 1, and an April 6, 2017 deadline has been set to approve the package.  

Update on In-Home Support Services Cost Shift to Counties

On Wednesday, the Assembly Budget Subcommittee on Health and Human Services held its second hearing on the Governor’s action which eliminates the In-Home Support Services (IHSS) Maintenance of Effort (MOE).  This change is estimated to shift an additional $623 million in costs to counties in the upcoming fiscal year.  Subcommittee staff again outlined recommendations aimed at mitigating the impacts upon counties if the Governor’s actions proceed.  

RCRC staff, along with the California State Association of Counties (CSAC), the County Welfare Directors Association, and the County Behavioral Health Directors Association, continued to voice opposition to the Governor’s action in early January to eliminate the MOE; however, all organizations expressed appreciation for the Assembly's commitment to address the impacts of the cost shift to counties.  The Subcommittee voted 4-0 to pass the proposal out of committee.  This item remains open in the Senate Budget Subcommittees on Health and Human Services.

CSAC, on behalf of the county organizations, is continuing discussions with the Department of Finance on possible options to the Governor's action to shift costs.  If a compromise is reached with the Administration, it is expected that a new IHSS cost structure may be proposed in the Governor's May Revision.  RCRC continues to make this issue a priority in its advocacy efforts. 

Legislation Subjecting Tree Removal to Prevailing Wage Clears First Committee

Assembly Bill 1066, authored by Assembly Member Cecilia Aguiar-Curry (D-Winters), proposes to subject tree removal contracts paid with public funds to prevailing wage laws, potentially complicating contract procurements and cost issues for many rural, forested counties throughout the state.  While the author has stated the intent is to stimulate employment and wages in rural counties where tree removal labor is in high demand, the bill could have numerous unintended consequences for some of the most socioeconomically disadvantaged counties that are already struggling to find resources for tree mortality mitigation and other forest health related programs.  

The bill passed out of the Assembly Labor and Employment Committee after a debate about how the proposal will impact tree removal projects using State grant funds in areas where a disaster has been declared, such as counties impacted by high levels of tree mortality or the effects of high severity wildfires.  RCRC raised concerns that the bill will actually do more harm than good in the already socioeconomically challenged counties trying to mitigate forest health emergencies, while others noted that the bill could also serve as a barrier to development of necessary biomass infrastructure because of the potential to inflate the costs of tree removal projects.

The current version of AB 1066 can be accessed here.  RCRC’s concerns letter can be accessed here.

Well Permitting Legislation Moves Forward

This week, the Senate Natural Resources & Water Committee approved Senate Bill 252, authored by Senator Bill Dodd (D-Davis), which would require a new level of review and public notice when a city or county issues well permits in critically over-drafted groundwater basins.  This measure is a “scaled-back” version of last year’s SB 1317, authored by Senator Lois Wolk (D-Davis), which captured new well permits in medium- and high-priority groundwater basins.  

RCRC, joined by our colleagues in local government, raised the following concerns with Senator Dodd’s approach:

• SB 252 moves well permits from a ministerial action to more of a discretionary activity as contemplated under the California Environmental Quality Act (CEQA), implying the need for a CEQA review.
• Applicants would be required to answer and supply data to support their well permit without defining what the county or city’s obligation is with respect to the additional data.  For example, is it accepted and filed?  Or must the local agency make a finding?
• Related to this is the scenario in which, in the course of a public hearing, data is provided that is not in concert with that provided by the applicant.  Further guidance is needed as to how this situation might be addressed.
• Perhaps most critically, this measure does not provide a glide path for integration into the current activities related to implementation of the Sustainable Groundwater Management Act (SGMA), adopted in 2014.  

The Committee had a lengthy discussion on whether the need for greater scrutiny of new wells in critically over-drafted basins outweighed or should distract from SGMA and its related timelines.  Ultimately, the author committed to working with all the interested stakeholders and expressed confidence in addressing the objections raised by RCRC and our local government colleagues.

RCRC’s joint concerns letter can be accessed here.

RCRC Sponsors NFIB/California’s 9th Annual Day at the Capitol

Earlier this week, RCRC once again sponsored the National Federation of Independent Businesses’ (NFIB) Day at the Capitol.  The two-day event includes a legislative reception, legislative visits, and luncheon program.  This year’s program featured California State Insurance Commissioner Dave Jones, Assembly Member Adam Gray (D-Merced), Assembly Member Vince Fong (R-Bakersfield), and Governor’s Office of Business and Economic Development Deputy Director Jesse Torres.  

NFIB is a nonpartisan, nonprofit association with a presence in Washington, D.C. and all 50 states.  California’s small businesses employ more than half of the state’s private workforce, and small businesses comprise 99.2 percent of all businesses in California.

KEEPING UP

State Water Resources Control Board Seeks Executive Director

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BULLETIN BOARD

Proposition 1 Grant Guidelines Public Workshops Scheduled

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Draft 2017 Proposition 1 Solicitation Released

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Fact Sheet on the Draft Emergency Regulation for State Intervention Fees

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UPDATED: Frequently Asked Questions on Groundwater Sustainability Agencies

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STORMS Seminar Series: Municipal Finance of Stormwater Projects

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DWR County Drought Contingency Planning Webinar

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California State Board of Food and Agriculture to Discuss Farm Labor, Rural Job Development and Workforce Training Needs

The California State Board of Food and Agriculture will discuss agricultural labor issues, rural job development and opportunities for career technical education at its upcoming meeting on April 4th in Sacramento.  Over the next 5-10 years, on-farm automation and research will impact the agricultural sector, creating a need for rural job development and technical training for farm workers in communities across the state.

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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.  

Proposed Pesticide Use Near School Sites Regulation.  While current regulatory requirements for pesticide applications near schools vary from county to county, the proposed regulation will provide minimum statewide standards for all agricultural pesticide applications near public K-12 schools and child day care facilities.  Agency: Department of Pesticide Regulation (DPR) Status: The revised proposed regulations were released on March 16, 2017 for a 15-day public review notice, with public comments now due April 4, 2017.  Public hearings were held in November and December 2016.  The revised proposed regulation and other related documents can be accessed here.  RCRC Comments: RCRC is seeking member county input.  RCRC Advocate: Mary Pitto mpitto@rcrcnet.org

The 2017 Climate Change Scoping Plan Update.  The 2017 Climate Change Scoping Plan Update: The Proposed Strategy for Achieving California’s 2030 Greenhouse Gas Target, builds upon the framework adopted in the initial Scoping Plan and the 2014 Update by establishing recommendations and priorities for the State to achieve its 2030 climate goals.  Agency: Air Resources Board (ARB) Status: The 2017 Climate Change Scoping Plan Update was released January 20, 2017, with comments due by March 6, 2017.  Two informational hearings were conducted on January 27 and February 16, 2017 in Sacramento.  The 2017 Climate Change Scoping Plan Update will be considered at the April 27 and 28, 2017 ARB monthly meeting.  The 2017 Climate Change Scoping Plan Update, hearing schedules and other related documents can be accessed here.  RCRC Comments: Click here RCRC Advocates: Staci Heaton sheaton@rcrcnet.org and 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 have been scheduled in February and March 2017 throughout the Central Valley.  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

Proposed Public Assistance Program Disaster Deductible Rulemaking.  The proposed rulemaking describes a conceptual deductible program, including a methodology for calculating deductible amounts based upon a state’s fiscal capacity and disaster risk, and a credit structure to reward States for investing in emergency management activities such as readiness, preparedness, mitigation, and resilience.  Agency: Federal Emergency Management Administration (FEMA) Status: Supplemental Advance Notice of Proposed Rulemaking (ANPR) comments are due on April 12, 2017.  The supplemental ANPR can be accessed here.  RCRC Comments: RCRC is seeking member county input.  RCRC Advocate: Mary Pitto mpitto@rcrcnet.org