The Barbed Wire - May 15, 2015

Governor Releases May Revision

Governor Brown unveiled his May Revision of the 2015-16 State Budget late Thursday morning.  The Governor’s May Revision is an attempt to more accurately reflect revenue and expenditure projections following the release of the Governor’s January proposed Budget.  Overall, the Governor’s May Revision reflects a $6.7 billion increase in General Fund revenues over the January proposed Budget, primarily stemming from increased income tax receipts from high income filers.  Of specific interest to RCRC member counties, the Governor’s May Revision:

• Maintains $644,000 for the State’s Payment in Lieu of Taxes (PILT) program for 2015-16;
• Completes in full the repayment of all pre-2004 Mandate Claims;
• Provides $50 million in Cap-and-Trade monies for CAL FIRE forest health projects;
• Addresses specific and unique property tax situations in a number of RCRC member counties;
• Increases the Greenhouse Gas Reduction Programs by $1.2 billion; and,
• Adds $2.2 billion over the next three years as continued response to the drought.

The Rural Rundown, RCRC’s detailed analysis of the Governor’s 2015-16 May Revision and other Budget Items, can be accessed here.

Senate and Assembly Budget Subcommittees Concur on State PILT

This week, Assembly Budget Subcommittee #3 concurred with the actions previously taken by Senate Budget and Fiscal Review Subcommittee #2 relating to State Payment In-Lieu of Taxes (PILT) monies owed to 36 counties.  The motion to concur with the Senate action was made by Assembly Member Richard Gordon.  

The Assembly Subcommittee:

• Approved the Administration’s proposed 2015-16 fiscal year appropriation in the amount of $644,000 (General Fund);
• Approved the Administration’s budget trailer bill language but struck the  language which would have made payment of PILT to counties permissive; and,
• Added an $8 million (General Fund) appropriation for payment of the PILT arrears.

RCRC’s letter to the Assembly Budget Subcommittee can be accessed here.

While the two houses have concurred, it is possible that PILT may become a topic of discussion in the Joint State Budget Conference Committee and/or State Budget negotiations with the Administration.

Senate Legislative Drought Hearing

This week, the Senate Natural Resources and Water Committee and Senate Budget Subcommittee #2 held a joint hearing on the drought.  State water officials and water policy experts stressed the need to rethink and retool the state’s water system and the importance of long-term water conservation. 

Department of Water Resources Director Mark Cowin briefed the joint committee on his department’s drought response, including implementation of a number of water management changes.  Among other things, Cowin stated that about 1,900 wells have gone dry in California – more than 1,000 in Tulare County alone.  Felicia Marcus, Chair of the State Water Resources Control Board, outlined the State’s new mandatory water conservation regulation.  Ellen Hanak with the Public Policy Institute of California discussed what else can be done to help California in the future, and  Madelyn Glickfeld with the UCLA Water Resources Group discussed Proposition 218 and the recent court decision relating to tiered water rates.

The agenda for the joint hearing can be accessed here.  A video recording of the joint hearing can be accessed here.

State Water Board Funding Scoping Meetings Scheduled

The State Water Resources Control Board (State Water Board) staff will hold a series of meetings to provide information on the pending availability of funding to address groundwater contamination impacting sources of drinking water.  Stakeholders will also have an opportunity to provide input on the scope and process the State Water Board will use to select eligible projects. 

Topics to be covered at the meetings include:  State Water Board’s Groundwater Quality Funding (GWQF); how Proposition 1 Groundwater Sustainability and SB 445 Site Cleanup Subaccount (SCAP) funding programs work together; timeline for development of funding programs, project solicitation, grant agreements; eligible applicants and projects; solicit input on scope of the Proposition 1 Groundwater Sustainability and SB 445 Site Cleanup Subaccount programs; how and when to apply for funding; and, solicit input on GWQF Pre-Application. 

The Scoping Meetings are scheduled for June 2, 2015 in Fresno, June 4, 2015 in Sacramento, and a date and location yet to be determined in Southern California.  The Scoping Meeting announcement can be accessed here.

Additional Background Materials

GWQF PowerPoint can be accessed here.

GWQF Fact Sheet can be accessed here.

SCAP Fact Sheet can be accessed here.

Sign-up for Email alerts for "Groundwater Quality Funding Assistance" here. 

Sustainable Groundwater Management Facilitation Services Available

The California Department of Water Resources (DWR) has announced a local assistance program to support local public agencies seeking to meet requirements of the Sustainable Groundwater Management Act (SGMA).  DWR is offering in-kind facilitation support services to local public agencies to support SGMA efforts, including forming groundwater sustainability agencies (GSAs), and developing groundwater sustainability plans (GSPs).  Facilitation support services from contracted professionals include strategic planning, stakeholder assessments, meeting facilitation, mediation, governance assessment, and public outreach services.  In order to meet critical deadlines under SGMA, local agencies are encouraged to begin coordination and collaboration to form GSAs.

SGMA requires local public agencies to form GSAs by June 30, 2017 for high and medium priority groundwater basins.  GSAs for basins subject to critical conditions of overdraft must submit GSPs to DWR by January 31, 2020. GSAs for all other groundwater basins designated as high- or medium-priority must submit GSPs by January 31, 2022.  Information on GSAs and a current listing of formed GSAs can be accessed here.  Additional information on basin prioritization can be accessed here.

Requests for facilitation support services will be evaluated on a first-come, first-served basis, and support will vary based on need.  Priority will be given to newly forming groups and groups that have not received financial support previously.  The majority of available support is reserved for activities associated with forming GSAs and creating GSPs.  Some additional facilitation support services are available for groups developing or implementing integrated water management plans.

For information on program eligibility and submittal requirements, please visit the facilitation services webpage here.

State Water Board to Consider Emergency Drinking Water Guidelines

On May 19, 2015, the State Water Resources Control Board (State Water Board) will consider a proposed resolution delegating authority and adopting guidelines to administer funding to provide interim emergency drinking water to disadvantaged communities (DACs) with contaminated drinking water, and funding to address drought-related drinking water emergencies or threatened emergencies.  The guidelines state the intent to ensure funds are going to those communities most in need (i.e., without access to alternative sources of funding) and to clarify that failure to expend funds could result in cancellation of an agreement.

The proposed resolution and guidelines can be accessed here.  

DWR Releases Final 2015 IRWM Guidelines and PSP

The California Department of Water Resources (DWR) has released the final version of the 2015 Integrated Regional Water Management (IRWM) Grant Program Guidelines and Implementation Grant Proposal Solicitation Package (PSP).  These newly released documents, public comments received on the draft documents, as well as other information about the IRWM Grant Program, can be accessed here. 

Two workshops will be held to provide potential grant applicants with assistance on preparing grant applications:

Sacramento – June 22, 2015 at 10:00 a.m., CalEPA Building, Coastal Hearing Room, 1001 I Street.  This meeting will also be made available through a web broadcast, which can be accessed here.

Alhambra – June 23, 2015 at 1:30 p.m., Los Angeles County Department of Public Works, Conference Room C, 900 South Fremont Avenue.

The application deadline is August 7, 2015 at 5:00 p.m.

Public Meetings on State Wildlife Action Plan Update Announced

The California Department of Fish and Wildlife (DFW) announced that it will hold public meetings to discuss the 2015 update to the California State Wildlife Action Plan (SWAP).  The meetings will be held in Sacramento on May 22, 2015, Oakland on May 28, 2015, San Diego on June 3, 2015, and Los Angeles on June 4, 2015.

SWAP is a statewide plan for conserving the state’s fish and wildlife, and is part of a nationwide effort by all 50 states to develop conservation actions plans and participate in the federally authorized State and Tribal Wildlife Grants Program.  Information on the public meetings and the link to the draft SWAP and related materials can be accessed here.

ARB Hearing on SJCOG Regional Transportation Plan/Sustainable Communities Strategy

The Air Resources Board (ARB) will conduct a public meeting to consider the Greenhouse Gas Quantification Determination for the San Joaquin Council of Governments’ (SJCOG) Regional Transportation Plan/Sustainable Communities Strategy.  

The public meeting will be held on May 21, 2015 starting at 9:00 at the California Environmental Protection Agency, Air Resources Board, Byron Sher Auditorium, 1001 I Street, Sacramento, California  95814.  The ARB staff report documenting staff’s technical evaluation of SJCOG’s greenhouse gas quantification determination can be accessed here.

ARB staff will present the results of its evaluation at the meeting.  Interested members of the public may present comments orally, or in writing at the meeting, and may provide comments by postal mail or by electronic submittal before the meeting.  To be considered by the Board, written comments not physically submitted at the meeting, must be received no later than 5:00 pm, May 18, 2015.  To provide your comments before the Board meeting and to view the Notice, please click here.

Further inquiries should be directed to Ms. Terry Roberts, Sustainable Communities Policy and Planning Manager, (626) 450-6182, or Ms. Jennifer Gray, Air Pollution Specialist, (916) 327-0027.

Yuba Salmon Partnership Initiative Framework Announced

The Yuba Salmon Partnership Initiative, a coalition composed of three agencies and three conservation groups, released a framework for reaching an agreement that could result in the return of Spring-run Chinook salmon on the North Yuba River.  When completed, the agreement would create a first-ever “collect and transport” program in California, like those successfully used for decades in Oregon and Washington to move salmon around dams too tall for fish ladders.

The California Department of Fish and Wildlife (CDFW), National Marine Fisheries Service (NOAA Fisheries), Yuba County Water Agency (YCWA), American Rivers, Trout Unlimited, and California Sportfishing Protection Alliance released a “Term Sheet” that will guide negotiations on a binding settlement agreement that would form the basis of salmon reintroduction and restoration programs.  The non-binding Term Sheet defines principles for funding and fiscal responsibility, agrees to some limits on potential actions, and anticipates how the partners will seek to address numerous legal and regulatory requirements essential for the reintroduction to happen.  In signing the Term Sheet, the partners commit to negotiating a more detailed and binding settlement agreement that they hope to complete by next year.  They also commit to the use of a transparent, science-based process that offers opportunities for public input and response in developing the specifics of the anticipated programs.

For more information, please visit the Yuba Salmon Partnership Initiative website here.
Statements from coalition members can be accessed here.

One Week Remains for Action on Highway Trust Fund

Congress will need to act soon to extend the authorization of the nation’s highway and transit programs, set to expire May 31, 2015.  U.S. Department of Transportation Secretary Anthony Foxx has recently reported that the Highway Trust Fund (HTF) will likely become insolvent in late July or early August, but use of these funds beyond the expiration date would require Congress to pass an extension to authorize use of the funds.  In response, the Senate introduced a bill yesterday, and the House introduced a bill this morning, both of which provide a short-term extension through the end of July when the HTF is scheduled to become insolvent.  These measures are anticipated to gain passage in both chambers next week to avert a shutdown of our federal surface transportation programs.  

While Members of Congress on both sides of the aisle have spoken in favor of a multi-year surface transportation bill, they have not been able to agree on a revenue source to pay for a extension of the HTF.  Assuming passage of these extension proposals, Congress will be provided an additional two months to reach an agreement over passing another extension, although the length of such an extension will continue to be of considerable debate due to the costs.  It’s important to note that neither of the HTF extension proposals contain any new revenues – they merely authorize the use of existing funds beyond the current expiration date.  To fund the previous short-term HTF extension, Congress transferred approximately $11 billion from the General Fund which was offset by a variety of other financing mechanisms.  Congress must now look toward other financing solutions to fund the next short or long-term extension.  Additional options for stabilizing the HTF include a restructuring of the Federal Tax Code, repatriation of corporate off-shore earnings, raising the federal gas tax, indexing the federal gas tax to inflation, and increasing oil exploration and production both offshore and on federal lands.

In the event an agreement over a short-term extension is unable to be reached, Secretary Foxx is prepared to implement cash management procedures to limit the amount and distribution of payments to states.  In the absence of federal funding assurances, states will be reluctant to issue or initiate new contracts, and funding reimbursements will be scaled back.

House Appropriations Committee Moves Transportation/Housing Bill Forward

This week, the House Appropriations Committee approved the FY 2016 funding bill for federal transportation and housing programs.  The bill would decrease transportation funding by $1 billion over 2015 levels, and increase funding for housing programs by $1 billion. 

For transportation, the bill would continue to fund highway, bridge, and transit programs at the levels authorized in MAP-21.  Two programs proposed for cuts are Amtrak, which would be cut by $262 million to $1.4 billion, and the TIGER grant program, which would be reduced from $500 million to $100 million under the House approach.  For housing programs, the Community Development Block Grant (CDBG) program would be held steady at $3.0 billion, while the HOME Investment Partnerships program, which provides housing assistance, would also be funded at the same level as this year, at $900 million.  Democrats introduced several amendments to increase funding in the bill, but all were rejected on party-line votes.

The bill now moves to the full House for consideration, with a vote likely to take place in June or July 2015.  The Senate Appropriations Committee has not yet taken action on any of its 12 appropriations bills for FY 2016, but is likely to do so after the Memorial Day Recess. 

House Passes Legislation to Block WOTUS Implementation

On Tuesday, the House passed H.R. 1732, a bill which would require EPA and the Army Corps of Engineers to withdraw the existing Waters of the United States (WOTUS) regulatory proposal within 30 days and set up a consultation process with state and local stakeholders. 

The measure passed by a vote of 261-155, which roughly mirrors the outcome on a similar measure voted on by the House last year which  was approved 262-152.  Only twenty-four Democrats voted for the bill, while no Republicans voted against the legislation.  As expected, the White House issued a veto threat of the legislation. 

During debate on the bill, the House considered two Democratic amendments.  The first was from Rep. Donna Edwards of Maryland, which would have blocked implementation of the rule if it overstepped boundaries that the Administration has said it will not cross, such as increasing regulation of ditches.  The Edwards amendment was voted down, 167-248, with Republicans arguing that it would have gutted the underlying legislation.

The second amendment, which was offered by Rep. Dan Kildee of Michigan, was approved by voice vote.  The Kildee amendment creates a window of time after a rule is finalized during which states that administer key Clean Water Act programs can bring their programs into compliance with the new standards. 

The fight over the WOTUS rule now moves to the Senate.  Recently, Senators John Barrasso (R-WY) and Joe Donnelly (D-IN) introduced legislation (S. 1140) which would set a series of criteria that any new rule pertaining to the Clean Water Act would have to meet, with the effect of sending the Obama administration back to the drawing board with its current regulation.  The Senate Environment and Public Works Committee will be holding a hearing on this legislation next week. 

Local Government Climate Adaptation Training Module Released Online

The U.S. Environmental Protection Agency (EPA) has released an online training module to help local government officials take actions to increase their communities' resiliency to a changing climate. The virtual training, which lasts about 30 minutes, was developed with advice from EPA's Local Government Advisory Committee. It illustrates how a changing climate may affect a variety of environmental and public health services, describes how different communities are already adapting to climate-related challenges, and links to a number of federal and state resources that can help communities assess their unique climate-related risks and opportunities to become more resilient to climate change. Local officials can access the training online or via the Climate Resilience Toolkit.

State Water Board Bay-Delta Drought Workshop

The State Water Resources Control Board (State Water Board) will hold a public  workshop on Wednesday, May 20 in Sacramento to receive public comment regarding the State Water Board’s drought related activities  in the Bay-Delta watershed.  These activities include actions the State Water Board has taken or may take in the future.  The anticipated primary topics are:  the Temporary Urgency Change Petition to Modify Bay-Delta Requirements (TUCP), the Temporary Emergency Drought Barrier, and Water Right Curtailments. 

Click here. 

CWC Public Workshop Scheduled

The California Water Commission (CWC) has scheduled a public workshop on the Water Storage Investment Program (WSIP) on May 20 in Sacramento.  The objective of the workshop is to help the public understand eligibility criteria, apply eligibility criteria to project ideas, and understand the proposed framework for quantifying public benefits. 

Click here.

Proposition 1 Implementation Schedule

The Bond Accountability Proposition 1 Implementation Schedule has been updated. 

Click here.

Legislative Update

AB 288 (Holden): Public Schools: College and Career Access Pathways.  Assembly Bill 288 would establish the Career Access Pathways Act and expand access to concurrent enrollment programs for students by allowing college courses to be offered on high school campuses.  Status: AB 288 was placed on the Assembly Appropriations Suspense File.  RCRC Position: Support 

AB 590 (Dahle): Greenhouse Gas Reduction Fund.  Assembly Bill 590 would establish the Biomass State Cost Share Account within the Greenhouse Gas Reduction Fund (GGRF).  Status: AB 590 was placed on the Assembly Appropriations Suspense File.  RCRC Position: Support 

AB 851 (Mayes): Local Government: Organization: Disincorporation.  Assembly Bill 851 would establish procedures for a disincorporation, which includes the city providing a written statement which certifies information regarding its indebtedness and revenues available,  and provides procedures for the successor agency including land use guidelines, financial responsibilites, and other governmental  procedures to ensure an orderly transition of services and responsibilities.  Status: Gained passage in the Assembly Appropriations Committee.  RCRC Position: Support in Concept

AB 889 (Chang): Concurrent Enrollment in School and Community Colleges.  Assembly Bill 889 would allow students to concurrently enroll in Science, Technology, Engineering, and Math (STEM) courses at the community college level provided certain requirements are met.  AB 889 will open up more options for rural high school students who choose to study within the STEM fields, allowing them greater access to educational opportunities and helping to strengthen California’s technology workforce.  Status: AB 889 was placed on the Assembly Appropriations Suspense File.  RCRC Position: Support

AB 1390 (Alejo): Groundwater: Adjudication.  Assembly Bill 1390 would streamline procedures used in a legal action to obtain a basin-wide adjudication of groundwater rights.  Among the issues of concern to counties is that the bill makes counties automatic parties to the adjudication regardless of whether the county has an interest in the adjudication action or not, and the requirement that notice of the adjudication action and form answer be distributed via property tax bills.  Status: Gained passage in the Assembly Appropriations Committee.  RCRC Position: Concerns

SB 506 (Fuller): Economic Development: Military and Aerospace. Senate Bill 506 would create the Military and Aerospace (MA) Program within the Governor's Office of Business and Economic Development (GO-Biz).  Status:  SB 506 was placed on the Senate Appropriations Suspense File.  RCRC Position: Support 

Keeping Up

Greg Norton has been appointed to the California International Trade and Investment Advisory Council. Norton has been president and chief executive officer at the Rural County Representatives of California since 2006, where he has held several positions since 2000, including executive vice president. This position does not require Senate confirmation and the compensation is $100 per diem.