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Home My WebLink About97.Item 5 PPP LaPA 09-11-17 - State Leg UpdateWWW.TOWNSENDPA.COM SACRAMENTO • WASHINGTON, DC SOUTHERN CALIFORNIA • NORTHERN CALIFORNIA TPA Presentation to: Orange County Sanitation District September 11, 2017 Slide 2 2017-18 Legislative Session September 15 –Last day for any bill to be passed October 15 –Last day for the Governor to sign or veto legislation Slide 3 2017-18 Legislative Session Major topics being discussed in Sacramento: –Affordable Housing Funding Package –Cap and Trade Expenditure Plan –2018 Park Bonds Slide 4 Affordable Housing Funding •SB 2 (Atkins) –Two Thirds Vote –Would impose a fee of $75 on every real estate instrument, paper, or notice required or permitted by law –The maximum fee per single parcel will not exceed $225 –Unclear if Democrats have the two-thirds vote in the Assembly •SB 3 (Beall) –Two Thirds Vote –Would authorize $4 billion in general obligation bonds for affordable housing construction –Includes $1 billion of new funding for the CalVet Home Loan Program •SB 35 (Wiener) -Majority Vote –Would create a streamlined, ministerial approval process for the development of multi-family housing if the development meets specified requirements –Not applicable to local governments that have met their regional housing needs assessment (RNHA) •Status –The Affordable Housing Funding Package is pending approval by the Legislature Slide 5 Cap and Trade Extension Package •AB 398 (Garcia) –Two Thirds Vote –Extends the existing Cap and Trade program until December 31, 2030 –Extends, and expands upon the 3.94 percent state sales and use tax (SUT) exemption available to qualified manufacturers for eight years –Suspends the State Responsibility Area (SRA) fire prevention fee from until January 1, 2031 •AB 617 (C. Garcia) –Majority Vote –Develops a uniform, statewide system of annual reporting of emissions of criteria air pollutants and toxic air contaminants –Increases penalties for air pollution violations and requires the ARB to adopt a statewide emissions reduction strategy targeting pollution-burdened communities •ACA 1 (Mayes) –Two Thirds Vote –Requires that any revenue generated from Cap and Trade auctions after January 1, 2024 be subject to a two-thirds vote for appropriation –Following the two-thirds appropriation of funds, Cap and Trade appropriations will revert to back to a majority vote •Status –Signed into law by the Governor in July Slide 6 Cap and Trade Expenditure Plan •The Governor’s January Budget initially proposed a $2.2 billion Cap and Trade Expenditure Plan •The Governor stated he would only appropriate Cap and Trade funding after the program had been extended to 2030 •After the extension in July, the Governor released a $1.5 billion draft expenditure plan •The draft expenditure plan includes: –$600 million for low carbon transportation projects –$350 million for the implementation of AB 617 (C. Garcia) –$40 million for waste diversion projects •The Legislature is expected to negotiate a deal prior to the September 15 deadline Slide 7 2018 Park Bonds •Recent amendments to SB 5 removed additional funding for the Integrated Regional Water Management (IRWM) Program •Timing –Would appear on the June 5, 2018 ballot if passed by the Legislature and signed by the Governor •OCSD Legislative Platform Connection –Legislative and Regulatory Policies –Funding assistance for OCSD projects through grants, appropriations, or other means Bill Total $Water Funding? Specific Funding AB 18 (Garcia) – Support if amended $3.5 billion No N/A SB 5 (De Leon) - Support $4 billion Yes $250 million: Drinking Water $80 million: Groundwater Sustainability $290 million: Regional Sustainability and Water Recycling Slide 8 AB 574 (Quirk) -Support •Would require the SWRCB to establish a framework for the regulation of potable reuse •Would require the SWRCB,on or before December 31,2023,to adopt uniform water recycling criteria for potable reuse through raw water augmentation •Requires the SWRCB to establish and administer an expert review panel to review proposed criteria •Status –Currently on the Governor’s desk •OCSD Legislative Platform Connection –Legislative and Regulatory Policies –Support measures that promote and provide for the use of reclaimed water Slide 9 AB 967 (Gloria) -Watch •Expands the allowable uses of the alkaline hydrolysis process (watercremation)to include use for after-life care –Requires alkaline hydrolysis chamber manufactures to apply to the DepartmentofPublicHealthforapprovalofachamberiftheywishtoreceiveahydrolysisfacilitylicense •Prohibits the discharge of any residual effluent of the hydrolysis process tothemunicipalsewersystemwithoutapermitfromthepubliclyownedtreatmentworkstowhichthesanitarysewersystemorcollectionsystemistributary •Status –Currently on the Senate Floor •OCSD Legislative Platform Connection –Legislative and Regulatory Policies –Support (generally) measures that provide for improved public health through regulation Slide 10 AB 1479 (Bonta) -Oppose •Would require public agencies to designate a person or office to act as the agency’s custodian of records who is responsible for responding to any request made pursuant to the California Public Records Act •The designation of a custodian of records does not impose a duty upon a requester to direct the request to a designated custodian •Amendments to the bill removed civil penalties for agencies that do not comply •Status –Currently on the Governor’s Desk •OCSD Legislative Platform Connection –Legislative and Regulatory Policies –Oppose the imposition of unfunded, mandated programs on local governments Slide 11 SB 623 (Monning) -Watch •Would establish the Safe and Affordable Drinking Water Fund for expenditurebytheSWRCB •Would require the Board to expend moneys in the fund for grants,loans,contracts,or services to assist those without access to safe and affordabledrinkingwater •Prior to the Summer Recess,the author indicated he would insert a tax onwaterasfundingsourcefortheFund •On August 21,the bill was amended to assess a fee on each customer of apublicwatersystembetween$0.95 and $10 per month •Status –Held in the Assembly Appropriations Committee and is now a two-year bill •OCSD Legislative Platform Connection –Legislative and Regulatory Policies –Oppose the imposition of unfunded, mandated programs on local governments Slide 12 Little Hoover Commission •On August 30,the Little Hoover Commission presented their final report on independent special districts to the Legislature •The report and its corresponding recommendations mainly focused on special district transparency and LAFCO reforms •The recommendations in the report include: –A state funded study to assess the effect of requiring real estate transactions to trigger an inspection of sewer lines on the property and require repairs if broken –Special districts should have a published policy for reserve funds, including the size and purpose of reserves and how they are invested –Legislature should adopt legislation to give LAFCO members fixed terms, to ease political pressures in controversial votes and enhance the independence of LAFCOs •The Legislature is not required to respond to the report or implement any of the recommendations Slide 13 OCSD Tours TPA has scheduled the following tours of Plant 1 in Fountain Valley: Status Date Time Assembly Member Sharon Quirk-Silva July 26 9:00 a.m. Assembly Member Phillip Chen August 4 1:30 p.m. Senator Josh Newman Pending Pending State Water Resources Control Board Vice-Chair Steven Moore November 2 3:00 p.m. Slide 14 Thank You Cori Williams Eric O’Donnell Southern California Director Associate cwilliams@townsendpa.com eodonnell@townsendpa.com www.townsendpa.com www.townsendpa.com