The Barbed Wire - December 18, 2015

December 18, 2015
Constitutional Amendment to Amend Proposition 218 Filed
Funds to Help Private Well Owners and Small Water Systems
President Signs Fiscal Year 2016 Omnibus Spending Package
Wildfire Budget Fix Stamped Out for Now
BULLETIN BOARD
KEEPING UP
REGULATORY UPDATE

Constitutional Amendment to Amend Proposition 218 Filed

A coalition including the Association of California Water Agencies, the California State Association of Counties, and the League of California Cities has filed a constitutional amendment that would create a new, optional funding method local agencies could use at their discretion to finance stormwater, flood control, and other water-related projects, and pursue conservation-based water rates or lifeline rates for low-income households.  

The measure was submitted to the Attorney General’s office on December 14, 2015 for title and summary as a potential statewide ballot initiative.  According to the coalition, the proposed constitutional amendment is designed to enhance the ability of local agencies to finance stormwater capture and flood control infrastructure, provide more flexibility for the voluntary establishment of conservation-based rates, and to allow agencies, at their discretion, to implement lifeline rates for low-income households. 

Specifically, the measure would amend Article X of the California Constitution to create the optional mechanism, which local agencies would not be required to utilize.  It includes strict accountability and transparency requirements for any local agency that chooses to avail itself of the new funding method.

Article X of the state Constitution deals specifically with management of the state’s water supplies.  The proposed amendment seeks to create an optional funding method in Article X while at the same preserving the ability for public agencies to continue establishing rates under existing law found in Article XIII D.  The proposal is structured to maximize the discretion of local agencies to set rates that work for their constituencies.

Coalition members intend to make a determination in the coming months whether to proceed with the measure.  The coalition also intends to pursue a legislative strategy in early 2016.  The measure as submitted can be accessed here.

Funds to Help Private Well Owners and Small Water Systems

This week, the State Water Resources Control Board (State Water Board) adopted a resolution authorizing the allocations of $5 million to help residents on private wells and small water systems who are facing water emergencies.  

The funds will be administered by nonprofit organizations to help individuals that have an immediate drought-related water shortage or outage.  The $5 million will fund interim and permanent solutions such as new wells, well rehabilitation, and consolidation into now or existing public water systems.  Nonprofit organizations must prioritize funds to serve disadvantaged individuals or communities with an annual median household income less than 80 percent of the statewide median household income, but may provide assistance to other communities as well.

The resolution can be accessed here.  

President Signs Fiscal Year 2016 Omnibus Spending Package

This week, President Obama signed the Fiscal Year 2016 Omnibus Appropriations Act, which contains slightly more than $1.15 trillion to support a variety of government programs and services.  While the spending package does contain funding to support the Federal Payment in Lieu of Taxes program as we have been advocating for, it does not include key policy riders to address several issues that RCRC has worked on throughout the year.  The House adopted the FY 2016 Federal Omnibus spending package this morning in a 316-113 vote, followed by passage in the Senate with a 65-33 vote.  Below please find some of the key components of interest to California's rural counties.

Federal Payment in Lieu of Taxes Program

The FY 16 Federal Omnibus spending package contains $452 million in spending authority for the Federal Payment in Lieu of Taxes (PILT).  California receives approximately $40 million annually in Federal PILT to support a variety of local government programs and services, including police and fire departments, emergency medical services, and search and rescue operations.  RCRC staff and our federal advocates worked throughout the year to secure this funding as part of the annual appropriations process.  Earlier this year, RCRC staff initiated a multi-pronged advocacy and media strategy that included passage of 30 local county resolutions urging Congress to reauthorize and fully fund the Federal PILT program.  These efforts advanced our federal advocacy messaging and helped secure funding for Federal PILT as part of the FY 16 spending package. 

Federal Secure Rural Schools

The Federal Secure Rural Schools (SRS) program was not funded through the FY 16 Omnibus spending package.  The Federal SRS program provides funding for forested counties and school districts to replace revenue lost from dwindling forest receipts due to the national decline in timber harvesting.  RCRC staff and our federal advocates continue to advocate for a long-term reauthorization and will work to explore alternatives to the current payment structure and long-term funding model.

Tribal Acknowledgement

The FY 16 Federal Omnibus spending package does not include a policy rider to halt a tribal acknowledgment rule adopted earlier this year.  While the final rule included improvements advocated by RCRC, it nevertheless lowers the standard for recognizing new Indian tribes, potentially increasing the number of tribes in California.  Separate legislation to address the Carcieri v. Salazar U.S. Supreme Court decision that invalidated the Federal Fee-to-Trust land acquisition process for tribes recognized after 1934 recently passed the Senate Indian Affairs Committee and is awaiting consideration by the full Senate.  S. 1879 was modified to address many concerns raised by RCRC, and we will seek additional amendments when the legislation is considered by the full Senate.  Meanwhile the House Natural Resources Committee has conducted two hearings on draft legislation to reform the tribal acknowledgment process, transferring final decisions to Congress rather than the Bureau of Indian Affairs.

Wildfire Funding

Congress was unable to reach an agreement to reform how the United States Forest Service and the United States Department of the Interior fund wildfire prevention and suppression activities as part of the FY 16 Omnibus spending package.  However, the final spending package does include increases in funding to support wildfire operations.  Specifically, the Omnibus provides $4.2 billion in wildfire fighting and prevention programs, which is estimated to be roughly $670 million above FY 2015 funding levels.  Additionally, the measure includes $545 million for hazardous fuels reduction and $360 million for forest health activities.  While additional funding to cover this year’s budget shortfall is a necessary and welcome fix, RCRC will continue to push for a permanent solution to the funding dysfunction of wildfire disasters at the federal level.

Waters of the United States

Despite best efforts and support from Congressional leaders, the FY 16 Omnibus does not contain any policy riders to prevent the United States Environmental Protection Agency and the United States Army Corps of Engineers from implementing the highly controversial Federal Waters of the United States (WOTUS) regulations.  While the WOTUS regulations are currently suspended pending review by various federal courts, RCRC staff and our federal advocates will continue to support advocacy efforts that prevent WOTUS implementation.

Health Insurance Cadillac Tax

The FY 16 Omnibus spending package includes a policy rider that postpones implementation of the ‘Cadillac Tax’ on certain health insurance plans established through The Patient Protection and Affordable Care Act.  The Cadillac Tax would assess a 40 percent tax on all high-priced employer health insurance plans in excess of specific funding thresholds, which is intended to drive down overall health insurance costs.  The policy rider contained in the spending package will delay implementation of the Cadillac tax from 2018 to 2020.

Grazing Fees and Permits

The FY 16 Federal Omnibus spending package includes several provisions to ease the regulatory and fiscal burden on ranching operations.  Those provisions include an extension of grazing permits on USDA Forest Service lands through 2016 and a $1.5 million increase for Range Management to continue working on the backlog of grazing permit applications.  The package also omits a proposal by the Administration to levy $22.5 million in new grazing fees on Bureau of Land Management and USDA Forest Service Lands.

Wildfire Budget Fix Stamped Out for Now

With Congress passing a $1.15 trillion spending bill, many in western states are wondering how the United States Forest Service (USFS) budget fix was left out of the federal funding compromise.  Supporters of the Wildfire Disaster Funding Act (WDFA) are certainly disappointed it was not included in the Omnibus spending bill that will keep the government funded through the end of the fiscal year.  

WDFA, the bill that would give USFS and the Department of the Interior (DOI) access to disaster funds in order to fight the 1 percent of fires that are the most expensive, had become immensely popular throughout the western U.S. because the budget fix would allow the USFS to fully fund the prevention projects that help keep forests from catastrophic fires.  Momentum for WDFA peaked recently when a bipartisan group of western Senators negotiated a deal with the Obama administration to include forest management provisions with the WDFA.  The deal was announced in time to be included in the Omnibus.  However, the deal fell apart when Senate Energy and Natural Resource Committee leaders could not support the brokered deal, mainly due to environmental concerns.  In the end, the USFS and DOI received a large increase in wildfire suppression funds in the Omnibus.  The agencies will together have more than $2.3 billion to fight wildfires this fiscal year, resulting in the largest appropriation for wildfire suppression from Congress in years.  Supporters of the WDFA will refocus attention on next year as Congress is set to adjourn for the year after passage of the Omnibus. 

BULLETIN BOARD

RCRC Reception and Installation of 2016 Officers

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Department of Finance Releases Population Update

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KEEPING UP

Janice L. Waddell Appointed State Director of USDA Rural Development

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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 Exceptional Events Rule Revisions and Draft Wildfire Guidance: Revises the Exceptional Events Rule to clarify demonstration of events such as prescribed burns and wildfires, provides guidance to air agencies on procedures.  Agency: United States Environmental Protection Agency Status: Draft available for public comment, comments due January 19, 2016.  Proposed regulatory language and related documents can be accessed here.  RCRC Comments: RCRC is seeking member county input.  RCRC Advocate: Staci Heaton sheaton@rcrcnet.org

Draft Conservation Plan for Gray Wolves in California: Provides strategies and potential actions for the management and conservation of gray wolves in California.  Agency: California Department of Fish and Wildlife Status: Draft available for public comment, comments due February 15, 2016.  Draft plan and related documents can be accessed here.  RCRC Comments: RCRC is seeking member county input.  RCRC Advocate: Staci Heaton sheaton@rcrcnet.org