The Barbed Wire - February 21, 2014

California Drought Takes Center Stage with State and Federal Policy-Makers

In the weeks since Governor Brown declared a statewide drought emergency on January 17, state and federal officials have launched several efforts to provide assistance to farmers, ranchers, and communities who have been impacted by drought conditions.

Last week, President Obama visited Fresno and announced a drought aid package for California which will provide an additional $100 million in assistance, through the 2014 Farm Bill - Livestock Forage Disaster Program, to California’s livestock producers who have been impacted by the drought crisis. President Obama was joined by Governor Brown and USDA Secretary Tom Vilsack. The USDA has made this a top priority, and plans to have the programs available for sign up by April 15, 2014.  

Additional information on the program and how to sign-up can be accessed here.

On the same day the President toured drought-affected areas, the Association of California Water Agencies (ACWA) and other entities sponsored a briefing, 2014 Drought - Impacts and Actions: What You Need to Know in Sacramento. Nearly 175 attended the briefing, including RCRC staff, where federal, state and local officials discussed the local impacts the drought is having on the state, ways to effectively manage the crisis and current efforts being undertaken to address the crisis. Panelists included members of the Governor’s Drought Task Force, Bureau of Reclamation, Department of Forestry and Fire Protection, California Farm Bureau and the Department of Water Resources.

Materials and presentations from the briefing can be accessed here.

As reported in last week’s Barbed Wire, Senators Dianne Feinstein and Barbara Boxer introduced the California Emergency Drought Relief Act of 2014 which would increase funding for drought assistance programs and provide more flexibility within existing law to deliver water, transfer water, and provide additional emergency funding for water supply projects.

A summary of the bill can be accessed here.

This week, Governor Brown joined Senate President Pro Tem Darrell Steinberg and Assembly Speaker John Perez to announce legislation to help communities dealing with the impacts of the drought and provide funding to increase local water supplies. The legislation proposes $687.4 million in funding from previously authorized bond funds, the Greenhouse Gas Reduction Fund, and the General Fund. The bill will, among other things, fund infrastructure grants for local and regional projects that increase local reliability, fund direct expenditures and grants to state and local agencies to improve water use efficiency, fund assistance to disadvantaged communities with groundwater contamination and grants for state and local agencies to implement residential, commercial or institutional water use efficiency projects. General Fund monies will be used, among other things, for the Emergency Drinking Water Fund to address emergency water shortages due to the drought and for food assistance for those impacted by the drought. Several of these proposals included were proposed in the Governor’s January Budget, but will now be expedited. 

For additional information, please contact RCRC Legislative Advocate Cyndi Hillery at 916.447.4806 or chillery@rcrcnet.org or RCRC Legislative Advocate Kathy Mannion at 916.447.4806 or kmannion@rcrcnet.org.

Legislature Hears About the Plight of Fairs

This week, the Joint Committee on Fairs, Allocation and Classification (Committee) held an informational hearing on California Fairs to address the fact that many fairs are struggling in light of minimal state financial support.  Assembly Member Susan Eggman (D-San Joaquin), the Committee Chair, stated she wanted to get a better understanding of the most pressing needs of the fair network and work collectively to meet those needs.

Members of the Committee heard from a variety of panelists that are directly involved in the network of fairs.  A common thread throughout all the testimony was the need to invest in infrastructure, such as sewer and water systems, updating buildings, and bringing them into compliance with disabled access laws.

Aside from funding, Assembly Member Eggman inquired into what administrative changes could be implemented to provide some cost-relief to the fairs.  John Quiroz of the California Department of Food & Agriculture (CDFA) - Division of Fairs and Expositions outlined a variety of efforts that have been put in place by CDFA to reduce overhead costs, including the ability to conduct “financial reviews” in lieu of full-scale audits and a reduction in many of the mandatory reports each fair must submit to the state.

Assembly Members Brian Dahle (R-Lassen) and Frank Bigelow (R-Madera) stressed the importance of the fairs and fairgrounds in rural areas.  These facilities are often the only place for community events and serve a vital public safety role - warming and cooling centers for the community during harsh weather and as staging facilities during disasters/emergencies.

In closing, Assembly Member Eggman thanked all the panelists and stated that work needs to be done to address the infrastructure needs.

For additional information, please contact RCRC Legislative Analyst Nick Konovaloff at 916.447.4806 or nkonovaloff@rcrcnet.org or RCRC Senior Legislative Advocate Paul A. Smith at 916.447.4806 or psmith@rcrcnet.org.

Air Resources Board Releases Proposed Update to the AB 32 Scoping Plan

The California Air Resources Board (ARB) has released the Proposed First Update to the AB 32 Scoping Plan for public review and comment.  A discussion draft was released in late 2013 which featured consideration of tougher regulations on landfills, a proposal to employ greater regulatory oversight to groundwater management, and a very limited plan to restore Williamson Act subventions to at-risk agricultural and rangelands on the urban/suburban edge. The discussion draft also featured a markedly deficient plan for the forest sector, with no goals of fuels treatment programs or wildfire prevention measures in the short term.

The Proposed First Update maintains the aggressive regulatory plan for the waste management sector, and has been updated to include drought measures and a proposal to modify water policies and permits to promote water conservation and recycling. The Proposed First Update also includes the development of a “Forest Carbon Plan” to set targets and evaluate strategies to increase net carbon storage in the forests, as well as plans to establish an investment working group to evaluate funding needs, opportunities and priorities in the natural and working lands sector.

Interested parties can file comments now at the ARB website, but a final due date will be set for late April 2014 with the release of the Scoping Plan Economic Analysis in March.  All Scoping Plan documents, as well as instructions on how to file comments, can be accessed here.

For additional information, please contact RCRC Regulatory Affairs Advocate Staci Heaton at 916.447.4806 or sheaton@rcrcnet.org.

Legislation Introduced to Repeal Medi-Cal Reimbursement Rate Cuts

This week, Assembly Member Nancy Skinner (D-Berkeley) and Assembly Member Richard Pan (D-Sacramento) announced the introduction of two bills, Assembly Bill 1805 (Skinner and Pan) and Assembly Bill 1759 (Pan), which seeks to stabilize the Medi-Cal reimbursement rates. The Assembly Members were joined at a press conference by members of a coalition formed to fight Medi-Cal reimbursement rate cuts, which included the California Medical Association (CMA), California Hospital Association (CHA), and RCRC. 

Assembly Bill 97, a 2011-12 state Budget Trailer Bill, was passed by the Legislature and approved by Governor Brown in 2011.  The measure cut rates to a variety of Medi-Cal providers, including Distinct Part/Skilled Nursing Facilities (DP/SNFs), pharmacies, and other fee-for-service Medi-Cal activities by 10 percent off of the 2008 reimbursement rates.  While certain providers were exempted from the “going forward” rate cuts at the end of last year, the Governor’s 2014-15 Budget proposal would prevent other health care providers from having to repay the 10 percent reimbursement rate cut retroactive to 2011.  Those providers exempted from the ongoing rate cuts will still face this clawback and while the others will still face the future rate cuts if additional action is not taken.

AB 1759 (Pan) would make permanent the temporary match of Medi-Cal primary care provider rates to those of Medicare primary care providers. AB 1805 (Skinner and Pan) would repeal the provider rate reductions as instituted by AB 97. The fact that Assembly Member Skinner, the current Assembly Budget Chair, is willing to author language that deals directly with a Budget issue, sends a strong message that leadership is making resolution of this issue a priority for the coming year.

Payment reductions of this scale threaten the accessibility of services to individuals who reside in rural and medically underserved areas. The DP/SNF rate cuts, in particular, disproportionately impact rural county hospitals that are often dependent upon their DP/SNF population to support baseline funding for the whole hospital, ultimately leading to closure of the facility altogether, further exacerbating the existing access issue in rural areas.

AB 1805 (Skinner and Pan) can be accessed here. AB 1758 (Pan) can be accessed here.

For additional information, please contact RCRC Legislative Advocate Cyndi Hillery at 916.447.4806 or chillery@rcrcnet.org.

New CalPERS Costs To Be Borne By Local Governments

Earlier this week, the Board of Directors of the California Public Employees Retirement System (CalPERS) adopted new actuarial assumptions.  These assumptions stem from recent staff reviews of the overall system and needs associated with providing benefits to its members.  The adoption of these new assumptions will result in employer (local government members and the State of California) contribution rates increasing. 

The CalPERS Board of Directors also decided to implement a payment scheme to meet these obligations.  Local governments will utilize the “20-5” option whereby the increased costs to local governments will be paid over 20 years with a five year ramp-up and a five year ramp-down.  Two alternative options for local governments were considered – a “20-7” scheme or a “30-5” scheme – but neither of these options was adopted.  In adopting the 20-5 scheme, payments by local government members will commence in the 2016-17 Fiscal Year.  It should be noted that local governments do have the option to pay these new liabilities in advance to minimize finance costs.

RCRC expressed its concern in a letter to CalPERS last week advocating that the Board adopt the most flexible options to meet the varying conditions that exist amongst RCRC members.  Some counties will have the means to pay their entire obligation in a short time frame, while there may be others that cannot meet this obligation without significant impacts on other county priorities.  As such, RCRC encouraged CalPERS to adopt policies that account for this variation.

It should be noted that CalPERS adopted a different payment scheme for the State.  At the urging of Governor Brown, the State’s obligations will be met with a three year ramp-up and payments will commence in the coming fiscal year.  This minimizes the State’s financing costs, although it is expected to cost nearly $400 million in the coming fiscal year.

RCRC’s letter can be accessed here.

For additional information, please contact RCRC President/CEO Greg Norton at 916.447.4806 or RCRC Senior Legislative Advocate Paul A. Smith at 916.447.4806 or psmith@rcrcnet.org.

State Water Board Seeks Comments on Final Industrial General Stormwater Permit

The State Water Board has released the final draft of the Industrial General Stormwater Permit for public comment. The Permit covers a wide range of facilities engaged in “industrial” activities, many of which are facility types operated by local governments. Covered operations include landfills, wastewater treatment plants, transportation maintenance facilities, and recycling facilities.

The Permit has gone through a multi-year process of amendments and stakeholder meetings after the release of an extremely controversial and widely-derided initial draft in January 2011. That initial draft would have resulted in high implementation costs and imposed such strict requirements that compliance would have been nearly impossible for most covered facilities. After a legislative hearing on the draft, as well as an initial round of public comment, Water Board staff worked diligently with stakeholders, including RCRC, to ultimately craft a permit that sets feasible requirements to achieve water quality improvement goals. Comments are being accepted only on the changes made to the Permit since July 2013, and must be submitted by noon on March 4, 2014.

The Permit, supporting documentation and instructions for filing comments can be found on the Water Board website.

For additional information, please contact RCRC Regulatory Affairs Advocate Staci Heaton at 916.447.4806 or sheaton@rcrcnet.org.

Wolk Water Bond Passes Second Policy Committee

This week, the Senate Environmental Quality Committee passed Senate Bill 848 by Senator Wolk on a 7-2 vote. The primary focus of the hearing was the provisions of the bond dealing with water quality.  The two Republicans who cast “no” votes expressed concerns with the dollar amount allocated for the public benefits associated with storage and the lack of a “continuous appropriation” for those funds.  All members of the committee expressed an interest in working with Senator Wolk on the bond.  It was suggested that perhaps language could be developed to provide assurances to those concerned with the lack of continuous appropriation language that the funds would be made available for approved water storage projects.  

Both SB 848 and newly proposed drought legislation would allocate unappropriated funds from previously passed bonds.  Senator Wolk indicated that she anticipated SB 848 would complement the new effort.

In her closing comments, Senator Wolk indicated that she was considering adding a specific allocation for the Mountain Counties Overlay, as delineated in the California Water Plan, which is one of the amendments suggested by RCRC.    A number of amendments suggested by the committee consultant were made to the bill which will be heard next week in the Senate Finance and Governance Committee.

For additional information, please contact RCRC Legislative Advocate Kathy Mannion at 916.447.4806 or kmannion@rcrcnet.org.

Drought Water Exchange Petition Request

Due to the drought, the California Department of Water Resources (DWR) and the Bureau of Reclamation (Reclamation) are requesting permission to exchange water within areas served by the State Water Project and the federally managed Central Valley Project.  DWR and Reclamation have filed a “temporary change petition” with the State Water Resources Control Board. The one-year waiver would cover exchanges not exceeding 277,863 acre-feet. 

According to DWR, the requested change would provide “operational flexibility” for the federal and state water projects and would not result in a net increase in the amount of water diverted from the Delta or a net loss of the Sacramento and San Joaquin river flows.

The petition would authorize water exchanges for the Santa Clara Valley Water District, Metropolitan Water District of Southern California, Kern County Water Agency, Westlands Water District, Arvin-Edison Water Storage District, Kern Tulare Water District, Oak Flat Water District, Del Puerto Water District, Musco Olive Products, and the Veterans National Cemetery.  According to DWR, the petition would allow the Santa Clara Valley Water District to change the delivery point for up 130,000 acre-feet of supplies.

The State Water Board is expected to act on the petition by March 28. 

For additional information, please contact RCRC Legislative Advocate Kathy Mannion at 916.447.4806 or kmannion@rcrcnet.org.

Nominations Open for the Annual California Transportation Foundation Awards

The California Transportation Foundation (CTF) recently announced that nominations are open for the 2014 Annual CTF Transportation Awards.  CTF will award individuals and organizations for transportation achievement and transportation projects and programs for excellence in transportation.  RCRC encourages counties to submit nominations for the various award categories.  Nominations are now open through Monday, March 3, 2014, and the annual CTF awards luncheon is scheduled for Thursday, May 22, 2014.

For additional information, please contact RCRC Legislative Analyst Randall Echevarria at 916.447.4806 or rechevarria@rcrcnet.org.

Events/Notices

California Fire Safe Council Announces 2014 Clearinghouse Grants

This year, the California Fire Safe Council, the entity that operates the federal Clearinghouse for federal land management agency funds allocated for local fire prevention projects, funded 38 grants out of a submitted 84. Over $4 million in grants to treat a projected almost 18,000 acres were awarded. Projects in 30 California counties, including 13 RCRC member counties, were funded. 

The details on the projects can be accessed here.

For additional information regarding this grant cycle or the clearinghouse, please contact RCRC Legislative Advocate Cyndi Hillery at 916.447.4806 or chillery@rcrcnet.org.

Caltrans Active Transportation Program Training

The California Department of Transportation, in conjunction with the Division of Local Assistance Offices, will host a series of local workshops for California’s newly established Active Transportation Program (ATP).  The workshop will provide technical advice and support for potential ATP applicants, partners, and district staff.  For the most current draft (January 2014) of the ATP criteria and guidelines, please visit the California Transportation Commission’s ATP website.

The workshops schedule can be accessed here.

For additional information, please contact RCRC Legislative Analyst Randall Echevarria at 916.447.4806 or rechevarria@rcrcnet.org.