Barbed Wire - November 7, 2014

November 7, 2014
2014 Statewide General Election Summary
Governmental Accounting Standards Board Pursues Transparency for Tax Abatements by Governments
State Board of Food and Agriculture Discusses Drought Planning and Groundwater Management
Update on the Condition of California’s Major Reservoirs
Assembly Republican Caucus Reaffirms Election of Kristin Olsen as Leader
Flawed Tool Disadvantages Most RCRC Member Counties from Cap and Trade Funds
CDFA Accepting Proposals for Specialty Crop Block Grant Program
2014 Midterm Elections
EVENTS/NOTICES
REGULATORY UPDATE

2014 Statewide General Election Summary

In addition to the change in partisan control of the U.S. Senate, and the Republican gains in the U.S. House of Representatives, California Republicans saw some gains in the State Legislature.  The GOP was able to secure a net gain of three seats in the State Assembly, thereby eroding the Democrats’ 2/3rds majority.  In the State Senate, the Republicans were able to pick-up a net gain of one seat to permanently deny a Democratic 2/3rds majority in the State Senate (the Democrats effectively lost their 2/3rds majority earlier in the year to the suspension of several Democrat members on a variety of ethics charges).  While the gains were made in the Legislature by Republicans, it should be noted that Democrats won and continue to hold all statewide constitutional offices.  Furthermore, it appears that Republicans will gain a few seats in California’s House of Representatives delegation, although all of these races remain undecided awaiting additional ballot counts.

In addition to elected offices, California voters faced decisions on critical policy issues contained in six ballot initiatives.  The RCRC Board of Directors took official positions on four of the Propositions: 1, 2, 46, and 47.  The RCRC Board of Directors voted to support Propositions 1 and 2, and oppose Propositions 46 and 47.  Propositions 1, 2, and 47 passed, while Proposition 46 failed. 

Proposition 1, the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Water Bond) will authorize the issuance of bonds in the amount of $7.120 billion, with $2.7 billion allocated specifically for water storage. 

Proposition 2, known as the Rainy Day Fund, will require the State to divert funds in good fiscal years to the Budget Stabilization Account, to ensure State programs have funding in years of fiscal decline.  Both measures, strongly supported by Governor Brown, easily obtained voter approval.

Proposition 46, the trial lawyer sponsored measure to alter the Medical Injury Compensation Reform Act (MICRA) would have quadrupled the cap on non-economic damages in medical liability lawsuits from $250,000 to $1.1 million, with annual increases going forward.  The independent Legislative Analyst’s Office (LAO) calculated that Proposition 46 would have significantly increased healthcare costs for state and local governments by “hundreds of millions of dollars annually.”  Proposition 46 was soundly defeated by nearly a 35-point margin.

Proposition 47, the Safe Neighborhoods and Schools Act, increases the number of individuals whose crimes will no longer be eligible for detention in State prisons, pushing these individuals into county jails due to Assembly Bill 109 (the criminal justice realignment law).  Proposition 47 will reduce penalties for a variety of specified offenses, and dedicate the purported state ‘savings’ from prosecuting and housing these offenders to programs that support K-12 schools, victim services, mental health, and drug treatment.  Proposition 47 passed.

Proposition 48 was a referendum on two specific Indian Gaming Compacts that were agreed to by the Governor and the Legislature.  Voters rejected Proposition 48, thereby rejecting both compacts.  RCRC did not take an official position on Proposition 48.

RCRC’s “2014 California County General Election Information Unofficial Results” spreadsheet can be accessed here.  This spreadsheet represents RCRC county data available as of November 6, 2014.

Governmental Accounting Standards Board Pursues Transparency for Tax Abatements by Governments

Late last week, the Governmental Accounting Standards Board (GASB) proposed new accounting rules that would require disclosures of tax abatements that governments provide to businesses and individuals.  Detailed information on the proposed rules can be accessed here.

State Board of Food and Agriculture Discusses Drought Planning and Groundwater Management

Earlier this week, the California State Board of Food and Agriculture (CDFA) brought in state and federal officials to discuss drought planning and groundwater management in light of 2015 looking to be another dry year.  Richard Howitt and Jay Lund of UC Davis indicated that both the urban and agricultural sectors have fared fairly well, while acknowledging there are pockets of pain and suffering in the state due to the drought.  The ability to manage the drought this past year was in part due to being able to utilize the groundwater to meet the needs of the state.  However, five million acre feet of groundwater was pumped this year to get through the drought, which will not be available going into 2015, and will make resource management much more difficult if it proves to be another dry year. 

According to Gordon Burns, Undersecretary of the California Department of Environmental Protection (CalEPA), the Administration may pursue a legislative effort to streamline the judicial adjudication of groundwater rights to create a faster, less expensive process.  Gordon also provided an update on the recently signed three bill package that comprised the groundwater management legislation.

The panelists agreed that perhaps the only good news is that the drought has brought many of the stakeholders and State and Federal Agencies out of their respective silos, and fostered a sense of urgency and cooperation to collaborate on issues regarding the drought.  The panelists’ presentations can be accessed here.

Update on the Condition of California’s Major Reservoirs

Despite some early precipitation, California’s major reservoirs remain in a tenuous condition.  As of November 4, 2014, 11 of California’s 12 major reservoirs are at less than 38 percent capacity, and 75 percent are at less than 20 percent capacity.  A detailed graph depicting the current condition of California’s reservoirs can be accessed here.

Assembly Republican Caucus Reaffirms Election of Kristin Olsen as Leader

The newly-elected members of the Assembly Republican Caucus met yesterday for the first time and reaffirmed the election of Assembly Member Kristin Olsen of Modesto to serve as the Assembly Republican Leader for the upcoming legislative session.  Assembly Member Olsen succeeds Assembly Member Connie Conway of Tulare, who will leave the Assembly at the end of November due to term limits.  Following today’s vote, Assembly Member Olsen released a video introduction highlighting her background and priorities as Republican Leader.  The video can be accessed here.

Flawed Tool Disadvantages Most RCRC Member Counties from Cap and Trade Funds

After weeks of taking public comment and working with the Office of Environmental Health Hazard Assessment (OEHHA), the California Environmental Protection Agency (CalEPA) announced on Friday, October 31, 2014 how it will set the definition of “disadvantaged communities” for the purposes of complying with Senate Bill 535 (De León).  The bill, passed in 2012, requires 25 percent of all Cap and Trade auction proceeds to be spent for the benefit of disadvantaged communities.  Ten percent of those funds must be spent on projects directly in those communities.  

The process of defining disadvantaged communities for the purposes of SB 535 has not been without controversy.  Even though it is not required in statute, CalEPA made clear early on that they would be using CalEnviroScreen to determine which communities would be eligible for the funds set aside by SB 535.  CalEnviroScreen is a tool which “scores” communities based on air quality, asthma incidents, unemployment, and a number of other factors.  The tool itself has come under fire from many stakeholders who call the methodology flawed, and an inaccurate predictor of what a disadvantaged community looks like.  During its development, the State assured stakeholders that CalEnviroScreen was only being developed as a tool for voluntary use in planning activities, and would not be mandated by the State.

Last Friday’s announcement revealed that CalEPA would consider the top 25 percent of “scoring” communities for SB 535 funds.  Those communities mainly include urban areas in Los Angeles, San Diego, and the Bay Area, the I-5 corridor of the Central Valley, and a large part of Imperial County.  Only two communities in the entire north part of the state will qualify under CalEPA’s definition, leaving many RCRC member counties to compete with urban and suburban counties for the remaining 75 percent of available funds.  RCRC has actively opposed the use of CalEnviroScreen to allocate Cap and Trade funding throughout the process, and will continue to pursue a more equitable, accurate way to define disadvantaged communities.

Detailed information, including maps of California’s disadvantaged communities as defined by CalEnviroScreen, can be accessed here.

CDFA Accepting Proposals for Specialty Crop Block Grant Program

The California Department of Food and Agriculture (CDFA) is now accepting proposals for the 2015 Specialty Crop Block Grant Program.  Specialty crops include fruits and vegetables, tree nuts, dried fruits, horticulture, and nursery crops.  Grant awards will range from $50,000 to $450,000 per project, and projects may last for up to two years and nine months.  Non-profit and for-profit organizations; local, state, federal, and tribal government entities; and public and private colleges and universities are eligible to apply. 

Detailed application instructions can be accessed here.  To expedite the application process, CDFA has partnered with the California State Water Resources Control Board (State Water Board) to utilize their online application site, the Financial Assistance Application Submittal Tool (FAAST).  Applicants must register for a FAAST account here.  Concept proposals must be submitted electronically using FAAST by Friday, December 5, 2014, at 5 p.m.

2014 Midterm Elections

Republicans picked up seven seats in the midterm elections, with results in three states still outstanding.  It is expected that Republicans will have 54 total seats, and Democrats will have 46.  In the House, Republicans added a net gain of at least 14 seats to their majority.  Currently, Republicans hold 244 seats, while Democrats hold 180.  Eleven additional House races, including seven in California, remain undecided.

Congress will return to session next week to hold leadership elections and wrap up legislative business for the 113th Congress.  Senator Mitch McConnell (R-KY) is likely to be elected Majority Leader, with Senator Harry Reid (D-NV) becoming the new Minority Leader.  Leadership in the House is likely to remain the same as well, with John Boehner (R-OH) remaining as Speaker, and Nancy Pelosi (D-CA) being re-elected as House Minority Leader. 

There are several issues that Congress could choose to take up during the lame duck session, including:

  • Fiscal Year 2015 appropriations
  • Presidential nominations (possibly Attorney General)
  • National Defense Authorization Act

Democrats will still be in control of the Senate during the lame duck session since the newly elected Members will not be sworn in until January 2015. 

EVENTS/NOTICES

CalPERS Schedules Employer Response Dialogues

This week, the California Public Employees’ Retirement System (CalPERS) announced the dates and locations for their 2015 Employer Response Dialogues.  The dates below are confirmed, and all meeting times are from 9:00 a.m. to 12:00 p.m.

  • January 13, 2015:    Fresno Regional Office
  • February 12, 2015:   Orange Regional Office
  • March 10, 2015:       San Jose Regional Office
  • April 10, 2015:         Glendale Regional Office
  • May 5, 2015:           San Diego Regional Office
  • July 9, 2015:           San Bernardino Regional Office
  • August 6, 2015:       Sacramento Regional Office
  • September 2, 2015:  Walnut Creek Regional Office

CARB Private Fleet “Truck and Bus” Exemption Deadline

Click here

2014 Drought Grants Awarded

Click here

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.  

Endangered and Threatened Wildlife and Plants; Threatened Species Status for West Coast Distinct Population Segment of Fisher: Proposes to list the west coast distinct population of fisher as threatened under the U.S. Endangered Species Act.  Agency: U.S. Fish and Wildlife Service Status: Draft published on October 7, 2014 for a 90-day comment period, comments due January 5, 2015.  Proposed regulation and related documents can be accessed hereRCRC Comments: Staff is seeking input from member counties.  RCRC Advocate: Staci Heaton sheaton@rcrcnet.org

Definition of “Waters of the United States” Under the Clean Water Act: Changes the definition of “Waters of the United States” in the Clean Water Act and expands federal jurisdiction over waterways.  Agency: U.S. Environmental Protection Agency, U.S. Army Corps of Engineers Status: Draft published on April 21, 2014 for public comment, comment deadline extended to November 14, 2014. Proposed regulation and related documents can be accessed hereRCRC Comments: Click here RCRC Advocate: Staci Heaton sheaton@rcrcnet.org

Preliminary Discussion Draft of Updates to the CEQA Guidelines: The preliminary discussion draft of updates to the CEQA Guidelines to implement SB 743 (Steinberg, 2013), and address the evaluation of transportation impacts under CEQA.  Agency: The Governor’s Office of Planning and Research (OPR) Status: Draft language released August 6, 2014, comments extended to November 21, 2014.  Comments should be submitted to CEQA.Guidelines@ceres.ca.govRCRC Comments: Staff is seeking input from member counties.  A copy of the preliminary discussion draft can be accessed hereRCRC Advocate: Mary Pitto mpitto@rcrcnet.org

Proposed Green Building Code Amendments: Preliminary discussion draft of proposed changes to the green building standards for the 2015 Triennial Code Adoption Cycle.  Agency: California Building Standards Commission (CBSC) Status: The CBSC Green Building Focus Group is in development of proposed changes to the Green Building Code, including increasing the diversion requirement of construction and demolition debris to 65 percent.  A copy of the preliminary discussion drafts can be accessed here.  RCRC Comments: Staff is seeking input from member counties.  RCRC Advocate: Mary Pitto mpitto@rcrcnet.org