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HomeMy WebLinkAbout10. Legislative MattersPage 1 of 19 Item 10. DCENTRALSAN MEETING DATE: JUNE 15, 2023 BOARD OF DIRECTORS POSITION PAPER SUBJECT: RECEIVE UPDATE ON PENDING LEGISLATIVE MATTERS SUBMITTED BY: INITIATING DEPARTMENT: EMILY BARNETT, COMMUNICATIONS AND ADMINISTRATION -COMM SVCS AND GOVERNMENT RELATIONS MANAGER INTERGOV REL REVIEWED BY: PHILIP R. LEIBER, DEPUTYGENERAL MANAGER, ADMINISTRATION ISSUE In accordance with Board Policy No. BP 026 — Legislative Advocacy, the Board may provide direction to staff on positions related to priority legislation. BACKGROUND Under BP 026 — Legislative Advocacy, when legislation has direct impact on Central San or special significance to the Board, the General Manager will present information to the Board on priority legislation. The Board may then provide direction as to Central San's position on the legislation. Staff has reviewed pending legislation and worked with member associations to identify possible direct impacts on Central San. The process to create and pass legislation is constantly in flux; the priority legislation presented in this Position Paper represents the most confident analysis and due diligence research at this time. As new information becomes available, it will be presented at future Board meetings. A priority legislation tracking sheet for Board review and input will be sent prior to the Board meeting with the June 15, 2023 Regular Board Meeting Agenda Packet - Page 62 of 93 Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE In accordance with Board Policy No. BP 026 — Legislative Advocacy, the Board may provide direction to staff on positions related to priority legislation. BACKGROUND Under BP 026 — Legislative Advocacy, when legislation has direct impact on Central San or special significance to the Board, the General Manager will present information to the Board on priority legislation. The Board may then provide direction as to Central San's position on the legislation. Staff has reviewed pending legislation and worked with member associations to identify possible direct impacts on Central San. The process to create and pass legislation is constantly in flux; the priority legislation presented in this Position Paper represents the most confident analysis and due diligence research at this time. As new information becomes available, it will be presented at future Board meetings. A priority legislation tracking sheet for Board review and input will be sent prior to the Board meeting with the June 15, 2023 Regular Board Meeting Agenda Packet - Page 62 of 93 Page 2 of 19 latest information. Staff will discuss several of the priority items at this meeting and expand on others in the coming weeks as more information becomes available. ALTERNATIVES/CONSIDERATIONS The Board may choose from the following positions on each piece of legislation: • Support • Support if Amended • Neutral • Oppose Unless Amended • Oppose FINANCIAL IMPACTS None. COMMITTEE RECOMMENDATION This matter was not reviewed by a Board Committee. RECOMMENDED BOARD ACTION If applicable, take one of the following actions on Priority Legislative Tracking Sheet or another legislative matter: 1. Adopt staff recommended position(s) on the priority legislation; or 2. Adopt a different position on one or more pieces of the priority legislation; or 3. Take no action. Strategic Plan re -In GOAL ONE: Customer and Community Strategy 1— Deliver high-quality customer service, Strategy 2 - Promote initiatives to advance affordable and equitable access to services GOAL TWO: Environmental Stewardship Strategy 2 - Educate on pollution prevention and environmental protection GOAL FOUR: Governance and Fiscal Responsibility Strategy 2 - Encourage and facilitate public participation, Strategy 3 - Maintain financial stability and sustainability ATTACHMENTS: 1. Central San Legislative Priority Tracking Sheet as of 6_7_23 2. Central San Support LetterAB 759 Grayson for Senate Governance and Finance Committee 3. National Special Districts Coalition Special Report on Debt Limit 4. Bloomberg Law Article on PFAS Liability Legislation June 15, 2023 Regular Board Meeting Agenda Packet - Page 63 of 93 of 19 Central San 2023 Priorifgtegislative Tracking Sheet as of 6/7/23 Green Shading - bill enacted, Gray Shading - bill is dead, White Shading - bill in progress, Red Shading - bill was vetoed June 15, 2023 Regular Board Meeting Agenda Packet - Page 64 of 93 Industry Position Date of Federal/ Author Legislation Leg Also Known As Summary Organizations) Recommended Board Board Notes State Priority Decision Direction by Staff List/Position 1 State Grayson AB 759 Amendment to the This bill would amend the 1939 Act that currently governs the process for the distribution of checks CASA: Sponsor Support Support 3/2/2023 6/7/23 Passed Senate Governance and Sanitary Districts for sanitary districts. It would remove the following language: The treasurer shall pay out money of Finance Committee on consent. 5/3/23 Act the district only upon the written order of the board, signed by the president and countersigned by Referred to Senate Governance and Finance the secretary. It would amend the Act with the following language: The district board shall appoint a Committee. 4/20/2023 Passed Assembly 77 - treasurer who shall be responsible for the deposit and withdrawal of funds of the district in the 0. 3/29/23 Hearing at Assembly Local manner prescribed by the board. Government Committee resulted in an 8-0 vote to pass as amended. Staff worked significantly with Local Gov't Committee staff to develop amendments that could be supported by all communities. 2 State Grayson AB 281 Planning and This bill would add special districts to post entitlement permit approval timelines. CASA: Work with Watch Watch 3/2/2023 5/17/23 Referred to Senate Governance and zoning: housing: Author Finance and Housing Committees. 5/4/23 postentitlement Passed Assembly 75-0. 4/27/23 In Assembly. phase permits Read second time. To Consent Calendar. 3/23/23 Re-referred to Assembly Committee on Local Development. 2/3/23 CSDA, ACWA, CASA working on amendments for the local government committee. 3 State Papan AB 246 Menstrual This bill would, beginning January 1, 2025, prohibit any person from manufacturing, distributing, CASA: Werk with Wa#Gh, Support Watch 3/2/2023 5/15/23 Passed Assembly 70-0. 5/3/2023 products: selling, or offering for sale in the state any menstrual products that contain regulated PFAS, and A Aer Support Passed from Assembly Appropriations perfluoroalkyl and requires a manufacturer to use the least toxic alternative when removing regulated PFAS in Committee. polyfluoroalkyl menstrual products to comply with these provisions. The bill would require a manufacturer of a substances menstrual product to provide persons that offer the product for sale or distribution in the state with a (PFAS) certificate of compliance stating that the menstrual product is in compliance with these provisions and does not contain any regulated PFAS. 4 State Bauer -Kahan AB 234 Microparticles This bill would enact the Synthetic Polymer Microparticles in Cosmetic and Cleaning Products CASA: Watch Watch Watch 3/2/2023 5/22/23 This has become a two year bill. Prevention Act. The bill would prohibit a synthetic polymer microparticle from being placed on the 4/3/23 Re-referred to Assembly Committee market in this state as a substance on its own or, where the synthetic polymer microparticles are on Natural Resources. present to confer a sought-after characteristic, in mixtures in a concentration equal to or greater than 0.01 % by weight. The restriction would apply on and after specified dates depending on the type of product. The bill would specify the screening tests and pass criteria to be used to determine compliance with this prohibition. The bill would make a person who violates this prohibition liable for a civil penalty not to exceed $5,000 per day for each violation, in addition to any other penalty established by law. The bill would authorize the civil penalty to be assessed and recovered in a civil action brought by a city attorney, a district attorney, a county counsel, or the Attorney General in any court of competent jurisdiction. June 15, 2023 Regular Board Meeting Agenda Packet - Page 64 of 93 of 19 Central San 2023 Priorifgtegislative Tracking Sheet as of 6/7/23 Green Shading - bill enacted, Gray Shading - bill is dead, White Shading - bill in progress, Red Shading - bill was vetoed June 15, 2023 Regular Board Meeting Agenda Packet - Page 65 of 93 Industry Position Date of Federal/ Author Legislation Leg Also Known As Summary Organizations) Recommended Board Board Notes State Priority Decision Direction by Staff List/Position 5 State Bauer -Kahan AB 363 Pesticides: This bill would require the department, by July 1, 2024, to issue a determination, taking into account Support Watch 3/2/2023 5/31/23 Passed Assembly. To Senate. neonicotinoids for the latest science, with respect to a reevaluation of neonicotinoids, on pollinating insects, aquatic 5/18/23 Passed Assembly Appropriations nonagricultural ecosystems, and human health when used for nonagricultural protection of outdoor ornamental Committee and Read second time on use: reevaluation: plants, trees, and turf, and, by July 1, 2026, to adopt control measures for that use that are Assembly Floor. 3/29/23 Sent to Assembly regulations necessary to protect the health of pollinating insects, aquatic ecosystems, and human health. The Appropriations Suspense File. 3/14/23 bill would require that the reevaluation consider the impacts to pollinating insects, aquatic Passed 7-2 in the Assembly Environmental ecosystems, and human health, including the cumulative impacts of exposure. Safety and Toxic Materials Committee. Referred to Assembly Appropriations Committee. NOTES: Several of the products that would be reevaluated also contain PFAS and microplastics. 6 State Hart AB 557 Open meetings: This bill seeks to extend and expand the provisions of AB 361, which sunsets at the end of 2023. CSDA Sponsor, Support Support 3/2/2023 5/15/23 Passed Assembly 78-0. 5/1/23 In Local agencies: This bill would extend the teleconferencing provisions when a declared state of emergency is in CASA Support Assembly. Read second time. To third teleconferences effect, or in other situations related to public health indefinitely. The bill would also extend the reading. 3/15/23 Central San signed on to period for a legislative body to make the above-described findings related to a continuing state of CSDA coalition letter. 2/28/23 CSDA emergency and social distancing to not later than 45 days vs. the 30 days prescribed for in AB 361. requests support letters from special districts. 7 State Caballero SB 747 Surplus land: Existing law, commonly referred to as the Surplus Land Act, imposes specified requirements on a CSDA: We* with Watch Watch 3/2/2023 5/31/23 Passed Senate. Recent notice of local agency before it disposes of its surplus land, and imposes specified enforcement and AetheF, Support if amendments seems to aliviate concerns exemption reporting duties on the Department of Housing and Community Development. Among those Amended by member associations. CSDA has determination requirements on a local agency, existing law requires a written notice of availability for developing worked extensively with author and will low- and moderate -income housing to be sent to certain local public entities and to housing move to Support position. Central San sponsors that have notified the department of their interest in surplus Iand.This bill would authorize staff now believe the bill's exemption from a local agency to declare administratively that land is exempt surplus land if the declaration and the Surplus Land Act might not directly findings are published and available for public comment, and the local public entities and housing apply to the District. 5/22/23 In Senate. sponsors described above are notified at least 30 days before the declaration takes effect. Read second time. 5/18/23 Passed in Senate Appropriations Committee 7-0. 5/1/23 In Senate. Read second time and re-referred to Appropriations Committee. 3/28/23 Hearing set for April 12, 2023 for Senate Governance and Finance Committee. 2/14/23 CSDA working extensively with author. June 15, 2023 Regular Board Meeting Agenda Packet - Page 65 of 93 of 19 Central San 2023 Priorifgtegislative Tracking Sheet as of 6/7/23 Green Shading - bill enacted, Gray Shading - bill is dead, White Shading - bill in progress, Red Shading - bill was vetoed June 15, 2023 Regular Board Meeting Agenda Packet - Page 66 of 93 Industry Position Date of Federal/ Author Leg Legislation Also Known As Summary Organizations) Recommended Board Board Notes State Priority Decision Direction by Staff List/Position 8 State Ting AB 480 Surplus land Existing law requires a local agency to take formal action in a regular public meeting to declare land CSDA: WatGh, Watch, Oppose Watch 302923, 5/31/23 Moved to Senate Governance and is surplus and is not necessary for the agency's use and to declare land as either "surplus land" or Oppose Unless Unless Amend 6/15/2023 Finance and Housing Committees. 5/26/23 "exempt surplus land," as supported by written findings, before a local agency may take any action Amend, CASA: Detailed staff review aligns with CASA to dispose of it consistent with an agency's policies or procedures. Oppose Unless and CSDA recommendation of Oppose This bill would recast that provision and would authorize, in specified instances, that a local agency Amend Unless Amended. The ambiguities created administratively declare land as "exempt surplus land" if the declaration and findings are published by AB 480, taken together with and available for public comment at least 30 days before the declaration takes effect. The bill would burdensome and unnecessary new also require a local agency to provide a written notification to the Department of Housing and procedural requirements, as well as Community Development of its declaration and findings 30 days before disposing of land declared potentially increased penalties, will "exempt surplus land." Because this bill would require local officials to perform additional duties, it increase Surplus Land Act compliance would impose astate-mandated local program. costs on local agencies. 5/22/23 Passed Existing law defines "exempt surplus land," for which a local agency is not required to follow the Assembly 53-16. 5/18/23 In Assembly. Read sembl3 requirements for disposal of surplus land, except as provided, as, among other things, surplus land second time. To third reading. that is subject to valid legal restrictions that are not imposed by the local agency and that would Passed Assembly Appropriations Committee make housing prohibited, as specified. 12-4. 4/26/23 Passed from Assembly This bill would require that those legal restrictions be documented and verified in writing by the Housing and Community Development relevant agencies that have authority relating to the restrictions Committee (6-1). 3/15/23 Referred to Assembly Local Government Committee. This bill was recently transitioned from a spot bill to a fully submitted bill. More staff time is needed for review. 9 State Weber AB 727 Product safety: Existing law, beginning January 1, 2025, prohibits a person or entity from manufacturing, selling, CASA: Co-sponsor Support Support 3/16/2023 5/15/23 Passed Assembly 62-2. packaging of delivering, holding, or offering for sale in commerce any cosmetic product that contains intentionally household added perfluoroalkyl and polyfluoroalkyl substances (PFAS), as defined. Existing law similarly substances prohibits, beginning January 1, 2025, a person from manufacturing, distributing, selling, or offering for sale in the state any new, not previously owned, textile articles that contain regulated PFAS, except as specified, and requires a manufacturer to use the least toxic alternative when removing regulated PFAS in textile articles to comply with these provisions. This bill, beginning January 1, 2025, would prohibit a person from manufacturing, selling, delivering, distributing, holding, or offering for sale in the state a cleaning product that contains regulated PFAS, as specified. 10 State Ta AB 1660 Cosmetic Existing law requires the State Air Resources Board to adopt regulations to achieve the maximum CASA: Oppose Oppose Oppose 3/16/2023 5/17/23 This bill is dead. 4/10/23 R -referred products: feasible reduction in volatile organic compounds emitted by consumer products, if the state board to Environmental Safety and Toxic Materials perfluoroalkyl and determines adequate data exist to establish the regulations are necessary to attain state and Committee. 3/10/23 CASA Legislative polyfluoroalkyl federal ambient air quality standards and regulations are commercially and technologically feasible Committee opposes bill. substances and necessary. This bill would authorize the state board to exempt an intentionally added PFAS (PFAS) from that prohibition if the state board determines that the intentionally added PFAS has characteristics that are beneficial for the environmental goals of the State of California and is not identified as persistent, bioaccumulative, and toxic to the environment. June 15, 2023 Regular Board Meeting Agenda Packet - Page 66 of 93 of 19 Central San 2023 PriorifVILegislative Tracking Sheet as of 6/7/23 Green Shading - bill enacted, Gray Shading - bill is dead, White Shading - bill in progress, Red Shading - bill was vetoed June 15, 2023 Regular Board Meeting Agenda Packet - Page 67 of 93 Industry Position Date of Federal/ Author Legislation Leg Also Known As Summary Organizations) Recommended Board Board Notes State Priority Decision Direction by Staff List/Position 11 State Portantino SB 411 Open meetings: Current law, until January 1, 2024, authorizes the legislative body of a local agency to use alternate CSDA Watch, Watch Watch 3/16/2023 Bill amended to only apply to Los Angeles teleconferences: teleconferencing provisions during a proclaimed state of emergency or in other situations related to CASA Support County and cities over three million. This bodies with public health that exempt a legislative body from the general requirements (emergency provisions) bill does not impact the district with appointed and impose different requirements for notice, agenda, and public participation, as prescribed. The current amendment. Staff will continue to membership emergency provisions specify that they do not require a legislative body to provide a physical watch the bill for future amendments. location from which the public may attend or comment. Current law, until January 1, 2026, 5/26/23 In Assembly Local Government authorizes the legislative body of a local agency to use alternative teleconferencing in certain Committee. 5/15/23 Passed Senate with circumstances related to the particular member if at least a quorum of its members participate from Urgency Clause 30-5. 5/2/23 Passed Senate a singular physical location that is open to the public and situated within the agency's jurisdiction Judiciary Committee. 3/10/2023 CASA and other requirements are met, including restrictions on remote participation by a member of the support legislative body. This bill would authorize a legislative body to use alternate teleconferencing provisions similar to the emergency provisions indefinitely and without regard to a state of emergency. The bill would alternatively define "legislative body" for this purpose to mean a board, commission, or advisory body of a local agency, the membership of which board, commission, or advisory body is appointed and which board, commission, or advisory body is otherwise subject to the Ralph M. Brown Act. 12 State Pacheco AB 817 Open meetings: This bill would authorize use of AB 361 type video meetings (without any declaration of emergency) Support Support 5/3/2023 5/17/23 This bill is dead. teleconferencing: for subsidiary bodies such as Central San standing committees. subsidiary body 13 State Irwin AB 1637 Local government: This bill, no later than January 1, 2025, would require a'^^al ag8RGY city and/or county that CSDA Oppese Oppose Neutral Oppose 5/'%3— 5/31/23 Passed Assembly. 5/22/23 In internet websites maintains an internet website for use by the public to ensure that the internet website utilizes a unless amendo� 6/1/23 Assembly. Read second time. 5/17/23 and email ".gov" top-level domain or a ".ca.gov" second -level domain, and would require a local agency that (bill amended to Passed Assembly Appropriations Committee addresses maintains an internet website that is noncompliant with that requirement to redirect that internet remove opposition) 12-2. CSDA requesting this bill is voluntary website to a domain name that does utilize a ".gov" or ".ca.gov" domain. This bill, no later than for special districts. Concerns: Changing our January 1, 2025, would also require a local agency that maintains public email addresses to ensure top-level domain (TLD) to a ca.gov domain that each email address provided to its employees utilizes a ".gov" domain name or a ".ca.gov" for our primary website and email addresses domain name. By adding to the duties of local officials, the bill would impose a state -mandated local would be a difficult process that could result program. AMENDMENTS: 5/18/23 now bill excludes special districts. in disruption of our internet site as well as our email system. 14 State Rivas AB 1526 Public Resources The bill would require, on or before July 1, 2026, a manufacturer or stewardship organization to CPSC Support Support Support 5/3/2023 6/1/23 Set for hearing on 6/13/23 in Senate submit an architectural paint stewardship plan or amendment to an approved architectural paint Natural Resources and Water Committee. stewardship plan to the department. The bill would change the due date for the annual report to on 5/18/23 Passed Assembly 74-0. 5/11/23 On or before May 15 of each year, would require certain information included in the annual report to be Assembly Consent Calendar. The initial intent reported based on calendar year, and, commencing with the 2028 report, would require the annual is to allow aerosol paints to be included with report to include certain information on aerosol coating products. The bill would authorize the PaintCare, saving the District an additional department, in coordination with the Department of Toxic Substances Control, to adopt regulations $25K -$30K per year. to clarify and implement the architectural paint recovery program. 15 State Ting AB 347 Household This bill would give additional enforcement authority over the various PFAS statutes to the CASA Support Support Support 5/3/2023 5/31/23 Passed Assembly. To Senate. product safety: Department of Toxic Substances Control (DTSC). 5/22/23 In Assembly. Read second time. toxic substances: 5/18/23 Hearing date for bill in Assembly testing and Appropriations Committee. enforcement June 15, 2023 Regular Board Meeting Agenda Packet - Page 67 of 93 of 19 Central San 2023 Priorifgtegislative Tracking Sheet as of 6/7/23 Green Shading - bill enacted, Gray Shading - bill is dead, White Shading - bill in progress, Red Shading - bill was vetoed June 15, 2023 Regular Board Meeting Agenda Packet - Page 68 of 93 Industry Position Date of Federal/ Author Legislation Leg Also Known As Summary Organizations) Recommended Board Board Notes State Priority Decision Direction by Staff List/Position 16 Federal McClain H.R. 2964 & S. WIPPES Act: This bill would add "Do Not Flush" labeling to non-flushable wipes packaging. It is a replacation of CASA: Sponsor, Support 5/18/2023 5/18/2023 5/10/23 Support letters sent to Senator 1350 Wastewater the successful California passed legislation in 2021-2022 AB 818. This is an effort supported by NSAC: Sponsor Feinstein, Representatives DeSaulnier and Infrastructure both wastewater and the wipes manufacturing industry. Garamendi. 4/27/23 Introduced. HR 2963 Pollution Referred to the House Committee on Energy Prevention and and Commerce. S 1350 Referred to the Environmental Committee on Commerce, Science, and Safety Transportation. 17 Federal Lummis S1430 Water Systems This bill would ensure wastewater and water utilties and municipalities are not subject to liability Sponsors: Support 5/18/2023 5/18/2023 5/3/23 Introduced. Notable is Senator Lindsey PFAS Liability claims if the Environmental Protection Agency (EPA) designates per- and polyfluoroalkyl NACWA, CASA, Graham is a cosponsor. Referred to the Protection Act substances (PFAS) compounds as hazardous substances. The covered entities in these bills either AWWA, WEF Committee on Environment and Public do not contribute to PFAS contamination or are required to use PFAS-containing substances Works (Senator Padilla is a committee through regulations. Lummis introduced this legislation in response to an August 2022 proposed member). EPA rule to designate two PFAS compounds as a hazardous substances under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), also known as Superfund. This would subject any entity with PFAS contamination to potential CERCLA liability from the EPA and third parties. Should this rule be finalized, entities such as water treatment plants would be held liable for PFAS contamination they are not responsible for and these entities would be at risk for litigation. 18 State Ting AB 1033 Accessory Existing law requires a local agency to allow an ADU to be sold or conveyed separately from the primary CASA: Oppose Oppose 6/15/2023 5/31/23 Passed Assembly. dwelling units: residence to a buyer if certain conditions are met, including that the property was built or developed by a local ordinances: nonprofit corporation and that the property is held pursuant to a recorded tenancy in common agreement separate sale or that meets specified requirements. This bill -would, in addition, authorize a local agency to adopt a local conveyance. ordinance to allow the separate conveyance of the primary dwelling unit and ADU or units as condominiums. Staff concerns: -Staff agrees with the Board of Realtors that shared units would need to be regulated and require a subdivision or parcel map for lot splits. To avoid problems, the applicant would need to seek District input on the subdivision prior to building. -Shared Sewer Laterals oCurrently the District discourages shared laterals as it can lead to property disputes including trespass situations. Future bill amendments should require easements to sort out property right of way once an ADU is split off. oCurrently Central San's Standard Specs require ADUs share a lateral with the main house, unless there is a problem achieving proper slope for a gravity line. While this situation can usually be addressed, it could add costs to the rest of the ADU's that may not want to split and be sold in the future as a separate unit/parcel. olf non-profit creates condos on the property, lateral maintenance will need to be addressed between property owners. Typically, condos have CCR's which may or may not happen. -Sewer Service Charges oLikely unit would change from an ADU rate to a SFR rate if an ADU is sold. olf a condo map is processed, then both parcels would likely pay the MFR rate. -Capacity Fees oThe District uses the buy -in method and if an ADU starts with proportional share calculated for an ADU, then District would/could charge additional fees for either a SFR or MFR, depending on instrument used. oFurture amendments would be needed to clarify what is allowed as it could impact or eliminate change in fees. -This bill is a slippery slope that could extend beyond non-profit developers to applying to a larger audience. June 15, 2023 Regular Board Meeting Agenda Packet - Page 68 of 93 of 19 Central San 2023 Priorifktegislative Tracking Sheet as of 6/7/23 Green Shading - bill enacted, Gray Shading - bill is dead, White Shading - bill in progress, Red Shading - bill was vetoed Federal/ State Author Legislation Also Known As Industry Organization(s) Summary Priority List/Position Position Recommended Board Decision Date of Board Direction Notes by Staff 19 Federal Garamendi HR 1181 National Pollutant Would extend the fixed permit terms for NPDES permits from "not exceeding five years" to "not CASA: Sponsor Support 6/15/2023 Discharge exceeding ten years". Elimination System (NPDES) Permit Term Extension June 15, 2023 Regular Board Meeting Agenda Packet - Page 69 of 93 110ENTRAL SAN May 30, 2023 The Honorable Anna M. Caballero, Chair Senate Governance and Finance Committee State Capitol, Room 407 Sacramento, California 95814 Submitted electronically via Position Letter Portal RE: AB 759 (Grayson) — Sanitary District Act Reform – Support Dear Chair Caballero: Page 9 of 19 FAX.- (925) 372-0192 www.centralsan.org ROGER S. BAILEY General Manager KENTONL. ALM Counsel for the District (510) 375-4571 KATIE YOUNG Secretary of the District The Central Contra Costa Sanitary District (Central San) is proud to support AB 759 (Grayson). This bill would update the Sanitary District Act of 1939 to modernize existing statutory accounting practices that require Sanitary Districts to submit their check register for approval by the District Board President at each Board meeting. Instead, the bill would give discretion to the Board of a Sanitary District to establish protocols to authorize funds. Central San, a wastewater utility, collects and cleans more than 13 billion gallons of wastewater every year and serves nearly half a million residents and more than 3,000 businesses in the East San Francisco Bay Area. Within its 146 square mile service area, Central San operates a 54 million -gallon -per -day capacity treatment plant, 18 pumping stations, over 1,500 miles of sewer lines, a household hazardous waste collection facility, a laboratory, and provides both commercial and residential recycled water programs. The existing approval requirement was enacted in 1939. In practice, it provides minimal oversight as the Board approval is usually performed in retrospect for checks that have already been issued. The modern business climate requires Sanitary Districts to issue payments in a timely manner. Waiting to issue payments until after the Board meets and approves the register impedes the agency's ability to maintain the efficient flow of public business. AB 759 would update the statute to reflect reasonable business procedures for modern utilities and create parity with other special districts that provide similar services. June 15, 2023 Regular Board Meeting Agenda Packet - Page 70 of 93 Page 10 of 19 AB 759 (Grayson) — Sanitary District Act Reform — Support May 30, 2023 Page 2 This proposed change to the Sanitary District Act has previously been afforded to a variety of similar special districts and local agencies by the Legislature. The following statutes allow for similar Board discretion in their accounting procedures for a variety of special districts and local agencies: Municipal Water Districts - 1963 (Water Code Section 71362); Cities - 1986 (Government Code 37208); Community Service Districts - 2005 (Government Code 61051); County Water Districts - 1949 (Water Code 31302); and County Sanitation Districts - 1939 (Health and Safety Code 4763). For these reasons, Central San is proud to support AB 759 and we urge your aye vote when this bill is heard in your committee. Sincerely, �11 n K'I Roger S. Bailey General Manager cc: Assembly Member Tim Grayson Jessica Gauger, Director of Legislative Advocacy & Public Affairs, CASA June 15, 2023 Regular Board Meeting Agenda Packet - Page 71 of 93 j4 -jmftmLL- - L -k'- :44 -A- w awl- -4, Meeting A enda Packet - Pa 72 of q.3 -whir - VW Page 11 of 19 NSDC Special Report h! Page 12 of 19 NSDC NATIONAL SPECIAL DISTRICTS COALITION Contents Introduction 1 Division A — Limit Federal Spending.............................................................................................................1 FY 24 & 25 Funding Subsection Division B — Recission of Unobligated Funds................................................................................................ 2 DivisionC — Grow the Economy................................................................................................................... 3 Temporary Assistance to Needy Families (TANF) Supplemental Nutrition Assistance Program (SNAP) Permitting Reform DivisionD — Increase in Debt Limit.............................................................................................................. 5 June 15, 2023 Regular Board Meeting Agenda Packet - Page 73 of 93 Page 13 of 19 NSDC Special Report: Debt Limit NSDC 1 Introduction On Saturday, President Joe Biden and Speaker Kevin McCarthy (R -Calif.) announced an agreement on negotiated terms lifting the $31.4 trillion debt limit for two years through January 1, 2025, including spending caps for Fiscal Years (FY) 2024 and 2025. On Wednesday night, the House voted to pass the debt limit legislation, the Fiscal Responsibility Act, on a bipartisan vote of 314-217. 265 Democrats and 149 Republicans voted for the bill. On Thursday, the Senate passed the legislation on a bipartisan vote of 66-36. President Biden will sign the bill into law prior to June 5, just days before the U.S. would default on their loans. This NSDC Special Report covers the essential items within the Fiscal Responsibility Act. NSDC will continue to provide updates as we learn more from Capitol Hill. Division A — Limit Federal Spending FY 24 & 25 Funding Subsection As part of the bipartisan agreement, the Fiscal Responsibility Act would establish discretionary budget caps for FYs 2024 and 2025 and includes spending limits for both defense and nondefense discretionary spending for both fiscal years. For FY 2024, the bill would cap topline discretionary spending at $1.58 trillion or approximately 6.7 percent less than the comparable FY 2023 topline spending level. For FY 2024, defense spending would be limited to $886.3 billion, approximately 3 percent or $28 billion more than the comparable FY 2023 level, and non- defense spending would be limited to $703.6 billion, approximately 9 percent or $70 billion less than the comparable FY 2023 level. For FY 2025, the bill would allow for 1 percent growth over the prescribed FY 2024 spending levels, capping topline discretionary spending at $1.606 trillion and limiting defense spending to $895.2 billion and non-defense spending to $710.7 billion. To incentivize timely enactment of federal spending bills, discretionary spending levels would be reduced 1 percent below current FY 2023 levels if FY 2024 and 2025 bills are not enacted by January 1 of the respective fiscal year. Furthermore, the topline spending caps for both FY 2024 and 2025 would be enforced through sequestration in which automatic spending cuts are triggered if these spending limits are exceeded. However, the bill allows for adjustments to account for spending related to disaster relief by reinstating the disaster funding cap adjustment formula that was in place from FYs 2012-2021 under the authority of the Budget Control Act of 2011 (BCA). This formula allows for adjustments to discretionary spending caps to account for disaster relief spending by 5 percent of the total appropriations for major disasters as designated by the Stafford Act. If enacted, the bill would also allow for adjustments based on spending related to disability reviews and redeterminations, controlling health care fraud and abuse, and making grants to states for Social Security reemployment services and eligibility assessment. However, the amount of these adjustments would be statutorily capped for both FYs 2024 and 2025. June 15, 2023 Regular Board Meeting Agenda Packet - Page 70f 93 NSDC Special Report: Debt Limit Page 14 of 19 NSW 2 Additionally, the bill would prescribe non -enforceable topline spending goals for FYs 2026 through 2029, allowing for 1 percent annual growth each fiscal year and adjusting for U.S. Department of Veterans Affairs health spending. For FYs 2026-2029, the Fiscal Responsibility Act does not specify defense and non-defense spending limits and the topline amounts set by the bill are as follows: Fiscal Year Total (in blilions) FY 2026 $1,621.9 FY 2027 $1,638.2 FY 2028 $1,654.6 FY 2029 $1,671.1 The agreement provides $20.3 billion in FY 2024 and $24.5 billion in FY 2025 outside of the discretionary caps for the U.S. Department of Veterans Affairs (VA) Cost of War Toxic Exposure Fund. Authorized as part of the bipartisan Honoring Our PACT Act (PL 117-168), the Cost of War fund enables VA to pay for the health care and disability benefits that are newly available to veterans exposed to airborne toxins during the Global War on Terror. Division 6 — Recission of Unobligated Funds The bipartisan legislation will rescind $27.72 billion in unobligated Covid funding through the American Rescue Plan Act (ARPA), the Coronavirus Aid, Relief and Economic Security (CARES) Act, and other pandemic relief efforts. The recissions primarily come from public health emergency funds, infrastructure, and disaster relief programs. See the complete list of recessions below. June 15, 2023 Regular Board Meeting Agenda PmkretbPa,'�7®f 93 tstlmatea Rescission Amount Agencv Account ProgramfActrvtty I;$Ml CHCS 4554X0.2728 Operating Expenses 286.91 State unemployment Insurance Treasury 015-05-1894 Air Carrier Worker Support 784.07 and Employment Service Economic Stabilization Program DOL M-05-3179 Operations 1,606.01 Treasury 015-05-1889 Account 200.00 Highway Infrastructure DOT 021-15-0548 Programs 2,242.81 Aviation Manufacturing lobs State Small Business Credit DOT 021-046110 Protection Program 1,741.11. Treasury 015-05-0142 Initiative 150.00 ED 018-16-6251 Education Stabilization Fund 391.9: Emergency Capital Investment Treasury 015-05-0161 Fund 290.89 Food Supply Chain and HHS_ Public Health and Social Services Agriculture Pandemic Response ASPR 069-96-6140 Emergency Fund 1.11,419.5: USDA 005-03-0408 Program 1,356.55 HHS- USDA 005-03-9913 Office of the Secretary 1,130.72 ASPR 069-90.6152 Defense Production Act 559.1 USDA 005-03-9913 Office of the Secretary 327.04- 27.04USDA USDA 005-45-2500 Marketing Services 395.91 HHS_ CD -C -wide Activities and Rescissions under $150 million, with no or limited CDC 009-26-0943 Program Supports 1,739.01 HHS_ Vaccine Efficacy and Supply programmatic impact FDA 009-10.9911 Chain Monitoring 12301 1,616.72 HHS - 27,724.11 HRSA 009-15-035-0 Hea Rh Resources and Services 330.0: SBA 02840.1152 Disaster Loans Program Account 1,474.3: SBA 0284)0.1152 Disaster Loans Program Account 559.21 June 15, 2023 Regular Board Meeting Agenda PmkretbPa,'�7®f 93 NSDC Special Report: Debt Limit Listed below are specific recissions: Page 15 of 19 NSDC 3 - Department of Health and Human Services - Public Health and Social Services Emergency Fund ($10.41 billion): After the recission, $10 billion in funds will remain. - Department of Transportation — Highway Infrastructure Programs ($2.24 billion): this recission is for FY 2021 Omnibus resources that do not directly impact IIJA/BIL resources. - Department of Transportation —Aviation Manufacturing Jobs Protection Program ($1.74 billion): rescinds funds from the ARPA program providing funding to eligible businesses to pay up to half of their compensation costs for specific categories of employees for up to six months. - Department of Health and Human Services — Centers for Disease Control and Prevention ($1.739 billion): The recission will impact vaccine safety and effectiveness investments. Approximately $1.5 billion will remain after the recission, with $500 million remaining in the Infectious Diseases Rapid Response Reserve Fund. - Department of Health and Human Services — Health Resources and Services Administration ($330 million): The legislation rescinds funds to address ongoing health workforce challenges and shortages and for administrative expenses. The bill will rescind $1.39 billion of the $80 billion in funding to the Internal Revenue Service (IRS) originally allocated for new tax enforcement agents through the Inflation Reduction Act (P.L. 117-169). In addition, the White House is in agreement to reallocate an additional $20 billion in IRS funding to other nondefense related spending for fiscal years 2024 and 2025. The nonpartisan Congressional Budget Office (CBO) score of the $21.4 billion cuts to the IRS will result in $40.9 billion in lost revenue, increasing the federal deficit by $19 billion. Of important note, the Fiscal Responsibility Act will not rescind any funding from the following: - The American Rescue Plan Act's (P.L. 117-2) State and Local Fiscal Recovery Fund (SLFRF) - The Infrastructure Investment and Jobs Act/Bipartisan Infrastructure Law (P.L. 117-58) - Clean energy tax credits authorized within the Inflation Reduction Act (P.L. 117-169) - $3.1 billion in funds for the Department of Transportation's Transit Grants Administrative Pay -As -You -Go (PAY -GO) Establishes mandates for the executive branch to offset excessive spending with spending reductions. Essentially, any discretionary regulation that increases direct government spending by $1 billion over a period of 10 years or $100 million in a single year must receive an equal or greater offset. The measure comes with a waiver authority for the director of the Office of Management and Budget, making it possible to waive the PAYGO requirement when it is "necessary for the delivery of essential services" or "necessary for effective program delivery." Division C — Grow the Economy Temporary Assistance to Needy Families (TANF) The Temporary Assistance for Needy Families (TANF) program provides financial assistance and social services to low-income families with at least one dependent child. States receive block grants from the federal government and have flexibility in how they use the funds. June 15, 2023 Regular Board Meeting Agenda Packet - Page 7af 93 NSDC Special Report: Debt Limit Page 16 of 19 NSW 4 Starting in FY 2025, the baseline for calculating caseload reduction credits will be shifted from 2005 to 2015. Additionally, a state's workforce participation rate will only consider families receiving at least $35 in TANF benefits per month. A new pilot program will also begin in FY 2024, allowing up to five states to establish benchmarks for employment and family outcomes for TANF recipients. This new program aims to promote greater work participation and requires states to have systems in place for reducing assistance to families when individuals refuse to engage in work activities. Overall, the TANF provisions in the final agreement aim to maintain states' flexibility in supporting vulnerable children. The CBO estimates that these adjustments are estimated to reduce direct spending by $5 million through FY 2033. Supplemental Nutrition Assistance Program (SNAP) Currently, able-bodied adults without dependents (ABAWDs) who are under 50 years old and not living with children are subject to a three-month time limit for SNAP benefits unless they meet specific work requirements. States have some flexibility in granting exemptions and waivers. Under the new agreement, the age limit for ABAWDs subject to the time limit is expanded to individuals up to age 54, with the increase phased in by fiscal year 2025 and remaining in effect until FY 2030. Homeless individuals, veterans, and youth aging out of foster care are exempt from the ABAWD time limit during this period. The new agreement also reduces the allowable state exemptions for ABAWDs from 12 percent to 8 percent and eliminates the option for states to carry over unused exemptions from one year to the next. Additionally, the U.S. Department of Agriculture is required to publish all state waiver requests related to ABAWDs and provide its response. These changes are expected to have mixed effects on SNAP spending, with some provisions reducing spending and others increasing it, resulting in a net increase in direct spending by $2.1 billion through fiscal year 2033, according to estimates by the CBO. Permitting Reform The debt limit agreement includes notable provisions related to permitting reform. It focuses on modifying the approval processes for large infrastructure projects that require National Environmental Policy Act (NEPA) review. These modifications include establishing a project threshold for review, introducing interagency coordination for projects requiring multiple agency reviews, and implementing deadlines to prevent project delays. The agreement limits the consideration of "reasonably foreseeable environmental effects" by federal agencies under NEPA for infrastructure projects seeking federal approval. This measure sets deadlines for NEPA reviews to be completed, with one year for environmental assessments and two years for environmental impact statements. Lead agencies can extend these deadlines in collaboration with project sponsors if additional time is needed. Project applicants can sue in federal court to enforce the deadlines, and a court can establish a schedule and deadline for the agency to act. Lead agencies must provide an annual report to Congress on reviews that did not meet their deadlines, along with explanations for each failure. Additionally, the agreement sets page limits for NEPA environmental impact statements and environmental assessments, with complex projects limited to 300 pages, less complex projects limited to 150 pages, and environmental assessments limited to 75 pages. For projects involving multiple federal agencies, a June 15, 2023 Regular Board Meeting Agenda PmkretbPage 70f 93 NSDC Special Report: Debt Limit Page 17 of 19 NSW 5 memorandum of agreement must be established between the lead agency, project sponsor, and relevant agencies. The lead agency will supervise environmental documents, engage other agencies early in the process, develop a review schedule, address delays, and hold meetings with interested agencies. Environmental documents must be proposed jointly. This legislation has additional measures that allow federal agencies to adopt another agency's categorical exclusion and permit the use of an environmental document up to five years old, provided there are no significant changes that would affect the analysis. It also accelerates the completion of the Mountain Valley Pipeline and mandates the Council on Environmental Quality to conduct a study on the potential of online and digital technologies to address review delays, enhance public accessibility, and improve transparency. A report on "E -NEPA" is required to be submitted to Congress within one year of the legislation's enactment. Division D — Increase in Debt Limit The debt limit under this legislation is temporarily extended through January 1, 2025. The Treasury is prohibited from raising the cash balance beyond its regular operating levels or accelerating obligations to meet the debt limit. The Secretary of the Treasury will very likely be able to utilize "extraordinary measures" to avoid a default on the national debt between January and May 2025, providing the newly elected 119th Congress several months to pass new legislation addressing the debt limit issue. June 15, 2023 Regular Board Meeting Agenda PmkretbPa,L,0,70f 93 6/5/23, 7:07 AM EPA's Superfund Rule Needs a Bipartisan Check on PFAS Litigation Page 18 of 19 US Law Week June 5, 2023, 4:00 AM EPA's Superfund Rule Needs a Bipartisan Check on PFAS Litigation By Keith Pugh, Dale Nellor, and Frank Franciosi B. Keith Pugh of the American Public Works Association, Dale Nellor of the National Water Resources Association, and Frank Franciosi of the US Composting Council ask the US Senate to improve the EPA's proposed PFAS Superfund rule. Checks and balances are an important part of our country's architecture. One government branch's clear-eyed check of another branch often provides a way to refine and improve public policy. We now have an opportunity to improve a flawed, pending Environmental Protection Agency policy. Action from the US Senate in the coming weeks could provide a balanced, bipartisan check that's supported by a broad coalition of organizations responsible for safeguarding public health and the environment. This policy improvement would protect entities that have obeyed the rules. They shouldn't become victims of litigation that would shift the long -held, just polluter pays principle to an unjust system best described as a community pays model. Under the new proposed EPA rule, specific PFAS chemicals, often called forever chemicals, would be designated as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act, also known as Superfund. Adding new substances to the EPA's CERCLA list is a bold move, and we agree that cleanup and management of PFAS will require bold action. However, this proposed designation will put thousands of law -and -rule -abiding entities in a group where they don't belong—where they will be treated as polluters that must legally defend themselves and pay for pollution they didn't cause. The EPA admits it lacks sufficient authority to shield these blameless parties from third -party contribution claims brought by the manufacturers of PFAS and others that actually are responsible for environmental contamination. Those accused include water treatment agencies, biosolids management organizations, municipal solid waste authorities, and composting facilities. To date, the EPA has only offered a partial solution through enforcement discretion, which provides temporary protection. However, this partial solution only delays future contribution litigation. Those polluters will see the new EPA CERCLA policy as an opportunity to share the cost of Superfund cleanup with the public service entities which, in fact, provide the infrastructure communities need to reduce exposure to PFAS in the environment. https:HnewsjlMLxt*fgla2a2@/R jj,ffcepgardjM&xtjBoeA-9�iJiF�Abklt-tt-fRag(Ff7oi(ji,ogu?context=search&index=2 1/2 6/5/23, 7:07 AM EPA's Superfund Rule Needs a Bipartisan Check on PFAS Litigation Page 19 of 19 The cost of this inevitable litigation will hit cash-strapped local governments and the organizations that provide essential services to their communities, including drinking and raw water systems, wastewater systems, solid waste landfills, and composting facilities—none of which manufacture or use PFAS, but have been addressing secondhand contamination. They are, instead, passive receivers of materials that contain PFAS—compounds that are ubiquitous in everyday products and, therefore, our environment. To cover the cost of litigation, citizens will end up paying higher utility bills and local taxes at a time when inflation is already choking the cash flow of so many Americans. In the blink of an eye, we could become a nation where blameless communities shoulder more financial burden than the original polluters and are placed at greater risk of insolvency. Passive receivers of PFAS, and the communities those entities serve, should not be held liable for a problem they didn't create. That's why Senate Environment and Public Works Chairman Tom Carper (D -Del.) and ranking member Sen. Shelley Moore Capito (R-W.Va.) are negotiating legislation that we hope will protect essential water, wastewater, and solid waste systems from the unintended consequence of the proposed EPA designation. The two senators' collaboration on this issue is critical, and is supported by a comprehensive coalition of passive receivers of PFAS that are dedicated to their communities, including public works organizations, municipalities, composting and biosolid companies, mayors, and water and solid waste facilities. We hope Sens. Carper and Capito's bill will ultimately include elements of Sen. Cynthia Lummis' suite of legislation, designed to protect the municipalities and companies from the devastating liability expense that the EPAs proposed CERCLA rule could bring. Most of all, we hope Senate Democrats will be inspired by Sen. Carper's bipartisan leadership in addressing this issue and join their Republican colleagues to bring a balanced check to an EPA rule—one that is too blunt of an instrument and will bring financially painful consequences for their constituents. PFAS cleanup is a serious issue that will continue to require partnerships across the aisle and across interest groups. The Senate has an opportunity to show bipartisan leadership and put this long-term challenge on more fair, balanced footing now—a step that will make a difference in responsible PFAS cleanup going forward. This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law and Bloomberg Tax, or its owners. Author Information B. Keith Pugh is president of the American Public Works Association. Dale Nellor is executive vice president of the National Water Resources Association. Frank Franciosi is executive director of the US Composting Council. Write for Us: Author Guidelines © 2023 Bloomberg Industry Group, Inc. All Rights Reserved https://newsjlMLxt*&a_942@/R j},ffcepgardjM&xtjBocAg 1 iJiF�Abklt-ti,cfRa�g(FtN'ibfj @ n?context=search&index=2 2/2