Agenda Communications And

AGENDA COMMUNICATIONS AND LEGISLATIVE LIAISON COMMITTEE MEETING WITH BOARD OF DIRECTORS* ORANGE COUNTY WATER DISTRICT 18700 Ward Street, Fountain Valley, CA (714) 378-3200 Thursday, November 8, 2018, 8:00 a.m. - Conference Room C-2

*The OCWD Communications and Legislative Liaison Committee meeting is noticed as a joint meeting with the Board of Directors for the purpose of strict compliance with the Brown Act and it provides an opportunity for all Directors to hear presentations and participate in discussions. Directors receive no additional compensation or stipend as a result of simultaneously convening this meeting. Items recommended for approval at this meeting will be placed on the December 5, 2018 Board meeting Agenda for approval.

ROLL CALL

ITEMS RECEIVED TOO LATE TO BE AGENDIZED

RECOMMENDATION: Adopt resolution determining need to take immediate action on item(s) and that the need for action came to the attention of the District subsequent to the posting of the Agenda (requires two-thirds vote of the Board members present, or, if less than two-thirds of the members are present, a unanimous vote of those members present.)

VISITOR PARTICIPATION

Time has been reserved at this point in the agenda for persons wishing to comment for up to three minutes to the Board of Directors on any item that is not listed on the agenda, but within the subject matter jurisdiction of the District. By law, the Board of Directors is prohibited from taking action on such public comments. As appropriate, matters raised in these public comments will be referred to District staff or placed on the agenda of an upcoming Board meeting.

At this time, members of the public may also offer public comment for up to three minutes on any item on the Consent Calendar. While members of the public may not remove an item from the Consent Calendar for separate discussion, a Director may do so at the request of a member of the public.

CONSENT CALENDAR (ITEM NO. 1)

All matters on the Consent Calendar are to be approved by one motion, without separate discussion on these items, unless a Board member or District staff request that specific items be removed from the Consent Calendar for separate consideration.

1. MINUTES OF COMMUNICATIONS AND LEGISLATIVE LIAISON COMMITTEE MEETING HELD OCTOBER 4, 2018

RECOMMENDATION: Approve minutes as presented

END OF CONSENT CALENDAR

1 MATTERS FOR CONSIDERATION

2. STATE LEGISLATIVE UPDATE

RECOMMENDATION: Agendize for December 5 Board meeting: Take action as appropriate

3. FEDERAL LEGISLATIVE UPDATE

RECOMMENDATION: Agendize for December 5 Board meeting: Take action as appropriate

4. 50th ANNIVERSARY OF THE SANTA ANA RIVER JUDGMENTS

RECOMMENDATION: Agendize for December 5 Board meeting: Approve up to $8,000 to co-host an event with the Santa Ana River Watermasters and create a booklet, video and pin to commemorate the 50th Anniversary of the 1969 Orange County and Western-San Bernardino Judgments

INFORMATIONAL ITEM

5. PUBLIC AFFAIRS OUTREACH REPORT (OCTOBER 2018)

CHAIR DIRECTION AS TO WHICH ITEMS IF ANY TO BE AGENDIZED AS A MATTER FOR CONSIDERATION AT THE DECEMBER 5 BOARD MEETING

DIRECTOR’S ANNOUNCEMENTS/REPORTS

GENERAL MANAGER’S ANNOUNCEMENT/REPORT

ADJOURNMENT

2 COMMUNICATION AND LEGISLATIVE LIAISON COMMITTEE MEMBERS

Vicente Sarmiento - Chair Shawn Dewane - Vice Chair Cathy Green Steve Sheldon Tri Ta

Roger Yoh James Vanderbilt Bruce Whitaker Dina Nguyen Denis Bilodeau

Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda is posted in the window of the guard shack at the main entrance of the Orange County Water District, 18700 Ward Street, Fountain Valley, CA and on the OCWD website: www.ocwd.com not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Assistant District Secretary. Backup material for the Agenda is available at the District offices for public review and can be viewed online at the District’s website: www.ocwd.com.

Accommodations to the Disabled: Pursuant to the Americans with Disabilities Act, persons with a disability who require a disability-related modification or accommodation in order to participate in a meeting, including auxiliary aids or services, may request such modification or accommodation from the District Secretary at (714) 378-3233, by email at [email protected] by fax at (714) 378-3373. Notification 24 hours prior to the meeting will enable District staff to make reasonable arrangements to assure accessibility to the meeting.

Availability of Agenda Material: As a general rule, agenda reports or other written documentation that has been prepared or organized with respect to each item of business listed on the agenda can be reviewed at www.ocwd.com. Copies of these materials and other disclosable public records distributed to all or a majority of the members of the Board of Directors in connection with an Open Session agenda item are also on file with and available for inspection at the Office of the District Secretary, 18700 Ward Street, Fountain Valley, California, during regular business hours, 8:00 a.m. to 5:00 p.m., Monday through Friday. If such writings are distributed to members of the Board of Directors on the day of a Board meeting, the writings will be available at the entrance to the Board of Directors meeting room at the Orange County Water District office.

3 1 MINUTES OF BOARD OF DIRECTORS MEETING WITH COMMUNICATIONS AND LEGISLATIVE LIAISON COMMITTEE ORANGE COUNTY WATER DISTRICT October 4, 2018 @ 8:00 a.m.

Director Dewane called the Communications and Legislative Liaison Committee meeting to order in Conference Room C-2 at the District office. The Assistant District Secretary called the roll and reported a quorum as follows:

Committee Members OCWD Staff Vicente Sarmiento (absent) Mike Markus – General Manager Shawn Dewane Eleanor Torres – Director of Public Affairs Cathy Green Alicia Dunkin – Legislative Affairs Liaison Steve Sheldon (absent) Christina Fuller – Assistant District Secretary Tri Ta

Alternates Roger Yoh (absent) James Vanderbilt (absent) Bruce Whitaker Dina Nguyen (absent) Denis Bilodeau

CONSENT CALENDAR The Consent Calendar was approved upon motion by Director Whitaker, seconded by Director Green and carried [3-0] as follows. Ayes – Dewane, Green, Whitaker

1. Minutes of Previous Meeting

The minutes of the September 6, 2018 Communications/Legislative Liaison Committee meeting are approved as presented.

MATTER FOR CONSIDERATION

2. 2019 Children’s Water Education Festival Location and Service Contracts

Communications Specialist Crystal Nettles stated the Children's Water Education Festival celebrates its 23rd anniversary in 2019. She reported that staff recommends the Orange County Water District continue to host the Festival at the University of California, Irvine (UCI) for the seventh consecutive year and utilize the event planning services of James Event Productions, Inc.

Upon motion by Director Green, seconded by Director Ta and carried [5-0], the Committee recommended that the Board at its October 17 Board meeting: 1) Approve hosting the 2019 Children’s Water Education Festival at the University of California, Irvine (UCI) on March 27-28, 2019; 2) Authorize execution of Agreement with UCI for an amount not to exceed $70,000 to host the 2019 Children’s Water Education Festival on its campus; and, 3) Authorize execution of Agreement with James Event Productions, Inc. for an amount not to exceed $91,640 for event rentals and equipment; security and first aid services; logistical support and coordination throughout the year-long planning effort and during the week-long setup, tear down and execution of the event.

Ayes –Dewane, Green, Ta, Whitaker, Bilodeau

3. State Legislative Update

Legislative consultants provided an update on the legislative calendar and agenda and reported on the following legislation: AB 2447 (Reyes) California Environmental Quality Act (CEQA): Land Use: Environmental Justice and SB 1422 (Portantino) California Safe Drinking Water Act: Microplastics.

4. Federal Legislative Update

Federal consultants provided an update on funding opportunities of interest to the District and reported on FY 2019 appropriations.

5. Public Affairs Outreach Report (September 2018)

Director of Public Affairs Eleanor Torres reported on the progress of OCWD’s two-year public affairs strategic plan. She advised that the Public Affairs staff will be reaching out to individual board members and directors of each District department in the coming months to discuss potential goals and will come back to the Committee with a 2019-2020 plan for the Board’s review and approval. Ms. Torres noted the 2018 Groundwater Adventure Tour takes place on Thursday, October 25th.

ADJOURNMENT

There being no further business to come before the Committee, the meeting was adjourned at 8:50 a.m.

______Shawn Dewane, Vice Chair

2 2 AGENDA ITEM SUBMITTAL

Meeting Date: November 8, 2018 Budgeted: N/A Budgeted Amount: N/A To: Communications/Leg. Liaison Cte Cost Estimate: N/A Board of Directors Funding Source: N/A Program/Line Item No.: N/A From: Mike Markus General Counsel Approval: N/A Engineers/Feasibility Report: N/A Staff Contact: E. Torres/A. Dunkin CEQA Compliance: N/A

POLICY ISSUE: STATE LEGISLATIVE UPDATE

SUMMARY

The Orange County Water District’s (OCWD; the District) state legislative consultants and staff will provide a verbal report on the legislative calendar and expected legislation in 2019 of interest to the District.

Attachment(s): • Joe A. Gonsalves and Son – Edelstein Gilbert Robson & Smith October 2018 State Legislative Update

RECOMMENDATION

Agendize for December 5 Board meeting: Take action as appropriate.

DISCUSSION

Proposed ACWA 2019 Legislation On October 26, the Association of California Water Agencies’ (ACWA) Legislative Committee met in Sacramento and voted that ACWA will sponsor the following two pieces of legislation in 2019: Once legislation is in print, OCWD staff and consultants will bring it to the committee for review and possible action to support the 2019 legislation.

Compliance time provided for new maximum contaminant levels

The ACWA Water Quality Committee’s proposed legislation that would require the State Water Resources Control Board to include a compliance period in the regulation when the Board sets a new primary Maximum Contaminant Level (MCL) (i.e., a primary drinking water standard) so that agencies have time to plan for and build the facilities needed to meet the new standards.

The ACWA proposed legislation would state that new primary drinking water standards shall take effect on the date that is three years after the date on which the regulation is promulgated, unless an earlier date is practicable, except that the State Water Board may allow up to two additional years to comply with a maximum contaminant level (MCL) or treatment technique if it determines that additional time is necessary for capital improvements.

Alternatives to a new tax on water

The second ACWA sponsored legislation in 2019 will provide safe drinking water funding to bring clean drinking water to citizens with non-compliant water systems through alternatives to a new tax on water. ACWA’s legislation will (1) add a voluntary contribution check-off box to the Form 540 state tax return for the Safe and Affordable Drinking Water Fund, and (2) create a trust that’s principal would be funded with General Fund dollars during budget surplus years.

The State Water Board’s estimate of the annual need for O&M funding for was $34.4 million per year. ACWA’s proposed legislation is consistent with the work of ACWA Disadvantaged Community Drinking Water Initiative Action Plan which suggests use of the General Fund because the issue is a social issue for the State of California.

TO: ORANGE COUNTY WATER DISTRICT

FROM: JOE A. GONSALVES AND SON EDELSTEIN GILBERT ROBSON & SMITHLLC

SUBJECT: LEGISLATIVE UPDATE

DATE: OCTOBER 31, 2018

The November General Election will be held on November 6. While midterm elections often see less voter turnout, the fight for control of toss-up congressional seats in California has made the 2018 election more contentious. These campaigns will have ripple effects on state elections across California.

While both Democrats and Republicans have seen a decline in voter registration in recent years, Republicans have seen a more dramatic drop. This is reflected in the makeup of the Legislature. The forty member Senate currently has 26 Democrats and 14 Republicans, while the Assembly is split between 55 Democrats and 25 Republicans. This means that in the Senate Democrats are currently one vote shy of the 2/3 supermajority needed to approve new taxes and Democrats in the Assembly have one more vote then they need. It is likely that Democrats will pick up the additional vote needed in the Senate and widen their margins in the Assembly following the election.

Not surprisingly given the registration gap, it is widely expected that the current Lieutenant Governor, Gavin Newsom, will prevail against the Republican candidate John Cox. What is less certain is how the Legislature will react to a new Governor. For the past eight years, Governor Brown has been the dominant figure in state politics and has by and large set the agenda for the Legislature in Sacramento. While Newsom can expect a certain degree of support from his Democratic colleagues in the Legislature, it remains to be seen whether they will show him the same level of deference as they have his predecessor.

While election season is in full swing across California, Sacramento has been relatively quiet with the 2017-2018 legislative session adjourned. The newly elected Legislature will convene on December 3 to swear in new members and organize for the upcoming 2019-2020 session. Following that meeting, the Legislature will adjourn for the holiday season and return to work in early January.

3 AGENDA ITEM SUBMITTAL

POLICY ISSUE: FEDERAL LEGISLATIVE UPDATE

SUMMARY

The Orange County Water District’s (OCWD; the District) staff and federal consultants James McConnell, Eric Sapirstein of ENS Resources and Holland and Knight will provide a verbal update on legislation and funding opportunities of interest to the District. In addition, the results of the midterm elections will be discussed.

Attachment(s):

• James McConnell October 2018 Federal Report • ENS Resources October 2018 Federal Report • Holland & Knight October 2018 Federal Report • Holland & Knight Midterm Elections Update

RECOMMENDATION

Agendize for December 5 Board meeting: Take action as appropriate.

RELEVANT STANDARDS

• Forge long-term, positive and proactive relationships with elected officials and policy makers. • Keep abreast of federal funding opportunities and legislation that may impact OCWD, other water agencies and/or special districts.

DISCUSSION/ANALYSIS

President Trump recently signed into law a spending bill that funds various water storage, drought preparedness, and water infrastructure needs for the United States Bureau of Reclamation (USBR) and Army Corps of Engineers.

The “minibus” spending package contains the 2019 Energy and Water Bill, which authorizes funding for Western drought programs under the Water Infrastructure Improvements for the Nation (WIIN) Act, including funds for water storage, water

recycling, and desalination programs. The package also provides funding for WaterSMART grants, Title XVI Water Reclamation and Reuse programs, San Joaquin River Restoration, and CALFED.

On October10, the Senate passed the America’s Water Infrastructure Act (AWIA) by a vote of 99 to 1. This bipartisan bill passed the House of Representatives on September 13 and now awaits President Trump’s signature.

The bill begins the process of establishing a Water Infrastructure Finance and Innovation (WIFIA) loan program for USBR projects. Passage of this bill marks the return to a two-year cycle for authorizing Army Corps of Engineer projects.

Activities in October include OCWD staff and Scripps Institute of Oceanography jointly meeting at the District to develop the Forecast Informed Reservoir Operations Prado Dam project plan.

JAMES F. MCCONNELL ATTORNEY-AT-LAW 1901 PENNSYLVANIA AVENUE, N.W. SUITE 700 WASHINGTON, D.C. 20006 917-434-3603 [email protected]

ORANGE COUNTY WATER DISTRICT Washington Report October 2018

Congress was in recess for most of the month of October in advance of the November midterm election. It has been noted by national political commentators that Republican control of the House of Representatives is partially dependent on the outcome of several key elections in Orange County. These include the re-election campaigns of Representatives Dana Rohrabacher and Mimi Walters, as well as the races to succeed retiring Congressmen Ed Royce and Darrell Issa.

At the administrative level, a significant milestone was achieved in October with approval by the Army Corps of Engineers of a major deviation to the water control manual for Prado Dam. The change will permit the Corps to capture stormwater at the dam up to elevation 505 feet on a year round basis for the next five years. This will allow the current feasibility underway at Prado to be completed and submitted to Congress. It is anticipated that the feasibility will recommend making elevation 505 feet permanent.

Since 2006 the Corps has captured stormwater flows at the dam up to elevation 498 during the annual “rainy” season of October through February, and to 505 during the “dry” season the remainder of the year. The major deviation approved this month allows the Corps to begin now capturing any storm flows to 505 for the next five years.

OCWD worked for several years with the Los Angeles District of the Corps, as well as with Headquarters in Washington, to achieve this major deviation while awaiting a chief’s report on the Prado Basin Feasibility Study.

Also this month the 2018 Water Resources Development Act (WRDA) was signed into law by the President—Public Law 115-270. This year’s legislation (S. 3021) is called America’s Water Infrastructure Act of 2018.

Section 1222 of the bill calls for the Army Corps to report to Congress within a year on the Forecast-Informed Reservoir Operations (FIRO) pilot project study currently underway. The Scripps Institute of Oceanography in San Diego has been working with the Corps on the pilot project study. OCWD, in turn, has been working with Scripps on the possible expansion of FIRO to include Prado Dam in the future.

The WRDA legislation calls on the Corps to assess the possibilities for expanding FIRO to other Corps-owned facilities. This opens the potential inclusion of Prado Dam in the FIRO program in the not-too-distant future. With enactment of the legislation, OCWD will continue to work with Scripps and the Corps in California and in Washington on eventual Prado Dam participation in this new program.

In addition, the legislation: authorizes several new Corps studies, construction and environmental restoration projects as recommended by the Chief of Engineers; reauthorizes the Drinking Water State Revolving Loan Fund programs at more than $4.4 billion over the next three years; eases the streamlining process for hydropower projects; reauthorizes the Water Infrastructure Finance and Innovation Act (WIFIA) through FY 2021; and, initiates a study with the National Academy of Sciences to review the Trump Administration's controversial proposal to move at least parts of the Corps out of the Defense Department.

Meanwhile this month, the Trump Administration announced its progress on 2018 regulatory reforms by releasing the "Fall 2018 Unified Agenda of Regulatory and Deregulatory Actions." According to the report, Federal agencies have "greatly exceeded" initial targets for slashing regulatory costs, cutting four significant rules for every new one put in place. The deregulatory push resulted in $23 billion in net regulatory cost savings in FY 2018, according to the White House. Agencies surpassed the initial target of eliminating the cost of two rules for every new one, as mandated by Executive Order 13771. The Environmental Protection Agency (EPA) is maintaining its projected schedule for finalizing its replacement of the Obama-era rule to cut greenhouse gas emissions from power plants by the beginning of next year. On water, the Administration plans to propose a new definition of what constitutes "Waters of the United States" (WOTUS) soon, with a final WOTUS rule due to be finalized in September 2019. Also, the Administration plans to finalize a repeal of the Obama-era Clean Water Rule on WOTUS in March 2019. EPA also expects a June 2019 proposed rule limiting when the agency can use its veto power under Section 404(c) of the Clean Water Act to veto an Army Corps of Engineers dredge-and-fill permit. EPA is still planning to propose a new Lead and Copper Rule for drinking water in February 2019. Also this month, President Trump signed an Executive Memorandum ordering enhanced coordination between Federal agencies that oversee Endangered Species Act (ESA) reviews and promised to finalize biological opinions under the ESA for state and federal projects that move water in California and other areas of the West. The order aims to improve coordination between the Interior and Commerce departments, which house the U.S. Fish and Wildlife Service (FWS) and NOAA Fisheries (NMFS), respectively. President Trump's order gives Interior and Commerce a 30-day deadline to identify major new California water infrastructure and designates one official to coordinate their ESA and National Environmental Policy Act (NEPA) reviews. The order also directs Interior and Commerce to issue the ESA biological opinions covering the operation of Federal pumps for the Central Valley Project (CVP) in the Sacramento-San Joaquin River Delta (Delta) by the end of next January. Congress will return to Washington on November 13 for a lame duck session after the elections and the Veterans Day holiday.

M E M O R A N D U M

TO: Alicia Duncan

FROM: Eric Sapirstein

DATE: October 30, 2018 SUBJECT: Washington Update

The month of October has been a quiet month for Congress, as the House and Senate remained on recess to campaign during the remaining weeks before the November midterm elections. During the past month, President Denis Bilodeau met in Washington with USACE Chief of Staff Col. Kirk Gibbs to discuss the finalization of the Prado Dam Deviation for five years and to express OCWD’s deep appreciation for the action to approve the deviation request that will permit enhanced water conservation. During the discussion, President Bilodeau invited Col. Gibbs and USACE’s General Semenite to visit OCWD. The request was positively received with a tentative opportunity for a visit in January. The below summarizes the policy advancements during the past month of interest to OCWD.

America’s Water Infrastructure Act Enacted into Law On October 23, President Trump signed America’s Water Infrastructure Act of 2018 (S. 3021) (Public Law No: 115-270) into law. S. 3021, commonly referred to as the Water Resources Development Act (WRDA), is a comprehensive bill that traditionally is renewed every two years to authorize USACE flood protection, navigation and ecosystem restoration programs and projects. This year’s effort is notable for a number of additional authorizations beyond USACE’s traditional needs.

Of specific interest to OCWD are four provisions. First, the FIRO authorization was expanded to authorize an additional ten projects to be selected for enhanced ENS Resources, Inc. 1901 Pennsylvania Avenue, N.W. Suite 1005 Washington, D.C. 20006 Phone 202.466.3755/Telefax 202.466.3787 forecasting efforts to support water supply at USACE reservoirs and flood protection facilities. This will directly benefit OCWD’s collaboration with SCRIPPS to use FIRO at Prado. Second, the law creates a $5 billion authorization for the Drinking Water SRF program that is consistent with OCWD’s advocacy for enhanced funding. Third, the law creates authority for state SRFs to receive funding to support 100% project financing through WIFIA-like assistance. And fourth, a new grants assistance program is authorized to provide water agencies with assistance to address resiliency needs, including planning for sea level rise impacts and relocation of facilities.

Sanitation and Drinking Water Needs of Low-Income Households Legislation Introduced

Earlier this month, the Low-Income Water Customer Assistance Programs Act of 2018 (S. 3564) was introduced in the Senate and referred to the Committee on Environment and Public Works. S. 3564, sponsored by Senator Ben Cardin (D-MD) and cosponsored by Senators Debbie Stabenow (D-MI) and Roger Wicker (R-MS), is a bipartisan bill that aims to address the water affordability issues within the nation’s low-income communities.

Specifically, the legislation would establish: 1) at least 32 pilot programs for low- income residents to receive aid in paying their drinking water bills and help utilities that service these residents, 2) at least 32 pilot programs for low-income residents to receive aid in paying their wastewater utility bills and help the utilities that service these residents, and 3) require that USEPA conducts a study on the cost and best methods of transitioning from a pilot program to a nationwide program. The legislation breaks down the 32 pilot programs in both the drinking water and wastewater categories into community sizes that range from utilities serving less than 10,000 to utilities serving more than 1 million residents. There is also a requirement that at least 20% of the population served must be under the federal poverty line. While S. 3564 does not specify grant funding levels for the pilot programs, it does state that USEPA Administrator will give priority to utilities that 1) are affected by consent decrees relating to compliance with the Clean Water Act, 2) the residential customers have experienced rate or fee increases for drinking water, wastewater, or stormwater services greater than or equal to 30% during the period that is three years prior to S. 3564’s enactment date, 3) developed an equivalent program for low-income ratepayers, and 4) provide matching funds equal to or greater than the amount of the grant. It is unclear whether the Senate will act upon S. 3564 during the Lame Duck session. If action does not occur, we anticipate that it will be a top priority for the Senators in the 116th Congress

President Issues Executive Order Concerning Western Water

ENS Resources, Inc. 1901 Pennsylvania Avenue, N.W. Suite 1005 Washington, D.C. 20006 Phone 202.466.3755/Telefax 202.466.3787 On October 19, the president signed a Presidential Memorandum on Promoting the Reliable Supply and Delivery of Water in the West. It calls upon federal agencies to expedite water delivery and projects in the western U.S. with a focus on California. It directs Interior Secretary Ryan Zinke and Commerce Secretary Wilbur Ross to streamline the western water infrastructure regulatory processes and remove unnecessary burdens. Commerce’s Ross is identified because National Marine Fisheries Service is housed within the Department of Commerce.

The memorandum’s key elements include:

• Federal regulations and policies must minimize burdens and fragmentation of efforts to deliver water supplies to citizens; • Mandate streamlining federal approvals of California water projects that are jointly reviewed by Interior and Commerce through the use of defined deadlines for NEPA and Endangered Species Act reviews and consultations; and • Updating the coordinated operations agreement between the state and federal California water projects to enhance water supply deliveries.

USBR Commissioner Announces new Deputy Commissioner

USBR Commissioner Brenda Burman has announced the appointment of a Deputy Commissioner. The appointment of Shelby Hagenauer provides Burman with staff to manage the myriad of issues on a day-to-day basis as Burman continues to address pressing issues such as California Water Fix, power and other power matters. Hagenauer is a veteran of water policy issues debates having worked in Congress and the private sector for twenty years. Her tenure in the Congress included working for then Representative Bill Thomas (R-CA) and the present Majority Leader Kevin McCarthy (R-CA) where she worked on California water issues and was the lead on the 2008 Farm Bill for McCarthy.

ENS Resources, Inc. 1901 Pennsylvania Avenue, N.W. Suite 1005 Washington, D.C. 20006 Phone 202.466.3755/Telefax 202.466.3787

800 17th Street, N.W., Suite 1100 | Washington, DC 20006 | T 202.955.3000 | F 202.955.5564 Holland & Knight LLP | www.hklaw.com

Orange County Water District Federal Update October 2018

Congress is in recess until after midterm elections. The House and Senate return on November 13.

Potential Lame Duck Agenda: After reaching an agreement regarding judicial nominations, the Senate adjourned on October 11, joining the House in recess until after the midterm elections on November 6. Though the outcome of the elections will influence Congress' activities for the remainder of 2018, Republican congressional leaders' legislative agenda for the lame-duck session includes outstanding FY 2019 appropriations bills, the farm bill conference report, a package to extend expiring tax breaks, criminal justice reform, the Violence Against Women Act (VAWA), and the Jobs Act 3.0. Additionally, Republicans are aiming to confirm a batch of executive and judicial branch nominees, including 36 federal district court and three circuit court judges.

Legislative priorities on the GOP agenda may be impacted by a partisan fight over President Donald Trump's request for Congress to fund construction of a wall along the U.S.-Mexico border. On October 12, the House Majority Leader Kevin McCarthy (R-Calif.) introduced a border wall bill (H.R. 7059) that would appropriate more than $23 billion for wall construction and border security measures. Currently, the FY 2019 Senate Homeland Security Appropriations bill only includes $1.6 billion for border barriers. On October 10, Senate Minority Leader Chuck Schumer (D-N.Y.) said that Democrats are "not opposed" to strengthening the U.S. border, opening a path to the potential for a deal. Rep. Tom Cole (R-Okla.) said that Senator Schumer's remarks may introduce the possibility of a compromise that would join border wall funding to immigration legislation protecting individuals under the Deferred Action for Childhood Arrivals (DACA) program. However, Republicans have also noted that reaching a compromise on the border wall and other hot-button issues will depend on the outcome of the mid-term elections.

Senate Republican Conference Chairman John Thune (R-S.D.) has acknowledged desire among Republicans to pass a package of tax extenders, and to make some corrections to the Tax Cuts and Jobs Act that became law in 2017. He said there will be an attempt to finish that work before the end of the year. Senate Majority Leader Mitch McConnell (R-Ky.) said that he plans to put criminal justice reform legislation, the First Step Act, on the Senate floor if it can gain 60 votes to avoid a potential filibuster. Bipartisan sentencing reform provisions would be added to the bill, which was passed by the House on May 22,. Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) and President Trump have supported the legislation.

FY 2019 Appropriations Update: Ahead of the 2018 mid-term elections on November 6, President Trump has signed into law two FY 2019 appropriations packages finalizing five of the 12 appropriations bills (75 percent of the federal government appropriations). The second spending package included a continuing resolution (CR) that extended FY 2018 funding for the unfinished appropriations bills through December 7, averting a government shutdown before the end of FY 2018 on September 30.

On September 21, the President signed the first minibus spending package for FY 2019 appropriations, including spending for Military Construction-Veterans Affairs (VA), Energy- Water, and Legislative Branch bills. The $147 billion package had been approved in the House and Senate in August. On September 28, the President approved the second minibus package. H.R. 6157, which includes the $674.4 billion Department of Defense Appropriations bill and the $178.1 billion Labor-Health and Human Services (HHS)-Education Appropriations bill. The Senate passed the measure in a 93-7 vote earlier in September, and the House passed it in a 361- 16 vote on September 26.

White House Releases Regulatory Agenda: The White House released the Administration’s fall 2018 regulatory agenda on October 17. The agenda is estimated to cut regulatory costs by $18 billion. The White House office of Information and Regulatory Affairs (OIRA) releases the agenda each year in the fall and spring, and details the status of ongoing regulatory actions. The agenda deadlines are not always met, and there is no penalty for missing a listed date. Highlights of the agenda related to OCWD’s priories include:

• Proposal to revise how large industrial sources such as power plants and refineries calculate changes in emissions that would affect requirements on installing air pollution controls

• Repeal of the Clean Power Plan

• Replacement rule for the Clean Power Plan, called the Affordable Clean Energy Rule

• Rule for Migratory Bird Management; Revision of General Exceptions to Permit Requirements

• Revise definition of the In 2015, Waters of the United States (2015 Rule). On February 28, 2017, the President signed Executive Order which instructed the EPA and Army Corps to review the 2015 rule and rescind or replace it as appropriate and consistent with law. The agencies are publishing this proposed rule (which will be finalized soon) to follow the first step, which sought to recodify the definition of "waters of the United States" that existed prior to the 2015 rule. In this second step, the agencies are conducting a substantive reevaluation and revision of the definition of waters of the United States” in accordance with the Executive Order.

President Threatens Five Percent Spending Cuts Across Agencies: President Trump said on October 17 that he would instruct federal departments to cut their budgets by five percent next year, signaling a renewed interest in tightening the mounting federal deficit. The budget shortfall for Trump’s first full fiscal year in office totaled a 17% increase from the previous year, more

2 #61518622_v1 than $779 billion dollars. After sealing a $300 billion dollar budget deal this spring (H.R. 1892), the administration is hinting that the second half of the President’s term could mark a pivot toward budget austerity. The President will present his next budget request early next year for fiscal year 2020.

Department of Energy Launches Water Security Grand Challenge: On October 25, Department of Energy (DOE) Secretary Rick Perry announced the Water Security Grand Challenge, a White House “to advance transformational technology and innovation to meet the global need for safe, secure, and affordable water.”

The Challenge has the following goals for the United States to reach by 2030: • Launch desalination technologies that deliver cost-competitive clean water • Transform the energy sector’s produced water from a waste to a resource • Achieve near-zero water impact for new thermoelectric power plants, and significantly lower freshwater use intensity within the existing fleet • Double resource recovery from municipal wastewater • Develop small, modular energy-water systems for urban, rural, tribal, national security, and disaster response settings.

Congressional Budget Office (CBO) Released Report on Public Water Infrastructure Funding: In October, CBO released a report, Public Spending on Transportation and Water Infrastructure, 1956 to 2017, which provides information on federal, state, and local governments’ spending on transportation and water infrastructure. Items to note: • Water supply and wastewater treatment spending totaled $113 billion in 2017. 28% ($31 billion) went to capital, while 72% ($82 billion) went to operations and maintenance. • Only 4% of this spending ($4.5 billion) was federal. The other 96% ($109 Billion) was state and local spending.

3 #61518622_v1 2018 Midterm Elections Update

Holland & Knight Current House and Senate Composition

U.S. House of Representatives U.S. Senate

51 Republicans 235 Republicans 49 Democrats 193 Democrats *includes 2 7 vacancies Democrat- caucusing Independents 2 The 116th Congress: Paradigm Shifts

U.S. House of Representatives ¾ Republicans are defending 40 open House seats while Democrats are defending 20

¾ Several members left during the 115th Congress - Wave of allegations [sexual harassment and other inappropriate behavior] - Appointed to or running for another office [Governor or Senate] - Serving as Cabinet secretary or in Administration

¾ GOP committee chairs are term-limited

¾ New ages, demographics running for office - Millennials: Millennials will for the first time be a plurality of the voting-eligible population in 2018. Several candidates are in their 30s, with a couple in their 20s. The average age for a member of the House is currently 58 years old. - Females: There is a record number of women running for Congress this year, 235 compared to 167 in 2016. Women have won 43% of Democratic House primary races and Republican women have won 13% of their primaries. - Veterans: According to the “With Honor” Super PAC, more than 200 veterans have run for House seats this year. Currently, less than 20% of Congress has a military background.

3 The 116th Congress: Paradigm Shifts (Cont.)

U.S. Senate

¾ 26 Democrats are up for re-election in 2018. Every Democratic incumbent is running for re-election, including 8 Democrats in states that Trump easily won in 2016.

¾ 9 Republicans are up in 2018. 7 Republicans are running for re-election, and 2 seats are open with the retirement of Senator Corker and Senator Flake. The open Flake (AZ) seats and Corker (TN) seats are in states won by President Trump however are key pickup opportunities for Democrats. Senator Heller (NV) is the only Republican running for re-election in a state won by Hillary Clinton in 2016.

¾ Given the current ratio of the Senate – 51 R-49 D, Democrats would have to retain all 26 current seats plus net 2 new seats to attain the Senate majority. Democrats Republicans 49 51 ¾ Democrats running in States Trump Won: FL, IN, OH, MI, MO, MT, ND, PA, WI, WV

¾ Republicans running in Clinton States: NV Senate

Note: Independents, shown in yellow, caucus with the Democrats and are included in the Democratic tally. Source: Bloomberg Government 4 U.S. House of Representatives

Analysis

¾ Difficult year for GOP – retirements, PA redistricting, Kavanaugh nomination proceedings. ¾ Historically, in midterm elections, the party that holds the White House loses seats held by their party in their respective Houses of Congress. This historical dynamic is more true in the House than the Senate. ¾ In the House, there are 23 seats held by Republicans in districts won by Hillary Clinton in 2016. 7 of those Republicans are retiring from Congress or seeking higher office, leaving what is known as an “open” seat.

5 U.S. House of Representatives 235-193 (7 vacancies)

218 Seats = Control

¾ 218 seats are needed for the majority

¾ 34 GOP seats are rated as “Toss up” vs just 2 Democratic seats

¾ Democrats must win 23 seats for an outright majority

¾ Democrats could swing handfuls of seats in The Current Partisan Breakdown California, Pennsylvania, New Jersey, and New York -235 Republicans - 193 Democrats -7 vacancies - 5 formerly held by Republicans - 2 formerly held by Democrats

6 House Races to Watch

¾ Arizona ¾ Illinois - AZ-2 Ann Kirkpatrick (D) v. Leah Marquez Petersen (R) Lean D - IL-6 Sean Casten (D) v. Rep. Peter Roskam (R) Toss Up ¾ California - IL-12 Brendan Kelly (D) v. Rep. Mike Bost (R) Toss Up Lean R - CA-10 Josh Harder (D) v. Rep. Jeff Denham (R) Toss Up - IL-13 Betsy Dirksen Londrigan (D) v. Rep. Rodney Davis (R) - CA-25 Katie Hill (D) v. Rep. Steve Knight (R) Toss Up - IL-14 Lauren Underwood (D) v. Rep. Randy Hultgren (R) Toss Up - CA-39 Gil Cisneros (D) v. Young Kim (R) Lean R ¾ Iowa - CA-45 Katie Porter (D) v. Rep. Mimi Walters (R) Toss Up - IA-1 Abby Finkenauer (D) v. Rep. Rod Blum (R) Lean D - CA-48 Harley Rouda (D) v Rep. Dana Rohrabacher (R) Toss Up - IA-3 Cindy Axne (D) v. Rep. David Young (R) Toss Up - CA-49 Mike Levin (D) v. Diane Harkey (R) Lean D ¾ Kansas - CA-50 Ammar Campa-Najjar (D) v. Rep. Duncan Hunter (R) Lean R - KS-2 Paul Davis (D) v. Steve Watkins (R) Toss Up ¾ Colorado - KS-3 Sharice Davids (D) v. Rep. Kevin Yoder (R) Toss Up Lean D - CO-6 Jason Crow (D) v. Rep. Mike Coffman (R) ¾ Kentucky ¾ Florida -KY-6Amy McGrath (D) v. Rep. Andy Barr (R) Toss Up - FL-26 Debbie Mucarsel-Powell (D) v. Rep. Carlos Curbelo (R) Toss Up ¾ Maine - FL-27 Donna Shalala (D) v. Maria Elvira Salazar (R) Toss Up -ME-2 Jared Golden (D) v. Rep. Bruce Poliquin (R) Toss Up ¾ Georgia ¾ Michigan - GA-6 Lucy McBath (D) v. Rep. Karen Handel (R) Lean R - MI-8 Elissa Slotkin (D) v. Rep. Mike Bishop (R) Toss Up - MI-11 Hailey Stevens (D) v. Lena Epstein (R) Lean D Incumbents in BOLD Rankings from RealClearPolitics 7 House Races to Watch (Cont.)

¾ Minnesota ¾ New York - MN-1 Dan Feehan (D) v. Jim Hagedorn (R) Lean R - NY-1 Perry Gershon (D) v. Rep. Lee Zeldin (R) Lean R - MN-2 Angie Craig (D) v. Rep. Jason Lewis (R) Lean D - NY-11 Max Rose (D) v. Rep. Dan Donovan (R) Lean R - MN-3 Dean Phillips (D) v. Rep. Erik Paulsen (R) Lean D - NY-19 Antonio Delgado (D) v. Rep. John Faso (R) Toss Up - MN-8 Joe Radinovich (D) v. Pete Stauber (R) Lean R - NY-22 Anthony Brindisi (D) v. Rep. Claudia Tenney (R) Toss Up - NY-24 Dana Balter (D) v. Rep. John Katko (R) Likely R ¾ Nebraska -NY-27 Nate McMurray (D) v. Rep. Chris Collins (R) Lean R - NE-2 Kara Eastman (D) v. Rep. Don Bacon (R) Lean R ¾ North Carolina ¾ Nevada - NC-2 Linda Coleman (D) v. Rep. George Holding (R) Lean R - NV-3 Susie Lee (D) v. Danny Tarkanian (R) Toss Up - NC-9 Dan McCready (D) v. Mark Harris (R) Toss Up - NV-4 Steven Horsford (D) v. Crescent Hardy (R) Lean D - NC-13 Kathy Manning (D) v. Rep. Ted Budd (R) Toss Up ¾ New Jersey ¾ Ohio -NJ-3 Andy Kim (D) v. Rep. Tom MacArthur (R) Toss Up - OH-1 Aftab Pureval (D) v. Rep. Steve Chabot (R) Lean R - OH-12 Danny O’Connor (D) v. Rep. Troy Balderson (R) - NJ-7 Tom Malinowski (D) v. Rep. Leonard Lanc (R) Toss Up Lean R - NJ-11 Mikie Sherrill (D) v. Jay Webber (R) Lean D ¾ New Mexico - NM-2 Xochitl Torres Small (D) v. Yvette Harrell (R) Toss Up Incumbents in BOLD Rankings from RealClearPolitics 8 House Races to Watch (Cont.)

¾ Pennsylvania ¾ Virginia - PA-1 Scott Wallace (D) v. Rep. Brian Fitzpatrickp (R)( Toss Up - VA-2 Elaine Luria (D) v. Rep. Scott Taylor (R) Lean R - PA-7 Susan Wild (D) v. Marty Nothstein (R) Lean D - VA-5 Leslie Cockburn (D) v. Denver Riggleman (R) Toss Up - PA-8 Rep. Matt Cartwright (D) v. John Chrin (R) Likely D - VA-7 Abigail Spanberger (D) v. Rep. Dave Brat (R) Toss Up - PA-10 George Scott (D) v. Rep. Scott Perry (R) Lean R - VA-10 Jennifer Wexton (D) v. Rep. Barbara Comstock (R) Lean D - PA-16 Ron DiNicola (D) v. Rep. Mike Kelly (R) Likely R ¾ Washington - PA-17 Rep. Conor Lamb (D) v. Rep. Keith Rothfushf ()(R) Lean D - WA-3 Carolyn Long (D) v. Rep. Jamie Herrera-Beutler (R) Lean R ¾ South Carolina -WA-5 Lisa Brown (D) v. Rep. Cathy McMorris-Rodgers (R) Lean R - SC-1 Joe Cunningham (D) v. Katie Arrington (R) - WA-8 Kim Schrier (D) v. Dino Rossi (R) Toss Up ¾ Texas ¾ West Virginia - TX-1 Lizzie Fletcher (D) v. Rep. John Culberson (R) Toss Up - WV-3 Richard Ojeda (D) v. Carol Miller (R) Lean R - TX-23 Gina Ortiz Jones (D) v. Rep. Will Hurd (R) Lean R ¾ Wisconsin - TX-32 Colin Allred (D) v. Rep. Pete Sessions (R) Toss Up - WI-1 Randy Bryce (D) v. Brian Steil (R) Lean R ¾ Utah - UT-4 Ben McAdams (D) v. Rep. Mia Love (R) Toss Up

Incumbents in BOLD Rankings from RealClearPolitics 9 U.S. Senate

Analysis

¾ 10 incumbent Senators are running in states where Donald Trump won in 2016.

¾ According to FiveThirtyEight, there is a 4/5 (79.5%) chance R’s keep Senate and D’s win House and a 1/5 (20.5%) chance D’s would take the House and Senate.

¾ Senate Democrats need to win every incumbent seat plus 2 additional seats to take the majority. The best potential pick up is Heller (the only Republican senator running in a state that Hillary Clinton won), or win the open Arizona seat vacated by Jeff Flake. However, Republicans have the potential to pick up ND and potentially other Trump state D races. 10 Key Senate Races

¾ Arizona – OPEN - Rep. Kyrsten Sinema (D) v. Rep. Martha McSally (R) Toss Up

¾ Florida – Sen. Bill Nelson (D) vs. Governor Rick Scott (R) Toss Up ¾ Indiana – Joe Donnelly (D) v. Mike Braun (R) Toss Up ¾ Missouri – Claire McCaskill (D) v. Josh Hawley (R) Toss Up ¾ Montana – Sen. John Tester (D) v. Matt Rosendale (R) Toss Up ¾ Nevada – Rep. Jacky Rosen (D) v. Sen. Dean Heller (R) Toss Up

¾ North Dakota – Sen. Heidi Heitkamp (D) v. Rep. Kevin Cramer (R) Lean R ¾ Ohio – Sen. Sherrod Brown (D) v. Rep. Jim Renacci (R) Likely D ¾ Pennsylvania – Sen. Bob Casey (D) v. Rep. Lou Barletta (R) Likely D

¾ Tennessee – OPEN - Gov. Phil Bredesen (D) v Rep. Marsha Blackburn (R) Lean R ¾ Texas – Sen. Ted Cruz (R) v Rep. Beto O’Rourke (D) Lean R ¾ West Virginia – Sen. Joe Manchin (D) v. Attorney General Patrick Morrisey (R) Lean D

¾ Wisconsin – Sen. Tammy Baldwin (D) v. State Sen. Leah Vukmir (R) Lean D

Incumbents in BOLD Rankings from RealClearPolitics 11 116th Congress – Leaders and Committee Chairs

¾ Republicans – Senate Committee Chairs Anticipated New Chair in italics - Roger Wicker (MS) – Commerce, Science and Transportation Committee • Chairman John Thune (SD) EXPECTED to become Senate Majority Whip -TBD –Finance Committee • Chairman Orrin Hatch (UT) retiring; • Senator Grassley next in seniority, Crapo second - Sen. James Risch (ID) – Foreign Relations Committee • Chairman Bob Corker (TN) retiring - VACANT – Small Business Committee • Chairman Risch expected to move to Foreign Relations • Senator Rubio next in seniority - Sen. Lindsay Graham – Judiciary Committee • Chairman Grassley expected to move to Finance -TBD–Banking • Crapo goes to Finance if Grassley stays at Judiciary (not likely); Toomey wwouldould then become BankinBankingg ChairChair

12 116th Congress – Leaders and Committee Chairs (Cont.)

¾ Chairs Expected to Remain - John Barrasso (WY) – Environment and Public Works Committee -Mike Crapo (ID) –Banking, Housing, and Urban Affairs Committee (unless Finance opens) - Lamar Alexander (TN) – Health, Education, Labor and Pensions Committee - Chuck Grassley (IA) – Judiciary Committee OR Finance committee – his pick - Richard Shelby (AL) - Appropriations Committee - Pat Roberts (KS) – Agriculture Committee - Lisa Murkowski (AK) – Energy Committee -James Inhofe (OK) –Armed Services - Mike Enzi (WY) – Budget Committee -Ron Johnson (WI) –Homeland Security Committee -Roy Blunt (MO) –Rules Committee - Johnny Isakson (GA) – Veterans Committee - Richard Burr (NC) – Intelligence Committee - John Hoeven (ND) – Indian Affairs Committee - Johnny Isakson (GA) – Ethics Committee - Susan Collins (ME) – Aging Committee

13 116th Congress – Leaders and Committee Chairs (Cont.)

¾ Democrats – Senate Leadership:

- Sherrod Brown (OH) – Banking, Housing, and Urban Affairs - Jack Reed (RI) – Armed Services Committee Committee - Bernie Sanders (VT) – Budget Committee • *if Sen. Brown loses re-election, Sen. Bob Menendez (NJ) is - Maria Cantwell (WA) – Energy and Natural Resources expected to be Ranking Member Committee, if Sen. Cantwell leaves for Commerce, Sen. - Bill Nelson (FL) – Commerce, Science and Transportation Bernie Sanders would likely be Ranking Member Committee - Bob Menendez (NJ) – Foreign Relations Committee • *if Sen. Nelson loses re-election, Sen. Amy Klobuchar (MN) is - Dick Durbin (IL) – Veterans Affairs Committee expected to be Ranking Member, unless Sen. Maria Cantwell - Tom Udall (NM) – Rules Committee leaves Energy and Natural Resources - Patty Murray (WA) – Health, Education, Labor and - Claire McCaskill (MO) – Homeland Security Committee Pensions Committee • *if Sen. McCaskill loses re-election, Sen. John Tester (MT) is - Dianne Feinstein (CA) – Judiciary Committee expected to be Ranking Member - Tom Udall (NM) – Indian Affairs Committee -Chuck Schumer (NY) –Minority Leader -Ben Cardin (MD) – Small Business Committee - Dick Durbin (IL) – Minority Whip - Chris Coons (DE) – Ethics Committee -Tom Carper (DE) –Environment and Public Works (EPW) -Mark Warner (VA) –Intelligence Committee Committee -Bob Casey (PA) –Aging Committee -Patrick Leahy (VT) –Appropriations Committee - Debbie Stabenow (MI) – Agriculture Committee - Ron Wyden (OR) – Finance Committee

14 House Committee Chairmen Retiring

House Committees Chairmen Ranking Member

Agriculture Mike Conway(TX) Collin Peterson (MN)

Appropriations Rodney Frelinghuysen (NJ) – retiring Nita Lowey (NY)

Armed Services Mac Thornberry (TX) Adam Smith (WA)

Budget Steve Womack (AR) John Yarmuth (KY)

Education & Workforce Virginia Foxx (NC) Bobby Scott (VA)

Energy & Commerce Greg Walden (OR) Frank Pallone (NJ)

Ethics Susan Brooks (IN) Ted Deutch (FL)

Financial Services Jeb Hensarling (TX) – retiring, term-limited Maxine Waters (CA)

Foreign Affairs Ed Royce (CA) – retiring, term-limited Elliot Engel (NY)

Homeland Security Mike McCaul (TX) – term limited Bernie Thompson (MS)

House Administration Gregg Harper (MS) – retiring Bob Brady (PA) – retiring

Intelligence Devin Nunes (CA) Adam Schiff (CA)

Judiciary Bob Goodlatte (VA) – retiring, term-limited Jerry Nadler (NY)

Natural Resources Rob Bishop (UT) Raul Grijalva (AZ)

Oversight & Government Reform Trey Gowdy (SC) – retiring Elijah Cummings (MD)

Rules Pete Sessions (TX) Jim McGovern (MA)

Science, Space, & Technology Lamar Smith (TX) – retiring, term-limited Eddie Bernice Johnson (TX)

Small Business Steve Chabot (OH) Nydia Velazquez (NY)

Transportation & Infrastructure Bill Shuster (PA) – retiring, term-limited Peter DeFazio (OR)

Veterans Affairs Phil Roe (TN) Tim Walz (MN) – running for Governor

Ways & Means Kevin Brady (TX) Richard Neal (MA) 15 The Lame Duck Session

¾Unfinished Business ¾ Important Dates -Appropriations Passed into law: Awaiting completion under Continuing • Energy & Water Resolution (Expires Dec. 7): - Nov 13: House and Senate return • Legislative Branch • Commerce, Justice, Science • Military Construction-VA • Homeland Security • Labor-HHS-Education • State-Foreign Operations - Nov 19-26: Thanksgiving • Defense • Interior-Environment • Financial Services • Agriculture-FDA - Dec. 7: Current continuing resolution • Transportation-HUD expires - Farm Bill – expired September 30, 2018 - National Flood Insurance Program – expires November 30, 2018 - December 13: Target adjournment - Deferred Action for Childhood Arrivals (DACA)/Immigration for the House - Violence Against Women Act (VAWA) – expires December 7 - December 14: Target adjournment - Border Wall Funding for the Senate - 154 agency appointments and judicial nominees awaiting Senate confirmation - Extenders/tax bill technical corrections 16 2019 Legislative Priorities & Important Dates

¾ Priorities ¾ Important Dates - Potential Infrastructure Package - Jan. 2019: 116th Congress convenes – calendars - Immigration Reform expected to be released around Thanksgiving - Data Privacy - March 1, 2019: Debt limit Suspension Ends -USMCA–new NAFTA - April 15, 2019: Congress is supposed to adopt a budget resolution by April 15 that presents a - Ethics Reform unified view of priorities for both the House and -Gun Control the Senate; there's no punishment for missing the -ACA Protections deadline, which is often unmet - Sept. 30, 2019: Last day of the fiscal year; all 12 appropriations bills for FY2020 are supposed to be signed by then

17 Key Gubernatorial Races Nationwide

Analysis

¾ This incoming class of Governors will be in office for the next round of redistricting

¾ Governors from 2018-2022 will have veto and approval power over maps redrawn after the 2020 census

Governor Races To Watch

- Arizona: Gov. Doug Ducey (R) v. Gary Garcia (D) Likely R - Nevada: Adam Laxalt (R) v. Steve Sisolak (D) Toss Up - Florida: Rep. Ron DeSantis (R) vs. Tallahassee Mayor Andrew - Ohio: Atty. Gen. Mike DeWine (R) vs. Richard Cordray (D) Toss Up Gillum (D) Toss Up - Wisconsin: Gov. Scott Walker (R) v. Tony Evers (D) Toss Up - Georgia: Stacey Abrams (D) v. Brian Kemp Toss Up/Leans Runoff 18 Thank You

19 4 AGENDA ITEM SUBMITTAL

Meeting Date: November 8, 2018 Budgeted: No Budgeted Amount: $8,000 To: Comm./Legislative Affairs Cte. Cost Estimate: $8,000 Board of Directors Funding Source: General Fund Program/Line Item No.: 1012.51112 From: Mike Markus General Counsel Approval: N/A Engineers/Feasibility Report: N/A Staff Contact: E.Torres CEQA Compliance: N/A

Subject: 50th ANNIVERSARY OF THE SANTA ANA RIVER JUDGMENTS

SUMMARY

April 17, 2019, marks the 50th Anniversary of the settlement of two major lawsuits regarding surface water and groundwater rights across the Santa Ana River Watershed. The 1969 settlements, the Orange County Judgment and the Western-San Bernardino Judgment, are two agreements between water agencies representing millions of Southern Californians living in the Santa Ana River Watershed. The agreements replaced decades of lawsuits and ushered in a new era of stability and cooperation by establishing a set of evenhanded measures among all the representative parties. The Orange County Judgment guarantees a minimum amount of surface water (42,000 acre-feet) will flow from the upper watershed down the Santa Ana River for the lower Santa Ana River Watershed. The settlements allowed water agencies to peacefully and efficiently plan for long-term water sustainability.

RECOMMENDATION

Agendize for December 5 Board meeting: Approve up to $8,000 to co-host an event with the Santa Ana River Watermasters and create a booklet, video and pin to commemorate the 50th Anniversary of the 1969 Orange County and Western-San Bernardino Judgments.

RELEVANT STANDARDS • Collaborate with watershed stakeholders • Lead a productive dialogue with partners, community leaders, media, and the public about the Orange County Water District’s (OCWD) efforts to sustain water supplies and its important role in shaping California’s water history

ISSUE(S) The Santa Ana River Watermasters, made up of representatives from OCWD, Western Municipal Water District, Inland Empire Utilities Agency, and San Bernardino Valley Municipal Water District, discussed ways to commemorate the 50th Anniversary of the Santa Ana River Judgments. They concluded that hosting an event in April 2019 to highlight 50 years of peace on the river and to thank local, state and federal stakeholders would be an appropriate way to commemorate this important milestone.

In addition to hosting a luncheon for approximately 200 guests, a video will be created featuring current and past watermasters, a commemorative booklet and pin will be created,

1 and stories will be featured in local media and various water associations’ newsletters. The total cost of these activities is not to exceed $32,000.

SOLUTION Collaborate with the Santa Ana River Upper Watershed Watermasters in commemorating the milestone and sponsoring the event activities in an amount not to exceed $8,000.

TIMING CONCERNS The event will take place in five months on Friday, April 12, 2019. Planning in advance, such as signing site and vendor contracts, is ideal to ensure a successful event.

RISK ASSESSMENT OF PROPOSED SOLUTION N/A

RAMIFICATIONS OF NOT ACTING The Upper Watershed agencies could proceed in hosting an event that only focuses on the Western-San Bernardino Judgment, whereas, OCWD would miss out on an opportunity to share its important role in the management of the region’s water supplies.

ATTACHMENT(S): None

CONSIDERED ALTERNATIVES Staff considered not hosting an event and only creating a video and soliciting article placement in media; however, having all four Watermasters participating keeps the costs of all the proposed activities relatively low and is a very impactful way to commemorate the occasion. Having all four Watermasters participate also gives the OCWD a better chance of receiving prominent media coverage about this historic judgment and the cooperation and collaboration that has taken place ever since. Staff also considered hosting a dinner, but the cost would be higher than a luncheon.

ADDITIONAL INFORMATION Congressman Ken Calvert has been invited to provide a keynote at the event.

PREVIOUS BOARD ACTION(S):

None

2 5

AGENDA ITEM SUBMITTAL

POLICY ISSUE: PUBLIC AFFAIRS OUTREACH REPORT

SUMMARY

Outreach for the Orange County Water District (OCWD) and its programs and projects, including the Groundwater Replenishment System (GWRS), continues with a major focus to build and maintain support for the GWRS, as well as field media interest and coverage. The OCWD Public Affairs staff will be provide an outreach update at the meeting.

RECOMMENDATION

Informational

DISCUSSION/ANALYSIS

Staff update to be provided at meeting.