TPA Presentation to: Orange County Sanitation District

July 10, 2017

WWW.TOWNSENDPA.COM

SACRAMENTO • WASHINGTON, DC SOUTHERN CALIFORNIA • NORTHERN CALIFORNIA 2017-18 Legislative Session

July 21– Last day for policy committees to pass bills

July 21– Summer Recess begins after adjournment

August 21– Legislature reconvenes from Summer Recess.

September 1– Last day for fiscal committees to pass bills

Slide 2 State Budget: Enacted

• Signed by the Governor on June 27 • Includes a $6 billion supplemental payment to CalPERS

Governor May 2017-2018 Enacted Revise Budget General Fund: 126.6 Billion 127.5 Billion Resources Available

General Fund: Expenditures 124 Billion 125.1 Billion

Budget Stabilization Account 8.4 Billion $8.5 Billion

Total Spending (including $183.4 $183.2 Billion special funds and bond funds)

Slide 3 Cap and Trade

• Content • July 6: Cap and Trade Legislation expected to be in print • There are three bills in the package • Extension of Cap and Trade Program (Main Bill) • Air Quality • Cap and Trade Funding

• Process • July 10: Hold Hearings in the Morning • July 10: Floor Vote in the Evening

• Politics • 2/3 Vote Bill • Very likely that Republicans will be needed in both Houses to pass the Bill

Slide 4 Bill Status and Advocacy

Bill OCSD Status Key Decision Makers Position AB 18 (Garcia) – Park Support if Referred to the Senate Natural Resources • Senator Bob Hertzberg (Chair) Bond Amended and Water Committee and the Senate • Senator Jeff Stone (Vice Chair) Governance and Finance Committee AB 574 (Quirk) – Potable Support Passed Senate Environmental Quality. Next • Senator Bob Wieckowski (Chair) Reuse will be heard in Senate Natural Resources • Senator Jeff Stone (Vice Chair)

AB 851 (Caballero) – None Amended to only impact SCVWD. Passed • Senator Ricardo Lara (Chair) Design Build Senate Governance and Finance. Next will • Senator Patricia Bates (Vice Chair) be heard in Senate Appropriations AB 1250 (Jones-Sawyer) – Oppose Will be heard in Senate Governance and • Senator Mike McGuire (Chair) Counties: contracts for Finance on July 11 • Senator Janet Nguyen (Vice Chair) personal services AB 1479 (Bonta) – Public Oppose Will be heard in the Senate Judiciary • Senator Hannah-Beth Jackson (Chair) Records Committee on July 11 • Senator John Moorlach (Vice-Chair)

SB 5 (De Leon) – Park Support Referred to the Assembly Water, Parks, and • Assembly Member Eduardo Garcia Bond Wildlife Committee (Chair) • Assembly Member James Gallagher (Vice-Chair) SB 212 (Jackson) – Support In the Assembly Environmental Safety and • Assembly Member Bill Quirk (Chair) Pharmaceutical Waste Toxic Materials Committee • Assembly Member Brian Dahle (Vice- Chair)

SB 623 (Monning) – Public Recommended Will be heard in Assembly Environmental • Assembly Member Bill Quirk (Chair) Goods Charge Watch Safety and Toxic Materials on July 11 • Assembly Member Brian Dahle (Vice- Chair)

Slide 5 Bills to Watch

• SB 231 (Hertzberg) – Watch – This bill changes the definition of “sewer service” to include stormwater, allowing local governments to charge property owners for the construction and operation of stormwater management projects – Currently on the Assembly Floor – OCSD Legislative Platform: Legislative and Regulatory Policies – Track pending legislation to ensure OCSD remains in compliance with the government code as it pertains to wastewater system user fees and property tax revenues and the investment of public funds.

• AB 967 (Gloria) – Watch – Expands the allowable uses of the alkaline hydrolysis process (water cremation) to include use for after-life care • Has been amended to delay implementation to January 1, 2020 • Has been amended to require alkaline hydrolysis chamber manufactures to apply to the Department of Public Health for approval of a chamber if they wish to receive a hydrolysis facility license. – Prohibits the discharge of any residual effluent to the municipal sewer system – Passed the Senate Environmental Quality Committee and will be heard next in the Senate Appropriations Committee. – OCSD Legislative Platform: Legislative and Regulatory Policies – Support (generally) measures that provide for improved public health through regulation

Slide 6 OCSD Sacramento Advocacy Trip – June 27, 2017

Attendees: 1. Board Chair Greg Sebourn 2. Board Vice-Chair David Shawver 3. Board Member Allan Bernstein 4. OCSD General Manager Jim Herberg 5. Townsend Public Affairs

Advocacy Day Goals: 1. Legislative Advocacy 2. Position OCSD as the statewide leader in sanitation and water recycling 3. Develop relationship with SCWRB Vice Chair 4. Explore legislative concepts for the 2018 legislative session 5. Offer OCSD as a resource to legislative offices, the SWRCB, and other State agencies as they develop legislation and regulations that would affect the District and the industry

Slide 7 OCSD Sacramento Advocacy Trip: Meetings

Individual/Agency Topic Office of Assembly Member Tom Daly • Explore Legislative Concepts for 2018 modeled after AB 772 (Daly) Steven Moore, Vice-Chair of the State Water Resources Control • Long Term Water Conservation Board • Relationship Building • Development of Direct Potable Reuse Expert Review Panel Senator Josh Newman • Relationship Building • Leveraging OCSD as a Resource

Office of Assembly Member Bill Quirk • Legislative advocacy on AB 574 (Quirk) – Potable Reuse Assembly Environmental Toxic Material and Safety Committee • Leveraging OCSD as a Resource for the Assembly Committee Chief Consultant Josh Tooker Office of Assembly Member Anna Caballero • Explore Legislative Concepts for 2018 modeled after AB 815 (Caballero) Assembly Member Sharon Quirk-Silva • Relationship Building • Leveraging OCSD as a Resource Little Hoover Commission • Relationship Building • Discussion on Special Districts • Leveraging OCSD as a Resource • Explore Legislative Concepts for 2018 Senator John Moorlach • Relationship Building • Leveraging OCSD as a Resource Assembly Member Steven Choi • Relationship Building • Leveraging OCSD as a Resource

Slide 8 OCSD Tours

TPA has scheduled the following tours of Plant 1 in Fountain Valley:

Date Time Assembly Member Phillip Chen August 4 1:30pm

Assembly Member Sharon Quirk-Silva July 26 9:00am

Senator Josh Newman August 2 1:00pm

Slide 9 Little Hoover Commission

• OCSD and TPA met with the Executive Director of the Little Hoover Commission while in Sacramento

• Little Hoover Commission held a roundtable meeting on June 22 with stakeholders to reveal potential recommendations to the Legislature regarding special districts

• Little Hoover Commission has significantly changed directions in the past year regarding recommendations

• The focus in the final report on special districts will be focused on LAFCOs, transparency, and climate change adaptation

• One potential recommendation to the Legislature would be to implement a program to mandate the inspection of sewer lines on properties at the time of sale

Slide 10 Thank You

Cori Williams Eric O’Donnell Southern California Director Associate [email protected] [email protected] www.townsendpa.com www.townsendpa.com

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