9:00 a.m. I. Welcome and Introductions Supervisor Bruce Gibson, San Luis Obispo County, Chair. Supervisor Sherri Brennan, Tuolumne County, Vice Chair

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1 Agriculture, Environment and Natural Resources Policy Committee CSAC Annual Conference Tuesday, November 28, :00 a.m. 10:30 a.m. Sacramento Convention Center Room 313 Sacramento County, California Supervisor Bruce Gibson, San Luis Obispo County, Chair Supervisor Sherri Brennan, Tuolumne County, Vice Chair Supervisor Phil Serna, Sacramento County, Vice Chair 9:00 a.m. I. Welcome and Introductions Supervisor Bruce Gibson, San Luis Obispo County, Chair Supervisor Sherri Brennan, Tuolumne County, Vice Chair Supervisor Phil Serna, Sacramento County, Vice Chair 9:05 a.m. II. The Aftermath & Recovery from the 2017 Fire Season Chief Pimlott, CAL Fire 9:40 a.m. III. AB 617: California s New Local Air Quality Program Karen Magliano, Division Chief, Air Quality Planning and Science Division, CA Air Resources Board Alan Abbs, Executive Director, CA Air Pollution Control Officers Association 10:05 a.m. IV Legislative Review: Water Legislation (SB 231, SB 5, SB 623) Cannabis, Cap & Trade, Forestry & Tree Mortality Cara Martinson, CSAC Senior Legislative Representative Nick Cronenwett, CSAC Legislative Analyst 10:20 a.m. V. ACTION ITEM: 2018 AENR Priorities Cara Martinson, CSAC Senior Legislative Representative Nick Cronenwett, CSAC Legislative Analyst 10:30 a.m. VI. Closing Comments and Adjournment Supervisor Bruce Gibson, San Luis Obispo County, Chair Supervisor Sherri Brennan, Tuolumne County, Vice Chair Supervisor Phil Serna, Sacramento County, Vice Chair 1

2 ATTACHMENTS AB 617: California s New Local Air Quality Program Attachment One... AB 617 Power Point Presentation 2017 Legislative Review & 2018 AENR Priorities Attachment Two... AENR Year in Review & 2018 Priorities Attachment Three... CSAC Cannabis & Advocacy Outreach Policy Memo Attachment Four... California Cannabis Authority Memo Attachment Five..Review of 2017 Water Legislation 2

3 AB 617: California s New Local Air Quality Program Attachment One AB 617 Power Point Presentation 3

4 AB Community Air Protection Program CSAC Agriculture, Environment and Natural Resources Policy Committee November 28,

5 Motivation for AB 617 Historical focus on regional air quality Significant improvement, but disproportionate burdens remain Need for community-level focus Address cumulative exposure Take advantage of advances in monitoring technologies Non EJ Communities EJ Communities 2 5

6 Focus on Community Action Most significant air quality legislation in decades Establishes community focused framework Enhanced information on community level air pollution Community specific emission reduction programs Focus on early actions Emphasis on community participation Builds on existing community level efforts 3 6

7 Delivering on AB 617 Goals Collaborative process involving CARB, air districts, and community representatives Clear goals and timelines for action Accountability and metrics for tracking progress Transparency and accessibility to information 4 7

8 Joint Implementation of Program Elements 5 8

9 Commitment to Ongoing Public Engagement Comprehensive and collaborative public process involving all stakeholders Ongoing opportunities throughout all stages of program development and implementation Multiple forums for technical and policy discussion 6 9

10 Next Steps Fall 2017 Board Meeting Update; Informational and Community Meetings Winter 2018 Draft Concepts; Workshops and Community Meetings Spring 2018 Board Meeting Update; Draft Planning Documents Summer 2018 Workshops and Community Meetings; Final Draft Planning Documents Fall 2018 Board Meeting to consider Final Planning Documents 7 10

11 2017 Legislative Review & 2018 AENR Priorities Attachment Two 2017 Legislative Review & 2018 AENR Priorities 11

12 November 14, 2017 To: From: Re: CSAC Agriculture, Environment & Natural Resources (AENR) Policy Committee Cara Martinson, Senior Legislative Representative & Federal Affairs Manager Nick Cronenwett, Legislative Analyst CSAC AENR Year in Review and 2018 Legislative Priorities 2017 Year in Review Cannabis. With passage of Proposition 64, the Adult Use of Marijuana Act (AUMA), the state was left with two separate regulatory frameworks for medical and recreational cannabis. CSAC staff worked closely with the Administration and the Legislature this year to streamline the two programs into one regulatory framework for the regulation and licensure of medical and adult use cannabis businesses in California. CSAC was successful in ensuring that all local control, regulatory and taxing authority provisions were respected in the new consolidated program. In addition, CSAC staff worked hard throughout the year to provide a number of different outreach and educational opportunities to our membership to inform them of cannabis implementation issues. Outreach efforts included the convening of a Cannabis Working Group and subsequent development of CSAC cannabis policy; a regional meeting in Humboldt County; and, a statewide Cannabis Summit that brought together more than 200 Supervisors and senior county staff to learn about different cannabis issues, from cultivation to banking. Finally, CSAC staff is moving forward jointly with the CSAC Finance Corporation on developing solutions to the cannabis banking and compliance issue. Water Resources. Despite suspending our efforts to propose a stormwater ballot measure, CSAC was able to advance this issue through other legislative avenues this year. CSAC was successful in helping to secure the passage of SB 231 (Hertzberg), which helps to create a much needed funding tool for local stormwater projects. SB 231 amends the Proposition 218 Omnibus Act, clarifying the definition of sewer to include stormwater. CSAC staff supported this important measure throughout the legislative session and its passage came down to critical final floor vote where CSAC provided critical lobbying support. CSAC continues to partner with the county engineers on this issue to develop education and outreach materials to inform the public of this important resource. In addition, CSAC continued to represent county interests on legislation amending the Sustainable Groundwater Management Act (SGMA), particularly bills that attempted to undermine our hard won local control provisions. CSAC was successful in negotiating amendments to SB 252 (Dodd), advocating to remove components of the bill that would have hindered local governments ability to approve ministerial well permits. In addition, CSAC staff actively followed several different water policy initiatives, including the development of a water and parks bond, and an effort to establish a water tax to help struggling public water systems by providing resources for capital projects, maintenance costs, and technical assistance. Forest Health and Land Management. CSAC worked closely with the Administration to help implement the Executive Order on tree mortality, while advocating for local assistance and financial resources in order to limit the public health and safety risk from dead and dying trees. We were successful in securing additional resources from both the state General Fund and the cap and trade allocation, including $220 million in forest health funding, to help local governments deal with this crisis. In addition, CSAC assured the ongoing funding of Payment In Lieu of Taxes (PILT) payments to counties. 12

13 Climate Change. CSAC was successful in advocating for additional resources to help reduce greenhouse gas (GHG) emissions at the local level. The scope of the cap and trade allocation plan, which came together in the last days of the legislative session, was broadened this year due in part to the passage of AB 398 (E. Garcia), which extended the program beyond 2020 and included an updated list of funding priorities. The bill was also passed with a 2/3 vote of the Legislature, which enables cap and trade dollars to extend beyond pure GHG reductions. This benefits local governments by making funding available to programs such as the forest health program, which includes actions to avoid GHG emissions in addition to GHG mitigation. In total, the Legislature and Governor allocated $1.5 billion, and funded a number of CSAC priorities, including waste diversion, forest health and tree mortality, and local government action. Resource Recovery and Waste Management. After a brief revival, the Legislature suspended their efforts to seek an increase to the state s solid waste disposal fee (tipping fee) this year as focus turned to increasing the amount of organic material diverted from our landfills and the reduction of methane gas a short lived climate pollutant. This issue will remain cri cal, as will the need for resources to fund additional infrastructure to manage the organics portion of the waste stream. CSAC was successful in advocating for $40 million in funding for organics waste diversion infrastructure from the cap and trade program Priorities Disaster Relief & Emergency Management. The 2017 Wildfire season was particularly devastating in California, with Governor Brown declaring a state of emergency in October for nine counties and securing a Presidential Major Disaster Declaration. The aftermath and recovery from these fires will be a focus of impacted counties as well as CSAC, state regulatory agencies and the Legislature as we all work to assist counties in the recovery efforts. CSAC will work with impacted counties to ensure for effective communication and coordination with state and federal agencies. We will also partner with the Legislature to assist counties with fiscal relief and any regulatory assistance needed in recovery efforts. Cannabis. California begins the process of licensing commercial medical and adult use cannabis businesses next year. While the state has a deadline of January 1, 2018 to begin the licensing process, local governments are not held to any particular timeframe. CSAC will work closely with counties to ensure that they have the information they need to develop local regulations, should they choose to allow cannabis businesses in their jurisdictions. CSAC staff will work closely with regulatory agencies to provide comments on emergency and permanent regulations and work together to address any issues that may arise. In addition, CSAC will continue to staff the CSAC Cannabis Working Group to provide a forum for learning and information exchange and input into any legislative and/or regulatory proposals. Finally, staff will continue to work with the CSAC Finance Corporation on the development of a Joint Powers Authority for the purpose of developing and managing a statewide data platform that will gather, collect, and analyze information from a myriad of data sources into one resource, to help local governments ensure cannabis regulatory compliance and also provide necessary information to financial institutions that wish to work with the cannabis industry. Healthy Forests & Working Lands. CSAC will continue to be an active member of the state s interagency Tree Mortality Task Force, working with the Administration and counties to address the tree mortality crisis in California. We will continue to pursue funding through the budget and the state s 13

14 cap and trade program to provide adequate resources to assist in this effort. In addition, CSAC will continue to advocate for ongoing funding of Payment In Lieu of Taxes (PILT) payments to counties and any potential for the reinstatement of the Williamson Act subvention program. Climate Change & Resiliency. With the passage of AB 398 (E. Garcia), the state s climate goals and cap and trade program have been reauthorized through 2030 by a super majority vote of the Legislature. In addition, AB 617 (C. Garcia) established a new local air quality program, focusing on areas of the state most burdened by pollution and requiring a new statewide strategy to combat air pollution from both mobile and stationary sources. CSAC will work with the California Air Resources Board (CARB) and local air districts on the implementation this measure and the development of local community plans aimed at reducing air pollution in disadvantaged communities. In addition, CSAC will continue to advocate for cap and trade resources to address a number of local government priority issues, including waste diversion, forest health and tree mortality, and local government action. CSAC will also focus on climate adaptation and resiliency and advocate for resources to help prepare counties for our changing climate. Water Resources & Regulatory Issues. SB 5 (de León) was signed by the Governor this year and placed a $4 billion water and parks bond on the June 2018 ballot. Staff will take this measure to the AENR policy committee for recommendation of position in early 2018 and will engage as directed by the Committee. In addition, staff will continue to focus on the implementation of several key water issues, including the Sustainable Groundwater Management Act (SGMA), the passage of SB 231 (Hertzberg) and the development of additional stormwater funding tools, and ongoing negotiations about water quality funding and conservation issues. As it pertains to waste management, Cal Recycle is in the process of releasing draft regulations to implement SB 1383 (Lara, 2016). This measure requires a 50 percent reduction of organic waste by 2020 and a 75 percent reduction by CSAC will work with the Administration and the County Engineers Association to provide input into this process and ensure that local governments are given the tools and the timelines necessary to help develop the infrastructure required to manage this portion of the waste stream. 14

15 2017 Legislative Review & 2018 AENR Priorities Attachment Three CSAC Cannabis & Advocacy Outreach Policy Memo 15

16 November 14, 2017 To: From: RE: CSAC Agriculture, Environment & Natural Resources Policy Committee Cara Martinson, CSAC Senior Legislative Representative & Federal Affairs Manager CSAC Cannabis Policy, Advocacy & Outreach Efforts The following is an update and overview of CSAC s 2017 advocacy and outreach efforts on cannabis issues. Background. California has seen an evolution of cannabis policy over the last several years. Along with being the first to decriminalize the use of cannabis for medicinal purposes in 1996 with the passage of Proposition 215, California has now joined seven other states and the District of Columbia in legalizing the adult use of cannabis with passage of Proposition 64 last November. Over the past year, the Legislature and the Regulatory Agencies worked diligently to both integrate our medical and adult use laws into one regulatory framework, and to develop the regulatory program for how the state will license commercial medical and adult use cannabis businesses. Draft Emergency Regulations are expected to be released by the end of the month, with state licensing to begin in January Throughout this process, CSAC has been a vocal advocate for protecting the ability of local government to make its own decisions on local cannabis policy and for integrating local regulatory programs within a larger state licensing system. As a result, the regulatory framework in law contains strong local control measures consistent with Proposition 64 and previously chaptered medical laws. These measures allow for broad local regulatory and taxation authority, giving local governments the tools to decide how best to regulate and impose local taxes on the retail sale and cultivation of both medicinal and commercial cannabis in their respective communities. CSAC Advocacy. Counties have a significant stake in shaping the broader statewide landscape of cannabis regulation in California as it will undoubtedly have a significant impact on local government operations. As a result, CSAC has been actively lobbying on cannabis issues for several years, and worked closely with the Administration and the Legislature to ensure county interests were represented in the development of statewide cannabis policy. However, advocacy on cannabis issues is not a new topic for the organization. In 2010, CSAC established a Medical Marijuana Working Group with the purpose of providing input to state agencies and the Legislature as they began to tackle medical marijuana regulation. In addition, the Working Group served as a venue for information exchange as counties began to deal with this complex and challenging policy issue. In 2017, the CSAC Officers established the CSAC Cannabis Working Group, charged with developing comprehensive policy for the organization and to provide input into the regulatory process. Supervisors Nate Miley (Alameda), James Gore (Sonoma), Estelle Fennell (Humboldt) and Judy Morris (Trinity) co chair this Working Group. The Agriculture, Environment and Natural Resources Policy Committee recommended approval of this policy, with the CSAC Board of Directors adopting CSAC s Cannabis Policy in May The Working Group has met several times throughout the year to discuss issues related to cannabis policy implementation. In addition to statewide advocacy, CSAC is working with our National Association of Counties (NACo) to coordinate with other legalizing states. CSAC organized three national roundtable discussions over the last year, and will continue to coordinate with our partners at the federal level to address the issue of conflicting state and federal cannabis laws. CSAC Member Education & Outreach. In addition to advocacy, CSAC has been working to provide member education and outreach opportunities to counties. In June, CSAC held a Regional Meeting in 16

17 Humboldt County to talk about the environmental impacts of cannabis and cultivation issues with Northern California Counties. In July, CSAC, in cooperation with our other local government partners at RCRC and UCC, held a statewide summit in Sacramento which was attended by over 200 County Supervisors and senior staff and focused on all aspects of cannabis policy, including banking and taxation issues, land use, health impacts, public safety challenges and other impacts to local governments. In addition, the CSAC Communications staff is producing several videos on cannabis impacts. A series of three videos, the first two were released earlier this fall and focused on cultivation, banking and taxation issues. The last video will be released before the end of the year and will highlight public health and safety challenges related to cannabis. Finally, CSAC staff is working with our Finance Corporation and the State Treasurer s Office to develop solutions to the banking and cash collection issue presented by conflicting state and federal policy on cannabis. Out of this work, CSAC is in the process of developing a Joint Powers Authority (JPA) to develop and manage a statewide data platform that will gather, collect, and analyze information from a myriad of data sources into one resource, to help local governments ensure cannabis regulatory compliance and also provide necessary information to financial institutions that wish to work with the cannabis industry. Internal Staffing & Contact. While the CSAC Agriculture, Environment & Natural Resources (AENR) Policy team is the lead staff on cannabis issues, we work closely will all other CSAC Policy Committees and staff to ensure that all aspects of county interests are represented. The CSAC Cannabis Working Group is made up of county staff from a number of different departments including County Counsels, Planning & Public Works, Environmental Health, Public Health and local law enforcement. For more information about the Working Group, and CSAC cannabis efforts, please visit the CSAC Cannabis Resource page at: For additional information, please contact Cara Martinson, CSAC Senior Legislative Representative & Federal Affairs Manager at , ext. 504, or cmartinsation@counties.org. 17

18 2017 Legislative Review & 2018 AENR Priorities Attachment Four California Cannabis Authority Memo 18

19 California Cannabis Authority (CCA) Purpose The California Cannabis Authority ( CCA ) is a Joint Powers Authority created by contract between counties with cannabis regulatory or taxing authority. The purpose of the organization is to develop and manage a statewide data platform that will gather, collect, and analyze information from a myriad of data sources into one resource, to help local governments ensure cannabis regulatory compliance and also provide necessary information to financial institutions that wish to work with the cannabis industry. The Need for Data The data platform will aggregate data from multiple sources including seed to sale, point of sale, taxation and socioeconomic data. By combining all of these data points, local governments will be provided with targeted and defensible data, ensuring that what is being reported and what is occurring truly coincide. The data platform can be used to ensure that adequate tax payments are being made; assist local law enforcement and code enforcement officers with accurate and defensible information for speed of compliance; provide public health officials with product information, including product origin and product flow; and inform community planning efforts by understanding locations, concentrations and potential past or future land use patterns. CCA s data platform will provide local governments with a number of secure log in connections to access clear, accurate and real time data on cannabis activity within their jurisdiction. In addition, as more jurisdictions use this tool and the data platform is populated with data, CCA Members will have a broader picture of cannabis activity throughout the state and access to information outside of their jurisdiction. Linking Data and Financial Institutions The data platform will provide necessary information to financial institutions that wish work with the industry. Despite the conflict between state and federal law, it is possible for financial institutions to serve cannabis businesses now, but it is not easy. To accept cannabis customers, financial institutions must comply with the rigorous monitoring and reporting requirements of the Cole Memorandum and FinCEN Guidance. Institutions must make sure cannabis businesses are not violating state laws or engaging in activities that the Cole Memorandum cites as law enforcement priorities. For each cannabis customer, financial institutions must complete special money laundering and suspicious activities reports. These are onerous requirements that demand extensive staff time. The burden can be eased if financial institutions are able to obtain detailed information on each cannabis customer, formatted to fit the institution s regulatory reporting requirements. Financial institutions cite the single most important step California can take to encourage cannabis banking under current law is to provide them comprehensive licensing and regulatory data on cannabis businesses. Governance The data platform will be developed and managed by a Joint Powers Authority, which is a contract between two or more public agencies to exercise, jointly, all power(s) common to each of them, for the 19

20 purpose of accomplishing specific shared goals. Member counties will comprise the governing body of the organization. Cities and other public entities will be allowed to participate in the JPA and access data, but will not be part of its governance structure. Financial institutions will have access to CCA data by contract. The organization will be funded by a fee, calculated for each city or county, and dependent upon the total sales within the jurisdiction. This amount will be commensurate with the amount of data generated, and therefore equitable to each Member or Participant s costs to the JPA. County Boards of Supervisors must pass a resolution to join the JPA. In addition, jurisdictions desiring CCA data access must require cannabis businesses operating within their jurisdiction to provide specific information to the JPA. Non member, public entity participants will be allowed to join CCA by contract. Contact To learn more about the CCA, please contact Cara Martinson, CSAC Senior Legislative Representative at , ext. 504, or cmartinson@counties.org or Alan Fernandes, CSAC Finance Corporation Executive Vice President at alan@csacfc.org, or (916)

21 2017 Legislative Review & 2018 AENR Priorities Attachment Five Review of 2017 Water Legislation 21

22 To: CSAC Agriculture, Environment and Natural Resources Policy Committee From: Cara Martinson, Senior Legislative Representative, Federal Affairs Manager Nick Cronenwett, Legislative Analyst Re: Water Legislation from the 2017 Legislative Session CSAC s ANER Policy staff tracked many water related bills over the course of the 2017 legislative session. However, there were three bills in particular that deserve extra focus due to their potential impact on county government. SB 623 (Monning) Water Tax SB 623, by Senator Monning, would create an ongoing funding stream for the purpose of providing funding to disadvantaged communities to upgrade their drinking water systems. To accomplish this goal, the bill would impose a water tax on homes and businesses of public water systems, a fee on bulk fertilizer materials, and a fee on milk producers. The proposal is expected to generate roughly $100 million per year by imposing a tax of $0.95 a month on each person that purchases water from a public water system (retail customers with a water meter). Included in the calculation is a sliding fee schedule on businesses of up to $10 a month. SB 623 includes an exemption for households whose income is less than 200 percent of the federal poverty level. Fees are expected to generate roughly $100 million from water users, $17 million from fertilizers producers, and $5.3 million from dairy producers in the first years of implementation, totaling $122.3 million. The bill also requires the State Water Board to work in conjunction with local public health officers to generate a map of aquifers that supply small water systems and domestic wells which are at high risk of containing contaminates. Finally, the bill includes language prohibiting regional water boards from enforcement action against agricultural businesses for pollution run off issues provided that the businesses are following specified mitigation measures that would include paying fees into the Fund in a timely manner. According to the Assembly Appropriations Committee Analysis, over 300 drinking water systems, serving 200,000 Californians, are failing to provide safe drinking water. While concepts have been discussed on this idea for some time, this is the first legislative attempt to move a proposal of this nature forward. CSAC has worked with the Governor s Office on this issue generally in the past, but did not take a position on the bill due to timing as it was amended late in the year, and ultimately held in Assembly Appropriations Committee. The bill was supported by an unlikely collation of agricultural interests and environmental justice advocates and it was opposed by the Association of California Water Agencies (ACWA). ACWA supports the intent of the bill, but believes that general fund dollars should be used to address the issue. SB 623 is a two year bill. SB 5 (de León) California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access For All Act of 2018 SB 5, by Senator de León, passed both houses of the Legislature on the final day of the legislative session and was signed by Governor Brown on October 15 th, The $4 billion bond will appear on the June 2018 ballot. The bond would provide significant funding for parks, water and wildlife conservation in areas across the State. SB 5 was a top legislative priority of State Senate Leader Kevin de León and includes funds for the creation and expansion of parks in park deficient communities and for programs that improve access to California s outdoor recreational opportunities. Of special note to counties, SB 5 includes $18 million for improvements to county fairgrounds and $30 million for counties and Regional Park and Open Space Districts to make park improvements. It also contains significant 22

23 funding for water quality improvement projects and wildlife protection; providing up to $200 million for flood protection and repair that can also be used for stormwater projects. The CSAC AENR Policy Committee will take this measure up for recommendation at their next meeting in beginning of The following is a breakdown of funds: Bond Chapter Name Investments in Environmental and Social Equity, Enhancing California s Disadvantaged Communities Description Funding to expand and create safe neighborhood parks in park poor areas. Amount millions $725 Investments in Protecting, Enhancing, and Accessing California s Local and Regional Outdoor space $30 million in available grant funding for Counties and Regional Park and Open Space Districts. Per capita grants for local governments for local park rehabilitation and improvements. Grants to cities and districts with populations under 200,000 in urbanized counties. Grants to local jurisdictions that passed local measures improving local or regional park infrastructure. $295 Restoring California s Natural, Historic, and Cultural Legacy Funds for restoring and preserving California s state park facilities, including $18 million for county fairground improvements and $30. Emphasis on using funds to clear maintenance backlog. $218 Trails and Greenway Investments Grant funding for trails and greenways. $30 Rural Recreation, Tourism, and Economic Enrichment Investment Competitive grants for rural areas of 500,000 people or less and low population densities. $25 California River Recreation, Creek, and Waterway Improvements Program Grant funding for: California River Parkways Act (minimum $10 million) Urban Stream Restoration (minimum $10 million) Water related projects in specified conservancies $162 State Conservancy, Wildlife Conservation Board, and Authority Funding Funding for specified conservancies, Wildlife Conservation Board, and the Salton Sea Authority. $767 Ocean, Bay, and Coastal Protection Funding for ocean, bay and coastal protection. $175 Climate Preparedness, Habitat Resiliency, Resource Enhancement, and Innovation Funds for direct expenditures or grants for wildlife conservation. $443 23

24 Clean Drinking Water and Drought Preparedness Funds to help meet the goals of the Water Quality, Supply, and Infrastructure Improvement Act of $250 Groundwater Sustainability Grants for projects that prevent or reduce contamination of groundwater that serves a source of drinking water. $80 SB 231 (Hertzberg) Prop. 218 Exemption for Stormwater Systems SB 231 was signed into law by Governor Jerry Brown on October 6, This bill amends the definition of sewer in the Proposition 218 Omnibus Implementation Act to include storm drainage systems. The bill is part of ongoing attempts to clarify the constitutional and statutory authority of counties, cities, and local water agencies to finance stormwater projects through Proposition 218 exempted user fees. Under Proposition 218, which enacted Article XIII D of the California Constitution, three types of property related user fees are exempt from local election requirements, including water, refuse collection and sewer services. However, in the case of Howard Jarvis Taxpayers Ass n v. City of Salinas (2002) 98 Cal.App.4th 135, the court determined the term sewer in Article XIII D Section 6 (c) of the California Constitution to be ambiguous, thereby disqualifying user fees for stormwater systems from using the exemption. The decision in Salinas significantly increased barriers to local government s ability to adequately finance, build, maintain and operate stormwater systems. In addition, compliance with increased federal government regulatory requirements for Municipal Storm Sewer System Permits (MS4 Permits) has become increasingly expensive which has left local governments struggling to pay for stormwater systems out of their general funds. The interplay between recent legislation and past court decisions regarding the Prop. 218 exemption is complex and has created legal uncertainty around SB 231 s effect on a local government s ability to raise storm water fees under the exemption. The Howard Jarvis Taxpayers Association, which brought legal action in the Salinas case, is suspected to bring a legal challenge on the use of SB 231 to raise stormwater fees. The legal issue brought about by the passage of SB 231 is whether or not the Legislature s amendment of the Proposition 218 Omnibus Implementation Act, housed in the California Government Code, is sufficient to overcome a California Appellate Court s interpretation of a constitutional provision adopted through the state s initiative process. Supporters are actively searching for a test city or special district that is willing to take on what is suspected to be a legal challenge by Howard Jarvis and subsequent precedent setting decision. Contact. For additional information, please contact Cara Martinson, CSAC Senior Legislative Representative & Federal Affairs Manager at , ext. 504, or cmartinsation@counties.org, or Nick Cronenwett, CSAC Legislative Analyst at , ext. 531, or ncronenwett@counties.org. 24