BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Recommendations on Federal Legislation: HR 1621 (McClintock) - Water Supply Permitting Coordination Act; HR 2313 (Huffman) - Water Conservation Rebate Tax Parity Act; S 923 (Feinstein) - Fighting Homelessness Through Services and Housing Act; and Other Legislation That May Require Urgent Consideration for a Position by the Board.
End
RECOMMENDATION:
Recommendation
A. Adopt a position of “Support” on HR 1621(McClintock) - Water Supply Permitting Coordination Act;
B. Adopt a position of “Support” on HR 2313 (Huffman) - Water Conservation Rebate Tax Parity Act; and
C. Adopt a position of “Support” on S 923 (Feinstein) - Fighting Homelessness Through Services and Housing Act.
Body
SUMMARY:
A. H.R. 1621 (McClintock) - Water Supply Permitting Coordination Act
Recommendation: Support
Priority: 2
This bill would authorize the Secretary of the Interior to coordinate federal and state permitting for constructing new surface water storage projects on lands under the jurisdiction of the Department of the Interior or the Department of Agriculture. The Bureau of Reclamation would be designated the lead agency for permit processing, establishing a project schedule and coordinating preparation of unified environmental documentation that will serve as the basis for all federal decisions. The unified environmental review document for each qualifying project must be prepared according to the following timelines:
• No more than one year after acceptance of a completed application when there is a finding of no significant impact under the National Environmental Policy Act (NEPA); and
• No more than one year and 30 days after the close of public comment for a draft environmental impact statement (EIS) under NEPA when an EIS is required.
Qualifying surface water storage projects would include “State-led storage projects” as defined under Section 4007 of the Water Infrastructure Improvements for the Nation (WIIN) Act. A state in which a qualifying project is being considered may choose to participate as a “cooperating agency” that will participate in the permit coordination.
The Board of Directors adopted a position of “Support” on a prior version of this bill in the 115th Congress.
Status:
The bill was introduced on March 7, 2019, and was referred to the House Committee on Natural Resources.
Importance to Valley Water:
This bill would streamline the permitting for new surface water storage projects, including those named as “State-led storage projects” under the WIIN Act. Valley Water is currently seeking this designation for the Pacheco Reservoir Expansion Project.
Pros:
• Streamlines permitting for new surface water storage projects, including “State-led storage projects” defined under the WIIN Act. Valley Water is seeking this designation for the Pacheco Project.
• Sets specific timelines for issuing environmental documentation under NEPA for qualifying project applications, which would help provide permitting certainty for Valley Water if the Pacheco Project is named a “State-led storage project.”
Cons:
• None identified at this time.
B. H.R. 2313 (Huffman) - Water Conservation Rebate Tax Parity Act
Recommendation: Support
Priority: 2
This bill would amend the Internal Revenue Code to define individual water conservation, water efficiency, and stormwater management efforts as activities eligible for federal income tax rebates. Under current law, any rebate issued by Valley Water or any other water utility above the amount of $600 is considered taxable income. This bill would clarify that these rebates are not taxable income but rather incentives to defray consumer costs for the overall, long-term public good.
The Board of Directors adopted a position of “Support” on a prior version of this bill in the 115th Congress.
Status:
The bill was introduced on April 12, 2019, and was referred to the House Committee on Ways and Means.
Importance to Valley Water:
Valley Water currently offers customer rebates to promote water conservation. Under California law, a qualified water use efficiency rebate issued by a water agency is not reportable as state income. However, the federal government does not provide a similar exemption. This bill would allow Valley Water rebates to qualify for federal income tax exemptions, thereby further encouraging water conservation and stormwater management.
This bill aligns directly with the Board’s 2019 Legislative Guiding Principles, which states, “Support tax-exempt status for water conservation rebates.”
Pros:
• Encourages water conservation, efficiency, and stormwater management by removing tax liabilities on rebates received.
• Saves Valley Water the costs of preparing and sending out 1099 federal tax forms currently required for rebates issued over $600.
Cons:
• None identified at this time.
C. S. 923 (Feinstein) - Fighting Homelessness Through Services and Housing Act
Recommendation: Support
Priority: 3
This bill would create a grant program within the Health Resources and Services Administration (HRSA) for housing programs that offer comprehensive services for homeless individuals and families. A new interagency working group, comprised of representatives from several relevant agencies (Department of Health and Human Services, Department of Housing and Urban Development, Department of Labor, Department of Transportation, and Department of Veterans Affairs, among others) would advise the HRSA on implementation of the grant program.
The maximum grant to any entity would be $25 million, and the entity would be required to provide a 25 percent non-federal cost share. One-year planning grants would also be available, at a maximum award of $100,000, to assist entities with developing comprehensive plans or enhance existing plans to address homelessness in their communities.
Eligible entities would be any governmental entity (county, city, regional, or local), Indian tribe, or tribal organization that demonstrates the ability to provide services that address mental health, substance abuse, chronic health conditions, educational and job training, and life skills training. To be eligible for the grant, the entity must commit to providing a range of services that includes:
• Stable housing, intensive case management, and comprehensive services that include, at a minimum, mental health, substance abuse treatment and recovery, education and job training, services for children, and life skills training;
• Working directly with the local community to ensure that the services are tailored to meet the specific needs of the populations to be served; and
• Providing services that address children’s behavioral and mental health needs, early childhood education, child health and development, child nutrition, and parenting support classes.
All grant recipients would be required to submit annual reports to the HRSA on the activities carried out under the grant. The bill would authorize $750,000,000 for each of fiscal years 2020 through 2025 to carry out this program.
Status:
The bill was introduced on March 28, 2019, and was referred to the Senate Committee on Health, Education, Labor and Pensions. Cosponsors include Senator Kamala Harris (D-CA).
Importance to Valley Water:
This bill would create a new source of federal funding to support local efforts to address homelessness. Valley Water has a vested interest in working with our local and state partners to ensure that Santa Clara County residents have access to comprehensive health, social, and economic support services to reduce homelessness. Addressing the root causes of homelessness is the best means of reducing the number of homeless residents and reducing encampments that result in pollution of our creeks and waterways. With limited funding available at the local and state levels, more federal investment is needed to address this growing crisis.
This bill aligns directly with the Board’s 2019 Legislative Guiding Principles, which states, “Support legislation that facilitates the cleanup of unlawful encampments, and reduces or prevents homelessness.”
Pros:
• The bill would create a new source of federal funding to support local efforts to address homelessness.
• The funding would help address the root causes of homelessness by supporting local delivery of comprehensive health, social, and economic services.
Cons:
• No funding would be available to Valley Water, as the grants would only fund government entities that provide comprehensive services to address homelessness.
FINANCIAL IMPACT:
There is no financial impact associated with this item.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have the potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
None.
UNCLASSIFIED MANAGER:
Manager
Rachael Gibson, 408-630-2884