BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT:
Title
Approve Recommended 2025 Legislative Policy Proposals and Guiding Principles.
End
RECOMMENDATION:
Recommendation
Approve recommended 2025 Legislative Policy Proposals and Guiding Principles for the first year of the two-year session in both the California State Legislature and the 119th Congress; and for local and regional legislative efforts.
Body
SUMMARY:
The Santa Clara Valley Water District (Valley Water) Board of Directors reviews and adopts legislative policy proposals and legislative guiding principles on an annual basis that form the framework for advocacy efforts at the local, regional, state, and federal levels. Based on these Board-adopted policy proposals and guiding principles, the Office of Government Relations (OGR) develops strategies to achieve the outcomes outlined in the proposals. These strategies may include advancing Valley Water’s interests through legislative, administrative, or regulatory means. OGR uses the guiding principles as the foundation that drives Valley Water’s efforts in influencing the outcome of numerous legislative and budgetary items that affect Valley Water or its interests.
Process for Development of Legislative Proposals and Priorities and Guiding Principles
OGR solicited legislative proposals and guiding principles from Valley Water staff, executive management, and the Board Directors through a robust interview process conducted between July and August 2024. OGR reviewed the submissions and conducted a prioritization planning session on September 17, 2024, with the executive management team and staff who submitted proposals to review and make recommendations on the submitted proposals as well as the existing proposals and principles. Following the planning session, the recommendations were presented to the Chiefs on October 4, 2024, for discussion, review, and direction. The final recommendations vetted through this process are presented to the Board of Directors for final review and approval in order to meet state deadlines for bill development and introduction.
The recommendations are included in the summary below and in detail in Attachment 1.
2025 LEGISLATIVE PROPOSALS AND PRIORITIES
Of the many proposals that staff received, staff recommends two of those proposals for federal legislation, one for state legislation, and one for adoption into a new legislative guiding principle. Finally, staff is recommending deleting four legislative proposals from 2024 that are no longer necessary, and re-adopting 11 policy narratives from 2024 into 2025.
2025 LEGISLATIVE PROPOSALS
At the state level, there are no sponsored bill proposals. Instead, staff is proposing to focus on the appropriation of climate resilience grant funding available through the voters’ approval of Proposition 4. (This proposal is described on page 8 of Attachment 1.)
1. Proposition 4 - State Budget Appropriation Advocacy (State)
Staff recommends that, in lieu of a sponsored bill for 2025, Valley Water focus on the numerous grant program appropriations to be considered in the 2025-2026 State Budget due to the voters’ approval of Proposition 4, the climate resilience bond. The timing and the amount of these appropriations impact which Valley Water projects may be eligible for funding. Now that these funding opportunities have been created, Valley Water must aggressively pursue every possible dollar to best serve the people of Santa Clara County.
• There will be numerous funding appropriations for programs that were approved as part of Proposition 4 at Valley Water’s urging. These include $480 million for Dam Safety, $386.25 million for Recycled Water, $150 million for State Flood Control Subventions, $75 million for the Water Storage Investment Program, $765 million for sea level rise and coastal flood protection, and numerous other programs.
• New grant programs not already established in state government, such as the new Potable Reuse grant program established through Valley Water’s advocacy, require state agencies to develop new guidelines. Staff will engage in advocacy to favorably shape guidelines to increase eligibility for Valley Water projects.
• Government Relations staff will assist the Grants Management Unit and project managers in developing compelling applications demonstrating that Valley Water projects will deliver on the voters’ climate resilience goals as expressed in Proposition 4.
There are two proposals recommended for federal legislation. (These proposals are described in detail on page 9 of Attachment 1.)
1. Water Infrastructure Finance and Innovation Act (WIFIA) Improvements
Staff recommends seeking legislative language that:
• Authorizes the use of Environmental Protection Agency’s WIFIA Program and the U.S. Army Corps of Engineers’ Corps Water Infrastructure Financing Program (CWIFP) for federal projects (i.e., those either owned by the federal government but operated and maintained by a non-federal entity, or those that are congressionally authorized).
• Increases the amount of available credit assistance under WIFIA from 49 percent to 80 percent if the project substantially benefits an economically disadvantaged community. This would ensure parity between WIFIA and CWIFP.
2. Build America, Buy America Act (BABAA) Waivers
Staff recommends seeking legislative language that:
• Provides a permanent waiver of BABAA requirements for federally funded projects that serve the public interest and have initiated planning/design prior to May 14, 2022.
• For projects that initiate planning/design after May 14, 2022, and are seeking federal financial assistance (grants and loans), offer the following options:
o In a competitive grant application process, assign extra points (e.g. 10 points) for projects that will comply with BABAA to incentivize compliance and increase the overall score and chances of selection to receive the grant award; or
o Add a ten percent “bonus” award (grant or loan) for projects that will be designed with BABAA compliance to help relieve the increased cost burden.
There are eight existing policy narratives recommended for re-adoption.
1. Model Water Efficient New Development Ordinance (Local) - See Page 6 of Attachment 1.
2. Extended Delays in Issuing Permits: Agencies Have Not Been Able to Issue permits in a Timely Fashion Due to Understaffing and Other Staffing Issues (State/Federal) - See Pages 7 and 10 of Attachment 1.
3. Better Coordination of Mitigation Requirements Among Regulatory Agencies is Needed (State/Federal) - See Pages 7 and 10 of Attachment 1.
4. Create a Balanced Approach to Watershed-Based Regulatory Permitting and Financing for Public Agencies (State/Federal) - See Pages 7 and 10 of Attachment 1.
5. Streamline Water Rights Change Petition Process for Valley Water Projects (State) - See Page 8 of Attachment 1.
6. Dam Rehabilitation and Repair Legislation (Federal) - See Page 9 of Attachment 1.
7. U.S. Army Corps of Engineers Levee Vegetation Policy (Federal) - See Page 11 of Attachment 1.
8. U.S. Army Corps of Engineers Section 104/221 Authority (Federal) - See Page 11 of Attachment 1.
Of the 2024 narrative policy positions, there are four policy narratives being recommended for deletion.
1. State Permitting Transparency Dashboard (State) - See Page 7 of Attachment 1.
Staff recommends deletion since this proposal was unsuccessful in 2024.
2. Faster Permitting for Recycled Water, Groundwater Recharge, and Flood Risk Reduction (State) - See Page 7 of Attachment 1.
Staff recommends deletion since this proposal was unsuccessful in 2024.
3. Improved Water Efficiency Labeling Program (Federal) - See Page 11 of Attachment 1.
Staff recommends deletion since EPA’s WaterSense program addresses many of these concerns.
4. Pursue a Lower Class Level Under the National Flood Insurance Program’s Community Rating System (Federal) - See Page 11 of Attachment 1.
Staff recommends deletion since Valley Water is planning to exit the Community Rating System Program in the near future.
2024 LEGISLATIVE GUIDING PRINCIPLES
There is one new guiding principle being recommended.
1. Support funding for feral pig management programs to reduce impacts to Valley Water facilities and neighboring communities. (Legislative Guiding Principle III. A. 13. See Page 3 in Attachment 1 for the redline addition.)
There are three modifications being recommended to the 2024 guiding principles.
Staff recommends three minor modifications to section headings of the guiding principles for clarity and to improve readability. This modification does not change the substance. See Pages 1 and 3 of Attachment 1 for the redline changes.
There are 85 guiding principles recommended to carry forward into 2025, which are listed in Attachment 1 beginning on page 2.
ENVIRONMENTAL JUSTICE AND EQUITY IMPACT:
There are no Environmental Justice impacts associated with this item.
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:
Attachment 1: 2025 Policy Proposals and Guiding Principles
Attachment 2: PowerPoint
UNCLASSIFIED MANAGER:
Manager
Marta Lugo, 408-630-2237