Natural Resources

The Resources Agency, through its various departments, boards, commissions, and conservancies, is responsible for administering programs that conserve, preserve, restore, and enhance the rich and diverse natural and cultural resources of California. The Governor’s Budget proposes $5.5 billion and 15,858.9 personnel years for State operations, local assistance activities, and capital outlay.

The Secretary for Resources is responsible for administering programs and policies governing the protection of California’s natural and cultural resources. The Secretary also administers the Sea Grant Program, the Open Space Subvention Program, the Environmental Enhancement and Mitigation Demonstrations Program, and the Coastal Resources and Energy Assistance program. Other significant programs include:

California Continuing Resource Investment Strategy Project—This is a multi-year project intended to assess the state’s natural resources and habitat, and develop a long-term set of priorities and targets for future investment in resources protection, habitat acquisition, and preservation. The Budget includes $2 million for the second year of the Project.

CALFED Ecosystem Restoration Program—Proposition 204, the Safe, Clean, Reliable Water Supply Act, was approved by the voters in 1996. The Act includes $390 million to administer the CALFED Bay-Delta Ecosystem Restoration Program. Projects are designed to improve and increase aquatic and terrestrial habitats and improve ecological function as part of the long-term solution to address water quality in the Bay-Delta. The Budget includes an additional $88.7 million in bond funds for the second year of this program.

River Protection Program—Proposition 13, the Safe Drinking Water, Clean Water, Watershed Protection, and Flood Protection Act, was approved by the voters in March 2000. The Act includes $95 million for the acquisition and restoration of riparian habitat, riverine aquatic habitat, and other lands in close proximity to rivers and streams for river and stream trail projects. The Budget includes $7.65 million for this program.

River Parkway Initiative—The Budget includes $70 million General Fund for acquisitions and restoration efforts in the following River Parkways:

• $25 million for the Los Angeles River (North)
• $15 million for the Los Angeles River (South)
• $8 million for the Tuolumne River Parkway
• $7 million for the San Joaquin River Parkway
• $4 million for the Sacramento River Parkway
• $1 million for the Guadalupe River Parkway
• $10 million for the other high priority river parkway projects

The Budget continues and expands California’s commitment to improving the environmental quality of Lake Tahoe and the Lake Tahoe Basin for a fourth year, providing an additional $28.1 million ($20.3 million General Fund, $7.8 million other funds) to continue acquisition, construction, and restoration projects. These projects will further protect air and water quality, preserve and restore wetlands, enhance public access and recreation, preserve fisheries and wildlife habitat, and protect scenic resources with funding provided as follows:

• $22.8 million for the Tahoe Conservancy
• $3 million for the State Water Resources Control Board
• $1.1 million for the Department of Parks and Recreation
• $0.6 million for the Air Resources Control Board
• $0.6 million for the Tahoe Regional Planning Agency

The mission of the California Conservation Corps (CCC) is to engage young men and women in meaningful work, public service, and educational activities that will assist them in becoming more responsible citizens, while protecting and enhancing California’s environment and communities. The CCC operates district and satellite facilities, in both residential and non-residential settings, from the Oregon to the Mexico borders. Since the CCC’s creation in 1976, more than 80,000 corps members between the ages of 18 and 23 have participated in the program. The Budget includes $111.2 million and 548.2 personnel years in support of the Corps.

The Budget includes an $11.2 million General Fund augmentation to strengthen ongoing efforts to provide training time for corps members in emergency response, specialized occupational areas, and academic development. Such training will ensure that all corps members, not just a select few, are trained to respond to fires and floods.

The Budget also includes $5.2 million General Fund for the first of a two-year effort to address the CCC’s significant special repair, infrastructure, and vehicle needs.

Additionally, the Budget provides $3.5 million from Proposition 12 Park Bond funds for grants to the 11 community conservation corps in the state.

The Department of Forestry and Fire Protection provides fire protection and suppression for publicly and privately owned wild lands, responds to emergencies, and protects and enhances forests, range lands, and watersheds. The Budget includes $630.5 million and 4,930 personnel years to support the Department. Significant augmentations include the following:

• $7 million General Fund for the first year of a two-year project to replace all outdated and worn communications equipment.
• $1.6 million for the State Fire Marshal to inspect publicly owned buildings.
• $2.7 million Other Funds to improve the productivity of forest lands.
• $1.3 million Park Bond for local assistance grants to promote urban forests.
• $6.6 million Federal Fund for "on-the-ground" projects that will reduce the risk of catastrophic wildfires by reducing fuel before fires strike. Fires will burn cooler, fewer structures will be lost, and firefighters will have safer places from which to attack fires.

The State Lands Commission was created in 1938 to manage all sovereign and school lands. Consistent with a comprehensive land and resources management plan, the Commission leases state lands for oil production, timber harvesting, mining, and energy production to generate revenue to the State. The Budget proposes $29.6 million and 244.7 personnel years for state operations including $7.5 million to remove man-made hazards in navigable waters.

In addition, the Bolsa Chica Wetlands Restoration project that will restore 880 acres of former wetlands will receive final approval in early 2001 by the Bolsa Chica Wetlands Steering Committee. Although not proposed in the Budget, additional State funds may be requested at a later time.

The Department of Fish and Game manages California’s diverse fish, wildlife, and plant resources, and their habitats, for their ecological values and enjoyment by the public. The Budget proposes $286.5 million and 2,479.5 personnel years for State operations and local assistance. Significant adjustments include the following:

• $3.5 million General Fund to gather information on the distribution and abundance of species and habitats for scientifically based conservation strategies.
• $9.9 million General Fund to pay the State’s share of the Central Valley Improvement Act.
• $9.5 million General Fund to upgrade antiquated computer equipment and software.
• $4.7 million Fish and Game Preservation Fund to automate the licensing function for sporting activities.

The State Coastal Conservancy was established to preserve, protect, and restore significant coastal resources and to provide public access along California’s 1,100-mile shoreline. The Budget proposes $5.8 million and 60.1 personnel years for State operations and $67.1 million for capital outlay. Significant budget adjustments include $49.8 million from the Proposition 12 Park Bond as follows:

• $6 million for the San Francisco Bay Area Conservancy Program.
• $5 million for the Santa Monica Bay Restoration Program.
• $7.2 million for the Coastal Resources Enhancement Program.
• $3 million for the Southern California Wetlands Recovery Program. (An additional $5 million General Fund also is proposed for this project.)
• $7.5 million for the Salmon Habitat Restoration Program.
• $1.2 million for the Public Access Program.
• $2.9 million for the California Coastal Trail Program.
• $7.5 million for the Upper Newport Bay Restoration and Protection Program.
• $9.5 million for the Laguna Coast Wilderness Park.

The Department of Parks and Recreation is responsible for preserving the state’s extraordinary biological diversity, natural and cultural resources, and high quality outdoor recreational opportunities. The State Park System consists of 266 park units including parks, beaches, trails, wildlife areas, open spaces, off-highway vehicle areas, and historic sites. The Budget proposes a total of $635.1 million and 3,033 personnel years for State operations ($266.7 million), local assistance ($299.9 million), and capital outlay ($68.5 million). Significant augmentations include the following:

Natural Resource Ongoing Maintenance–The Budget proposes $11 million General Fund to preserve and protect the state’s natural resources. Regularly scheduled inspections and maintenance will mitigate the need for future costly repairs or the loss of significant resources.

Local Assistance–The Budget includes $299.9 million in grants to local agencies for recreational facilities, historic preservation projects, and habitat protection efforts:

Capital Outlay—The Budget proposes $63.2 million for projects and acquisitions including critical infrastructure improvements at Border Field State Park, Cardiff State Beach, Hearst San Simeon State Historic Monument, Prairie Creek Redwoods State Park, and Silverwood State Recreation Area; and acquisitions in San Luis Obispo County.

The Department of Water Resources protects, conserves, and develops the state’s water supply. Established in 1958, the Department delineates the state’s water issues, forecasts future water needs, evaluates and inventories existing water resources, and explores resource potential to meet the needs of the state’s growing population. The Budget includes a total of $744.9 million for State operations and local assistance activities, and 2,928.1 personnel years. Major adjustments include the following:

Flood Protection—The State provides financial incentives to local agencies to plan, design, and construct flood protection projects. The Budget includes $117.6 million General Fund for the State’s share of local flood protection projects. The Budget also includes $375,000 for the first year of a two-year program to replace flood warning system telemetry, thereby improving early flood warning capability, and $536,000 to provide for more State oversight of federal flood protection projects pursuant to Chapter 1071, Statutes of 2000.

Suisun Marsh Management Program—The Budget includes $8.1 million General Fund to manage wetlands and improve wildlife habitat in the Suisun Marsh.

Capital Outlay—The Budget provides a total of $540.3 million ($23.3 million General Fund, $507.4 million State Water Project funds, and $9.6 million various special funds) including $31.9 million ($23.3 million General Fund and $8.6 million reimbursements) for a variety of flood protection projects and studies that are outlined in the Capital Outlay Section.

The CALFED Bay–Delta Program is an unprecedented effort to build a framework for managing California’s most precious resource: water. California and the federal government have launched the largest, most comprehensive water management and ecosystem restoration program in the world. The CALFED Program includes participation by water users, environmentalists, business leaders, representatives of local governments and Native American tribes.

On August 28, 2000, the Record of Decision and Final Environmental Impact Statement/Environmental Impact Report (EIS/EIR) were finalized, setting forth the framework for a thirty-year program. The CALFED Program targets improvements in ten elements, which include drinking water quality, water storage, delta conveyance, delta levees, ecosystem restoration, watershed management, water transfers, water use efficiency, a strong science program, and an Environmental Water Account.

The Budget includes $294.5 million ($91.7 General Fund, $171.2 million Bond Funds, $30.5 million Federal Funds and $1.1 million other funds) for the following activities:

• $101.5 million for CALFED ecosystem restoration programs and projects
• $30 million for the Environmental Water Account
• $30.3 million for the Science Program
• $18.9 million for surface and groundwater storage
• $113.8 million for water use efficiency, drinking water quality, Delta conveyance, water transfers, watershed management, and Delta levees.

The Budget proposes $1 billion for initiatives to address California’s energy challenge. These initiatives will reduce demand for energy through improved conservation and efficiency and increase supply by adding new generating capacity. Specifics of the initiatives will be developed, in part, from recommendations of the Green Team in consultation with the Legislature at the beginning of the 2001-02 Legislative Session. More information on this subject can be found in the Energy Section of this document.

The mission of the California Energy Commission is to ensure a reliable supply of energy to meet California’s needs, while complying with environmental, safety, and land use goals. The Commission processes applications for siting new power facilities, encourages measures to reduce wasteful and inefficient use of energy, and monitors alternative ways to conserve, generate, and supply energy. The Budget proposes $250.7 million and 515.5 personnel years for state operations and local assistance. Major augmentations include the following:

Transportation Energy Analysis and Development—The state’s transportation system consumes nearly half of California’s energy resources and is the greatest single source of harmful emissions. Consequently, the Energy Commission works to ensure that transportation energy markets balance economic, public health, safety, and environmental concerns. To this end, the Budget includes $7.5 million to support the purchase and use of clean, efficient vehicles for departments within the Resources Agency and $2 million to fund the California Fuel Cell Partnership for Phase 3 of a multi-year transit bus demonstration program that will provide additional fueling facilities to accommodate new fuel cell buses. In addition, the Budget includes $1.1 million to conduct market development and analytical activities to identify barriers to the advancement of ethanol production from biomass resources.

Electricity Analysis—California’s restructured electricity market is experiencing rapid and dramatic changes, but current information on energy demand and supply trends is not available to planners for market trend analysis and predictions, nor to policy makers for decisions about new programs to encourage energy efficiency and reduction measures. The Budget contains $2.8 million to conduct consumer characteristics surveys of residential, commercial, and industrial customers. In addition, the Budget proposes $430,000 to obtain consumer supply and demand information.

Energy Efficiency—To implement measures that will result in reduced electricity demand, the Budget includes $2.5 million to update, develop, and carry out energy efficiency measures. These measures include developing and enforcing new building standards; training local government on the new standards; and updating new standards for appliances such as refrigerators, freezers, central air conditioners, water heaters, plumbing fittings, and fluorescent lamp ballasts. These measures also include providing information to local government planners about urban planning methods entitled PLACE3S (an acronym for PLAnning for Community Energy, Economic, and Environmental Sustainability), a planning tool that combines public participation, land use planning and design, and computer-assisted quantification tools to help communities produce land use plans that will save money, create jobs, and reduce air pollution.

Energy Facility Siting and Compliance Monitoring—Chapter 329, Statutes of 2000 (AB 970), creates four-month and six-month energy facility siting application processes to expedite the review period so that new power plants can be brought on-line more quickly to help meet California’s electricity demands. The Budget includes $3.1 million and 6.6 personnel years to address the Commission’s expedited review workload.

Solar and Distributed Generation Grants—Chapter 537, Statutes of 2000 (SB 1345), requires the Energy Commission to develop and administer solar energy and distributed generation system grant programs to increase market potential and build a competitive solar and distributed generation industry. The solar grant program will aid in electricity demand reduction while the distributed generation program will increase energy supply. The 2000 Budget Act appropriated $1 million for the purposes of the bill. This Budget continues that funding level in 2001-02.

Public Utilities Commission

The Public Utilities Commission (PUC) is responsible for the regulation of investor-owned utilities, including gas, electricity, telephone, water, and railroads, and certain passenger and household goods carriers to ensure the delivery of stable, safe, and economic services. The Commission has traditionally met this responsibility through enforcement of safety regulations, controlling industry rates for services, and promoting energy and resource conservation. The Budget proposes $100.1 million and 886.3 personnel years for State operations, which includes the following major augmentations:

California Energy Security and Reliability Act of 2000—This Act encourages investment in new, environmentally superior electricity generation and in conservation and demand-side management programs. To this end, the Budget includes $2.738 million and 24.2 personnel years to support the Governor’s Clean Energy Green Team, expedite power plant siting procedures, remove transmission congestion, increase electricity conservation, and review generation procedures of the Independent System Operator.

Office of Ratepayer Advocates—This Office represents the interests of public utility customers and subscribers in Commission proceedings. To ensure greater consumer protection, the Budget includes $456,000 in consultant services to enhance investigations of utility service quality and marketing practices and outreach and consumer education programs.

Electric Bill Stabilization—Chapter 328, Statutes of 2000 (AB 265), was enacted to establish a rate ceiling on the energy component for residential and certain other customers of the San Diego Gas and Electric Company, and requires the PUC to examine the prudence and reasonableness of the utility’s procurement of wholesale energy. The Budget includes $682,000 and 3.8 personnel years to enable the PUC to track costs and review the reasonableness of actions on behalf of the utility’s customers.

The Board’s responsibilities include overseeing the operation and reliability of the electricity transmission system; the operation, efficiency, and competitiveness of markets for bulk energy; transmission and ancillary services; and all activities of the Independent System Operator and the California Power Exchange. The Budget proposes $4.4 million and 30.4 personnel years, including $983,000 and 6.6 personnel years for enhanced market monitoring activities and $500,000 and 3.8 personnel years to support the Governor’s Clean Energy Green Team.

Figure RES-1 Natural Resources Proposed Expenditures.