GENERAL MANAGER’S REPORT
8.	REPORT ON LEGISLATIVE OUTREACH FOR CALENDAR YEAR 2021
Meeting Date:		December 13, 2021	Budgeted:	N/A
From:		David J. Stoldt,	Program/
		General Manager	Line Item No.:
Prepared By:		David J. Stoldt	Cost Estimate:
General Counsel Review: N/A
Committee Recommendation: N/A
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

DISCUSSION: In 2021, the District, working with its state and federal legislative consultants, tracked 46 state Assembly and Senate bills and 24 federal bills. The District wrote nine letters of support for legislation.

State Issues: Since 2019, JEA & Associates has been working with ACWA and other stakeholders on putting together a viable water bond. We were successful in adding significant funding for water recycling projects, as well as groundwater sustainability. The two primary vehicles were AB 1500 (E. Garcia) and SB 45 (Portantino) – which MPWMD supported both bills. In mid-April, it was circulating that the State wanted to fund a climate resiliency/water infrastructure budget trailer through the General Fund and not a bond to go to the voters. The rationale was that the State was in a position to fund it itself with a $100 billion+ surplus, and more importantly, the immediacy in which these projects need to get underway. MPWMD sent a support letter to Leadership and both Budget Committees supporting the inclusion of $510 million in statewide funding for Integrated Regional Water Management (IRWM) regions in the final drought relief and resiliency package. MPWMD also requested that funding be allocated to IRWM Funding Areas based on hydrologic regions as defined by the California Water Plan, consistent with the previously approved Proposition 1 Water Bond. In addition to robust IRWM funding, the letter encourages consideration of funding for other important water resources priorities, such as water quality improvement, water recycling, desalting, dam safety rehabilitation, regional water system interconnectivity, groundwater sustainability and stormwater management.

In August, the Governor signed SB 129 (Committee on Budget), a $2+ billion appropriation for water/climate infrastructure projects like multi-benefit, wastewater, conveyance and water recycling. JEA & Associates is working with MPWMD on monitoring and detailing grant requirements for identified funding streams.

While this is notable progress, water advocates and many legislators still want additional funding for water projects and will be looking at the State’s $31 billion surplus, as well as still putting a bond on the November 2022 ballot.

Federal Issues: On November 5, the House passed H.R. 3684 – the Infrastructure Investment and Jobs Act (IIJA) – by a vote of 228-205, with 13 House Republicans voting in favor and six Democrats voting against. The House passed the exact version of the bill the Senate passed on August 10, sending the legislation to President Joe Biden to be signed into law. The legislation was formally presented to President Biden on November 8 and will be signed into law during the week of November 15, 2021. While there are many categories of water-related infrastructure projects that will receive funding, the District is NOT eligible for most of them, as described in Exhibit 8-A attached.

After weeks of negotiations, on Friday, November 19, the House passed the $1.85 trillion Build Back Better (BBB) Act (H.R. 5376), by a vote of 220-213, with Rep. Jared Golden (D-ME) being the lone Democrat voting against the measure.

Here are the top-level highlights and the current state of play as the legislation moves forward in the Senate.

Following the release of the full CBO score for the bill, moderate Democrats upheld a promise to vote for the $1.85 trillion dollar package, which is centered on President Biden’s social and climate agenda. This legislation includes $2.125 billion to invest in water infrastructure including sewer overflow and storm water reuse projects, including increased federal cost share for financially distressed communities and Tribes; wastewater infrastructure investment for the installation, repair, or replacement of domestic septic systems; and investments for alternative water source projects like groundwater recharge and potable reuse.

The Senate will continue working on its version of the bill. Major points of contention remain, including: the State and Local Tax (SALT) deduction, paid family and medical leave, drug pricing, and provisions on immigration. The major players to watch during the negotiations are Sens. Joe Manchin (D-WV), Kyrsten Sinema (D-AZ), and Bernie Sanders (I-VT), all of whom have taken aim at various provisions they want added or removed from the House-passed version of the bill. Senate Majority Leader Chuck Schumer (D-NY) has set a Christmas goal for passage of the BBB Act.

Aside from differences between Senate Democrats yet to be settled, the Senate also needs to act on the must-pass FY 2022 National Defense Authorization Act, raising the debt limit, and passing another short-term Continuing Resolution (CR) to avoid a government shutdown. These actions, all taking place in the month of December, will consume much of the Senate’s attention, possibly pushing action on the BBB Act to January 2022.

EXHIBIT

8-A Summary of the Infrastructure Investment and Jobs Act Funding Categories

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