FROM: Robert Thompson, General Manager
Originator: Jennifer Cabral, Director of Communications
SUBJECT:
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LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF FEBRUARY 2026
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION: Recommend to the Board of Directors to:
Receive and file the Legislative Affairs Update for the month of February 2026.
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BACKGROUND
The Orange County Sanitation District’s (OC San) legislative affairs program includes advocating for OC San’s legislative interests, sponsoring legislation (where appropriate), and seeking local, state, and federal funding for projects and programs.
RELEVANT STANDARDS
• Maintain influential legislative advocacy and a public outreach program
• Build brand, trust, and support with policy makers and community leaders
• Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities
PROBLEM
Without a strong advocacy program, elected officials may not be aware of OC San’s mission, programs, and projects, or how they could be impacted by proposed legislation.
PROPOSED SOLUTION
Continue to work with Local, State, and Federal officials to advocate for OC San’s interests and help identify, create, and monitor legislation and grant opportunities that would benefit OC San, the wastewater industry, and the community. To strengthen relationship building efforts, OC San will continue to engage elected officials through facility tours, one-on-one meetings, and outreach trips to Washington D.C. and Sacramento.
RAMIFICATIONS OF NOT TAKING ACTION
If OC San does not actively engage with Local, State, and Federal elected officials, legislation could be enacted that negatively impacts OC San and the wastewater industry. Additionally, lack of engagement may result in missed funding opportunities.
ADDITIONAL INFORMATION
Activities in February:
• On Thursday, February 12, OC San staff and the Federal Lobbyist attended a virtual meeting with Senators Schiff and Padilla. The Senators’ staff provided an overview of the federal appropriations process, how to apply for funding, and what to expect for Fiscal Year 2027. The presentation included an overview of Congressionally Directed Spending, Programmatic Funding, and procedures for securing funding for projects in California.
• The Legislative Analyst’s Office reported that the November 2025 Cap-and-Invest auction generated about $844 million, below budget assumptions and down roughly $150 million from last year. Auctions resumed in February 2026, with the results being closely watched to determine whether Greenhouse Gas Reduction Fund revenues stabilize or remain below projections. The outcomes could influence mid-year budget adjustments and future funding availability.
Upcoming Activities in March:
• State Legislature: Committees will be meeting throughout the month to hear bills leading up to the Legislative Spring recess slated for March 26.
• OC San federal lobbyists continue to work with congressional committees to advance PFAS liability exemptions for clean water agencies, to prevent potential liability associated with biosolids management.
PRIOR COMMITTEE/BOARD ACTIONS
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CEQA
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FINANCIAL CONSIDERATIONS
All items mentioned are included in OC San’s FY 2025-26 adopted Budget.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package:
• Federal Legislative Update
• Federal Matrix
• State Legislative Update
• State Matrix
• Local Legislative Update
• Presentation