BILL ANALYSIS
SB 277
Page 1
SENATE THIRD READING
SB 277 (Ducheny)
As Amended September 5, 2003
Majority vote
SENATE VOTE : Vote not relevant
WATER, PARKS & WILDLIFE 20-0 APPROPRIATIONS 22-0
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|Ayes:|Canciamilla, Keene, Berg, |Ayes:|Steinberg, Bates, Berg, |
| |Bermudez, Corbett, | |Corbett, Mullin, Daucher, |
| |Daucher, Dymally, | |Diaz, Chu, Goldberg, |
| |Frommer, Goldberg, | |Haynes, Leno, Maldonado, |
| |Shirley Horton, Kehoe, | |Nation, Negrete McLeod, |
| |Leslie, Lowenthal, | |Nunez, Pavley, |
| |Matthews, McCarthy, | |Ridley-Thomas, Runner, |
| |Parra, Pavley, Plescia, | |Samuelian, Simitian, |
| |Spitzer, Wolk | |Wiggins, Yee |
| | | | |
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SUMMARY : Provides for the restoration of the Salton Sea
ecosystem and the permanent protection of the wildlife dependent
on that ecosystem. Specifically, this bill :
1)Deletes the contents of the bill as it was passed by the
Senate.
2)States the intent of the Legislature that the State of
California undertake the restoration of the Salton Sea
ecosystem.
3)Requires that the restoration of the Salton Sea be based on
the preferred alternative developed as a result of the
restoration study and alternative selection process required
by Fish and Game Code Section 2081.7 (SB 317 (Kuehl)).
4)Requires that the preferred alternative provide the maximum
feasible attainment of the following objectives:
a) Restoration of long-term stable aquatic and shoreline
habitat for the historic levels and diversity of fish and
wildlife that depend on the Salton Sea;
b) Elimination of air quality impacts from the restoration
projects; and,
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c) Protection of water quality.
5)Establishes the Salton Sea Restoration Fund (Fund) to be
administered by the Director of the Department of Fish and
Game (DFG).
6)Authorizes the use of money deposited in the Fund, upon
appropriation by the Legislature, for the following purposes
related to the restoration of the Salton Sea and the
protection of fish and wildlife dependent on the Sea:
a) Environmental and engineering studies;
b) Implementation of conservation measures in the Salton
Sea and the Lower Colorado River ecosystems, including the
Colorado River Delta;
c) Implementation of the preferred Salton Sea restoration
alternative; and,
d) Administrative, technical, and public outreach costs
related to the development and selection of the preferred
Salton Sea restoration alternative.
7)Authorizes the Department of Water Resources to contract with
water suppliers to purchase and sell water made available
through voluntary reduction or elimination of water use to
achieve the goals of the Act.
8)Requires the Department of Food and Agriculture (DFA), if
funds are appropriated for that purpose, to review and report
to the Governor and the Legislature by June 30, 2005 on all of
the following:
a) The expected nature and extent of any economic impacts
related to the use of land fallowing in the Imperial Valley
in connection with the QSA;
b) Measures taken by Imperial Irrigation District (IID) in
formulating a fallowing program that minimizes economic
impacts to the greatest extent;
c) Whether and to what extent funds provided to IID for
transferred water under the Quantification Settlement
Agreement (QSA), together with any other funds available
for those purposes would mitigate those economic impacts
and,
d) The amount of any additional funds required to mitigate
the economic impacts.
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9)Requires that the report include recommendations to the
Governor and the Legislature on all of the following, if DFA
finds that additional funds will be needed:
a) Proposed means for providing additional funds, including
funding by the state; and,
b) Formulation of a program to administer those funds in
the most effective manner, in consultation with the
Department of Finance, the Resources Agency, the Employment
Development Department, IID, and any other entities
considered appropriate by the Secretary of Food and
Agriculture.
10)States that this bill becomes operative only if SB 654
(Machado) and SB 317 (Kuehl) of the 2003-04 regular session
are both chaptered and become effective by January 1, 2004.
EXISTING LAW authorizes DFG to issue permits for incidental take
of fully protected, threatened, and endangered species in
connection with the QSA and the Lower Colorado River
Multi-Species Conservation Plan. This law was contingent on the
signing of the QSA by December 31, 2002, and has lapsed.
FISCAL EFFECT : This Act will mainly be funded through fees on
the transfer of water among the parties to the QSA. There may
be a substantial cost to the state, depending on the results of
the report to be prepared by DFA.
COMMENTS : This bill is one of three bills necessary to
implement the QSA. The other bills are SB 317 (Kuehl) and SB
654 (Machado). The three bills are triple-jointed, so that none
of the bills will become operative unless both the other bills
do also by January 1, 2004.
The QSA is an agreement between IID, MWD, the San Diego County
Water Authority (SDCWA), the Coachella Valley Water District,
and the State of California. It settles a number of claims to
the waters of the Colorado Rivers. It also provides California
with a transition period to reduce California's draw from the
Colorado River to its 4.4 million acre-foot entitlement. The
QSA commits the state to restoration of the environmentally
sensitive Salton Sea and provides full mitigation for its water
supply programs.
The Salton Sea is the largest inland body of water in
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California. It is located in the Imperial and Coachella Valleys
in Southern California. The surface elevation is 277 feet below
sea level.
Created in 1907 by a breach in a canal bringing water to the
Imperial Valley from the Colorado River, the lake is sustained
by inflows from the New and Alamo Rivers and by agricultural
runoff. Seventy five percent of the 1.35 million-acre feet of
water that flows into the Salton Sea every year is agricultural
drainage. Although the lake is 25 percent saltier than the
ocean, it sustains a productive fishery and provides habitat for
more than 380 species of birds.
As time goes on, the Salton Sea is becoming increasingly salty.
The saltiness may be a factor in the large die-offs of birds and
fish that occur every summer. Any decrease in the amount of
water flowing into the Salton Sea will accelerate the
salinization of the Salton Sea, as well as accelerate the
evaporation of the water in the lake. The Salton Sea will
become hyper-saline and be no longer able to support any fish or
wildlife. Ultimately, the Salton Sea could dry up and return to
its former condition as a desert.
IID, which provides water to the farmers in the Imperial Valley,
has entered into a water transfer agreement with the SDCWA. As
originally conceived, this agreement provided for the transfer
of up to 200,000-acre feet per year of IID water to SDCWA. In
exchange, SDCWA would pay IID enough for its farmers to make
on-farm conservation improvements that would provide enough
conserved water to make up the transfer amount. However,
because on-farm conservation would reduce inflows into the
Salton Sea, the agreement was modified to require the fallowing
of agricultural land to provide water for the transfer.
Fallowing of agricultural land may cause serious impacts on the
Imperial Valley's economy.
In 1998, Congress passed the Salton Sea Restoration Act, Public
Law 105-372, requiring federal agencies to offer alternative
restoration options to Congress and the public in order to avoid
further deterioration of the Salton Sea. To date, the federal
agencies have failed to complete a satisfactory report on how to
restore the Salton Sea.
One of the features of the final version of the QSA is a
commitment on the part of the state to restore the Salton Sea.
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Earlier versions merely committed to maintaining the present
rate of deterioration of the Salton Sea for the next fifteen
years.
This bill states that it is the responsibility of the State of
California to restore the Salton Sea. The bill presumes that
the state will work with the federal government to fund and
implement the preferred alternative that will be identified by
DFG.
The bill establishes the Fund, into which each of the parties to
the QSA will deposit specified amounts. The Fund will also
receive fees on water transfers among the parties to the QSA.
The bill requires that money in the Fund must be appropriated by
the Legislature before being used for the purposes of this Act.
Finally, the bill amends SB 482 (Kuehl), Chapter 617, Statutes
of 2002 to require DFA, rather than the Resources Agency and the
Technology, Trade and Commerce Agency to prepare a report on the
economic impacts of the QSA on the Imperial Valley. Any
economic impacts from the fallowing of farm land are expected to
be mitigated by the funds paid to IID for transferred water.
However, if the report identifies impacts that are not mitigated
through water revenues, it must recommend measures by which the
state can assist Imperial County in dealing with the impacts.
Analysis Prepared by : Jeffrey Volberg / W., P. & W. / (916)
319-2096
FN: 0003634