BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 13
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          Date of Hearing:   March 24, 2009

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                            Jared William Huffman, Chair
                     AB 13 (Salas) - As Amended:  March 12, 2009
           
          SUBJECT  :   Sacramento-San Joaquin Delta Conservancy

           SUMMARY  :   Creates a new conservancy for the Sacramento-San  
          Joaquin Delta (Delta).  Specifically,  this bill  :  

          1)Creates the Sacramento-San Joaquin Delta Conservancy  
            (Conservancy) within the Natural Resources Agency.

          2)Requires the Conservancy to:

             a)   Provide policy oversight, foster implementation of and  
               manage funds to implement the restoration and management of  
               habitats and lands for the sustainability of ecosystem  
               function, consistent with a comprehensive Delta  
               sustainability program.

             b)   Develop and implement projects to address the economic  
               viability of the Delta region

          3)Establishes composition of the governing board for the  
            Conservancy, to include 11 voting members and four ex officio  
            non-voting members:

             a)   Secretary of the Natural Resources Agency
             b)   Director of Finance
             c)   five members representing the five Delta counties  
               (Solano, Yolo, Sacramento, San Joaquin and Contra Costa),  
               one appointed by each county Board of Supervisors
             d)   two public members appointed by the Governor
             e)   two public members appointed by the Legislature, one by  
               the Senate Rules Committee and one by the Speaker of the  
               Assembly
             f)   four ex officio non-voting members including: Director  
               of the Department of Fish and Game, Chair of the State  
               Water Resources, an executive officer of San Francisco Bay  
               Conservation and Development Commission, executive officer  
               of the State Coastal Conservancy, or their designees. 

          4)Provides for 5-year, staggered terms for the Board members  








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            representing the Delta counties, and 4-year, staggered terms  
            for the public Board members.

          5)Requires public members to reflect either the diversity of  
            interests in the Delta or statewide interests as they relate  
            to the authorities and mission of the Conservancy.

          6)Provides for organization of the Board, including compensation  
            and reimbursement of expenses, appointment of a chair and  
            staff/consultants, quorum, arrangement for Conservancy office.











































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          7)Limits Conservancy jurisdiction to the Delta and Suisun Marsh,  
            unless the Board makes certain findings as to the proposed  
            action's connection to Delta ecosystem and coordination with  
            other local agencies.

          8)Allows the Conservancy to review ecosystem projects in the  
            Delta for consistency with the Delta's sustainability program.

          9)Bars the Conservancy from regulating land-use, except to the  
            extent that it has property interests or an agreement with the  
            landowner.

          10)Requires the Conservancy to:

             a)   Implement habitat restoration and management projects to  
               achieve the ecosystem goals of the comprehensive Delta  
               sustainability program.

             b)   Cooperate, coordinate, and consult as necessary or  
               appropriate with any other agency having regulatory or  
               other responsibility related to the authorities of the  
               mission of the Conservancy.

             c)   Take whatever actions are reasonably necessary and  
               incidental to the management of lands under its ownership  
               or control. 

             d)   Coordinate or assist in the implementation of local,  
               state, and federal ecosystem projects, including the  
               Bay-Delta Conservation Plan and other habitat conservation  
               plans.

             e)   Develop and implement projects, consistent with the  
               program, to maintain the economic and social viability of  
               the Delta region, including but not limited to projects  
               that:

               i)     Provide recreational opportunities and appropriate  
                 public access to natural resources;
               ii)    Protect viable agriculture and Delta communities
               iii)   Promote wildlife-friendly agriculture.
               iv)    Promote agricultural practices that reduce  
                 greenhouse gas emissions and increase carbon  
                 sequestration.
               v)     Support the growth of agricultural tourism








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               vi)    Protect the viability of the Delta's legacy  
                 communities.
               vii)   Address the impacts from the implementation of the  
                 Delta sustainability program.

             f)   Coordinate with appropriate scientific entities to  
               conduct necessary scientific studies.

             g)   Assume responsibility, if offered for local, state,  
               federal and private lands or management of those lands in  
               the Delta or Suisun Marsh.

          11)Authorizes the Conservancy to:

             a)   Accept acquire and hold real property interests.

             b)   Make grants or loans to other agencies and nonprofit  
               organizations.

             c)   Directly undertake or contract with other agencies or  
               nonprofit organizations to undertake appropriate actions.

             d)   Enter into agreements with other agencies, nonprofit  
               organizations, or private entities for implementation of  
               projects, including construction and management.

             e)   Acquire and hold any necessary regulatory permits.

             f)   Implement projects to address related flood issues.

          12)Requires the Conservancy to use easements and cooperative  
            agreements to achieve ecosystem restoration goals, to the  
            extent practicable.

          13)Denies the power of eminent domain to the Conservancy.

          14)Requires annual reports to the Legislature and Governor on  
            progress toward its implementation of the Delta sustainability  
            program.

          15)Provides for the Conservancy's expenses for administrative  
            costs, grants or direct expenditure, including allowance for  
            use of funds provided for particular purposes.

          16)Defines certain terms, including "Comprehensive Delta  








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            Sustainability Program" (ecosystem function and economic  
            viability) and "Delta counties."

          17)Makes legislative findings regarding the Delta and the need  
            for a Delta conservancy.

           EXISTING LAW  establishes the California Bay-Delta Authority and  
          allocates responsibility for the CALFED Bay-Delta Program's  
          Ecosystem Restoration Program (ERP) to the Department of Fish &  
          Game (DFG).  The 2006 State Budget transferred funding and  
          responsibility for CALFED to the Secretary of the Natural  
          Resources Agency, with DFG retaining ERP.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   In the last decade, the Sacramento-San Joaquin Delta  
          has suffered a substantial ecosystem decline.  The Delta is, at  
          once, the heart of California's water system and the most  
          valuable estuary ecosystem on the west coast of North and South  
          America.  For several reasons, the populations of Delta fish  
          species have dropped to near-extinction levels, resulting in  
          court-ordered restrictions on water exports to the San Francisco  
          Bay Area, San Joaquin Valley and Southern California.  Federal,  
          state and local agencies have worked on ecosystem restoration  
          projects for more than 15 years.  The CALFED Bay-Delta Program,  
          a project of existing federal and state agencies that included  
          an Ecosystem Restoration Program, has largely failed to make  
          sufficient progress to head off the ecosystem decline. After  
          fishery agencies reported the Delta ecosystem crisis in 2005,  
          ecosystem restoration efforts have accelerated, including an  
          effort by the Natural Resources Agency to create a "Bay-Delta  
          Conservation Plan" to get permits under the federal Endangered  
          Species Act for the state and federal water project exports.

          This bill reflects an emerging consensus that the Delta needs  
          its own conservancy.  While the Legislature has considered, in  
          the last decade, several bills related to the conservancy needs  
          for the Delta, the recent Delta ecosystem crisis has made that  
          need more urgent, promoting work by agencies and Delta  
          stakeholders to develop the outlines of what kind of conservancy  
          would work.  The Delta Vision Blue Ribbon Task Force (Task  
          Force) spent 18 months, studying the Delta and hearing from the  
          diversity of stakeholders, and proposed a Delta strategic plan  
          that included a recommendation that a Delta conservancy be  
          established as early as possible in the 2009 legislative session  








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          and described some details as to how a Delta conservancy might  
          be crafted.  The Task Force reported: "California has a long and  
          successful history with conservancies, and there is widespread  
          agreement that such an entity would succeed in the Delta."  This  
          year, Senator Simitian convened several stakeholder workgroups,  
          including one to develop the details on a Delta conservancy.   
          The author of this bill relied on the results of that work to  
          develop the current version, which changes direction from  
          previous Delta conservancy bills.  Senator Wolk has a separate  
          Delta conservancy bill proceeding in the Senate (SB 458).

          Authority:  This bill's Delta Conservancy has broad authority to  
          address the Delta's needs.  First, it has responsibility for  
          both ecosystem restoration and economic viability of the Delta  
          and Suisun Marsh, based on a Delta sustainability program, which  
          is not yet defined.  This dual authority arises out of concerns  
          from in-Delta stakeholders that the Delta needs to be sustained  
          for more than just fish.  The Delta is a unique place that  
          enjoys environmental, agricultural and recreational resources  
          that sustains an economy and legacy communities like nowhere  
          else in California.  This Conservancy would promote projects  
          that protect all the Delta's resources.

          Second, the Conservancy's authority also allows for more than  
          just funding of projects, but actual long-term management of  
          Delta resources and property - both land and water.  Such  
          authority is not typical of other conservancies.  It reflects  
          the fact that several federal, state and local agencies  
          currently own land in the Delta, but do not necessarily manage  
          that land, either effectively or as a system.  Several in-Delta  
          stakeholders expressed the preference for one entity that has  
          responsibility for managing public land and water resources in  
          the Delta.  

          Third, the inclusion of water resources reflects the unique  
          nature of the Delta as a place created by water, with sediment  
          deposited by the Sacramento and San Joaquin Rivers.  Over the  
          millennia, this sediment created, by the time of statehood, a  
          shallow marsh with islands that emerged during the dry season.   
          Delta property rights were created by - and continue to depend  
          on - the construction and maintenance of levees that keep Delta  
          islands dry all year.  This Conservancy would have authority to  
          manage water rights, which may be needed to maintain the tidal  
          or freshwater wetlands that are central to the Delta ecosystem.









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          Board Composition:The composition of the Conservancy's board  
          largely reflects the Task Force's proposal, which included  
          strong representation from the Delta itself, as reflected in the  
          five-of-eleven members representing the five Delta Counties that  
          contain a part of the Delta's "primary zone."  The board  
          includes two State agency representatives (Natural Resources and  
          Finance) and four other "public" representatives, appointed by  
          the Governor and the Legislature.  It also includes several  
          non-voting ex officio members from agencies with Delta  
          connections.

          In-Delta representatives have expressed a preference that the  
          public members come from the Delta as well, although the bill  
          currently allows public members to reflect either Delta or  
          statewide interests.  Allowing representation of statewide  
          interests reflects another unique quality of the Delta - its  
          importance and connection to the entire state.  As the hub for  
          water transfers from the Sacramento Valley - whose watershed  
          produces 2/3 of the state's water resources - the Delta  
          contributes and is affected by the economy of much of the State  
          that depends on its water resources.  The amount of water  
          exported from the Delta has a substantial impact on the Delta's  
          ecosystem, as reflected in the recent Delta ecosystem crisis.   
          While water exports are only one of three categories of threats  
          to the Delta ecosystem, record-high exports in the first half of  
          this decade coincided with record-declines in Delta fishery  
          populations.  This bill therefore leaves it to the appointing  
          authorities to determine the mix of statewide and in-Delta  
          representation among the public members of the Conservancy's  
          board.

          Outstanding Issues.  Since the author substantially amended the  
          bill on March 12, several stakeholders have submitted comments  
          for the Committee's consideration.  These comments fall into the  
          following categories:
                 Board Membership:  The Delta Protection Commission  
               (DPC), which has land-use and resource protection  
               authority, has expressed interest in serving as a voting  
               Board member, to ensure high-level coordination of the two  
               organization's activities.  Other agencies also have  
               proposed board membership.  Based on experience at other  
               agencies, a board that becomes too large may impair the  
               agency's ability to move quickly to respond to change and  
               take advantage of opportunities as they arise.  The  
               Committee may consider whether to create a separate  








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               advisory board that can ensure high-level coordination,  
               while providing for non-voting ex officio seats for the key  
               regulatory agencies in the Delta and Suisun Marsh - DPC and  
               the Bay Conservation and Development Commission.
                 Authority:There are concerns that the Conservancy needs  
               broader or narrower authority.  DPC has concerns that the  
               Conservancy not take over other agencies' Delta initiatives  
               that are already underway, but others suggest that the  
               conservancy needs to have the authority necessary to  
               address broad Delta needs as they arise.  The Conservancy  
               has separate authorities and mandates, but the mandates are  
               comparatively broad (albeit with some limitations as well).  
                
                 The Plan: Some have expressed concern about the nature  
               of the "Delta sustainability program" or plan that the  
               Conservancy will implement.  At this point, the bill does  
               not specify who will develop or adopt the plan, but does  
               not suggest that the Conservancy will have responsibility  
               for those tasks.  There are several other bills in the  
               Assembly and Senate that address the Delta, with most  
               having a connection to some kind of Delta plan or program.   
               This plan may be developed in other legislation, and the  
               author has indicated her commitment to work with other  
               legislators in crafting a sustainable resolution of the  
               Delta crisis, with her Conservancy relying on another  
               entity adopting the plan.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Federation of State, County and Municipal Employees
          Association of CA Water Agencies (if amended)
          Audubon California
          Natural Resources Defense Council
          San Diego County Water Authority
          The Nature Conservancy

           Opposition  :None submitted  
           
           Analysis Prepared by  :    Alf W. Brandt / W., P. & W. / (916)  
          319-2096