BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 13
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          Date of Hearing:  April 20, 2009

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Nancy Skinner, Chair
                      AB 13 (Salas) - As Amended:  April 1, 2009
           
          SUBJECT  :  Sacramento-San Joaquin Delta Conservancy

           SUMMARY  :  Creates the Sacramento-San Joaquin Delta Conservancy  
          (Conservancy) within the Natural Resources Agency (NRA).

           EXISTING LAW  :  Establishes the California Bay-Delta Authority  
          and assigns responsibility for the CALFED Bay-Delta Program's  
          Ecosystem Restoration Program (ERP) to the Department of Fish  
          and Game (DFG).  The 2006 budget transferred funding and  
          responsibility for CALFED to the Secretary of NRA; DFG continues  
          to oversee the ERP.

           THIS BILL  :

          1)Creates the Conservancy within the NRA.

          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, pursuant to the Delta sustainability plan (Plan)  
               adopted by the Delta Ecosystem and Water Council (Council).

             b)   Develop and implement projects to address the economic  
               viability of the Delta region, consistent with the Plan.

          3)Defines Delta sustainability program (Program) as "a  
            comprehensive Delta sustainability program intended to restore  
            and manage habitat and restore ecosystem function in the  
            Sacramento-San Joaquin Delta and Suisun Marsh and to preserve  
            the economic viability of the Delta consistent with the [P]lan  
            adopted by the Delta Ecosystem and Water Council."

          4)Establishes the governing board for the Conservancy to include  
            11 voting members and three ex officio non-voting members as  
            follows:

             a)   Secretary of the Natural Resources Agency;








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             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)   three ex officio non-voting members including: Director  
               DFG, chair of the Delta Protection Commission (DPC), an  
               executive officer of San Francisco Bay Conservation and  
               Development Commission (BCDC), or designees.

          5)Provides for 5-year, staggered terms for the Board members  
            representing the Delta counties, and 4-year, staggered terms  
            for the public Board members; only the public members are  
            subject to term limits (four years).

          6)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.

          7)Requires board to establish and coordinate activities with an  
            advisory committee, as specified.

          8)Limits the Conservancy's jurisdiction to the Delta and Suisun  
            Marsh; the Board may take or fund an action outside of this  
            jurisdiction if it finding that the action is consistent with  
            the Program, adopted consistent with the Plan.

          9)Authorizes the Conservancy to review and approve ecosystem  
            projects proposed by other state agencies in the Delta for  
            consistency with the Program, and allows appeal of such  
            determinations to the Delta Ecosystem and Water Council for  
            final determination.

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

          11)Requires the Conservancy to:








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             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, as specified, consistent  
               with the program, to maintain the economic and social  
               viability of the Delta region.

          12)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.

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

          14)Prohibits the Conservancy from exercising eminent domain.








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

           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 a number of 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 federal and state agencies, 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 NRA to create a "Bay-Delta Conservation Plan"  
          in order to secure permits under the federal Endangered Species  
          Act for the state and federal water project exports.

          According to the author's office, this bill reflects an emerging  
          consensus that the Delta needs its own conservancy.   
          Importantly, the Delta Vision Blue Ribbon Task Force (Task  
          Force), in its proposed strategic plan, has recommended that a  
          Delta conservancy be established to coordinate restoration of  
          the Delta ecosystem as early as possible in the 2009 legislative  
          session.  According to the Task Force, "California has a long  
          and successful history with conservancies, and there is  
          widespread agreement that such an entity would succeed in the  
          Delta."  

          While the Legislature has considered similar bills in past  
          years, the recent Delta ecosystem crisis has elevated the need,  
          promoting Delta stakeholders to develop a framework for what a  
          Delta conservancy would look like.  This year, Senator Simitian  
          convened several stakeholder workgroups, including one to  
          develop the details on a Delta conservancy.  The author relied  
          on the results of that work to develop this bill.










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           1)Authority  

          This bill delegates unprecedented authority to a conservancy.   
          First, it is obligated to restore the Delta ecosystem and  
          "address" the economic viability of the Delta and Suisun Marsh  
          based on planning documents and an overarching governance  
          structure that have yet to materialize but all are consistent  
          with recommendations of the Task Force.  This dual authority  
          arises out of concerns from in-Delta stakeholders that the Delta  
          needs to be sustained for more than just fish or wildlife.  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-to achieve  
          Delta restoration and ecosystem goals.  Such authority is  
          available to other conservancies but it is infrequently  
          exercised.  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 have expressed preference for one  
          entity that has responsibility for managing public land and  
          water resources in the Delta.

          Third, and most importantly, the Conservancy is authorized to  
          review and approve "ecosystem projects," which remains  
          undefined, proposed by other state agencies in order to  
          determine if a project is consistent with the Program.  This  
          determination may be appealed to the Council.  However,  
          discussions among all stakeholders and the Legislature are  
          on-going as the ultimate entity to adjudicate consistency  
          determinations.  The bill does not specify evidentiary rules,  
          due process procedures, or a standard of review on appeal but  
          the author is committed to doing so as the bill moves.

           2)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 whose jurisdiction overlaps  








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          with the Delta's "primary zone."  The board includes two state  
          agency representatives (NRA and Finance) and four other "public"  
          representatives, appointed by the Governor and the Legislature.   
          It also includes several non-voting ex officio members from the  
          DPC and BCDC.

          The bill currently allows public members to reflect either Delta  
          or statewide interests.  This appears to be inconsistent with  
          the interests and responsibilities of their appointing  
          authority.   The author and committee may wish to consider   
          whether the public members should reflect statewide interests,  
          especially given the exclusive representation of Delta interests  
          among five seats.  Allowing representation of statewide  
          interests reflects the 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 two-thirds of the state's water resources - the Delta  
          contributes to and is affected by the economy of much of the  
          state that depends on its water resources.  Moreover,  
          considering that the source of the Conservancy's funding will  
          most likely come from all state taxpayers, it logically follows  
          that public members should reflect statewide interests.































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           3)Overlapping jurisdictions
           
          This bill includes Suisan Marsh within the Conservancy's  
          jurisdiction.  A portion of the marsh in Contra Costa and Solano  
          Counties also lies within the Coastal Conservancy's  
          jurisdiction.  The Coastal Conservancy has funded several  
          large-scale projects in the Delta, notably the Dutch Slough  
          restoration.

           4)Proposed amendments  

          The Conservancy's primary purpose, of course, is to restore the  
          Delta.  The Council is the more appropriate entity to provide  
          "policy oversight."  Page 4, lines 7-15 should be amended to  
          read:

          (b) The conservancy shall, as its primary purpose,  provide  
          policy oversight, foster implementation of, and manage funds to  
          implement, the restoration and management of   restore, maintain,  
          and enhance Delta ecosystems, including habitat, wildlife  
          corridors, native species, and open space   habitats and lands for   
           the   to ensure their viability, diversity, and  sustainability  of  
          native species biodiversity and ecosystem function , pursuant to  
          the comprehensive Delta sustainability plan adopted by the Delta  
          Ecosystem and Water Council. Consistent with that plan, the  
          conservancy shall also develop and implement projects to address  
          the economic viability of the Delta region.

          Page 5, lines 20-26 should be amended to read:

          (f) The public members shall be selected to reflect  either  the  
          diversity of  interests in the Delta or  statewide interests as  
          they relate to the authorities and mission of the conservancy.  
          Public members shall be compensated for attendance at regular  
          meetings of the board at the rate of one hundred dollars ($100)  
          per day and shall be reimbursed for actual reasonable and  
          necessary expenses for attending meetings and carrying out the  
          duties of their office.

          Page 5, lines 33-35 should be amended to read:

          (i) The board shall  determine the qualifications of and appoint  
          an executive officer of the conservancy  , who shall serve at the  
          pleasure of the board.  The executive officer shall   and   employ   








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           appoint  other staff as necessary to execute the powers and  
          functions provided for under this division.

          Page 6, lines 38-40, and page 7, lines 1-10, should be amended  
          to read:

          (d) The conservancy has no power to regulate land use or any  
          activities on land  .  Nothing in this section shall be construed  
          to limit the authority of the Conservancy   , except  as the owner  
          of an interest in the land, or pursuant to an agreement with, or  
          a license or grant of management authority from, the owner of an  
          interest in the land, or as specified in an agreement with a  
          person or entity to which the conservancy has transferred an  
          interest in land, or which has
          accepted a grant to manage an interest in land for the purposes  
          of this division  , to exercise any and all rights inherent to  
          such ownership or conferred upon by agreement  .  A determination  
          by the conservancy, pursuant to this subdivision, that the  
          management of an interest in land is consistent with the  
          purposes of this division may be appealed to the Delta Ecosystem  
          and Water Council. Upon appeal, the Delta Ecosystem and Water  
          Council shall have final authority to make that determination.

          Page 9, lines 1-5 should be amended to read:

          80513.  By December 1 of each year,   T   t  he board shall report to  
          the Legislature and Governor  annually  on the progress towards  
          implementation of the measures identified in the comprehensive  
          Delta sustainability program intended to restore and manage  
          habitat in the Delta and Suisun Marsh.

           5)Other legislation  

          AB 642 (Huber) and SB 458 (Wolk) also create a Delta conservancy  
          within the NRA.  AB 642, however, creates a nine-person  
          conservancy board entirely comprised of Delta county supervisors  
          and Delta residents.  Last year, SB 1108 (Machado) created a  
          Delta conservancy program with the Coastal Conservancy but it  
          was held in the Assembly Appropriations Committee.

           6)Double referred

           This bill was heard in the Assembly Water, Parks and Wildlife  
          Committee on April 14.  It passed on a vote of 12-2.









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           REGISTERED SUPPORT / OPPOSITION  :

          Support 
           
          American Federation of State, County and Municipal Employees,  
          ALF-CIO
          Audubon California
          Association of California Water Agencies
          California Central Valley Flood Control Association
          Metropolitan Water District of Southern California
          Natural Resources Defense Council
          San Diego County Water Authority
          The Nature Conservancy

           Opposition 
           

           
          Analysis Prepared by  :    Dan Chia / NAT. RES. / (916) 319-2092