BILL ANALYSIS                                                                                                                                                                                                    

                                                                      AB 13
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         ASSEMBLY THIRD READING
         AB 13 (Salas)
         As Amended April 29, 2009
         Majority vote 

          WATER, PARKS & WILDLIFE        10-2                 NATURAL  
         RESOURCES           6-3                             
          
          ----------------------------------------------------------------- 
         |Ayes:|Huffman, Anderson,        |Ayes:|Skinner, Brownley,        |
         |     |Chesbro, Blumenfield,     |     |Chesbro,                  |
         |     |Caballero, Krekorian,     |     |De Leon, Hill, Huffman    |
         |     |Bonnie Lowenthal, John A. |     |                          |
         |     |Perez, Salas, Yamada      |     |                          |
         |     |                          |     |                          |
         |-----+--------------------------+-----+--------------------------|
         |Nays:|Fuller, Tom Berryhill     |Nays:|Gilmore, Knight, Logue    |
         |     |                          |     |                          |
          ----------------------------------------------------------------- 

          APPROPRIATIONS      12-5                                         
          
          ---------------------------------------------------------------- 
         |Ayes:|De Leon, Ammiano, Charles |    |                          |
         |     |Calderon, Davis, Fuentes, |    |                          |
         |     |Hall,                     |    |                          |
         |     |John Perez, Price,        |    |                          |
         |     |Skinner, Solorio,         |    |                          |
         |     |Torlakson, Krekorian      |    |                          |
         |     |                          |    |                          |
         |-----+--------------------------+----+--------------------------|
         |Nays:|Nielsen, Duvall, Harkey,  |    |                          |
         |     |Miller, Audra Strickland  |    |                          |
          ---------------------------------------------------------------- 

          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)   Restore, maintain, and enhance Delta ecosystems, including  
              habitats, wildlife corridors, native species, and open space,  
              to ensure their viability, diversity, and sustainability,  






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              pursuant to Delta sustainability plan adopted by the Delta  
              Ecosystem and Water Council; and,

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

         3)Establishes composition of the governing board for the  
           Conservancy, to include 11 voting members and three 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;  
              and,

            f)   Three ex officio non-voting members including: Director of  
              the Department of Fish and Game (DFG), Chair of the Delta  
              Protection Commission (DPC), an Executive Officer of San  
              Francisco Bay Conservation and Development Commission (BCDC),  
              or designees. 

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

         5)Requires public members to reflect 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 executive  
           officer, quorum, arrangement for Conservancy office and staff.

         7)Requires board to establish and coordinate activities with an  
           advisory committee that will include, but not be limited to, a  
           representative of each of the following:

            a)   Department of Water Resources (DWR);






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            b)   State Water Resources Control Board;

            c)   State Coastal Conservancy;

            d)   Suisun Resource Conservation District;

            e)   Yolo Basin Foundation;

            f)   Each reclamation district with responsibility for levees  
              located within the Delta.

         8)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.

         9)Allows the Conservancy to review ecosystem projects in the Delta  
           for consistency with the Delta's sustainability program, and  
           allows appeal of such determinations to the Delta Ecosystem and  
           Water Council for final determination.

         10)Denies the power of eminent domain to the Conservancy and 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:

            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  






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              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;

              vi)    Protect the viability of the Delta's legacy communities;  
                and,

              vii)   Address the impacts from the implementation of the Delta  
                sustainability program.

            f)   Coordinate with appropriate scientific entities to conduct  
              necessary scientific studies; and,

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

         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; and,






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            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)Requires annual reports to the Legislature and Governor on  
           progress toward its implementation of the Delta sustainability  
           program, on or before December 1.

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

            a)   Funds provided by participants in the Bay Delta Conservation  
              Plan or other habitat conservation plans; and,

            b)   Gifts, donations, bequests, devises, subventions, grants,  
              rents and royalties.

         16)Defines certain terms, including "Comprehensive Delta  
           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  
         assigns 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  :  According to the Assembly Appropriations Committee:

         1)Ongoing annual costs of about $300,000 to $1 million starting in  
           2010-11, to the conservancy to administer its programs, including  
           restoration, conservation, and long-term management projects.   

         2)Ongoing annual costs of about $250,000, starting in fiscal year  
           2009-10, to the Resources Agency to oversee the activities of the  
           conservancy.

          COMMENTS  :   In the last decade, the Sacramento-San Joaquin Delta has  






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         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.

          Need  :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 Delta's conservancy needs,  
         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 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 for this bill, which changes direction from previous Delta  
         conservancy bills.  

          Authority  :  This bill's Delta Conservancy has broad authority to  
         address the Delta's needs, broader than some other conservancies.   
         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  






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         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.

          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, to reflect statewide interests in the Delta.  It  
         also includes several non-voting ex officio members from  
         Delta/Suisun regulatory agencies.


          Analysis Prepared by  :    Alf W. Brandt / W., P. & W. / (916)  
         319-2096

          
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