BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1XXXXXXX| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 1XXXXXXX Author: Simitian (D) and Steinberg (D) Amended: 11/3/09 Vote: 21 SENATE FLOOR : 29-5, 11/02/09 AYES: Alquist, Ashburn, Benoit, Calderon, Cedillo, Cogdill, Correa, Ducheny, Florez, Harman, Hollingsworth, Huff, Kehoe, Leno, Liu, Lowenthal, Maldonado, Negrete McLeod, Padilla, Pavley, Price, Romero, Simitian, Steinberg, Strickland, Walters, Wiggins, Wright, Wyland NOES: Cox, Denham, DeSaulnier, Wolk, Yee NO VOTE RECORDED: Aanestad, Corbett, Dutton, Hancock, Oropeza, Runner ASSEMBLY FLOOR : 44-26, 11/03/09 SUBJECT : Water planning and development: Delta SOURCE : Author DIGEST : This bill provides for a comprehensive plan for taking care of the Sacramento-San Joaquin Delta including the establishment of a Delta Stewardship Council and the Delta Independent Science Board. It expands the State Water Resources Control Board's collection and reporting of data concerning the Delta and establishment of a Delta Watermaster. It also repeals the California Bay-Delta Authority. It also appropriates $28,000,000 from 2006 bond CONTINUED SB 1XXXXXXX Page 2 funds for the Two-Gates Fish Protection Demonstration Program, managed by the United States Bureau of Reclamation. Assembly Amendments delete contingency language relating to SB 5XXXXXXX. ANALYSIS : Existing law establishes more than 200 state and local agencies with responsibilities and authority in the Delta, including State Water Resource Control Board (SWRCB), Delta Protection Commission (DPC), Department of Water Resources (DWR), Department of Fish and Game (DFG), and the California Bay-Delta Authority. This bill replaces the existing Bay Delta Authority and CalFed Program with a new governance structure, designed to balance the needs of the environment, water users, and Delta communities. It draws heavily on the work of the Public Policy Institute of California, Delta Blue Ribbon Task Force, and numerous legislative hearings. This bill establishes the Delta the twin goals of ecosystem restoration and water supply reliability, creates a new Delta Stewardship Council to develop and implement a Delta plan, creates a new Delta Conservancy to acquire lands and to facilitate ecosystem restoration, and revises the composition and duties of the Delta Protection Commission. Specifically, the proposed agreement for Delta governance: 1. Reconstitutes and redefine role of the Delta Protection Commission (DPC), narrow membership to focus on local representation, and expands DPC role in economic sustainability and advising the Delta Council. A. Requires DPC to create a regional economic sustainability plan, including creation of a Delta Investment Fund in the State Treasury. B. Requires DPC to submit recommendations regarding potential expansion of or change to the Delta's primary zone to the Legislature. C. Requires the Delta Council to consider DPC recommendations and adopt such recommendations, if SB 1XXXXXXX Page 3 in the Council's discretion they are feasible and consistent with the Delta Plan objectives. 2. Creates a new Sacramento-San Joaquin Delta Conservancy (Conservancy), to support efforts that advance environmental protection and the economic well-being of Delta residents. A. Establishes and limit the Conservancy's powers and duties, to focus its efforts on collaborative projects in the Delta and Suisun Marsh. B. Requires the Conservancy to develop a strategic plan consistent with the Delta Plan and other applicable regional plans affecting the Delta or Suisun Marsh. C. Establishes the Sacramento-San Joaquin Delta Conservancy Fund in the State Treasury. 3. Repeals the California Bay-Delta Authority Act. 4. Establishes new legal framework for Delta management, emphasizing the coequal goals of "providing a more reliable water supply for California and protecting, restoring, and enhancing the Delta ecosystem" as foundation for state decisions as to Delta management. A. Sets state policy and objectives for management of the Delta. B. Defines several important new legal terms related to managing the Delta, including "co-equal goals," adaptive management, ecosystem restoration, new Delta governance entities, and "covered actions" that are subject to appeal to the Delta Council for a determination of consistency with the Delta Plan. C. Preserves existing law - explicitly - relating to several legal issues, including: (1) Statutory protection for area-of-origin. SB 1XXXXXXX Page 4 (2) Specified statutes establishing environmental protection regulatory processes. (3) Water rights, including procedural and substantive protections for water right holders, such as the domestic use preference. (4) Scope of SWRCB authority and judicial jurisdiction to regulate water rights. (5) State liability for flood protection in the Delta or its watershed. 5. Requires the Delta Stewardship Council, DWR or DFG to take certain "early actions," including certain Delta ecosystem restoration projects such as "Two-Gates Fish Protection Demonstration Project." 6. Requires SWRCB to develop new flow criteria for the Delta ecosystem necessary to protect public trust resources, to inform planning decisions in the Delta Plan and the Bay Delta Conservation Plan. A. Specifies informational process for developing new flow criteria, pursuant to SWRCB regulations, that includes opportunity for all interested persons to participate. B. Requires order approving moving the point of diversion for the State Water Project (SWP) and the federal Central Valley Project (CVP) to the Sacramento River to include "appropriate" Delta flow criteria. C. Requires SWP/CVP water contractors to pay costs of flow criteria analysis. 7. Creates Delta Stewardship Council (Council) as an independent state agency. SB 1XXXXXXX Page 5 A. Establishes seven-member Council, with four appointments by the Governor, two by the Legislature, and the chair of the Delta Protection Commission, with staggered terms. B. Specifies authority of Council, including appeals of state/local agency determinations of consistency with Delta Plan, with specified exemptions. 8. Creates Delta Watermaster as enforcement officer for SWRCB in the Delta. 9. Creates Delta Independent Science Board (Science Board) and Delta Science Program. 10.Requires Council to develop, adopt, and commence implementation of the "Delta Plan" by January 1, 2012, with a report to the Legislature by March 31, 2012. A. Requires Delta Protection Commission (DPC) to develop proposal to protect, enhance, and sustain the unique cultural, historical, recreational, agricultural, and economic values of the Delta as an evolving place. B. Requires Delta Plan to further the coequal goals of Delta ecosystem restoration and a reliable water supply. 11.Requires Delta Plan to promote statewide water conservation, water use efficiency, and sustainable use of water, as well as improvements to water conveyance/storage and operation of both to achieve the coequal goals. 12.Requires Delta Plan to attempt to reduce risks to people, property, and state interests in the Delta by promoting effective emergency preparedness, appropriate land uses, and strategic levee investments 13.Requires Council to consider including the Bay Delta Conservation Plan (BDCP) under certain circumstances, SB 1XXXXXXX Page 6 including: A. Conditions BDCP incorporation into Delta Plan and state funding for BDCP public benefits on compliance with the Natural Community Conservation Planning (NCCP) Act and California Environmental Quality Act (CEQA). B. Requires certain analyses as part of CEQA compliance for BDCP. C. Requires DWR to consult with Council and Science Board during development of BDCP. D. Require BDCP to include transparent, real-time operational decision making process in which fishery agencies ensure applicable biological performance measures are achieved in a timely manner. Existing law, the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006, an initiative bond act approved by the voters at the November 7, 2006, statewide general election, authorizes the issuance of bonds in the amount of $5,388,000,000, of which $1,000,000,000 is made available to the Department of Water Resources, upon appropriation therefore, to meet the long term water needs of the state. Eligible projects are required to implement integrated regional water management plans and include fisheries restoration and protection projects. A portion of these funds may be expended directly or granted by the department to address multiregional needs or issues of statewide significance. This bill appropriates $28,000,000 of these funds to the department for the department to expend, as specified, on the Two-Gates Fish Protection Demonstration Program, managed by the United States Bureau of Reclamation. The bill makes a statement of legislative intent to finance the activities of the Delta Stewardship Council and the Sacramento-San Joaquin Delta Conservancy from funds made available pursuant to the Disaster Preparedness and Flood Prevention Bond Act of 2006 and the Safe Drinking Water, SB 1XXXXXXX Page 7 Water Quality and Supply, Flood Control, River and Coastal Bond Act of 2006. California has not had a major comprehensive water management program since the State Water Plan of the 1960's. Due to the drought that the State has been facing over the years, legislative leaders and the Governor have made the development of water planning solutions a major issue of the 2009 legislative session. For several years, the Delta has suffered a crisis: ecosystem, water supply, levee stability, water quality, policy, program, and litigation. In June 2004, a privately owned levee failed and the State spent nearly $100 million to fix it and save an island whose property value was far less. In August 2005, the DFG reported a trend showing severe decline in the Delta fishery. In 2006, the Legislature reorganized Delta programs and funding under the Resources Agency Secretary. In 2007, a federal judge, acting under the federal Endangered Species Act, declared illegal certain federal biological opinions about near-extinct fish and restricted water exports from the Delta, to the San Francisco Bay Area, the San Joaquin Valley and Southern California. The Governor shortly thereafter called the Legislature into an extraordinary session on water. Through this enduring Delta crisis, the Legislature and the Governor initiated, in 2006, a process to develop a new long-term vision for the Delta. SB 1574 (Kuehl) of 2006 required a cabinet committee to present recommendations for a Delta vision. The Governor created a Delta Vision Blue-Ribbon Task Force to advise the Cabinet Committee. The Task Force produced an October 2008 Strategic Plan, which the Cabinet Committee largely adopted and submitted the recommendations to the Legislature on January 3, 2009. The Delta Vision Blue Ribbon Task Force identified seven goals which they felt virtually everyone could agree on to bring forward a comprehensive water plan for the state: 1. Delta restoration must be founded on the co-equal goals of water supply reliability and ecosystem restoration. SB 1XXXXXXX Page 8 2. Recognizes and enhances the unique cultural, recreational, and agricultural values of the Delta as an evolving place. 3. Restores the Delta ecosystem as the heart of a healthy estuary. 4. Promotes statewide eater conservation, efficiency and sustainable use. 5. Builds facilities to improve the existing water conveyance system and expand statewide storage. 6. Reduces the risks to people, property and state interests in the Delta by effective emergency preparedness, appropriate land uses and strategic levee investments. 7. Establishes a new governance structure with the authority, responsibility, accountability, scientific support and secure funding to achieve these goals. The Governor and Senator Dianne Feinstein in July of 2009 reached an agreement to propose a $9.3 water bond. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: No SUPPORT : (Unable to verify at time of writing) Unknown, because of the many changes in the compromise that have been reached. OPPOSITION : (Unable to verify at time of writing) Unknown, because of the many changes in the compromise that have been reached. DLW:do 11/3/09 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE SB 1XXXXXXX Page 9 **** END ****