BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 51
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          Date of Hearing:   June 29, 2010

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                            Jared William Huffman, Chair
                     SB 51 (Ducheny) - As Amended:  June 21, 2010

          SENATE VOTE  :   37-0
           
          SUBJECT  :   Salton Sea

           SUMMARY  :   Establishes the Salton Sea Restoration Council  
          (Council) as a state agency in the Natural Resources Agency to  
          oversee restoration of the Salton Sea.  Specifically,  this bill  :

          1)States legislative findings and declarations regarding the  
            values of the Salton Sea, and states the Legislature's intent  
            in restoring the Salton Sea to permanently protect fish and  
            wildlife dependent on the Salton Sea ecosystem, restore  
            aquatic and shoreline habitat, eliminate air quality impacts,  
            protect water quality, maintain the sea as a vital link in the  
            Pacific flyway, preserve local tribal values, and minimize  
            noxious odors.

          2)Establishes the Council as a state agency within the Natural  
            Resources Agency to oversee restoration of the Salton Sea,  
            including:  early start habitat demonstration projects;  
            biological, water quality, air quality, geotechnical,  
            sedimentation and inflow investigations; investigation of  
            access and utility agreements; and evaluation of restoration  
            plans, including but not limited to alternatives described in  
            the Resource Agency's October 2006 Salton Sea Draft  
            Programmatic Environmental Impact Report (PEIR).

          3)Requires the Council to report to the Governor and the  
            Legislature by an unspecified date with a recommended  
            restoration plan.  Requires the Council in recommending a  
            restoration plan, to consider the impacts of the plan on air  
            quality, fish and wildlife habitat, water quality, and the  
            technical and financial feasibility of the restoration plan.

          4)Provides that the Council shall consist of a 16 member  
            executive committee, a science committee, a local government  
            forum, and a stakeholder forum.  

          5)Provides that the executive committee shall serve as the  








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            governing body of the Council and provide overall guidance and  
            oversight of the restoration program.  Provides that the  
            executive committee shall make decisions by a two-thirds  
            majority vote, and that 12 voting members shall constitute a  
            quorum.  Provides for election of officers for the executive  
            committee.  

          6)Requires that the executive committee include the director of  
            the Department of Fish and Game (DFG), the director of the  
            Department of Water Resources (DWR), the director of the  
            Department of Parks & Recreation (DPR), the chair of the State  
            Water Resources Control Board (SWRCB), the chair of the State  
            Air Resources Board, the State Treasurer, the director of the  
            Department of Finance, three public members appointed one each  
            by the Governor, Assembly and Senate, one member from the  
            Imperial County Board of Supervisors, one member from the  
            Riverside County Board of Supervisors, one member from the  
            Coachella Valley Water District (CVWD), one member from the  
            Imperial Irrigation District (IID), and one member each from  
            the Torres Martinez Band of Desert Cahuilla Indians and the  
            Cabazon Band of Mission Indians.  Nonvoting members of the  
            executive committee shall include the lead scientist and  
            representatives of specified federal agencies.  Provides that  
            members of the executive committee shall serve without  
            compensation but may be reimbursed for expenses.

          7)Requires that the science committee shall include a lead  
            scientist, to be appointed by the United States Geological  
            Survey Salton Sea Science Office or the executive committee,  
            and other experts familiar with large-scale wetlands, marine  
            restoration, adaptive management, long-term monitoring, dike  
            design and dredging, water treatment and hydraulics.   The  
            scientists shall serve without compensation but may be  
            reimbursed for expenses.  Responsibilities of the science  
            committee include to provide best available science and  
            engineering oversight, to provide periodic review of local  
            technical investigations, to consult with and advise the  
            stakeholder forum, and provide guidance on ongoing short-term  
            planning. 

          8)Requires the local government forum to include elected  
            representatives from within the Salton Sea Watershed and  
            authorizes the forum to include local air pollution control  
            officials.  Requires the Council to request the Salton Sea  
            Authority to assist with the forum.  Responsibilities of the  








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            local government forum include to facilitate communication  
            between local governments and landowners, the executive  
            committee and the stakeholder forum.

          9)Requires the stakeholder forum to consist of interested  
            persons, as determined by the executive committee,  
            representing ten specified categories of persons.   
            Responsibilities of the stakeholder forum include to provide  
            ongoing, public input to the executive committee, and to  
            assist the executive committee in understanding public and  
            interest group perspectives.  Requires the stakeholder forum  
            to provide focused review and discussion, and to seek to  
            achieve consensus on:  design opportunities and constraints;  
            integration of habitat, public access and air quality  
            management objectives; public access and recreation;  
            opportunities for economic development; habitat location; and  
            vector management and predator control. 

          10)Requires DFG to implement and be responsible for  
            implementation of early start habitat demonstration projects  
            and biological investigations relating to restoration.

          11)Requires DWR to be responsible for implementation of  
            investigations of water quality, sedimentation, inflows, air  
            quality, geotechnical, and access and utility agreements  
            relating to restoration.

          12)Authorizes the Council to sue and be sued and to enter into  
            contracts and agreements.

          13)Provides that only funds deposited in the Salton Sea  
            Restoration Fund or nonstate funds may be expended to carry  
            out this article.  Requires that the status of the Salton Sea  
            Restoration Fund shall be included in the Governor's proposed  
            annual budget document.  Requires the Council to advise DFG  
            with regard to expenditure of funds from the Salton Sea  
            Restoration Fund.

          14)Provides that the secretary of the State Natural Resources  
            Agency shall select, in consultation with the executive  
            committee, the executive director of the Council, who shall be  
            exempt from civil service and serve at the pleasure of the  
            executive committee.

          15)Requires DFG and DWR to provide staff services for the  








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            Council, using staff currently dedicated to Salton Sea  
            activities or other staff provided by legislative action,  
            including but not limited to, administering grants and  
            expenditures, administering contracts, arranging meetings,  
            handling communication and public outreach, holding public  
            meetings and workshops, maintaining a regularly updated Web  
            site, and providing electronic mail and paper newsletters in  
            English and Spanish.

          16)Provides that either the director of DFG or the director of  
            DWR shall enter into interagency agreements with other state  
            agencies to provide staff services.

          17)Clarifies that the Council's jurisdiction is limited to the  
            Salton Sea watershed within California, and that this bill  
            does not grant to the Council any regulatory authority or any  
            authority over land use, water rights or air quality.    

           EXISTING LAW  :  

          1)Establishes the Salton Sea Restoration Act which states  
            legislative intent that:  a) the state undertake the  
            restoration of the Salton Sea ecosystem and the permanent  
            protection of the wildlife dependent on that ecosystem;  b)  
            the restoration be based on the preferred alternative  
            developed as a result of the restoration study and alternative  
            selection process; and c) the preferred alternative provide  
            the maximum feasible attainment of specified environmental  
            objectives, including restoration of long-term stable aquatic  
            and shoreline habitat to historic levels and diversity of fish  
            and wildlife dependent on the Salton Sea, elimination of air  
            quality impacts from restoration projects, and protection of  
            water quality.   Provides that for purposes of the restoration  
            plan the Salton Sea ecosystem includes the Salton Sea,  
            agricultural lands surrounding the Sea, and the tributaries  
            and drains within Imperial and Coachella Valleys that deliver  
            water to the Sea.

          2)Required the Secretary of the Resources Agency, in  
            consultation with DFG, DWR, the Salton Sea Authority, air  
            quality districts, and the Salton Sea Advisory Committee to  
            undertake a restoration study to determine a preferred  
            alternative for restoration of the Salton Sea, to prepare a  
            PEIR analyzing the alternatives, and to submit a preferred  
            alternative to the Legislature on or before December 31, 2006.  








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             The Resources Agency released the draft PEIR in October of  
            2006, and published the Final PEIR and submitted its preferred  
            alternative to the Legislature in May 2007. 

          3)Requires the Resources Agency to act as lead agency for Salton  
            Sea restoration and to work cooperatively with staff from DWR,  
            the State Air Resources Board, the State Water Resources  
            Control Board, and DFG.  Requires the Resources Agency to  
            continue to serve as lead agency for implementation, in  
            partnership with one or more of its departments, unless and  
            until legislation is enacted establishing a new governing  
            structure for restoration of the Sea.

          4)Limits authorized funding of activities and expenditures for  
            Salton Sea restoration to Period 1 activities identified in  
            the draft PEIR for completion in the first 5 years of  
            implementation.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   This bill establishes the Salton Sea Restoration  
          Council as a state agency within the State Natural Resources  
          Agency, to serve as the governing entity to oversee activities  
          related to restoration of the Salton Sea.  Among other things,  
          this bill directs the Council to evaluate various restoration  
          plans and report to the Legislature by an as yet unspecified  
          date with a recommended restoration plan.  The Council would  
          consist of an executive committee, composed of existing state  
          agencies and public members.  A science committee, local  
          government forum, and stakeholder forum would also be created.   
          DFG and DWR would provide the primary administrative staff  
          support services for the council, and would have responsibility  
          for implementing various aspects of restoration and planning.   
          Importantly, this bill also provides that only funds deposited  
          in the Salton Sea Restoration Fund or nonstate funds may be used  
          to carry out this bill.  Finally, this bill provides that the  
          secretary of the Natural Resources Agency shall select an  
          executive director of the Council who shall be exempt from civil  
          service. 

          The Salton Sea, California's largest lake, is located in a  
          low-lying trough or desert sink in Southern California, much of  
          which is below sea level.  The current sea was formed in 1905  
          when the Colorado River flooded its banks at a faulty irrigation  
          diversion site.  However, the sea bed has periodically filled  








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          and receded numerous times, from prehistoric times through the  
          1800s.  The present sea is fed primarily by agricultural runoff.  
           Since it has no natural outlet, it is becoming increasingly  
          saline and today is considerably saltier than the ocean.  In  
          2003, the Legislature approved a package of implementing  
          legislation related to the Quantification Settlement Agreement  
          (QSA) and calling for restoration of the Salton Sea.  The QSA is  
          a collection of agreements between the IID, Metropolitan Water  
          District, San Diego County Water Authority, the CVWD, and the  
          state, that included approval of water transfers from IID,  
          settled a number of claims to the Colorado River, and provided a  
          transition period for the state to reduce its consumption of  
          Colorado River water to its 4.4 million acre feet entitlement.   
          Under the QSA, the amount of water flowing into the Salton Sea  
          is being reduced over time.   It should be noted that in  
          February of this year, the future of the QSA water transfers was  
          thrown into question when a California Superior court  
          invalidated the QSA on the grounds the agreement committed the  
          state of California to open ended liability for all  
          environmental mitigation costs in excess of $133 million.  That  
          decision is being appealed and a temporary stay has been  
          granted.      

          The Salton Sea is one of the most important wetland areas in  
          California for migratory waterfowl and shorebirds, since over  
          95% of California's historical wetlands have been converted to  
          other land uses.  The Salton Sea supports over 400 species of  
          birds, including up to 90% of the total population of some  
          species, and is an internationally significant stopover site for  
          hundreds of thousands of birds migrating along the Pacific  
          flyway.  Recently, fishery resources in the sea have declined  
          significantly due to increasing salinity, evaporation and  
          declining water quality.  It is generally recognized that  
          without restoration efforts the ecosystem of the Salton Sea will  
          collapse over the next decade or two.

          The California Resources Agency in October 2006 distributed a  
          draft PEIR and ecosystem restoration study for public review and  
          comment.  The study analyzed eight different  
          alternatives with cost estimates ranging from close to $1  
          billion for the "no alternative" to over $10 billion.  In May  
          2007 the Resources Agency released the Final PEIR and its  
          selected preferred alternative.  The Agency's preferred  
          alternative includes a 62,000 acre saline habitat complex, a  
          45,000 acre marine sea formed by construction of a large marine  








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          rock barrier, a 17,000 acre brine sink for discharge of salts,  
          an exposed sea bed of 106,000 acres, early start habitat of  
          2,000 acres, miles of berms and canals, and other facilities for  
          managing air quality.  Total capital costs are estimated at  
          $8.879 billion, with operations and maintenance costs of $142  
          million per year.  The restoration project would be constructed  
          and implemented in a series of phases over 70 years.   Selection  
          of the preferred alternative was controversial due to its  
          significant cost and has not yet been selected or endorsed by  
          the Legislature.

          The Resources Agency's report on the preferred alternative noted  
          that one of the next steps, after approval by the Legislature,  
          was to identify an implementing entity.  SB 187 (Ducheny),  
          Chapter 372, Statutes of 2008, required the Resources Agency to  
          serve as the lead agency for implementation of restoration until  
          legislation establishing a new governance structure is  
          established.  SB 187 also stated that it should not be construed  
          as legislative approval or denial of the preferred alternative  
          recommended by the Resources Agency Secretary.

          This bill directs the Council created by this bill to review  
          restoration alternatives and propose a new recommended  
          restoration alternative to the Legislature by an unspecified  
          date.  This bill also directs the Council to oversee 8 tasks,  
          including early start habitat, various biological, water  
          quality, air quality and geotechnical investigations, and  
          evaluation of restoration plans.  DFG would be responsible for  
          implementation of the early start habitat and biological  
          investigations, and DWR would be responsible for implementation  
          of the water quality, air quality and geotechnical  
          investigations, but the bill does not specify who would be  
          responsible for staffing evaluation of the restoration  
          alternatives.   To ensure that it is completed, the author and  
          committee may wish to consider inserting a date certain as to  
          when the recommendation on a restoration alternative is due, and  
          specifying which state entities are responsible for providing  
          the staff support for this task. 

          The committee should also be aware that the state of California  
          has incurred legal obligations to restore the Salton Sea,  
          whether or not the preferred alternative proposed by the  
          Resources Agency, or another alternative, is adopted.   Those  
          legal obligations arise in part out of legislation enacted as  
          part of the QSA in 2003 (currently in litigation), historic  








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          agreements regarding allocation of water from the Colorado  
          River, and environmental laws requiring protection of air and  
          water quality, wetlands preservation and endangered species.  In  
          the draft PEIR prepared by the Resources Agency on restoration  
          of the Salton Sea, it was recognized that even the "no  
          alternative" would cost the state over $1 billion.   According  
          to a report by the Pacific Institute, failure to restore the  
          Salton Sea could result in exorbitant costs to human and  
          ecological health, and possibly agricultural production.  The  
          state would also incur increased liability and litigation costs.  
          Thus, the appropriate question is arguably not whether to  
          restore the Salton Sea, but how and to what extent, and what the  
          ultimate state cost will be. 

          Some bond funding for restoration activities at the Salton Sea  
          was included in both Proposition 50 and Proposition 84.  The  
          Salton Sea Program received $37.7 million in appropriations in  
          fiscal years 2007/08, 2008/09 and 2009/10.  This includes $8.2  
          million from the Salton Sea Restoration Fund and $29.5 million  
          from Proposition 84.  As of March 1, 2010, $2.7 million has been  
          spent from the Salton Sea Restoration Fund and $1.2 million from  
          Proposition 84 for a total of $3.9 million.  An additional $12  
          million has been encumbered in contracts, mainly with DWR.  This  
          leaves $21.5 million available for expenditure.  However, due to  
          limited bond sales, apparently only $7 million is available for  
          expenditure at this time.

           Proposed Amendments  :  The author and committee may wish to  
          consider adoption of the following technical amendments:


          On page 3, line 6, after "for" insert "is".

          On page 4, line 36, after "District," insert: "Coachella Valley  
          Water District".

          On page 10, line 7, strike "  two-thirds  ".

          On page 10, line 37, after "(a)" insert: "and subdivision (b)".

          On page 10, line 40, after "(a)" insert: "and subdivision (b)".

          On page 13, line 6, insert: "(5) Carrying out its restoration  
          responsibilities under 2942." 









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           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          AFSCME
          Audubon California
          CalEnergy Operating Corporation
          California Outdoor Heritage Association
          Defenders of Wildlife
          Imperial Irrigation District
          Indio Chamber of Commerce
          Pacific Institute
          Planning and Conservation League
          Sierra Club California
           
            Opposition 
           
          None on file.

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