BILL ANALYSIS                                                                                                                                                                                                    



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          SENATE THIRD READING
          SB 51 (Ducheny)
          As Amended  July 1, 2010
          Majority vote 

           SENATE VOTE  :37-0  
           
           WATER, PARKS & WILDLIFE      10-3                    
          APPROPRIATIONS      12-5        
           
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          |Ayes:|Huffman, Arambula,        |Ayes:|Fuentes, Bradford,        |
          |     |Blumenfield, Caballero,   |     |Huffman, Coto, Davis, De  |
          |     |De La Torre, Fletcher,    |     |Leon, Gatto, Hall,        |
          |     |Gatto, Bonnie Lowenthal,  |     |Skinner, Solorio,         |
          |     |Salas, Yamada             |     |Torlakson, Torrico        |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Fuller,   Anderson, Tom   |Nays:|Conway, Harkey, Miller,   |
          |     |Berryhill                 |     |Nielsen, Norby            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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).








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          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  
            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.  

          6)Requires that the executive committee include the director of  
            the California Department of Fish and Game (DFG), the director  
            of the California 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 the science committee to include a lead scientist, to  
            be appointed by the United States Geological Survey Salton Sea  
            Science Office or the executive committee, and other experts  
            with specified experience.  The scientists shall serve without  
            compensation but may be reimbursed for expenses.   








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            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  
            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 specified elements. 

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

          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, and for evaluation of restoration  
            plan alternatives.

          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.  Requires the Council to advise DFG with regard  








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            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  
            Council, using staff currently dedicated to Salton Sea  
            activities or other staff provided by legislative action.   
            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.

          16)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  








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            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.  
             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 SWRCB, 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.

          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 five years of  
            implementation.

           FISCAL EFFECT  :

          1)Annual costs to DFG and DWR, ranging from approximately  
            $300,000 to approximately $1,000,000, to staff the council and  
            to reimburse council members for necessary expenses (Salton  
            Sea Restoration Fund, nonstate funds).

          2)Potential costs to DFG and DWR of an unknown amount, but  
            possibly in the millions of dollars, to conduct demonstration  
            projects and investigations related to restoration, habitat,  
            water quality, and other topics (Salton Sea Restoration Fund,  
            nonstate funds).  It is conceivable that the council's  
            investigative and analytical work pursuant to this bill might  
            cost as much as $15 million, which was the cost of producing  
            the environmental impact report of the administration's  
            preferred alternative.
            
           COMMENTS  :   This bill establishes the Salton Sea Restoration  
          Council 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  








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          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.   
          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.  

          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.  The sea bed has  
          periodically filled 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.   
          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  








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          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 $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 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 were 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 eight  
          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  








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          of the water quality, air quality and geotechnical  
          investigations.  Both departments would be responsible for  
          staffing evaluation of the restoration alternatives.   

          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 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.  

          Some bond funding for restoration activities at the Salton Sea  
          was included in both Proposition 50 and Proposition 84.  Please  
          see the policy committee analysis for further detail on the  
          amount of bond funds expended or encumbered to date and amounts  
          remaining available for expenditure.
           
           Analysis Prepared by  :    Diane Colborn / W., P. & W. / (916)  
          319-2096



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