BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair 458 (Wolk) Hearing Date: 05/11/2009 Amended: 04/2/2009 Consultant: Brendan McCarthy Policy Vote: NR&W, 7-3 SB 458 (Wolk) Page 2 _________________________________________________________________ ____ BILL SUMMARY: SB 458 would establish a new conservancy in state government, with jurisdiction limited to the Sacramento/San Joaquin River Delta. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2009-10 2010-11 2011-12 Fund Annual staff costs Up to $15,000 per year Special * Developing a strategic plan Up to $150Special * Making grants and acquiring Potentially in the hundreds of millions Special * property * New special fund. Source of revenues for the new fund are unknown. _________________________________________________________________ ____ STAFF COMMENTS: This bill meets the criteria for referral to the Suspense file. During its 2005-2006 Regular Session, the Legislature passed and the Governor signed AB1200 (Laird), SB1574 (Kuehl), and AB1803 (Committee on Budget). Together, these bills required an assessment of the potential impacts on water supplies of catastrophic failures in the Delta, identification and evaluation of options to protect water supplies and the ecosystem of the Delta, the development of a vision for a sustainable Delta, and a strategic plan to achieve a sustainable Sacramento-San Joaquin Delta. Additionally, SB 1574 created a Delta Vision Committee to develop the vision and strategic plan. On September 28, 2006, the Governor issued an Executive Order that, among other things, established a Blue Ribbon Task Force and directed it to develop a vision for the sustainable management of the Delta. SB 458 (Wolk) Page 2 In October 2008, the Blue Ribbon Task Force published its Delta Vision Strategic Plan. According to the plan, in order to achieve a healthy Delta and a more reliable water system for Californians, policy makers must: Legally acknowledge the co-equal goals of restoring the Delta ecosystem and creating a more reliable water supply for California. Recognize and enhance the unique cultural, recreational, and agricultural values of the California Delta as an evolving place, an action critical to achieving the co-equal goals. Restore the Delta ecosystem as the heart of a healthy estuary. Promote statewide water conservation, efficiency, and sustainable use. Build facilities to improve the existing water conveyance system and expand statewide storage, and operate both to achieve the co-equal goals. Reduce risks to people, property, and state interests in the Delta by effective emergency preparedness, appropriate land uses, and strategic levee investments. Establish a new governance structure with the authority, responsibility, accountability, science support, and secure funding to achieve these goals. The report of the Blue Ribbon Task force can be considered a starting point for several bills under consideration by this committee relating to the Delta. This bill would establish the Sacramento-San Joaquin Delta Conservancy in state government. The purpose of the Conservancy would be to support efforts that advance both environmental protection and the economic well-being of Delta residents. The Conservancy would be governed by a board of eleven voting members and four non-voting members. Because the scope of activities that would be undertaken by the Conservancy are unknown, costs to operate the Conservancy can not be determined. Staff notes that the State Coastal Conservancy, an existing body with a substantial geographic jurisdiction and complex regulatory issues has an ongoing budget for staff and operations of more than $11 million per year. The bill would authorize the Conservancy to provide grants and loans to various entities and authorize it to acquire property from willing sellers. The bill creates a new special fund for these purposes, but does not specify a revenue source for the SB 458 (Wolk) Page 2 fund. Staff notes that the CalFed program has spent over $570 million over the past decade on programs relating to ecosystem restoration in the Delta. While the scope of activities authorized under this bill is unknown, efforts to protect environmental attributes of the Delta in the past have proved very costly. The Conservancy would be required to develop a strategic plan that would be consistent with Resource Management Plan developed by the Delta Protection Commission and the Central Valley Flood Protection Plan. Staff notes that this bill is one of several bills relating to the Delta that will be before this committee, including SB 12 (Simitian), SB 229 (Pavley), and SB 457 (Wolk).