BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           458 (Wolk)
          
          Hearing Date:  05/28/2009           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: 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).