BILL ANALYSIS                                                                                                                                                                                                    Ó





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2011-2012 Regular Session                    |
          |                                                                 |
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          BILL NO: AB 565                    HEARING DATE: June 28, 2011  
          AUTHOR: Monning                    URGENCY: No  
          VERSION: April 25, 2011            CONSULTANT: Newsha Ajami 
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Conservation: State Coastal Conservancy.  
          
          BACKGROUND AND EXISTING LAW

          The California Coastal Conservancy was created (commencing with 
          Public Resources Code § 31100) to protect, conserve, restore, 
          and enhance environmental and human-based resources of the 
          California coast and ocean for environmentally sustainable and 
          prudent use by current and future generations. According to 
          §31111 the Coastal Conservancy is authorized to provide grants 
          only to public agencies and nonprofit organizations in order to 
          fulfill its mission. 

          PROPOSED LAW
          This bill would enable the Coastal Conservancy to award a grant 
          to a for-profit entity to remove the San Clemente Dam. 

          ARGUMENTS IN SUPPORT
          According to the Monterey Peninsula Water Management District 
          "The San Clemente Dam Removal project represents an 
          extraordinary opportunity for public and private interests to 
          work together to remove an unsafe dam and initiate a watershed 
          restoration process that will bring this river back to life. The 
          project will permanently remove the public safety risk posed by 
          the dam, restore access to 25 miles of spawning and rearing 
          habitat for steelhead trout, and provide new recreational 
          opportunities for the public through the transfer of 
          approximately 900 acres of watershed lands to public ownership."

          ARGUMENTS IN OPPOSITION
          None Received.

          COMMENTS 
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           The San Clemente Dam is an old, non-functional and unsafe water 
          storage structure
           The San Clemente Dam (Dam) is a 106-foot high concrete dam that 
          was constructed in 1921 on the Carmel River. Upon its building, 
          it had a reservoir storage capacity of about 1,425 acre-feet. 
          Today 90% of the reservoir is filled with sediments, with only 
          125 acre-feet of capacity remains. The dam is basically 
          non-functional and is only being used as a diversion point for 
          water withdrawals from the river. 

          In 1990's, the California Department of Water Resources (DWR) 
          Division of Dam Safety, issued a safety order, considering the 
          dam structure unsafe in the event of extreme flooding or a high 
          intensity earthquake. California American Water (CalAm), a 
          for-profit private water company owns the dam, and is 
          financially responsible for resolving this public safety issue. 
          Their proposed least-cost approach to this problem is to 
          strengthen the dam through buttressing, which would cost $49 
          million.   

          Furthermore this dam is disturbing and altering the natural 
          hydrological flow which is vital for fish population (such as 
          steelhead trout) and natural sediment flow. Therefore, the 
          federal and state agencies including the Coastal Conservancy and 
          environmental organizations are all in favor of removing the dam 
          in order to restore natural habitat. The Coastal Conservancy, 
          National Marine Fishery Services (NMFS), and the Planning and 
          Conservation League Foundation worked with CalAm to develop a 
          feasible approach to cooperatively implementing the Dam removal 
          option. This project is expected to cost $83 million.

          In order to remove the dam - which is expected to have 
          significant public benefits - the Conservancy, with assistance 
          from NMFS, will secure the additional $34 million from state, 
          federal, and private foundation sources (the "public funders"). 
          CalAm will be responsible for the remaining portion of the 
          project cost ($49 million) to remove the Dam. CalAM will also 
          donate the land to a public agency and nonprofit organization 
          for watershed and public access protection.

           Why is this bill needed?
           The Conservancy, NOAA Fisheries, PCL Foundation and American 
          Rivers form the public wing of this project. The Conservancy has 
          agreed to function as a clearinghouse for all  public funding  . 
          Under the current law the Coastal Conservancy is not authorized 
          to provide grants to for-profit agencies such as Cal Am. This 
          bill will give the Conservancy authority to grant funds to a 
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          for-profit organization to undertake San Clemente Dam Removal 
          projects. 

          SUGGESTED AMENDMENTS 

          SUPPORT
          California American Water Company
          California State Coastal Conservancy
          California Trout
          Carmel River Steelhead Association
          Carmel River Watershed Conservancy
          Monterey County Board of Supervisors
          Monterey Peninsula Water Management District
          Planning and Conservation League
          Trout Unlimited

          OPPOSITION
          None Received





























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