BILL ANALYSIS Ó AB 71 Page 1 Date of Hearing: April 10, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 71 (V. Manuel Perez) - As Amended: March 18, 2013 Policy Committee: Natural ResourcesVote:15-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY As proposed to be amended, this bill requires the Secretary of the Natural Resources Agency, in consultation and coordination with the Salton Sea Authority, to lead Salton Sea Restoration efforts. This bill also requires the Salton Sea Authority to undertake a restoration funding and feasibility study in consultation with the Agency and a specified technical advisory group. FISCAL EFFECT Minor, absorbable costs to the Natural Resources Agency for overseeing the restoration effort. COMMENTS 1)Purpose. This bill creates a governance structure to replace the former Salton Sea Restoration Council by designating the Natural Resources Agency as the lead agency for restoration efforts in coordination with the Salton Sea Authority The Salton Sea Authority is a local Joint Powers Authority made up of the following five entities: Riverside County, Imperial County, Imperial Irrigation District (IID), Coachella Valley Water District (CVWD), and the Torres Martinez Desert Cahuilla Indians Tribe. 2)Author's Amendments. The author has proposed amendments to remove the $2 million authorization to fund the restoration AB 71 Page 2 funding and feasibility study from the Salton Sea Restoration Fund (SSRF) and will pursue funding in the Budget Act. 3) Background. The Salton Sea, California's largest lake was formed in 1905 when the Colorado River flooded its banks at a faulty irrigation diversion site. Restoration is necessary to protect fish and wildlife habitat, preserve endangered species and remediate the salinity caused by agricultural runoff. Restoring the sea will help prevent future significant air quality problems resulting from the shrinking sea. The Salton Sea is one of the most important wetland areas in the world for shorebirds migrating along the Pacific Flyway. 4) The Quantification Settlement Agreement (QSA). The QSA was a negotiated settlement among the Imperial Irrigation District, The Metropolitan District of Southern California, the Coachella Water District, the San Diego Water Authority and the state to settle claims to Colorado River water and provided a path for the state to reduce its consumption of Colorado River water to its 4.4 million acre foot entitlement. In 2003, the Legislature enacted a package of QSA implementing bills including a requirement to restore the Salton Sea. Under the QSA, the amount of water flowing into the Sea will be significantly reduced in 2017. Without restoration efforts, the environmental consequences of the reduced flows will be significant to fish, wildlife, habitat and air quality. 5)Restoration Studies and the Preferred Alternative. The Resources Agency prepared a restoration study and Programmatic Environmental Impact Report (PEIR) analyzing alternatives and identifying a preferred alternative in a May, 2007 Report to the Legislature. The estimated cost for restoration was estimated to be $9 billion. 6)The Salton Sea Restoration Council. The Salton Sea Restoration Council was created in 2010 to serve as the state agency responsible for overseeing restoration. The Council was tasked with reviewing the 2007 PEIR and making final funding and restoration recommendations to the Legislature by June 2013. The Governor's 2012 Reorganization plan, as modified by the Legislature, eliminated the Council before they held their AB 71 Page 3 first meeting. This bill instead requires the Natural Resources Agency and the Salton Sea Authority to update prior funding and feasibility studies. 7)The Salton Sea Restoration Fund (SSRF). Currently, the Department of Finance estimates that the SSRF has approximately a $15 million balance. The use of this fund for the study would reduce the amount available for either additional restoration work. The governor's proposed budget includes an increase of $12.1 million from Proposition 84 funds dedicated for Salton Sea restoration. Analysis Prepared by : Jennifer Galehouse / APPR. / (916) 319-2081