BILL ANALYSIS                                                                                                                                                                                                    �





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2013-2014 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 735                    HEARING DATE: April 23, 2013
          AUTHOR: Wolk                       URGENCY: No
          VERSION: April 16, 2013            CONSULTANT: Dennis O'Connor
          DUAL REFERRAL: No                  FISCAL: Yes
          SUBJECT: Sacramento-San Joaquin Delta Reform Act of 2009:  
          covered actions
          
          BACKGROUND AND EXISTING LAW
          The Sacramento-San Joaquin Delta Reform Act of 2009 (Act), among  
          other things:
           Established co-equal goals of providing a more reliable water  
            supply for California and protecting, restoring, and enhancing  
            the Delta ecosystem. 
           Created the Delta Stewardship Council (Council)
           Required the Council to develop and adopt a Delta Plan to  
            achieve the co-equal goals.
           Required all "covered actions" (defined below) to be  
            consistent with the Delta Plan.

          The current schedule for adoption of the Delta Plan and related  
          documents is as follows:
           May 2013 - Council certifies the environmental documents,  
            adopts the Delta Plan, and adopts the implementing  
            regulations.
           July or October 2013 - Office of Administrative Law approves  
            the regulations, which go into effect immediately. 

          The Act requires covered actions to be consistent with the Delta  
          Plan.  The Act defined covered actions as a plan, program, or  
          project, as defined in the California Environmental Quality Act  
          (CEQA), which meets all of the following conditions:
           Will occur, in whole or in part, within the boundaries of the  
            Delta or Suisun Marsh.
           Will be carried out, approved, or funded by the state or a  
            local public agency.
           Is covered by one or more provisions of the Delta Plan.
           Will have a significant impact on achievement of one or both  
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            of the coequal goals or the implementation of  
            government-sponsored flood control programs to reduce risks to  
            people, property, and state interests in the Delta.

          The Act, as amended, also defined a number of specific  
          activities as not being covered actions, including:
           A regulatory action of a state agency.
           Routine maintenance and operation of the State Water Project  
            or the Central Valley Project.
           Routine maintenance and operation of any facility located, in  
            whole or in part, in the Delta, that is owned or operated by a  
            local public agency.
           Routine dredging activities of the ports of Stockton and West  
            Sacramento.
           Any plan, program, project, or activity within the secondary  
            zone of the Delta that the applicable metropolitan planning  
            organization has determined is consistent with the provisions  
            of SB 375 (Stats 2008, c. 728).

          The Act further provided that, under Water Code �85350,  the  
          Council may incorporate other completed plans related to the  
          Delta into the Delta Plan, to the extent that the other plans  
          promote the coequal goals.  Last year under these provisions,  
          the Council reviewed the Delta Protection Commission's (DPC)  
          Economic Sustainability Plan.  The Council fully accepted into  
          the Delta Plan seventeen of the DPC's thirty-eight  
          recommendations in the while not accepting one recommendation  
          and partially accepting eight other recommendations.

          Landscape level, multi-species Habitat Conservation Plans (HCPs)  
          and Natural Community Conservation Plans (NCCPs) are authorized  
          and permitted pursuant to the federal Endangered Species Act,  
          the California Endangered Species Act, and the state Natural  
          Community Conservation Planning Act.  NCCPs and HCPs take a  
          broad-based ecosystem approach to planning for the protection  
          and perpetuation of biological diversity while allowing for the  
          incidental take of endangered species in the course of otherwise  
          legal activities, such as land development projects.  A key  
          factor in attracting local agencies to the HCP/NCCP process is  
          the ability of the Department of Fish and Wildlife (DFW) and the  
          United States Fish and Wildlife Service (USFWS) to provide  
          regulatory assurances.  In effect, permittees agree to measures  
          that provide a higher level of species conservation in exchange  
          for an assurance from the permitting agencies that, generally,  
          additional measures will not be imposed over the term of the  
          plan.

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          PROPOSED LAW
          This bill would further exempt the following from being a  
          "covered action:"

          The approval of a conservation plan and implementing agreements  
          by a city, county, special district, or joint powers authority  
          consisting of cities or counties, or both, within the Counties  
          of Contra Costa, Sacramento, San Joaquin, Solano, or Yolo  
          pursuant to any of the following:
             Section 1539 of the federal Endangered Species Act (16  
             U.S.C. Sec. 1531 et seq.).
             The Natural Community Conservation Planning Act (Chapter 10  
             (commencing with Section 2800) of Division 3 of the Fish and  
             Game Code).
             Section 2081 of the Fish and Game Code for a conservation  
             plan and implementing agreements that are also incorporated  
             in a conservation plan pursuant to Section 1539 of the  
             federal Endangered Species Act (16 U.S.C. Sec. 1531 et seq.).

          The implementation of conservation measures included in a  
          conservation plan approved by a city, county, special district,  
          or joint powers authority consisting of cities or counties, or  
          both, within the Counties of Contra Costa, Sacramento, San  
          Joaquin, Solano, or Yolo pursuant to any of the following:
             Section 1539 of the federal Endangered Species Act (16  
             U.S.C. Sec. 1531 et seq.).
             The Natural Community Conservation Planning Act (Chapter 10  
             (commencing with Section 2800) of Division 3 of the Fish and  
             Game Code).
             Section 2081 of the Fish and Game Code for a conservation  
             plan and implementing agreements that are also incorporated  
             in a conservation plan pursuant to Section 1539 of the  
             federal Endangered Species Act (16 U.S.C. Sec. 1531 et seq.).

          ARGUMENTS IN SUPPORT
          According to the author, "Under the five NCCPs and HCPs within  
          the Delta, habitat for 99 Delta species will be conserved in a  
          thoughtful and systematic way. These voluntary plans take many  
          years and require significant investment at the local level.  
          Without these plans, locals would pursue minimum project by  
          project mitigation that would need only to meet a standard of  
          avoiding jeopardy to those species that are listed under the  
          state and federal endangered species act."
           
          "The state and federal governments have created incentives for  
          HCPs and NCCPs by offering local agencies greater certainty in  
          exchange for a commitment to implement a higher level of  
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          conservation. Even with this incentive, the process to complete  
          and NCCP and HCP is very expensive and very time consuming. It  
          is a very difficult process for local entities to navigate under  
          the current conditions." 
           
          "The new Delta Stewardship Council process greatly reduces  
          certainty for the local agencies attempting to complete and  
          implement these beneficial plans. Under the Delta Stewardship  
          process, the locals have no clear path for determining whether  
          their plans will be ultimately consistent with the Delta Plan.  
          New requirements to self-certify and protect against covered  
          actions challenges could create delays and cost overruns that  
          will be very difficult for local plans to endure.  The current  
          process gives locals very little assurance that they will be  
          able to implement the very plans that have taken so long and  
          cost so much to complete. Therefore, the lack of clarity within  
          the Delta Stewardship Council process eliminates the primary  
          incentive for locals to develop and implement an HCP or NCCP."

          ARGUMENTS IN OPPOSITION
          A coalition of water and business interests assert "The Delta  
          Stewardship Council is expected to complete and adopt its Delta  
          Plan later this year. The "covered action" consistency process  
          will start at that time. SB 735 is premature as no actions have  
          been subject to the consistency determination process to date.  
          The author seeks exemptions that are extremely broad and would  
          undermine existing state policy designed to advance the co-equal  
          goals of water supply reliability and ecosystem restoration."

          While the Delta Stewardship Council has not taken a formal  
          position on this bill, three of its members (Chair Phil  
          Isenberg, Vice Chair Randy Fiorini, and Senate appointee Patrick  
          Johnston) submitted a letter to convey "serious concerns" with  
          this bill.  Among other things, they comment, "HCPs and NCCPs  
          are specifically designed to contribute to the achievement of  
          one of the coequal goals (ecosystem), but not both. Furthermore,  
          they are not necessarily designed to be coordinated with other  
          Delta-specific considerations such as:
           Water supply reliability (the other coequal goal)
           Flood risk reduction
           Protection of agriculture
           Economic sustainability of the broader Delta region

          Absent coordination with the Council and the Delta Plan, major  
          habitat actions or large-scale easements within local  
          jurisdictions may conflict with planned setback levee projects  
          or a floodplain bypass expansion to meet the state's risk  
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          reduction goals or could prevent farming activities that can  
          strengthen the regional economy. The as-yet completed local HCPs  
          and NCCPs do not yet provide sufficient details for us to  
          understand the full range or location of projects that would be  
          exempted under SB 735."

          COMMENTS 
          
           We should have known this was going to be a problem  .  When the  
          legislature was developing and debating the Delta Reform Act, it  
          was generally acknowledged that the legislature needed to do  
          something about the HCPs and joint HCP/HCCPs in and surrounding  
          the Delta.  The solution was �85350 (discussed above) which, in  
          retrospect and as will be explained below, is proving to be  
          inadequate.

           What are the problems that need to be solved?   There are at  
          least three policy issues.  
          1.How to ensure that currently adopted HCPs and joint HCP/NCCPs  
            are consistent with the about to be adopted Delta Plan, and  
            vice versa.
          2.How to ensure that the HCPs and joint HCP/NCCPs that are  
            currently being developed, including BDCP, are consistent with  
            the existing HCPs and joint HCP/NCCPs, the about to be adopted  
            Delta Plan, and each other.
          3.How to ensure that all the current and future plans are  
            implemented in harmony with each other.

           What are the challenges to solving these problems?   There are  
          many, including:
           Delta Reform Act - By design, the Act does not provide the  
            council with much discretion regarding other plans or actions  
            in the Delta.  Actions are either covered actions, or they are  
            not.  BDCP will either be accepted in whole into the Delta  
            Plan, or it is not.  And so on.

          While �85350 does provide a mechanism to incorporate other plans  
            into the Delta Plan, in the case of the DPC Economic  
            Sustainability Plan, the Council included some elements of the  
            Economic Sustainability Plan in whole, other elements partly,  
            and completely rejected another.  This would not work for an  
            HCP or joint HCP/NCCP.  The take authorized under these is  
            multi-species plans is contingent upon the permittee following  
            all element of the HCP or joint HCP/NCCP.  If the Council were  
            to find that some aspect or element of an HCP or joint  
            HCP/NCCP could not be incorporated into the Delta Plan because  
            it was either in conflict with the Delta Plan or it did not  
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            promote the co-equal, the permittee would be in an awkward  
            position at best.

           Jurisdiction - Only the state and federal wildlife agencies  
            can authorize changes to an adopted plan, and under current  
            law, only under very specific circumstances.  For example, the  
            federal "no surprises" provisions assure non-federal  
            landowners that if "unforeseen circumstances" arise, the USFWS  
            will not require the commitment of additional land, water or  
            financial compensation or additional restrictions on the use  
            of land, water, or other natural resources beyond the level  
            otherwise agreed to in the HCP without the consent of the  
            permittee.

           Sovereignty - Neither state agencies, such as the Council, nor  
            this legislature can compel federal agencies, such as USFWS,  
            to act in any way.  Nonetheless, legislature has often  
            directed state agencies to encourage the participation of  
            various federal agencies to participate in various programs  
            and activities.  In the case of efforts to resolve potential  
            or perceived conflicts among various efforts to restore the  
            ecosystem of the Delta, especially as they relate to federally  
            authorized HCPs, it seems likely that USFWS would seriously  
            consider such an invitation.

           Trust - When it comes to the Delta counties, the old saying,  
            "just because I'm paranoid doesn't mean people aren't out to  
            get me" comes to mind.  Generally, cities and counties are  
            responsible for land use planning, economic development, and  
            other such activities.  Then the legislature came along and  
            said, "well, in this instance, pretty much every future land  
            use decision you traditionally have made in the Delta, now has  
            to be consistent with an as yet to be adopted Delta Plan, to  
            be developed by a bunch of political appointees.  But don't  
            worry; collectively you-all get one seat on the Council."  To  
            the Delta counties, actions since the passage of the Delta  
            Reform Act haven't eased their feelings of being dismissed or  
            ignored.  So, it shouldn't be surprising that the Delta  
            counties are skeptical of various council members' commitments  
            to work cooperatively to solve whatever problems the counties  
            might have.

           What needs to happen?   While the legislature clearly played a  
          role in creating this situation, the affected parties are in the  
          best position to resolve it.  The council, Delta counties, DFW,  
          and USFWS need to mutually agree on a clear process to resolve  
          all three problems discussed above.  If state legislation is  
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          necessary to help implement this solution, the proposed changes  
          to law should be agreed to by all parties, and the council and  
          Delta counties should commit to supporting such legislation.   
          Finally, the terms of the solution should be memorialized in a  
          memorandum of understanding.

          SUGGESTED AMENDMENT: Delete existing language and insert:

               SECTION 1:  Section 85351 of the Water Code in added to  
          read:
               85351.  (a) The council, Department of Fish and Wildlife,  
          the Counties of Contra Costa, Sacramento, and Solano, the Yolo  
          Habitat/Natural Community Conservation Plan Joint Powers Agency,  
          and the San Joaquin Council of Governments shall, by January 1,  
          2015, enter into a memorandum of understanding, or other written  
          agreement, as appropriate, that describes the following:
               (1) How the parties would ensure that adopted multi-species  
          conservation plans are consistent with the Delta Plan, and the  
          Delta Plan is consistent with those multi-species conservation  
          plans.
               (2) How the parties would ensure that multi-species  
          conservation plans under development are consistent with the  
          adopted multi-species conservation plans, the Delta Plan, and  
          each other.
               (3) How to ensure that all the current multi-species  
          conservation plans, future multi-species conservation plans, and  
          Delta plan are implemented in accord with each other. 
               (b)  The council shall invite and encourage the United  
          States Fish and Wildlife Service to participate in developing  
          and signing the agreement developed pursuant to this section, to  
          the extent authorized under federal law.
               (c) For purposes of this section, "multi-species  
          conservation plan" means a multi-species conservation plan  
          adopted under either Section 1539 of the federal Endangered  
          Species Act (16 U.S.C. Sec. 1531 et seq.), the Natural Community  
          Conservation Planning Act (Chapter 10 (commencing with Section  
          2800) of Division 3 of the Fish and Game Code), or jointly under  
          both acts.


          SUPPORT
          Contra Costa County
          San Joaquin County Council of Governments
          Solano County Water Agency
          Yolo County Habitat JPA

          OPPOSITION
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          Association of California Water Agencies 
          Burbank Water and Power 
          California Chamber of Commerce 
          Coachella Valley Water District 
          Eastern Municipal Water District 
          Glendale Water and Power
          Kern County Water Agency 
          Las Virgenes Municipal Water District 
          Metropolitan Water District of Southern California 
          Mojave Water Agency 
          San Bernardino Valley Municipal Water District
          Southern California Water Committee 
          Three Valleys Municipal Water District 
          Western Growers Association 
          Western Municipal Water District 
          Westlands Water District 































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