BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 935 (Salas) - Water projects.
          
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          |Version: July 16, 2015          |Policy Vote: N.R. & W. 9 - 0    |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 17, 2015   |Consultant: Marie Liu           |
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          This bill meets the criteria for referral to the Suspense File. 


          Bill  
          Summary:  AB 935 would require the Department of Water Resources  
          (DWR) to fund two projects: (1) the Reverse Flow Pump-back  
          Facilities on the Friant-Kern Canal Restoration Project and (2)  
          the San Joaquin River Recapture at Patterson Irrigation  
          District.


          Fiscal  
          Impact:  Cost pressure of $61.2 million to the General Fund for  
          DWR to fund the specified projects.


          Background:  In September 2006, the US Department of Interior and Commerce,  
          the Natural Resources Defense Council, and the Friant Water  
          Users Authority entered into a settlement that ended an 18-year  
          lawsuit to provide sufficient fish habitat in the San Joaquin  
          River below Friant Dam near Fresno. The settlement resulted in  
          the San Joaquin River Restoration Program (SJRRP) which has two  
          goals and objectives: (1) a restored river with continuous flows  







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          to the Sacramento-San Joaquin River Delta and naturally  
          reproducing populations of Chinook salmon; and (2) a river  
          management program to minimize water supply impacts to San  
          Joaquin River water users.
          The U.S. Bureau of Reclamation (USBR) initiated an investment  
          strategy in support of the SJRRP water management goal. The  
          purpose was to identify projects that, in conjunction with other  
          activities, could cost-effectively reduce or avoid water supply  
          impacts to the Friant Division long-term contractors. USBR, in  
          collaboration with the Friant Contractors, identified, screened,  
          developed, evaluated, and ranked over 500 project concepts to  
          form a list of approximately 60 projects. Of these, 21 projects  
          were further evaluated as ready-to-implement priority projects.  
          The results were presented in a March 2015 report titled Water  
          Management Goal Investment Strategy: Final Report. 

          Among other things, the Final Report presented a list of  
          priority projects evaluated at an appraisal level that support  
          the water management goal of the SJRRP.  The two projects that  
          would be funded through this bill are among the 21 projects  
          evaluated in the Final Report.

            Reverse Flow Pump-Back Facilities on the Friant-Kern Canal.    
            The Friant-Kern Canal is Federal Central Valley Project (CVP)  
            canal that conveys water from Friant Dam on the San Joaquin  
            River near Fresno, southward to various Friant Contractors  
            along the east side of the San Joaquin Valley, terminating at  
            the Kern River near Bakersfield.  Currently, the Friant-Kern  
            Canal has limited pump-back operational capacity, which is  
            used occasionally to deliver north the water from the Cross  
            Valley Canal or water extracted from water banks on the Kern  
            River fan. This project would install permanent pump-back  
            facilities with higher capacities along the southern portion  
            of the Friant-Kern Canal.  The project would allow water that  
            was released for restoration flows on the San Joaquin River  
            that was then recaptured downstream to be conveyed via the  
            Cross Valley Canal to be pumped back up the Friant-Kern Canal  
            to a number of Friant Contractors.

            The Final Report ranked this project 4th of 21, with an  
            estimated cost of $7.6 million, and, including planning and  
            environmental review, a little over 2 years to complete the  
            project. 









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            San Joaquin River Recapture at Patterson Irrigation District  
            Conveyed Through Delta-Mendota Canal to San Luis Reservoir.    
            Patterson Irrigation District (ID) is located just downstream  
            from the San Joaquin River and Merced River confluence.   
            Patterson ID has senior San Joaquin River water rights, and it  
            is the first district downstream of the SJRRP Restoration Area  
            capable of recapturing restoration flows. With this project,  
            USBR and Friant Contractors propose to 1) assist Patterson ID  
            modernize and expand the capacity of its cross district  
            conveyance facilities and 2) to facilitate water conveyance or  
            exchange agreements between Friant Contractors and Patterson  
            ID so that recaptured restoration flows can be stored via the  
            Delta-Mendota Canal in San Luis Reservoir for future direct  
            delivery and/or exchange to benefit Friant Contractors. This  
            project provides a method to recapture restoration flows  
            before it enters the Delta.

            The Final Report ranked this project 12thof 21, with an  
            estimated cost of $53.6 million, and, including planning and  
            environmental review, a little over 4  years to complete the  
            project.


          Proposed Law:  
            This bill would require DWR to fund the Reverse Flow Pump-Back  
          Facilities on the Friant-Kern Canal and the San Joaquin River  
          Recapture at Patterson Irrigation District Conveyed Through  
          Delta-Mendota Canal to San Luis Reservoir, upon appropriation of  
          the Legislature.


          Staff  
          Comments:  This bill would require DWR to provide up to 100% of  
          the funding of the two specified projects for a total of $61.2  
          million. As this bill does not actually make an appropriation,  
          these costs are technically cost pressures. This bill does not  
          specify a funding source and it is unclear whether there are  
          bond monies available for these projects. DWR is on pace to  
          awarding all of its remaining Proposition 84 funds by the end of  
          this year and Proposition 1 included a provision stating that  
          the Legislature cannot appropriate Proposition 1 funds for a  
          specified project. In the absence of a fund source being  
          specified, staff assumes the cost would be borne by the General  
          Fund.








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          Staff notes that while the state has made a commitment to  
          helping restore the San Joaquin River itself, the state was not  
          a party to the settlement. Thus the projects are solely the  
          responsibility of the federal government. 




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