BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        AB 935|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                   THIRD READING 


          Bill No:  AB 935
          Author:   Salas (D), et al.
          Amended:  8/17/16 in Senate
          Vote:     21 

           SENATE NATURAL RES. & WATER COMMITTEE:  9-0, 7/14/15
           AYES:  Pavley, Stone, Allen, Hertzberg, Hueso, Jackson,  
            Monning, Vidak, Wolk

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 8/27/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           ASSEMBLY FLOOR:  80-0, 6/3/15 - See last page for vote

           SUBJECT:   Water projects


          SOURCE:    Author


          DIGEST:  This bill requires, upon appropriation of the  
          Legislature, the Department of Water Resources (DWR) to provide  
          up to $7 million to fund the Reverse Flow Pump-Back Facilities  
          on the Friant-Kern Canal.




          Senate Floor Amendments of 8/17/16 delete provisions requiring  
          funding of the San Joaquin River Recapture at Patterson  
          Irrigation District project.










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          ANALYSIS:  


          Existing law establishes in the Natural Resources Agency the  
          Department of Water Resources (DWR), which manages and  
          undertakes planning with regard to water resources in the state.


          This bill:


          1)Requires the DWR, upon appropriation by the Legislature, to  
            fund the Reverse Flow Pump-back Facilities on the Friant-Kern  
            Canal Restoration Project.


          2)Caps the state funding for the project at $7 million and  
            requires a minimum 20 percent non-state cost share.


          3)Requires the project to meet the following requirements as a  
            condition for state funding:


             a)   All feasibility studies are complete and draft  
               environmental impact reports are available for public  
               review.


             b)   The director of DWR receives commitments for not less  
               than 75 percent of the nonstate cost share requirement of  
               the project.




          Comments


          San Joaquin River Restoration Program. 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  







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          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 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 supports  
          the water management goal of the SJRRP.  The project that would  
          be funded through this bill is 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  







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          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. 




          Why This Project?  It is not entirely clear why the author  
          selected this project over the other 20.  There are higher rated  
          projects. 


          Should State Fund SJRRP Water Management Projects? These  
          projects are designed to mitigate the water supply impact on  
          Friant Contractors of restoring flows on the San Joaquin River.   
          These flows are necessary for the USBR to comply with state law  
          regarding keeping in good condition fish that may be below a  
          dam.  The state has already committed to helping restore the San  
          Joaquin River itself.  It is not clear why the state should also  
          fund projects to offset the impact of restoration flows on the  
          Friant Contractors.


          With What Funds?  It is not clear what funds DWR could use to  
          provide the grants required by this bill.  Proposition 1  
          included a provision stating that the Legislature cannot  
          appropriate Prop 1 funds for a specific project.    


          Camel's Nose?  Through most of the 1990s, the usual practice for  
          funding water resource projects was for the legislature to  
          determine which specific projects to appropriate bond funds to;  
          either through the drafting of the bond measure or through  
          individual appropriation bills.  Consequently, the investments  
          occasionally reflected political priorities more than policy  
          priorities.  Beginning in the late 1990, the legislature began  
          drafting bond measures emphasizing competitive processes instead  
          of political process.  Indeed, Proposition 1 included a  
          provision banning the legislature from appropriating funds for  
          specific projects.  Should this bill be enacted, it might tempt  







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          other members to attempt to direct funds to specific projects as  
          well. 


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          Prior Senate Appropriations Committee cost estimates are not  
          relevant with recent amendments.


          Relevant Appropriations Committee Staff Comments on previous  
          version of this bill: 




          1)"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.




          2)"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."




          SUPPORT:   (Verified8/18/16)


          California Citrus Mutual
          Delano-Earlimart Irrigation District
          Kern-Tulare Water District







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          South Valley Water Association 
          Tulare County Farm Bureau


          OPPOSITION:   (Verified8/18/16)


          Castaic Lake Water Agency
          City of Clovis
          City of Reedley
          City of Selma
          Coachella Valley Water District
          Consolidated Irrigation District
          Fresno Irrigation District
          Kaweah Delta Water Conservation District
          Kings River Conservation District
          Kings River Water Association
          Modesto Irrigation District
          Raisin City Water District
          Turlock Irrigation District


          ARGUMENTS IN SUPPORT:     According to the author, "We need to  
          develop and improve conveyance facilities in order to optimize  
          inter-regional water supplies, facilitate the movement of water  
          from the east side to the west side, and make additional water  
          available to be distributed to places of need."


          ARGUMENTS IN OPPOSITION:     Opponents to the previous version  
          of this bill raised concerns about the apparent earmarking of  
          funds for this project.

          ASSEMBLY FLOOR:  80-0, 6/3/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,  
            Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,  
            Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,  
            Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,  
            Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,  
            Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,  
            Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez,  







                                                                     AB 935  
                                                                    Page  7


            Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins

          Prepared by:Dennis O'Connor / N.R. & W. / (916) 651-4116
          8/18/16 17:10:05


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