BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 935| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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. AB 935 Page 2 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 AB 935 Page 3 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 AB 935 Page 4 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 AB 935 Page 5 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 AB 935 Page 6 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 **** END ****