BILL ANALYSIS Ó AB 935 Page 1 Date of Hearing: August , 2016 ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE Marc Levine, Chair AB 935 (Salas) - As Amended August 17, 2016 SUBJECT: Water projects SUMMARY: This bill requires the Department of Water Resources (DWR), upon appropriation by the Legislature, to fund a reverse flow pump-back project on the Friant-Kern Canal that substantially conforms to the project description set forth by the draft investment strategy released by the San Joaquin River Restoration Program (SJRRP) in December 2014. Specifically, this bill: 1)Requires the DWR, upon appropriation by the Legislature, to grant up to $7 million for the Reverse Flow Pump-back Facilities on the Friant-Kern Canal Restoration Project (Project). 2)Limits the DWR's funding share of the Project to up to 80% of the total. 3)Establishes prerequisites to funding, including: a) All feasibility studies are complete and draft AB 935 Page 2 environmental impact reports (EIRs) required pursuant to the California Environmental Quality Act (CEQA) are available for public review. b) Financial commitments to the DWR director are equal to or greater than 75% of the non-state cost share of the project. 4)Requires the Project, if funded, to comply with any applicable provisions of state and federal law. EXISTING LAW: 1)Establishes the DWR within the Natural Resources Agency, which manages and undertakes planning with regard to water resources in the state. 2)Prohibits a public agency, under CEQA, from making a discretionary decision to approve a project, including funding a project, if there are potentially significant impacts on the environment that could be reduced by feasible alternatives or feasible mitigation measures. FISCAL EFFECT: Unknown. COMMENTS: This bill requires the DWR, upon appropriation by the Legislature, to grant up to $7 million for the Reverse Flow Pump-back Facilities on the Friant-Kern Canal Restoration Project. 1)Assembly Version: The Assembly version of this bill contained AB 935 Page 3 a general requirement for the DWR to fund local and regional conveyance projects. The Senate version of this bill deletes the general requirement and instead, specifies funding of a project that would help minimize water supply impacts to Friant Division Long-Term Contractors from actions to help implement the San Joaquin River Restoration Program (SJRRP). 2)Author's Statement: This bill would provide funding for the planning, design, and construction of a Sustainable Water Conveyance Project that would support regional and interregional connectivity and deliver water to and from the California Aqueduct. We need to develop and improve conveyance facilities in order to optimize inter-regional water supplies, facilitate the movement of water from east to the west, and make additional water available to places of need. This project would help increase water availability and enable deliveries of surplus water in wet years to recharge groundwater and banking facilities. 3)San Joaquin River Restoration Program: The San Joaquin River is the second longest river in California and historically supported large runs of salmon and other cold-water fish. After Friant Dam was constructed by the U.S. Department of Interior, Bureau of Reclamation (Reclamation), parts of the San Joaquin River went completely dry in most years. Environmental groups then brought litigation citing, among other claims, the requirements in California law that the owner of any dam must allow sufficient water to pass through to keep fish in good condition below the dam. In 2006, after 18 years of litigation, a federal court approved a settlement between the federal government, the environmental plaintiffs, and the Friant Water Users Authority. The SJRRP settlement had two objectives: a restoration program that would provide the river with continuous flows to the Sacramento-San Joaquin River Delta and support naturally reproducing populations of Chinook salmon, and a water management goal of minimizing water supply impacts to San Joaquin River water users. AB 935 Page 4 Thereafter, Reclamation initiated an investment strategy in support of the SJRRP water management goal in order to identify projects that, in conjunction with other activities, could cost-effectively reduce or avoid water supply impacts to the Friant Contractors. Reclamation, 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 (Final Report). The Reverse Flow Pump-Back Facilities on the Friant-Kern Canal project that would be funded through this bill was fourth among the 21 projects evaluated in the Final Report. 4)Reverse Flow Pump-back Facilities on the Friant-Kern Canal Restoration Project: The Friant-Kern Canal is a Federal Central Valley Project 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 water north 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, captured downstream, and 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 that included planning and environmental review, and a little over 2 years to complete. The project has been estimated to convey approximately 15,000-30,000 acre-feet AB 935 Page 5 annually and is expected to avoid 2,750 metric tons of carbon emissions over the life of the project. 5)Source of Funding: It is not clear what the source of funding will be for the Project. This bill does not make an appropriation. If and when there is an appropriation the source of funds for that appropriation would be determined by the Legislature and the Governor. 6)Support Arguments: The Reverse Flow Pump-back Facilities on the Friant -Kern Canal Restoration Project is an important water conveyance project in the San Joaquin Valley that will greatly enhance the state's ability to manage water. This bill will provide a means to better circulate water in the south valley, will ensure greater flexibility in our complicated water system, and where appropriate create more water for the citizens, communities, and businesses of the South San Joaquin Valley. REGISTERED SUPPORT / OPPOSITION: Support California Citrus Mutual Delano-Earlimart Irrigation District Lower Tule River Irrigation District AB 935 Page 6 Pixley Irrigation District Tea Pot Dome Water District Opposition None on file Analysis Prepared by:Ryan Ojakian / W., P., & W. / (916) 319-2096