BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 1095


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          ASSEMBLY THIRD READING


          AB  
          1095 (Eduardo Garcia)


          As Amended  June 1, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                 |Noes                 |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Water           |11-2  |Levine, Dababneh,    |Beth Gaines, Harper  |
          |                |      |Dodd, Cristina       |                     |
          |                |      |Garcia, Gomez,       |                     |
          |                |      |Lopez, Mathis,       |                     |
          |                |      |Medina, Rendon,      |                     |
          |                |      |Salas, Williams      |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Appropriations  |12-0  |Gomez, Bonta,        |                     |
          |                |      |Calderon, Daly,      |                     |
          |                |      |Eggman,              |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |                |      |Eduardo Garcia,      |                     |
          |                |      |Gordon, Holden,      |                     |
          |                |      |Quirk, Rendon,       |                     |
          |                |      |Weber, Wood          |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
           ------------------------------------------------------------------- 









                                                                      AB 1095


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          SUMMARY:  Requires the California Natural Resources Agency (CNRA),  
          on or before March 31, 2016, to submit to the Legislature a list  
          of shovel-ready Salton Sea restoration projects, including  
          information regarding project costs and project completion  
          timelines.


          EXISTING LAW:  


          1)Authorizes $7.545 billion in general obligation funding for  
            water-related projects and programs in Proposition 1 (2014), the  
            Safe Drinking Water, Quality, and Infrastructure Act of 2014  
            (Prop. 1). 


          2)Under Prop. 1, authorizes $475 million in order to fulfill State  
            obligations related to: the Klamath Agreements; Tahoe Compact;  
            San Joaquin River Restoration Agreement; Salton Sea Restoration;  
            and, Central Valley Project Improvement Act refuge water  
            supplies.


          3)Establishes the Salton Sea Restoration Act (SSRA) with the  
            legislative intent of providing that the State of California  
            undertakes restoration of the Salton Sea ecosystem and the  
            permanent protection of the wildlife dependent on that ecosystem  
            based on a "preferred alternative" that is developed as a result  
            of a restoration study and alternative selection process. 


          4)Requires the SSRA preferred alternative to provide the maximum  
            feasible attainment of specified environmental objectives,  
            including restoration of long-term stable aquatic and shoreline  
            habitat to historic levels and diversity of fish and wildlife  
            dependent on the Salton Sea, elimination of air quality impacts  
            from restoration projects, and protection of water quality.









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          5)Provides that for purposes of the SSRA restoration plan the  
            Salton Sea ecosystem includes the Salton Sea, agricultural lands  
            surrounding the Sea, and the tributaries and drains within  
            Imperial and Coachella Valleys that deliver water to the Sea.


          6)Requires the CNRA Secretary, in consultation with the Department  
            of Fish and Wildlife (DFW), the Department of Water Resources  
            (DWR), the Salton Sea Authority (SSA), air quality districts,  
            and the Salton Sea Advisory Committee, undertake a restoration  
            study to determine a preferred alternative for restoration of  
            the Salton Sea, prepare a Programmatic Environmental Impact  
            Report (PEIR) analyzing the alternatives, and submit a preferred  
            alternative to the Legislature on or before December 31, 2006.


          7)Establishes the Salton Sea Restoration Fund (SSRF), which is  
            administered by the DFW Director.  Authorizes moneys deposited  
            in the SSRF to be expended, upon appropriation by the  
            Legislature, for the following purposes:  


             a)   Environmental and engineering studies related to  
               restoration of the Salton Sea and the protection of fish and  
               wildlife dependent on the Sea; 
             b)   Implementation of conservation measures necessary to  
               protect fish and wildlife dependent on the Sea; 


             c)   Implementation of the preferred Salton Sea restoration  
               alternative; and,


             d)   Administrative, technical, and public outreach costs  
               related to development and selection of the preferred Salton  
               Sea restoration alternative.   










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          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, absorbable costs as Prop. 1 authorizes $475 million in  
          order to fulfill state obligations, including Salton Sea  
          Restoration.


          COMMENTS:  The Assembly Appropriations Committee struck the prior  
          language of this bill, which earmarked an unspecified amount of  
          Prop. 1 for Salton Sea restoration and instead inserted a  
          requirement for the CNRA to report to the Legislature on or before  
          March 31, 2016, on a list of shovel-ready Salton Sea restoration  
          projects.  


          The author states that this bill is needed because the Salton Sea  
          is California's largest inland lake and very important to both the  
          residents of Imperial and Riverside counties and to the wildlife  
          that relies upon the Sea for habitat.  The author adds that the  
          Salton Sea is nicknamed "California's Everglades" by some as it  
          currently supports 400 species of birds, many of them year-round,  
          and is a critical stopping point along the 5,000-mile Pacific  
          Flyway.  The author adds that without restoration windblown  
          particles from the dry lakebed will worsen the already poor air  
          quality in the Imperial and Coachella Valleys to the detriment of  
          many who live there and already suffer air quality-related health  
          problems.


          The Salton Sea, California's largest lake, is located in a  
          low-lying trough or desert sink in Southern California, much of  
          which is below sea level.  The current sea was formed in 1905 when  
          the Colorado River flooded its banks at a faulty construction site  
          during the building of the All-American Canal.  However, the sea  
          bed has periodically filled and receded numerous times, from  
          prehistoric times through the 1800s.  The present sea is fed  
          primarily by agricultural runoff.  Since it has no natural outlet,  
          it is becoming increasingly saline and today is considerably  
          saltier than the ocean.  









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          The state's obligation to fund Salton Sea restoration is related  
          to the Quantification Settlement Agreement (QSA), which is in turn  
          related to California's dependence on Colorado River water.  The  
          Colorado River Compact is a 1922 agreement among the seven  
          Colorado River basin states as to how they will apportion Colorado  
          River flows.  Based on the flows of the River prior to 1922, 7.5  
          million acre-feet (MAF) were assigned to the Upper Division,  
          consisting of Colorado, New Mexico, Utah, and Wyoming and 7.5 MAF  
          were assigned to the Lower Division as follows:  California 4.4  
          MAF , Arizona 2.8 MAF, and Nevada .3 MAF.  But even though  
          California received the lion's share, it continuously relied upon  
          another .8 MAF of "surplus" from the other States to average about  
          5.2 MAF.  


          As the rest of the southwest grew, the other states began to  
          pressure the Secretary of the Interior to give California a  
          deadline to come up with a plan to ratchet back to 4.4 MAF.  In  
          response, Secretary of the Interior Gale Norton gave California a  
          deadline of December 31, 2002 to come up with a "4.4 Plan" or she  
          threatened to discontinue declaring surpluses and cut off the  
          extra water supply.  As a result, the major Colorado River water  
          rights holders, Imperial Irrigation District (Imperial), the  
          Metropolitan Water District of Southern California, the San Diego  
          County Water Authority (San Diego), and the Coachella Valley Water  
          District (Coachella), agreed to quantify their water rights,  
          engage in a series of transfers, and restore the Salton Sea.  The  
          reason for inclusion of the Salton Sea is that, beginning in 2017,  
          the QSA included ag-to-urban water transfers that would reduce the  
          runoff from Imperial that was providing significant inflow to the  
          Sea.  As a result, the Sea will shrink considerably in size,  
          increasing salinity and exposing large areas of dry sea bed playa.


          The Salton Sea is one of the most important wetland areas in  
          California for migratory waterfowl and shorebirds, since over 95%  
          of California's historical wetlands have been converted to other  
          land uses.  The Salton Sea supports over 400 species of birds, and  








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          is an internationally significant stopover site for hundreds of  
          thousands of birds migrating along the Pacific Flyway.  Recently,  
          fishery resources in the sea have declined significantly due to  
          increasing salinity, evaporation and declining water quality.   
          Once the QSA water transfers are fully implemented, it is  
          generally recognized that without restoration efforts the  
          ecosystem of the Salton Sea will collapse over the next decade or  
          two.  The drying up of the sea also will have human health impacts  
          as more than 100 miles of dusty lakebed could be exposed to the  
          desert winds.  That would cause fine particles to blow over the  
          Coachella and Imperial Valleys with the latter already suffering  
          from the highest childhood asthma hospitalization rate in the  
          state and both areas containing high numbers of seniors who are  
          especially susceptible to poor air quality.


          To facilitate the implementation of the QSA, the Legislature  
          passed and the Governor signed a package of three bills in  
          September 2003.  That legislation detailed the financial  
          responsibility the state assumed with respect to mitigation, and  
          required the formation of a joint powers authority (JPA) to  
          implement and allocate mitigation responsibilities between local  
          agencies and the state.  The JPA consists of DFW, Coachella,  
          Imperial, and San Diego.  Under the QSA, Coachella, Imperial, and  
          San Diego agreed to fund the first $133 million (in 2003 dollars)  
          for mitigation costs related to habitat restoration and air  
          quality and the State of California assumed responsibility for all  
          mitigation and monitoring beyond that first $133 million.  This  
          open-ended State obligation was subject to litigation with the  
          Third District Court of Appeal ruling that while the state is  
          contractually liable for the excess mitigation costs, neither the  
          QSA parties nor anyone else can compel the Legislature to  
          appropriate funds to pay for the mitigation.  In other words, the  
          court found that the State's contractual obligation under the QSA  
          to pay for excess mitigation costs may be unenforceable but it is  
          not illusory as the Legislature could choose to fund it.


          In 2007, the CNRA completed a restoration study and released the  








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          Salton Sea Ecosystem Restoration Program Plan and Final  
          Programmatic Environmental Impact Report (PEIR).  The Agency  
          estimated that the preferred alternative identified in the PEIR  
          would cost over $8 billion, expended over a period of 75 years, to  
          implement.  The PEIR noted that even the "no project" alternative  
          would cost the State over $1 billion due to state and federal  
          requirements to address air quality, water quality and habitat  
          issues even if no restoration plan is pursued.  The $8 billion  
          plan was not implemented.


          In 2012, the CNRA, jointly with the United States Army Corps of  
          Engineers, prepared and released a draft Salton Sea Conservation  
          Habitat (SCH) Project Environmental Impact Statement/Environmental  
          Impact Report (EIS/EIR).  The SCH Project EIS/EIR proposes a range  
          of aquatic habitats to support fish and wildlife species dependent  
          on the Salton Sea.  The CNRA's preferred alternative identified in  
          the EIS/EIR would include construction of 3,770 acres of habitat  
          ponds.  Proposition 84 (2006), The Safe Drinking Water, Water  
          Quality and Supply, Flood Control, River and Coastal Protection  
          Bond Act of 2006 made $47 million available for deposit into the  
          SSRF.  The Governor's 2013-14 budget included $2 million to study  
          funding and restoration alternatives by the SSA and $28.4 million  
          from the SSRF for the first phase of implementation of the SCH  
          Project.  The first phase includes on-the-ground construction of  
          800 to 1,200 acres of habitat ponds.  Additional funding for  
          implementation of the SCH Project is also being sought at the  
          federal level.


          Multiple prior bills have sought to aid the sea, including most  
          recently AB 71 (V. Manuel Pérez), Chapter 402, Statutes of 2013,  
          which required the CNRA Secretary, in consultation with the SSA,  
          to lead Salton Sea restoration efforts and AB 148 (V. Manuel  
          Pérez), Chapter 124, Statutes of 2014, which made technical and  
          clarifying changes to AB 71. 


          Supporters state that only after the State and QSA parties  








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          committed to mitigation and restoration measures was the QSA  
          signed.  Supporters add that the conservation-based component of  
          the water transfer agreement with San Diego commences in 2017  
          after 15 years of State Water Resources Control Board-ordered  
          return flows of mitigation water to the Salton Sea and that, as a  
          result, the "need for funding to meet the State's obligation looms  
          very, very large indeed."



          There is no known opposition to this bill.




          Analysis Prepared by:                                               
                          Tina Leahy / W., P., & W. / (916) 319-2096  FN:  
          0000818