BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1095| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1095 Author: Eduardo Garcia (D) Amended: 7/7/15 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 APPROPRIATONS COMMITTEE: Senate Rule 28.8 ASSEMBLY FLOOR: 78-0, 6/3/15 - See last page for vote SUBJECT: Salton Sea: restoration projects SOURCE: Author DIGEST: This bill requires the California Natural Resources Agency (agency) to submit to the Legislature a list of shovel-ready restoration projects for the Salton Sea, as specified, on or by March 31, 2016. ANALYSIS: Existing law: 1)Authorizes $475 million to fulfill state obligations related to a variety of agreements including restoration of the Salton Sea (Sea) from the $7.545 billion in general obligation funding for water-related projects and programs in Proposition 1, passed by the voters in November 2014. AB 1095 Page 2 2)Establishes the Salton Sea Restoration Act (act) with the legislative intent of providing that the state undertakes restoration of the Sea's 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. 3)Requires the act's preferred alternative to provide the maximum feasible attainment of specified environmental objectives, such as habitat restoration and water quality protection, among others. 4)Requires the Secretary of the agency in consultation with others, undertake a restoration study to determine a preferred alternative for restoration of the Sea, prepare a Programmatic Environmental Impact Report (PEIR) analyzing the alternatives, and submit a preferred alternative to the Legislature. (The background section includes the current status of this statutory requirement.) This bill requires the agency to submit to the Legislature a list of shovel-ready restoration projects for the Sea, including information regarding project costs and project completion timelines on or by March 31, 2016. "Shovel-ready" is defined as those projects that are substantially through planning, environmental review or permitting. Background The Salton Sea, California's largest man-made lake, is located in a desert sink in Southern California. The Sea's water level is currently maintained primarily by agricultural runoff, which, by existing agreement - the Quantification Settlement Agreement (QSA) - will start being reduced in 2017. From pre-history through the 19th century, the Sea has periodically filled and receded numerous times. (For information on the history that led up to the QSA, see the Senate Natural Resources and Water Committee analysis.) The Sea has significant value as a natural resource. It is one of the most important remaining wetland areas in California for migratory waterfowl and shorebirds. The Sea supports over 400 species of birds, and is an internationally important stopover site for the hundreds of thousands of bird migrating along the AB 1095 Page 3 Pacific Flyway. Fishery resources in the Sea have, however, declined lately due to the increasing salinity, worsening water quality and a decline in the Sea's water level. Without significant restoration efforts, the QSA water transfers when fully implemented are highly likely to result in the collapse of the Sea's ecosystem over the next 10 - 20 years. The Sea itself will shrink in area considerably and the Imperial and Coachella Valleys will experience poor air quality due to the entrainment of fine particles from the exposed sea bed into the atmosphere. In 2007, the agency completed and released the Salton Sea Ecosystem Restoration Program Plan and Final PEIR. The agency estimated that the preferred alternative identified in the PEIR would cost over $8 billion to implement over a period of 75 years. 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. The $8.9 billion plan has not been implemented. The state has an obligation to pay for, but the Legislature is not required to allocate funds for, mitigation and restoration efforts beyond a certain funding level under the QSA. In 2012, the agency, working 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 Sea. The agency's preferred alternative identified in the EIS/EIR would include construction of 3,770 acres of habitat ponds. Funding was provided for the first phase of the SCH Project using Proposition 84 bond monies (approximately $27 million was allocated) and included construction of 800 to 1,200 acres of habitat ponds. Governor's Budget. The May Revise to the Governor's Budget acknowledged that "[p]rior comprehensive plans to restore the sea are no longer feasible due to cost and decreased water availability resulting from the drought in California and in the southwestern states." The Administration announced the creation of a Salton Sea Task Force to develop new medium and long-term restoration plans through a stakeholder process. A leader will be appointed to a new position to lead the Task Force and manage AB 1095 Page 4 construction of projects to benefit wildlife habitat and air quality. No additional funds were allocated. Imperial Irrigation District petition. In 2014, the Imperial Irrigation District filed a controversial petition before the State Water Resources Control Board asking that the Board require the state and the parties to the water transfer agreement to come up with a "realistic, feasible restoration plan." The petition seeks to condition water sales to San Diego on the state fulfilling its promises to pay for offsetting environmental mitigation and restoration. A workshop was held in March 2015 by the Board, and no formal action by the Board appears to have been taken to date. Comments Importance of shovel-ready projects. As noted above, water flowing into the Sea will start being reduced in 2017. Therefore there is merit in identifying restoration projects that can be implemented rapidly in order to mitigate the projected adverse environmental and human health impacts. Related/Prior Legislation AB 71 (V. Manuel Pérez, Chapter 402, Statutes of 2013) required the Secretary of the agency, in consultation with the Salton Sea Authority, to lead the Sea restoration efforts. AB 148 (V. Manuel Pérez, Chapter 124, Statutes of 2014) made technical and clarifying changes to AB 71. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No SUPPORT: (Verified7/7/15) San Diego County Water Authority OPPOSITION: (Verified7/7/15) AB 1095 Page 5 None received ARGUMENTS IN SUPPORT: The San Diego County Water Authority writes in support, "[t]he key element of the QSA that remains unaddressed is the state's obligation with respect to Salton Sea restoration." "AB 1095 would initiate the important process of attempting to identify near-term projects to determine an appropriate spending plan utilizing Proposition 1 funds for the Salton Sea restoration effort." "We believe it is imperative that any spending plan for Salton Sea restoration must be framed by a clear and workable vision and priorities. [?] Implementation-ready projects should support effective air quality mitigation and wildlife habitat creation with a high functional value." ASSEMBLY FLOOR: 78-0, 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, 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, Salas, Santiago, Steinorth, Mark Stone, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins NO VOTE RECORDED: Gallagher, Thurmond Prepared by:Katharine Moore / N.R. & W. / (916) 651-4116 8/19/15 20:39:11 **** END **** AB 1095 Page 6