BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 1095|
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                                   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.









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          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  







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          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  







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          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)









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          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


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