BILL ANALYSIS Ķ AB 1649 Page 1 Date of Hearing: April 12, 2016 ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE Marc Levine, Chair AB 1649 (Salas) - As Amended April 5, 2016 SUBJECT: Water Quality, Supply, and Infrastructure Improvement Act of 2014: surface storage projects: joint powers authorities: funding SUMMARY: This bill establishes a state policy to give priority to the formation and funding of joint powers authorities to address surface water storage. EXISTING LAW: 1) Establishes a Sacramento-San Joaquin Delta policy that among other things lists expanded statewide water storage as an objective. 2) Provides that surface storage projects identified in the CALFED Bay-Delta Program Record of Decision, except projects prohibited by the California Wild and Scenic Rivers Act, are eligible for funding under Proposition 1 of 2014. FISCAL EFFECT: Unknown AB 1649 Page 2 COMMENTS: Establishes a state policy to prioritize funding joint powers authorities formed for surface water storage projects. 1)Author's Statement: This bill urges the state to expedite water storage projects. As California continues to combat historic drought conditions, we should be doing everything we can to update our water storage infrastructure. Had investments been made decades ago, we would be prepared to capture the rainfall from recent El Niņo storms. Expanding and improving California's water storage capacity is long overdue. 2)Background: Proposition 1 appropriated $2.7 billion to the Water Commission for storage. The Proposition made those funds available for all of the following projects: Surface storage projects identified in the CALFED Bay-Delta Program Record of Decision, except projects prohibited by the California Wild and Scenic Rivers Act. Groundwater storage projects and groundwater contamination prevention or remediation projects that provide water storage benefits. Conjunctive use and reservoir reoperation projects. Local and regional surface storage projects that improve the operation of water systems in the state and provide public benefits. Much of this storage is tied to improved operations in the Delta. Surface water storage for the State Water Project and Central Valley Project is directly tied to the Delta. The current surface storage projects before the Water Commission come from CALFED Bay-Delta recommendations. AB 1649 Page 3 In 1994, after years of uncoordinated efforts to improve fish restoration and reliability of Delta water, state and federal agencies joined together to coordinate activities. This coordination became the CALFED Bay-Delta Program (CALFED). CALFED initiated a long-term planning process. As part of that process, CALFED considered storage that would allow for improved operations for water quality and water flows. On August 28, 2000, CALFED identified several storage projects for further evaluation through a Record of Decision. Those identified projects were ultimately made eligible for funding under Proposition 1. In addition to providing funding for storage, Proposition 1 conditioned funding on several requirements being met. Among those requirements a project must: Provide measurable improvement to the Delta ecosystem or to the tributaries to the Delta. Create ecosystem improvements that contribute to restoration of aquatic ecosystems and native fish and wildlife, including those ecosystems and fish and wildlife in the Delta. Create water quality improvements that provide significant public trust resources, or that clean up and restore groundwater resources. This bill would make it a matter of state policy to prioritize funding joint power authorities formed to advance surface storage projects. This priority would apply to all funds that become available not just Proposition 1. It seems likely that AB 1649 Page 4 policy would serve to emphasize funding eligible surface storage projects out of Proposition 1 funds and provide pressure to accelerate the time frame by which those funds become available for projects. 1)Prior and Related Legislation: a) AB 2551 (Gallagher) 2016, allows for CALFED Bay-Delta Program Record of Decision surface storage projects to be constructed using several construction options. AB 2551 is currently pending in this committee. b) AB 1471 (Rendon), Chapter 188, Statutes of 2014, placed Proposition 1, a $7.545 billion general obligation bond for water-related projects and programs on the November 4, 2014, ballot where it passed with 67% of the vote. 2)Opposing Arguments: AB 1649 prioritizes the CALFED projects for funding from the Water Bond. The sizeable investments in the Water Bond should be thoughtfully spent on worthwhile projects. The public's money is best served by investing in groundwater projects. These projects can yield six times the water for the cost of surface storage. 3)REGISTERED SUPPORT / OPPOSITION: Support None on File AB 1649 Page 5 Opposition Association of California Water Agencies (prior version) Sierra Club California Analysis Prepared by:Ryan Ojakian / W., P., & W. / (916) 319-2096