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