BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1713


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          Date of Hearing:  April 19, 2016


                  ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE


                                 Marc Levine, Chair


          AB 1713  
          (Eggman) - As Introduced January 26, 2016


          SUBJECT:  Sacramento-San Joaquin Delta:  peripheral canal


          SUMMARY:  Prohibits the construction of a peripheral canal, as  
          defined, in the Sacramento-San Joaquin Delta (Delta) unless  
          certain requirements are met. Specifically, this bill: 


          1)Defines "peripheral canal" as a facility or structure to  
            convey water from the Sacramento River to the State Water  
            Project (SWP) or the federal Central Valley Project (CVP)  
            pumping facilities in the southern Sacramento-San Joaquin  
            Delta (Delta).

          2)Prohibits the construction of a peripheral canal unless  
            authorized by an initiative vote on or after January 1, 2017.

          3)Requires the Legislative Analyst's Office to complete an  
            economic feasibility analysis of the peripheral canal prior to  
            the election on the initiative.

          4)Prohibits the construction and operation of a peripheral canal  
            from diminishing or negatively affecting the water supplies,  
            water rights, or quality of water for water users within the  
            Delta watershed.









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          EXISTING LAW:  


          1)Provides the State Water Resources Control Board (State Water  
            Board) authority to protect Delta municipal, industrial,  
            agricultural, and fish and wildlife beneficial water uses  
            through the adoption and implementation of a Water Quality  
            Control Plan (WQCP) for the Delta.    

          2)Provides the State Water Board authority to condition and  
            enforce water rights permits to implement WQCPs.  Requires the  
            State Water Board use the best available science to develop  
            flow criteria necessary to protect the Delta environment.  

          3)Provides the Department of Water Resources (DWR) authority to  
            construct and operate the SWP and to construct, maintain, and  
            operate additional SWP units that further the purposes of the  
            SWP.

          4)Prohibits the DWR from constructing any diversion, conveyance,  
            or other facility to divert from the Sacramento River to the  
            south Delta until the State Water Board issues an order  
            approving the change. 

          5)Prohibits construction of any new Delta conveyance facility  
            until the SWP and the CVP contractors enter into a contract to  
            pay for environmental and community impacts from the  
            construction, operation, and maintenance of the facility.

          6)Establishes coequal goals in the Delta of a more reliable  
            water supply for California and protecting, restoring and  
            enhancing the Delta ecosystem while mandating that the coequal  
            goals are to be achieved in a manner that protects and  
            enhances the unique cultural, recreational, natural resource,  
            and agricultural values of the Delta as an evolving place. 

          7)Creates the Delta Stewardship Council (Council) which, among  
            other tasks, must develop and implement the Delta Plan (Plan)  
            a long-term management plan for the Delta that meets the  








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            coequal goals.

          8)Requires that the Delta Plan promote options for new and  
            improved infrastructure relating to Delta water conveyance,  
            storage systems, and operations to achieve the co-equal goals.

          9)Permits inclusion of the Bay Delta Conservation Plan (BDCP)  
            into the Delta Plan only if it complies with a Natural  
            Community Conservation Plan (NCCP), the California  
            Environmental Quality Act (CEQA), and that the CEQA analysis  
            specifically looks at flow related operational requirements  
            and a reasonable range of Delta conveyance alternatives.

          FISCAL EFFECT:  unknown


          COMMENTS: Prohibits the construction of a peripheral canal, as  
          defined, in the Delta unless authorized by an initiative vote.


          1)Author's Statement: This bill prohibits the construction of a  
            water conveyance system in the Delta unless first expressly  
            approved by the voters of California through an initiative.  A  
            major infrastructure project such as the currently proposed  
            WaterFix project should be affirmatively approved by those who  
            would be directly assessed for its high cost and those who  
            would be forced to live with its numerous adverse impacts.   
            The tunnels will only serve to benefit one portion of the  
            State at the expense of another and, contrary to existing  
            state law, cause direct and irreparable harm to the Delta.   
            This bill appropriately allows voters to weigh in on an  
            extremely expensive proposal with potentially devastating  
            impacts both within and outside of the Delta.


          2)Background:  There is broad agreement that the state's water  
            management system is currently unable to satisfactorily meet  
            both ecological and human needs.  Under current water use,  
            demands surpass supply.  Especially, in times of drought.  The  








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            State has taken action through the Water Action Plan to lay  
            out a path to sustainable water management.   This and other  
            documents, necessarily put all options on the table to improve  
            the water management system.  Those options include but are  
            not limited to conservation, efficiency, stormwater capture,  
            groundwater replenishment, recycled water, and desalination.   
            Due to limited resources it is important that the state invest  
            first in actions of the highest value to create the greatest  
            improvements in water reliability for human and natural  
            requirements.


            The Delta is crucial and is in decline: The Delta is both the  
            hub of the California Water System and the most valuable  
            estuary and wetland ecosystem on the west coast of the  
            Americas.  The Delta provides water to more than 25 million  
            Californians and 3 million acres of agricultural land.  It  
            supports a four hundred billion dollar a year economy, is part  
            of the Pacific Flyway, is critical habitat to 700 native plant  
            and animal species, and is home to more than 500,000 people. 


            California is an arid state with limited precipitation.  The  
            mountains in the northern part of the state serve as the  
            state's water catcher and largest natural surface reservoir.  
            These mountains receive the bulk of their precipitation as  
            snow in the winter.  The majority of human needs in the state  
            are hundreds of miles from the primary water source.  This  
            hurdle of time and place of use led to major reengineering of  
            the hydrology of the state.  Beginning in 1933 and largely  
            culminating in 1968 a major redirecting of water from the  
            mountains to the cities and valleys through the construction  
            of the CVP and the SWP made the Delta the hub for water in  
            California. 


            The Delta watershed and California's water infrastructure are  
            in crisis and existing pressures on the Delta are not  
            sustainable.  Among other human impacts the CVP and the SWP  








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            operations have altered the natural amount, duration,  
            direction and timing of water flows. As a result, today there  
            are about 100 Delta wildlife species, 140 plant species and 13  
            species of fish that have some form of legal or regulatory  
            protection.   There have been numerous species-related  
            restrictions on the management of water exports from the Delta  
            since 1991, with restrictions being in place continuously  
            since 2008.  


            Simply receiving more precipitation does not appear to be  
            sufficient to resolve the challenges for species and  
            deliveries in the Delta as a significant part of the problem  
            stems from the fact that the infrastructure associated with  
            deliveries itself is environmentally damaging.  2016, an  
            average precipitation year, is an example of what the future  
            of this environmental and infrastructure challenge would  
            appear to hold.  CVP Sacramento Valley interests are projected  
            to receive 100% of their deliveries while many CVP San Joaquin  
            Valley interests are projected to receive 5% of deliveries. It  
            seems that further restrictions on deliveries from the Delta  
            and continued ecological decline are a certainty under the  
            status quo. 


            The expectation behind proposed changes in conveyance in the  
            Delta has always been that it will improve the reliability of  
            water deliveries out of the Delta.  A common concern with that  
            expectation has been what the environmental impacts of that  
            reliability will be, and what the impacts would be on the  
            people who live in the Delta.      


            Long Look at Conveyance and Delta Management:  Since prior to  
            the completion of both the CVP and the SWP there has been an  
            ongoing debate about how to manage the Delta. Management and  
            conveyance in the Delta have been and continue to be closely  
            linked together.  Because management and conveyance have been  
            the responsibility of Federal, State, and Local governments,  








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            plans have not always been coordinated and have occurred in  
            overlapping ways.  Much of the debate on coordination,  
            conveyance, and management came to a head in legislation that  
            was passed in 2009.  The timeline on this debate, with respect  
            to conveyance in the Delta has progressed as follows:   


            First "Peripheral Canal" 1965-1982


            In 1965 the first plan for a "Peripheral Canal" was put forth.  
             This plan was for a 43 mile-long, 400 feet wide, 30 feet deep  
            unlined ditch running from the Sacramento River in the north  
            of the Delta to the SWP and the CVP pumping plants in the  
            south Delta.  The "Peripheral Canal" would have been capable  
            of delivering 23,000 cubic feet per second (cfs).  At that  
            time, many did not believe that building such a canal would  
            require a vote of the people.


            In 1980 the Legislature passed SB 200 (Ayala) and ACA 90  
            (Kapiloff) that approved the "Peripheral Canal" and placed  
            Proposition 8 on the November 1980 ballot.  Proposition 8 was  
            approved by the voters.  This ultimately did not move forward,  
            however, when enough signatures were gathered to qualify the  
            "Peripheral Canal" for a referendum, or veto by the people.   
            In June 1982, Proposition 9, the "Peripheral Canal" was  
            repealed by a margin of three to two and.


            CALFED 1994-2000


            After the vote on Proposition 9 the idea of changing  
            conveyance in the Delta was put on the back burner for some  
            time.  A drought from 1987-1992, however, brought renewed  
            attention to the conflicts in the Delta.  1994, two years  
            after the end of the drought, state and federal agencies  
            joined together to coordinate activities in the Delta.  This  








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            coordination ultimately resulted in the CALFED Bay-Delta  
            Program (CALFED).  CALFED initiated a long-term planning  
            process to improve the Delta and increase the reliability of  
            its water supply.  As part of that plan CALFED reconsidered  
            some type of peripheral conveyance to address export water  
            supply reliability and ecosystem restoration in the Delta.   
            CALFED called this new conveyance an "isolated facility" and  
            tried to distinguish it from the prior "Peripheral Canal".   
            Ultimately however, in a Record of Decision signed in August  
            of 2000, the CALFED Program chose the existing through-Delta  
            system as the preferred alternative for continuing to convey  
            export water supplies.


            Delta Vision 2005-2008


            Following a 2005 independent review critical of many aspects  
            of CALFED, former Governor Arnold Schwarzenegger created a new  
            effort by Executive Order called "Delta Vision."  Delta Vision  
            built on CALFED's work but aimed at addressing the full array  
            of issues necessary to achieve a sustainable Delta.  Delta  
            Vision identified seven goals which they deemed should be part  
            of a comprehensive water plan for the state.  Significantly  
            the recommendations included:


                     Building facilities to improve the existing water  
                 conveyance systems and expand statewide storage.
                     Delta restoration must be founded on the co-equal  
                 goals of water supply reliability and ecosystem  
                 restoration.


                     Recognition and enhancement of the unique cultural,  
                 recreational, and agricultural values of the Delta as an  
                 evolving place. 










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                     Establish a new governance structure with the  
                 authority, responsibility, and accountability to achieve  
                 these goals.


            BDCP 2006-2015


            In 2006 CALFED was in financial trouble, as a result CALFED  
            singed a Memorandum of Agreement (MOA) with state and federal  
            export contractors.  Part of that MOA initiated BDCP.  BDCP  
            was described as "a conservation plan for the Delta and its  
            upstream basins" with the express mission of obtaining for  
            SWP/CVP Delta operations the permits necessary to comply with  
            the California Endangered Species Act and the Federal  
            Endangered Species Act (FESA) through a state NCCP and a  
            federal Habitat Conservation Plan (HCP).  


            Delta Legislation 2009


            When California faced a third consecutive dry year, In 2009,  
            former Governor Schwarzenegger called an Extraordinary Session  
            of the Legislature to address water issues. That Extraordinary  
            Session produced several pieces of Legislation including SB 1  
            (Simitian, Chapter 5, Statutes of the 7th Extraordinary  
            Session 2009-2010).  Among numerous changes, this legislation  
            tied Delta conveyance, governance, and funding together.  SB 1  
            x7 clarified that any new conveyance facility could not be  
            constructed without approval from the State Water Board.  It  
            required the State Water Board to develop new flow criteria  
            for the Delta and include that flow criteria in any approval  
            for new conveyance.


            SB 1 x7 set environmental bars for BDCP beyond those required  
            under CEQA with specific analysis required for numerous  
            conveyance alternatives, and included a reasonable range of  








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            flow criteria, rates of diversion, and other operational  
            criteria.  Importantly, SB 1 x7 required BDCP to be approved  
            as an NCCP in order to be eligible for public funding.  


            Additionally, SB 1 x7 established the Council as a governance  
            body in the Delta.  Part of the Council's responsibility is to  
            develop a Delta Plan and make determinations of consistency  
            with the Delta Plan.  Any new conveyance facility would very  
            likely fall under an action that would be evaluated by the  
            Council for consistency with the Delta Plan.  


            The Plan is required to:


                     Further the restoration of the Delta through  
                 advancing the coequal goals of providing water  
                 reliability and enhancing the Delta ecosystem in a manner  
                 that protects the unique culture of the Delta. 
                     Promote statewide water conservation, water use  
                 efficiency, and sustainable use of water.


                     Promote options for conveyance, storage, and  
                 operation that achieve the coequal goals. 


            WaterFix 2015-Present


            In 2015 federal agencies determined that BDCP likely would not  
            meet the requirements of a Habitat Conservation Plan (HCP) and  
            that the Delta conveyance associated with BDCP would not  
            receive 50 year permits for operation.  This effectively led  
            to the end of BDCP and resulted in the Department splitting  
            BDCP into WaterFix, the Delta conveyance piece of BDCP, and  
            EcoRestor the ecological restoration piece of BDCP. 









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            Recent estimates put the cost of WaterFix at $17 billion and  
            EcoRestor at $8 billion.  Under existing law, the CVP and the  
            SWP contractors will have to pay the cost of WaterFix.  The  
            funding for EcoRestor is less clear and will likely come from  
            a mix of sources including CEQA mitigation. 


            Much of SB 1 x7 still applies to how conveyance and governance  
            continue to be carried out in the Delta.  Importantly, the  
            approval process for conveyance at the State Water Board and  
            the Council remains in place.  


            Big Gulp, Little Sip


            One of the driving concepts behind any conveyance facility is  
            the idea of "Big Gulp, Little Sip".  This refers to the  
            ability to move large portions of water in wet years so as to  
            reduce dependence on the Delta in dry years.  The central  
            question is what size is the right size.  Or what approach  
            will have the greatest effect for achieving the coequal goals.


            The original "Peripheral Canal" was an extremely large  
            facility.  What is being discussed today through WaterFix is a  
            facility that is approximately 40% of the size of the initial  
            proposal.  To be clear, WaterFix is an extremely large  
            facility, one in which the hydrologic impacts are not entirely  
            clear because a facility of this kind is unprecedented.  The  
            uncertainty of the impacts of project of this magnitude is  
            ultimately what has limited its ability to receive long-term  
            federal permits.  


            Approval of New Conveyance










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            A ballot initiative up in this November's election is  
            substantially similar to this bill. Under the initiative, the  
            state would have to seek voters' permission before funding  
            projects that cost more than $2 billion with revenue bonds.   
            The administration had been and may still propose such bonds  
            for the Delta conveyance plan.  This bill would require a  
            different vote to occur after January 1, 2017, that is  
            specifically on the peripheral canal with an economic  
            feasibility analysis.


            Clearly a large scale conveyance project in the Delta would  
            have to comply with CEQA and all of the associated  
            requirements for approval of the project.  Additionally at  
            least part of the ability to gain approval for a Delta  
            conveyance facility was clearly laid out through SB 1 x7 and  
            that  process must still be adhered to today.  This includes  
            approval at the State Water Board and a finding of consistency  
            by the Council if there is approval by the State Water Board.   
            How the Council would make a finding of consistency with the  
            Plan would play out is not clear, but it seems likely that  
            process would inform any CEQA challenge.    

            This bill is also similar to AB 1594 (Huber) 2010 and AB 550  
            (Huber) 2011.  Those bills specifically required Legislative  
            approval of any "Peripheral Canal".  Those bills did not  
            receive approval in this committee.  


          1)Prior and Related Legislation:


            AB 2583 (Frazier) of 2016, revises and recasts the  
            Sacramento-San Joaquin Delta Reform Act of 2009.  AB 2583 is  
            pending in this committee.

            AB 550 (Huber) of 2011, would have prohibited construction of  
            a peripheral canal unless there was expressed Legislative  








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            approval.  AB 550 failed passage in this Committee.

            AB 1594 (Huber) of 2010, would have prohibited construction of  
            a peripheral canal unless there was expressed Legislative  
            approval. AB 1594 was held in this Committee.

            SB 1 x7 (Simitian) Chapter 5, Statues of the 7th extraordinary  
            session of 2009-2010, established the Sacramento-San Joaquin  
            Delta Reform Act requiring Delta management to meet the  
            coequal goals. 


          2)Supporting Arguments: The permitting process for a major  
            infrastructure project should be transparent.  A major  
            infrastructure project such as the currently proposed Twin  
            Tunnels project should be affirmatively approved by those who  
            would be directly assessed for its high cost and those who  
            would be forced to live with its numerous adverse impacts.   
            Many of those who voted against the peripheral canal proposal  
            in 1982 are likely to question why avoiding voters this time  
            is somehow in the best interest of Californians.  At a  
            minimum, the issue should be presented to voters statewide for  
            their consideration.


          3)Opposing Arguments: This bill will cause unnecessary delays  
            and bureaucracy, jeopardizing the only viable solution  
            available to secure water supplies for 2/3 of the state while  
            improving the health of the Delta.  Current rains have  
            demonstrated that the existing outdated water distribution  
            infrastructure does not allow us to capture and transfer water  
            to storage in wet years.  Fundamentally, the state should not  
            ask voters to approve the construction of infrastructure  
            projects, particularly those that are not funded by taxpayers.  



          4)REGISTERED SUPPORT / OPPOSITION:









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          Support


          CA Save Our Streams Council


          California Sportfishing Protection Alliance


          California Water Impact Network (C-WIN)


          Clean Water Action


          Contra Costa County Board of Supervisors


          County of Sacramento


          Delta Counties Coalition


          Environmental Protection Information Center


          Fish Sniffer Magazine


          Food & Water Watch


          Foothill Conservancy










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          Friends of the River


          Klamath Riverkeeper
        

          Northern California Council of the International Federation of  
          Fly Fishers


          Planning and Conservation League


          Restore the Delta


          Sacramento River Preservation Trust


          San Joaquin Board of Supervisors




          Opposition


          Alameda County Zone 7 Water Agency
          American Council of Engineering Companies California


          Associated General Contractors of California


          Association of California Water Agencies


          Burbank Water and Power









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          California Alliance for Jobs


          California Building Industry Association


          California Business Properties Association


          California Chamber of Commerce


          California Contract Cities Association


          California Council for Environmental and Economic Balance


          California Hawaii State Conference of the NAACP


          California Municipal Utilities Association


          California State Building and Construction Trades Council


          Calleguas Municipal Water District


          Castaic Lake Water Agency


          Central City Association of Los Angeles


          Central Coast Water Authority









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          Cerritos Regional Chamber of Commerce


          Chamber of Commerce, Mountain View


          Chambers of Commerce Alliance of Ventura and Santa Barbara  
          Counties


          City of Glendale Water and Power
          City of Torrance 
          Coachella Valley Water District


          Crestline-Lake Arrowhead Water Agency


          Cucamonga Valley Water District


          Desert Water Agency


          East Orange County Water District


          Eastern Municipal Water District


          El Monte/South El Monte Chamber of Commerce


          El Toro Water District
          Elsinore Valley Municipal Water District


          Foothill Municipal Water District








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          Gateway Chambers Alliance


          Greater Riverside Chambers of Commerce


          Huntington Beach Chamber of Commerce


          Imperial County Building and Construction Trades Council


          Inland Action


          Inland Empire Economic Partnership


          Inland Empire Utilities Agency
          International Association of Heat and Frost Insulators and  
          Allied Workers Local Union 16


          International Brotherhood of Electrical Workers Local Union 11


          International Brotherhood of Electrical Workers Local Union 332


          International Brotherhood of Electrical Workers Local Union 441


          International Brotherhood of Electrical Workers Local Union 477


          International Brotherhood of Electrical Workers Local Union 551









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          International Brotherhood of Electrical Workers Local Union 6


          Irvine Ranch Water District


          Kern County Taxpayer Association


          Kern County Water Agency


          Kern, Inyo and Mono Building and Construction Trades Council


          La Verne Chamber of Commerce


          Las Virgenes Municipal Water District


          Long Beach Water Commission


          Los Angeles Area Chamber of Commerce
          Los Angeles Area Chamber of Commerce


          Los Angeles County Business Federation


          Los Angeles/Orange County Building and Construction Trades  
          Council


          Mesa Water District










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          Metropolitan Water District of Southern California


          Mojave Water Agency


          Moreno Valley Chamber of Commerce


          Municipal Water District of Orange County


          Orange County Business Council


          Oxnard Chamber of Commerce


          Rancho California Water District


          Rubidoux Community Services District


          San Bernardino Valley Municipal Water District


          San Diego County Building and Construction Trades Council


          San Francisco Building and Construction Trades Council


          San Francisco Chamber of Commerce


          San Gabriel Valley Economic Partnership










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          San Gabriel Valley Municipal Water District
          San Gorgonio Pass Water Agency


          San Jose Silicon Valley Chamber of Commerce


          San Jose/Silicon Valley NAACP


          San Luis & Delta-Mendota Water Authority


          Santa Clara Valley Water District
          Santa Clarita Valley Chamber of Commerce


          Santa Margarita Water District


          Sheet Metal, Air, Rail & Transportation Workers 105


          South Bay Labor Council


          Southern California Pipe Trades District Council 16


          Southern California Water Committee


          Southwest California Legislative Council


          Southwest Riverside County Association of Realtors


          State Water Contractors, Inc.








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          Temescal Valley Water District


          Three Valleys Municipal Water District


          Torrance Area Chamber of Commerce


          Tulare Kings Hispanic Chamber of Commerce


          United Chambers of Commerce of San Fernando Valley & Region
          United Water Conservation District
          Upper San Gabriel Valley Municipal Water District
          Valley Ag Water Coalition


          Valley Industry & Commerce Association


          Ventura County Taxpayers Association


          Walnut Valley Water District


          West Basin Municipal Water District
          Western Growers Association


          Western Municipal Water District


          Western Riverside Council of Governments










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          Westlands Water District


          Yorba Linda Water District




          Analysis Prepared by:Ryan Ojakian / W., P., & W. / (916)  
          319-2096