BILL ANALYSIS Ó AB 1713 Page 1 Date of Hearing: April 27, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1713 (Eggman) - As Introduced January 26, 2016 ----------------------------------------------------------------- |Policy |Water, Parks and Wildlife |Vote:|8 - 4 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill prohibits the construction of a peripheral canal 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) AB 1713 Page 2 pumping facilities in the 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 that includes the total cost of the project and expected impacts on taxpayers, water ratepayers, and the General Fund. 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. FISCAL EFFECT: One-time General Fund costs of around $220,000 to include the text and analysis of the measure and arguments for and against the measure in the statewide voter information guide. COMMENTS: 1)Purpose. According to the author, 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. This bill allows voters to weigh in on the proposal. 2)Background. 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 AB 1713 Page 3 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. 3)Peripheral Canal. 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. 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, however, enough signatures were gathered to qualify the "Peripheral Canal" for a referendum vote of the people. In June 1982, Proposition 9, the "Peripheral Canal" was repealed by a margin of three to two. 4)Cal Fed, Delta Vision and BDCP. In 1994, two years after the end of a drought, state and federal agencies joined together to coordinate activities in the Delta. This 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. In the final Record of Decision (ROD) 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. Following a 2005 independent review critical of many aspects AB 1713 Page 4 of CALFED, former Governor Arnold Schwarzenegger created a new effort by Executive Order called "Delta Vision." Delta Vision identified seven goals, which included building facilities to improve the existing water conveyance systems and expand statewide storage. In 2006, CALFED parties signed a Memorandum of Agreement (MOA) with state and federal export contractors. Part of that MOA initiated the Bay Delta Conservation Plan (BDCP). BDCP was intended to be a conservation plan for the Delta and its upstream basins with the express mission of providing the permits necessary to comply with the California Endangered Species Act (CESA) and the Federal Endangered Species Act (ESA) through a state Natural Communities Conservation Plan (NCCP) and a federal Habitat Conservation Plan (HCP). In 2009, SB7X set environmental standards for BDCP beyond those required under the California Environmental Quality Act (CEQA) with specific analysis required for numerous conveyance alternatives. Importantly, SB7X required BDCP to be approved as a NCCP in order to be eligible for public funding. 5)WaterFix. In 2015, federal agencies determined that BDCP likely would not meet the requirements of 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 of Water Resources (DWR) splitting BDCP into WaterFix, the Delta conveyance piece of BDCP, and EcoRestor the ecological restoration piece of BDCP. 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 and public funds. AB 1713 Page 5 6)Support and Opposition. This bill is supported by environmental groups, Delta counties and other Delta interests who argue that the permitting process for a major infrastructure project should be transparent and 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. This bill is opposed by Delta exporters, central valley and Southern California counties, and numerous unions and chambers of commerce. Opponents argue that 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. Opponents are fundamentally opposed to asking voters to approve the construction of infrastructure projects, particularly those that are not funded by taxpayers. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081