BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1713


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          Date of Hearing:  April 27, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


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


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          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)  








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            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  








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            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  








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            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. 









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          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