BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2480


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          Date of Hearing:  May 11, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2480 (Bloom) - As Amended April 5, 2016


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          |Policy       |Water, Parks and Wildlife      |Vote:|9 - 6        |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill declares it is state policy to recognize and define  
          source watersheds as integral components of California's water  
          system, and eligible for financing on an equivalent basis with  
          other water infrastructure projects.  Specifically, this bill:


          1)Defines eligible maintenance and repair activities to include  
            the following forest ecosystem management activities:


               a)     Upland vegetation management to restore watershed  
                 productivity and resilience.








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               b)     Wet and dry meadow restoration.

               c)     Road removal and repair.

               d)     Stream channel restoration.

               e)     Conservation of private forests to preserve  
                 watershed integrity through permanent prevention of  
                 conversion and degradation, achieved through conservation  
                 easements.

               f)     Other projects with a demonstrated likelihood of  
                 increasing conditions for water and snow attraction,  
                 retention, and release under changing climate conditions.


          2)Requires the State Water Resources Control Board (SWRCB), in  
            consultation with the Department of Water Resources (DWR), to  
            develop investment plans that prioritize actions for  
            restoration and conservation to improve watershed function in  
            the watersheds that flow into the Shasta and Oroville  
            Reservoirs by December 31, 2017.


          FISCAL EFFECT:


          1)Potential cost pressures in the hundreds of millions of  
            dollars or more to finance watershed maintenance and repair on  
            an equivalent basis with other water projects.  


            Based on watershed restoration projects in Denver and New  
            York, DWR estimates a per acre restoration cost of between  
            $430 to $1,500.  The Klamath-Cascade Range spans more than 10  
            million acres.  If restoration costs are similar to projects  
            in Denver and New York, costs may be somewhere in the $4.3 to  
            $10 billion range, which the State Water Project would likely  








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            be able to pass on to its ratepayers (GF or special fund).


          2)Increased GF costs in the $800,000 to $1.2 million range for  
            SWRCB to develop investment plans in the watersheds that flow  
            into the Shasta and Oroville Reservoirs.


          3)Unknown increased ongoing SWRCB costs to provide guidance and  
            oversight on watershed funding applications.


          COMMENTS:


          1)Purpose.  According to the author, this bill requires the  
            state to recognize the role of source watersheds in the water  
            system infrastructure and set the foundation for a  
            comprehensive restoration plan with the potential of financing  
            similar to that provided for the built infrastructure.


          2)Background.  A watershed is an area of land that drains all  
            the streams and rainfall to a common outlet such as the  
            outflow of a reservoir, mouth of a bay, or any point along a  
            stream channel. The word watershed is sometimes used  
            interchangeably with drainage basin or catchment. Ridges and  
            hills that separate two watersheds are called the drainage  
            divide. The watershed consists of surface water, including  
            lakes, streams, reservoirs, and wetlands and all the  
            underlying groundwater. 


            Watersheds are impacted by numerous stressors, including  
            drought, climate change, forest conversion, invasive species,  
            fire risks and fire suppression, neglect, and inadequate  
            forest management.  According to the author, enhancing the  
            conditions of the watersheds increases water quality by  
            reducing sediment, lowering temperatures, and may also  








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            increase water quantity by as much as 5 to 20%.


          3)Klamath-Region Watershed.  The Klamath-Cascade watershed spans  
            10 million acres and serves as the headwaters of the  
            Sacramento River and the source of much of the water that  
            flows into the Delta.  The Klamath-Cascade watershed receives  
            75% of the state's precipitation.  According to the Pacific  
            Forest Trust, ensuring continued healthy watershed function  
            requires that 85% of the watershed remain intact as relatively  
            natural forest.  The Trust is working with private landowners  
            in the region to conserve forests, and asserts that watershed  
            protection through maintenance of healthy forests is the least  
            costly and most effective approach to guaranteeing flows in  
            the Sacramento River. 


            This bill directs SWRCB to develop plans to maintain  
            watersheds in the Klamath-Cascade Region that feed the Shasta  
            and Oroville reservoirs, which, in turn, supply the State  
            Water Project and Central Valley Project. 






          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081


















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