BILL ANALYSIS Ó SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW Senator Mark Leno, Chair 2015 - 2016 Regular Bill No: SB 831 Hearing Date: 08-31/2016 ----------------------------------------------------------------- |Author: |Committee on Budget and Fiscal Review | |----------+------------------------------------------------------| |Version: |August 23, 2016 As amended | ----------------------------------------------------------------- ---------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Catherine Freeman | |: | | ----------------------------------------------------------------- Subject: Monterey County Water Resources Agency: Lake Nacimiento and Lake San Antonio Summary: Appropriates $10 million General Fund for the Department of Water Resources to provide a grant to the Monterey County Water Resources Agency to construct a water conveyance between Lake Nacimiento and Lake San Antonio.. Background: The currently proposed Interlake Tunnel and Spillway Modification Project (Project) is a gravity flow water conveyance tunnel approximately 12,000 feet long connecting Lake Nacimiento and San Antonio reservoirs in San Luis Obispo and Monterey Counties, respectively. The Lake Nacimiento Reservoir fills three times faster than San Antonio resulting in unused storage in San Antonio when Nacimiento is at capacity and releasing flood spills. The tunnel connection provides the conveyance means to transfer water from Lake Nacimiento to Lake San Antonio before it is spilled in a flood release. Additionally, water can be transferred from Lake Nacimiento at appropriate times to maximize the net storage of the combined reservoirs. In addition to the Interlake Tunnel component, the proposed project includes consideration of spillway modifications to increase storage capacity in the San Antonio reservoir. Under existing law, the Monterey County Water Resources Agency (MCWRA) is authorized to award a design-build project for an Interlake Tunnel to connect Lake San Antonio with Lake SB 831 (Committee on Budget and Fiscal Review) Page 2 of 2 Nacimiento. The MCWRA is responsible for managing, protecting, and enhancing water supply and water quality, as well as providing flood protection, in the County of Monterey. The project has been under consideration since the late 1970s and was included in the 2013 Greater Monterey County Integrated Regional Water Management Plan. The MCWRA indicates that in 2014, a group of Salinas Valley growers revitalized the urgency for the Tunnel project due to heightened awareness from the multi-year drought. The MCWRA report indicates that constructing the Tunnel would add approximately 20,000 acre feet of net water storage. Increasing the capacity of the Lake San Antonio reservoir would also increase the storage capacity at that reservoir by 60,000 acre feet. This would provide additional storage for flood control and conservation releases. According to the MCWRA, the additional storage and controlled releases resulting from the project would benefit the watershed by reducing flood damage and flood safety concerns; increasing potential for groundwater recharge; improving water quality by reducing sediments and pesticide residues from flooded agricultural fields; reducing salinity from sea water intrusion; and improving instream flows benefitting biological habitat and wildlife. Reducing reservoir spills would also reduce the likelihood of White Bass entering the Salinas River and the loss of juvenile Steelhead to predation. Proposed Law: Appropriates $10 million General Fund for the Department of Water Resources to provide a grant to the Monterey County Water Resources Agency to construct a water conveyance between Lake Nacimiento and Lake San Antonio. Fiscal Effect: $10 million General Fund, one-time. Support: (None on file) Opposed: (None on file) Comments: According to proponents of the project, the total cost of the project is approximately $68 million. Given that the proposed $25 million would not cover the costs of the project, the local region intends to cover the remaining costs financed by local farmers and rate payers through a Proposition 218 process. SB 831 (Committee on Budget and Fiscal Review) Page 2 of 2 While the project may have merit, it is unclear what other state funding, including Integrated Regional Water Management or bond funds have been exhausted prior to expenditure of General Fund. -- END --