BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        SB 831|
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                                UNFINISHED BUSINESS 


          Bill No:  SB 831
          Author:   Committee on Budget and Fiscal Review   
          Amended:  8/23/16  
          Vote:     21 

           PRIOR VOTES NOT RELEVANT

           SENATE BUDGET & FISCAL REVIEW COMMITTEE:  14-0, 8/31/16  
            (pursuant to Senate Rule 29.10)
           AYES:  Leno, Nielsen, Block, Glazer, Hancock, Mitchell,  
            Monning, Moorlach, Nguyen, Pan, Pavley, Roth, Stone, Wolk
           NO VOTE RECORDED:  Allen, Anderson, Beall

           ASSEMBLY FLOOR:  65-12, 8/30/16 - See last page for vote

           SUBJECT:   Monterey County Water Resources Agency:  Lake  
                     Nacimiento and Lake San Antonio


          SOURCE:    Author


          DIGEST:  This bill 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.


          Assembly Amendments delete the Senate version of the bill and  
          insert the current language.


          ANALYSIS:   Existing law establishes the Monterey County Water  
          Resources Agency (MCWRA) as a flood control and water agency  
          within the County of Monterey.  Existing law authorizes the  








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          MCWRA to award a design-build contract for the combined design  
          and construction of a project to connect Lake San Antonio,  
          located in the County of Monterey, and Lake Nacimiento, located  
          in the County of San Luis Obispo, with an underground tunnel or  
          pipeline for the purpose of maximizing water storage, supply,  
          and groundwater recharge.


          This bill appropriates $10 million General Fund for the  
          Department of Water Resources to provide a grant to the MCWRA 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 MCWRA is authorized to award a  
          design-build project for an Interlake Tunnel to connect Lake San  
          Antonio with Lake 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  








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          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.   


          FISCAL EFFECT:   Appropriation:    Yes         Fiscal  
          Com.:YesLocal:   No


          According to the Senate Budget and Fiscal Review Committee, 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.  


          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.




          SUPPORT:   (Verified  8/30/16)









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          None received


          OPPOSITION: (Verified  8/30/16)


          None received
           

           ASSEMBLY FLOOR:  65-12, 8/30/16
           AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins,  
            Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,  
            Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley, Cooper,  
            Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Gallagher,  
            Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez,  
            Gonzalez, Gordon, Gray, Roger Hernández, Holden, Irwin,  
            Jones-Sawyer, Levine, Linder, Lopez, Low, Maienschein, Mathis,  
            McCarty, Medina, Mullin, Nazarian, O'Donnell, Olsen, Quirk,  
            Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark  
            Stone, Thurmond, Waldron, Weber, Wilk, Williams, Wood, Rendon
           NOES: Baker, Chávez, Beth Gaines, Grove, Hadley, Harper, Kim,  
            Lackey, Mayes, Melendez, Obernolte, Wagner
           NO VOTE RECORDED: Jones, Patterson, Ting



          Prepared by:Catherine Freeman / B. & F.R. / (916) 651-4103
          8/31/16 16:11:03


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