BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 39
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          PROPOSED CONFERENCE REPORT NO.  1   -  September 9, 2009
          AB 39 (Huffman)
          As Amended  July 9, 2009
          Majority vote

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          |ASSEMBLY:  |46-28|(June 3, 2009) |SENATE: |      |(July 13, 2009) |
          |           |     |               |        |      |                |
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                                                       (vote not relevant)

           ASSEMBLY CONFERENCE VOTE  :   4-0     SENATE CONFERENCE VOTE  :4-0  
           
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          |Ayes:|Bass, Caballero, Huffman,  |Ayes:|Steinberg, Florez,       |
          |     |Solorio                    |     |Padilla, Pavley          |
          |     |                           |     |                         |
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          Original Committee Reference:    W., P. & W.  

           SUMMARY  :  Requires the Delta Stewardship Council (Council) to  
          develop a new comprehensive plan for the Delta by 2012.   
          Specifically,  the conference committee amendments  : 

          1)Require the Council to develop, adopt, and commence  
            implementation of the "Delta Plan" by January 1, 2011, with a  
            report to the Legislature by March 31, 2012.

             a)   Require Council to consider strategies and actions set  
               forth in the Delta Vision Blue Ribbon Task Force Strategic  
               Plan (Strategic Plan).

             b)   Allow Council to identify actions that state or local  
               agencies may take to implement the subgoals or strategies.

             c)   Require consultation and cooperation between the Council  
               and federal, state and local agencies in developing the  
               Delta Plan.

             d)   Require Council to review the Delta Plan every five  
               years, allowing the Council to request state agency  
               recommendations for revisions.

             e)   Require the Council to develop the Plan consistent with  
               federal statutes, including the Coastal Zone Management  








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               Act, Clean Water Act and the Reclamation Act.

          2)Require Delta Protection Commission (DPC) to develop a  
            proposal to protect, enhance, and sustain the unique cultural,  
            historical, recreational, agricultural, and economic values of  
            the Delta as an evolving place, for consideration by the  
            Council as part of Delta Plan, including proposals for:

             a)   Federal/state designation of the Delta as a place of  
               special significance.

             b)   Regional economic plan to increase investment in  
               agriculture, recreation, tourism and other resilient land  
               uses in the Delta, including administration of Delta  
               Investment Fund.

             c)   Expansion of state recreation areas in the Delta.

             d)   Market incentives and infrastructure to support Delta  
               agriculture.

          3)Require Delta Plan to further the coequal goals of Delta  
            ecosystem restoration and a reliable water supply.

             a)   Limit geographic scope of ecosystem restoration projects  
               to the Delta (defined separately as legal Delta, Suisun  
               Marsh and Yolo Bypass), except for ecosystem projects  
               outside the Delta that contribute to achievement of coequal  
               goals.

             b)   Require Delta Plan to promote specified characteristics  
               and include specified strategies for a healthy Delta  
               ecosystem.

          4)Require Delta Plan to promote a more reliable water supply to:

             a)   Assist in meeting the needs of reasonable and beneficial  
               uses of water.

             b)   Sustain the economic vitality of the state.

             c)   Improve water quality to protect human health and the  
               environment.

          5) Require Delta Plan to promote statewide water conservation,  








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            water use efficiency, and sustainable use of water, as well as  
            improvements to water conveyance/storage and operation of both  
            to achieve the coequal goals.

          6)Require Delta Plan to attempt to reduce risks to people,  
            property, and state interests in the Delta by promoting  
            effective emergency preparedness, appropriate land uses, and  
            strategic levee investments.

             a)   Allow Delta Plan to include actions outside the Delta  
               that reduce flood risks, and local plans of flood  
               protection.

             b)   Allow Council, in consultation with the Department of  
               Transportation, to address climate change effects on state  
               highways in the Delta in the Delta Plan.

             c)   Allow Council, in consultation with the California  
               Energy Commission, to address the needs of Delta energy  
               development, storage and distribution in the Delta Plan.

          7)Require Delta Plan to meet the following requirements:

             a)   Be based on best available scientific information and  
               advice from the Delta Independent Science Board.

             b)   Include quantified targets for achieving the objectives  
               of the Delta Plan.

             c)   Utilize monitoring and analysis to determine progress  
               toward targets.

             d)   Describe methods to measure progress.

             e)   Include adaptive management strategy for ecosystem  
               restoration and water management.

          8)Require DWR to prepare proposal to coordinate flood and water  
            supply operations of the State Water Project and Central  
            Valley Project, for Council consideration.

          9)Allow Council to incorporate other completed Delta-related  
            plans into Delta Plan.

          10)Condition enactment on enactment of AB 49, SB 12, SB 229 and  








                                                                  AB 39
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            SB 458.

           EXISTING LAW  requires the Secretary of the Natural Resources  
          Agency to develop a strategic plan for the Delta, and authorizes  
          various state agencies, including the California Bay-Delta  
          Authority, to implement Delta projects under the CALFED  
          Bay-Delta Program.

           AS PASSED BY THE ASSEMBLY  , this bill required a Delta Plan, but  
          had no further substance.

           The Senate amendments  stripped all substantive provisions,  
          transforming bill into legislative intent statement regarding  
          development of a Delta Plan.

           FISCAL EFFECT  :   The Assembly Appropriations Committee estimated  
          one-time, special fund costs of $500,000 to $1 million to create  
          this Delta Plan.

           COMMENTS  :  For several years, the Delta has suffered a crisis -  
          ecosystem, water supply, levee stability, water quality, policy,  
          program, and litigation.  In June 2004, a privately owned levee  
          failed and the State spent nearly $100 million to fix it and  
          save an island whose property value was far less.  In August  
          2005, the Department of Fish & Game (DFG) reported a trend  
          showing severe decline in the Delta fishery.  In 2006, the  
          Legislature reorganized Delta programs and funding under the  
          Resources Agency Secretary.  In 2007, a federal judge, acting  
          under the federal Endangered Species Act, declared illegal  
          certain federal biological opinions about near-extinct fish and  
          restricted water exports from the Delta, to the San Francisco  
          Bay Area, the San Joaquin Valley and Southern California.  The  
          Governor shortly thereafter called the Legislature into an  
          extraordinary session on water.  

           Delta Vision  :  Through this enduring Delta crisis, the  
          Legislature and the Governor initiated, in 2006, a process to  
          develop a new long-term vision for the Delta.  SB 1574 (Kuehl)  
          of 2006 required a cabinet committee to present recommendations  
          for a Delta vision.  The Governor created a Delta Vision  
          Blue-Ribbon Task Force to advise the Cabinet Committee.  The  
          Task Force produced an October 2008 Strategic Plan, which the  
          Cabinet Committee largely adopted and submitted the  
          recommendations to the Legislature on January 3, 2009.  This  
          year, the Legislature held numerous hearings on Delta Vision and  








                                                                  AB 39
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          a set of five bills, including this one.  In August, policy  
          committees in both houses held hearings on the topics in these  
          bills, and considered "pre-print" versions.  Conference  
          Committee substantially amended the pre-prints.

           Delta Plan  :  This bill will set a new course for the Delta, by  
          requiring the new Delta Stewardship Council to develop a new,  
          comprehensive Delta Plan.  This bill, however, comprises only  
          one part of a larger, new division in the Water Code, whose  
          other parts are enacted by SB 12 (Simitian), which creates the  
          legal foundation for developing the new Delta Plan.  A key  
          example is the definition of the "coequal goals" of ecosystem  
          restoration and a more reliable water supply, which the Delta  
          Plan will "further."

           Federal Government Participation  :In order to encourage federal  
          government participation under the State's leadership, AB 39  
          requires the Delta Plan to be developed consistent with certain  
          statutes that allow for certain state discretion over federal  
          activities.  These statutes include the Coastal Zone Management  
          Act (CZMA), the Reclamation Act of 1902 (which governs the  
          Bureau of Reclamation's Central Valley Project), and the Clean  
          Water Act.  If the Council decides to adopt the Delta Plan  
          pursuant to the CZMA, then the bill requires submission to the  
          Secretary of Commerce for approval, so the State may exercise  
          certain authority over federal agency actions.  It is widely  
          anticipated that California may need Congress to enact laws to  
          protect the Delta consistent with the State's plan - perhaps a  
          "Delta Zone Management Act."  This bill allows for that  
          eventuality, by providing for submission of the Delta Plan to  
          whatever federal official a subsequent federal statute  
          identifies.

           Conference Committee Amendments  :  The Conference Committee  
          amendments added substantive detail as to the nature of the  
          Delta Plan, focusing on balancing the two coequal goals of  
          ecosystem restoration and water supply reliability.  The  
          amendments to the pre-print versions of the bill narrowed the  
          focus of the ecosystem restoration to the Delta, and not its  
          entire watershed, and eliminated the authority of the Council to  
          direct other state agencies to contribute to the Delta Plan.

           Levees/Flood Protection  :  The bill requires the Delta Plan to  
          reduce risks to people, property and state interests in the  
          Delta with emergency preparedness, appropriate land uses and  








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          strategic levee investments.  The Delta Plan will include  
          recommendations for priorities for state investments in levees.   
          These recommendations, in combination with the Council's  
          authority to ensure that state agencies act consistently with  
          the Delta Plan (in SB 12), will ensure that spending by DWR and  
          the Central Valley Flood Protection Board (CVFPB) reflects these  
          priorities.  The Legislature generally does not appropriate  
          funding to specific Delta levee projects, and has not been  
          successful in imposing priorities on state levee spending in the  
          Delta.  Instead, the State Budget leaves the discretion to DWR  
          and the CVFPB to determine how to spend state money on both  
          levees in the State Plan of Flood Control and non-project  
          levees.  These priorities will affect both the Delta levee  
          subvention program (non-project levees) and the special projects  
          program (levees with a State interest).


           Analysis Prepared by  :    Alf W. Brandt / W., P. & W. / (916)  
          319-2096 


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