BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 74
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          ASSEMBLY THIRD READING
          AB 74 (Chesbro)
          As Amended  May 26, 2009
          Majority vote 

           WATER, PARKS & WILDLIFE         13-0                 
          APPROPRIATIONS      17-0                            
           
           ------------------------------------------------------------------- 
          |Ayes:|Huffman, Fuller,          |Ayes:|De Leon, Nielsen, Ammiano,  |
          |     |Anderson, Arambula, Tom   |     |Charles Calderon, Davis,    |
          |     |Berryhill, Blumenfield,   |     |Duvall, Fuentes, Hall,      |
          |     |Caballero, Fletcher,      |     |Harkey, Miller,             |
          |     |Krekorian, Bonnie         |     |John A. Perez, Price,       |
          |     |Lowenthal      ,          |     |Skinner, Solorio, Audra     |
          |     |John A. Perez, Salas,     |     |Strickland, Torlakson,      |
          |     |Yamada                    |     |Krekorian                   |
          |-----+--------------------------+-----+----------------------------|
          |     |                          |     |                            |
           ------------------------------------------------------------------- 
           SUMMARY  :  Authorizes two flood management projects in the  
          Sacramento River watershed.  Specifically,  this bill  :  

          1)Authorizes State funding for the Middle Creek Flood Damage  
            Reduction and Ecosystem Restoration Project in Lake County  
            pursuant to specified federal studies and legal authority.

             a)   Requires Lake County Watershed Protection District (Lake  
               District) to provide necessary local cooperation assurances  
               to the United States Army Corps of Engineers (Corps).

             b)   Requires the Lake District to work with the Corps to  
               implement the project.

             c)   Allows the Lake District and the Corps to modify project  
               as required by law.

             d)   Requires the Lake District to agree to indemnify and  
               hold the State harmless from liability arising out of this  
               project.

             e)   Clarifies that this bill does not affect the Lake  
               District's eligibility to receive State funding pursuant to  
               other legal authorizations.








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             f)   Withdraws State authorization for the previous flood  
               control facilities that this project will replace.

          2)Authorizes State funding for the Hamilton City Flood Damage  
            Reduction and Ecosystem Restoration Project in Glenn County  
            pursuant to specified federal studies and legal authority.

             a)   Requires Reclamation District 2140 (District 2140) to  
               provide the necessary local cooperation assurances to the  
               United States Army Corps of Engineers (Corps).

             b)   Requires District 2140 to work with the Corps to  
               implement the project.

             c)   Allows District 2140 and the Corps to modify the project  
               as required by state or federal law.

             d)   Requires District 2140 to agree to indemnify and hold  
               the State harmless from liability arising out of this  
               project.

             e)   Clarifies that this bill does not affect District 2140's  
               eligibility to receive State funding pursuant to other  
               legal authorizations.

          3)Specifies that no local agency reimbursement is required  
            because the local agency requested this legislative authority.

          4)Makes legislative findings, in the Water Code, related to  
            Central Valley flood protection.

           EXISTING LAW 

          1)Authorizes State funding for locally implemented flood control  
            projects throughout the state, under the flood subventions  
            program, and for State-managed federal flood control projects  
            in the Central Valley watershed.

          2)Requires DWR to specify the facilities included in the  
            federal-state "State Plan of Flood Control" and develop a more  
            comprehensive Central Valley Flood Protection Plan for the  
            entire Sacramento-San Joaquin River watershed.  









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          3)The federal Water Resources Development Act of 2007 (2007  
            WRDA) authorized the Middle Creek and Hamilton City flood  
            control projects for federal funding.  

           FISCAL EFFECT  :   The Assembly Appropriations Committee estimates  
          state costs at $7.5 million for the Middle Creek Project and $3  
          million for the Hamilton City Project.

           COMMENTS  :   This bill authorizes two separate flood management  
          projects in the Sacramento River watershed.  Each project has  
          flood and environmental benefits unique to its situation that  
          justify federal and state funding.  

           Common Characteristics  :  While these two projects differ in  
          benefits, they share some common characteristics:

              1)   Local Agency Leads  .  Both projects have local agencies  
               as the non-federal partner for the Army Corps of Engineers.  
                Each local agency is authorized to modify the project, in  
               conjunction with the Corps.  The State will provide only  
               funding for these projects and will receive an  
               indemnification from these local agencies for liability for  
               these projects.

              2)   No Local Agency Reimbursement  .  Because the local agency  
               for each project requested this authorization, as reflected  
               in the Committee bill file, the State will have no  
               liability for reimbursement of a state mandate.  While this  
               bill authorizes subvention funding for these projects,  
               actual funding depends on future appropriations to DWR for  
               flood subventions.

              3)   Broad Public Benefits  .  Both projects include  
               significant environmental benefits, which benefit the  
               public more generally and provided the necessary benefits  
               to justify Corps support and legal authorization in 2007  
               WRDA.  The flood protection benefits relatively smaller  
               economic assets, so these environmental benefits were  
               critical to federal funding.

           Middle Creek Flood Project (Lake County)  :This area of Lake  
          County was "reclaimed" in the first half of the 20th century by  
          local levee construction.  In the 1950's, the Corps added  
          levees, which resulted in the isolation of 1,600 acres of  








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          wetlands and floodplains from the largest tributaries to Clear  
          Lake.  These levees were included in the federal-state flood  
          control project for the Sacramento River watershed, now known as  
          "the State Plan of Flood Control."  As a result of levees and  
          other changes in the watershed, sediment flowing into Clear Lake  
          increased and water quality deteriorated, as the sediment  
          increased phosphorous.  This project will increase flood  
          protection for certain buildings and public roads.  More  
          significantly, the project restores the natural ecosystem and  
          improves Clear Lake water quality, due to restoration of  
          wetlands that will reduce the nutrient loading in water flows  
          and sediment.  As reflected in the Corps' analysis, these  
          environmental aspects will benefit the public at large,  
          justifying the expenditure of public money.  These public  
          benefits led to federal authorization in the 2007 WRDA

           Hamilton City Flood Project (Glenn County)  :  The small town of  
          Hamilton City and surrounding agricultural lands are marginally  
          protected from flooding by a degraded private levee built in  
          1904 called the "J" Levee.  Hamilton City has mounted flood  
          fights and evacuated six times in the last 20 years.   
          Neighboring agricultural lands suffer similarly.  Hamilton  
          City's "J" Levee is privately owned and maintained by  
          Reclamation District 2140, the non-federal sponsor.  This  
          project will build a new 6.8-mile setback levee that will  
          increase flood protection for Hamilton City and surrounding  
          lands, while creating 1,500 acres of riparian habitat on the  
          riverside of the new levee.  These dual flood protection and  
          ecosystem restoration benefits, together, generated sufficient  
          benefit, under the Corps' benefit-cost ratio analysis  
          guidelines, which now emphasize ecosystem benefits, to gain  
          federal support for funding the project, leading to federal  
          authorization in 2007 WRDA.  The State has funded development of  
          this project, but deferred its support for construction until  
          the local reclamation district agreed to be the non-federal  
          sponsor and, in effect, accept liability for the new levee.


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


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