BILL ANALYSIS                                                                                                                                                                                                    





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2009-2010 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 12                     HEARING DATE: April 14, 2009   

          AUTHOR: Simitian                   URGENCY: No  
          VERSION: February 26, 2009         CONSULTANT: Dennis O'Connor  
          DUAL REFERRAL: Local Government    FISCAL: Yes  
          SUBJECT: Sacramento-San Joaquin River Delta, Clean Drinking  
          Water, Water Supply Security, and Environmental Improvement act  
          of 2009.  
          
          BACKGROUND AND EXISTING LAW

          In 1992, the Legislature passed and the Governor signed into  
          law, the Johnston-Baker-Andal-Boatwright Delta Protection Act of  
          1992.  The purpose of the Act was to protect regional, state,  
          and national interests in the long-term agricultural  
          productivity, economic vitality, and ecological health of Delta  
          resources, by coordinating and integrating activities by the  
          various agencies whose land use activities and decisions  
          cumulatively impact the delta.  To do so, it created the Delta  
          Protection Commission.  

          The Commission is a quasi-regulatory body with oversight  
          authority over local land use decisions in the Delta.  The  
          Commission consists of 23 members, representing a mix of local  
          elected officials and state agency representatives.  The  
          Commission's central task is the preparation and adoption of a  
          comprehensive long-term resource management plan for land uses  
          within the primary zone of the Delta.  Once the Commission  
          adopted that plan, each of the local governments within the  
          Delta was required to conform its own general plan to the  
          provisions of the Commission plan with the Commission approving  
          or rejecting the local government conforming plans.

          In December 1994, state and federal agencies, urban and  
          agricultural water users, and environmental advocates signed the  
          Bay Delta Accord.  Its three main goals were: develop water  
          quality standards to protect the estuary, coordinate operations  
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          of the state and federal water projects, and develop a long-term  
          solution for the Delta.  The signing of the Accord marked the  
          birth of the CalFed Bay-Delta Program.  

          To implement the CalFed program, in 2002 the Legislature passed  
          and the Governor signed SB 1653 (Costa).  This bill enacted the  
          California Bay-Delta Authority Act, which, among other things,  
          created the California Bay Delta Authority (CBDA).  The CBDA is  
          composed of representatives from six state agencies, six federal  
          agencies, seven public members, and one member of the Bay-Delta  
          Public Advisory Committee.  

          As documented in a 2005 Little Hoover Commission report, the  
          CBDA and CalFed program has not been as successful as originally  
          anticipated.  The Commission noted, "Frustration with CalFed is  
          warranted. Because of a faulty design, the CBDA cannot  
          effectively coordinate activities, push agencies to perform, or  
          provide rigorous oversight."

          During its 2005-2006 Regular Session, the Legislature passed and  
          the Governor signed AB1200 (Laird), SB 1574 (Kuehl), and AB  
          1803(Committee on Budget).  Together, these bills required an  
          assessment of the potential impacts on water supplies of  
          catastrophic failures in the Delta, identification and  
          evaluation of options to protect water supplies and the  
          ecosystem of the Delta, the development of a vision for a  
          sustainable Delta, and a strategic plan to achieve a sustainable  
          Sacramento-San Joaquin Delta.  Additionally, SB 1574 created a  
          Delta Vision Committee to develop the vision and strategic plan.  
           The Committee is composed of the Secretary of the Resources  
          Agency as chair, and the Secretaries of the Business,  
          Transportation and Housing Agency, Department of Food and  
          Agriculture, and the California Environmental Protection Agency,  
          and the President of the Public Utilities Commission.

          On September 28, 2006, the Governor issued an Executive Order  
          that, among other things, established a Blue Ribbon Task Force  
          and directed the Task Force to:
           Develop a vision for the sustainable management of the Delta, 
           Report to the to the Delta Vision Committee and Governor its  
            findings and recommendations on its vision for the Delta by  
            January 1, 2008, and 
           Develop a strategic plan to implement the Delta vision by  
            October 31, 2008.  

          The Executive Order further directed the Delta Vision Committee  
          to report to the Governor and the Legislature by December 31,  
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          2008 with recommendations for implementing the Delta Vision and  
          Strategic Plan.

          October 2008, the Blue Ribbon Task Force published its Delta  
          Vision Strategic Plan.  According to the plan, in order to  
          achieve a healthy Delta and a more reliable water system for  
          Californians, policy makers must:
           Legally acknowledge the co-equal goals of restoring the Delta  
            ecosystem and creating a more reliable water supply for  
            California.
           Recognize and enhance the unique cultural, recreational, and  
            agricultural values of the California Delta as an evolving  
            place, an action critical to achieving the co-equal goals.
           Restore the Delta ecosystem as the heart of a healthy estuary.
           Promote statewide water conservation, efficiency, and  
            sustainable use.
           Build facilities to improve the existing water conveyance  
            system and expand statewide storage, and operate both to  
            achieve the co-equal goals.
           Reduce risks to people, property, and state interests in the  
            Delta by effective emergency preparedness, appropriate land  
            uses, and strategic levee investments.
           Establish a new governance structure with the authority,  
            responsibility, accountability, science support, and secure  
            funding to achieve these goals.

          PROPOSED LAW
          This bill would enact the Sacramento-San Joaquin River Delta,  
          Clean Drinking Water, Water Supply Security, and Environmental  
          Improvement Act of 2009.  Specifically, the bill would:

          1.Make findings and declarations stating that the coequal goals  
            of restoring the Delta ecosystem and creating a more reliable  
            water supply in California are the foundation of water and  
            ecosystem policymaking.  Furthermore:
               All state agencies with significant responsibilities  
              relating to the Delta should implement their statutory  
              duties in a manner that advances these coequal goals.
               All water project operational agreements, contracts for  
              water use, water right permits, and financial agreements  
              that impact the Delta should reflect and promote these  
              coequal goals.

          1.Establish the Delta Ecosystem and Water Council (Council). 

               The Council's charge would be to advance the coequal goals  
              of restoring the Delta ecosystem and creating a more  
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              reliable water supply in California.

               The Council would have a seven-member board of directors,  
              serving staggered eight year terms.
                     Board members would be selected with diverse  
                 expertise and perspectives, and include policy and  
                 resource experts, strategic problem solvers, and  
                 individuals having success in resolving multi-interest  
                 conflicts.
                     Non-voting ex officio members of the board would  
                 include the Director of the Department of Water Resources  
                 and the Director of Fish and Game.
                     Non-voting ex officio members of the board could  
                 include, the Commissioner of the United States Bureau of  
                 Reclamation, the Director of the United States Fish and  
                 Wildlife Service, the Director of the National Marine  
                 Fisheries Service, and the Director of the United States  
                 Geological Service, if those federal officials wish to  
                 participate.
                     The Governor would appoint the chairperson, who  
                 would serve for not more than four years.
                     The chairperson would serve full time. Other members  
                 would serve one-third time.

               The Council would be required to prepare and adopt a plan  
              referred to as the California Delta Ecosystem and Water Plan  
              to advance the coequal goals of restoring the Delta  
              ecosystem and creating a more reliable water supply in  
              California. 
                     By August 1, 2010, the council would be required to  
                 prepare a schedule for preparing and adopting the plan.
                     The Council would be required to establish a goal  
                 for the adoption of the plan by December 1, 2010. 
                     If the plan is not completed by that date, the  
                 Council would be required to adopt an interim strategic  
                 plan. 
                     The plan would be required to include specified  
                 components, including species protection requirements,  
                 Delta water flow and water quality requirements,  
                 information relating to land use in the Delta, principles  
                 and procedures for adaptive management, and a detailed  
                 financing plan that identifies costs, benefits, and  
                 revenue sources.
                     The council would be required to review and revise  
                 the plan every five years. 

               The Council would have the exclusive authority to  
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              determine the consistency of any project proposed or  
              approved by a state agency or local government with the  
              plan.

               The Council would further be required, among other things,  
              to:
                     Assume responsibility for any conservation or  
                 habitat management plan developed for the Delta. 
                     Ensure that federal and state actions are consistent  
                 with the plan. 
                     Participate as a trustee agency pursuant the  
                 California Environmental Quality Act (CEQA).
                     Receive and allocate funds to advance policies and  
                 programs related to the Delta.
                     Address environmental justice concerns with regard  
                 to the implementation of the plan and regarding future  
                 Delta decision making.
                     Establish policies and procedures that ensure that  
                 the day-to-day operations of water export systems are  
                 consistent with the plan.

               The bill would authorize the Council to impose a  
              per-acre-foot fee on water diversions within the Delta  
              watershed and a fee on any water conveyed through or around  
              the Delta. 
                     The moneys generated by the imposition of the fee  
                 would be required to be deposited in the Delta Ecosystem  
                 and Water Fund, which would be established in the State  
                 Treasury. 
                     The moneys in the fund, upon appropriation by the  
                 Legislature to the Council, would be required to be  
                 expended by the Council for the exclusive purpose of  
                 carrying out the bill's provisions.

          1.Establish the California Delta Conservancy to implement the  
            ecosystem restoration elements of the plan. 

               The conservancy would consist of 11 voting members:
                     Five members, each of whom shall represent one of  
                 the Delta counties who would be selected from nominees  
                 advanced by the Delta Protection Commission.
                     Two public members with business or land trust  
                 experience.
                     The Secretary for Natural Resources and the Director  
                 of Finance.
                     Two additional public members, one appointed by the  
                 Senate Committee on Rules and one by the Speaker of the  
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                 Assembly, would serve as nonvoting ex officio members.

               The conservancy would, among other things:
                     Coordinate state ecosystem-related and urban  
                 waterfront projects in the Delta.
                     Acquire or manage land as needed to implement the  
                 plan.
                     Enter into contracts to buy and sell land and other  
                 property, and acquire property through the State Public  
                 Works Board. The conservancy shall be exempt from  
                 approval processes of the Department of General Services.
                     Assume responsibility for publicly or privately  
                 owned lands pursuant to voluntary agreements.

          1.Establish the Delta Science and Engineering Board to carry out  
            a Delta science and engineering program under the direction of  
            the Council.

               The Council would appoint between 12 and 20 individuals  
              with natural science, social science, engineering, and  
              policy expertise.
                     Members would serve a maximum of two five-year  
                 terms. 
                     Lead scientists appointed by the council shall have  
                 a rotating appointment of three years. 

               The Board would:
                     Research critical scientific issues of both the  
                 physical Delta and elsewhere in the state relevant to  
                 Delta management.
                     Organize, assess, and synthesize the best available  
                 science for policymakers and the council.
                     Review all major projects undertaken to advance the  
                 goals of Delta Vision.
                     Conduct independent science and engineering reviews  
                 of the work of government agencies or consultant work  
                 upon the request of the council, the conservancy, or  
                 other state agencies.

          1.The bill would also revise the Delta Protection Commission as  
            follows:

               Add an additional member to the Commission to include one  
              of the members of the Central Valley Flood Protection Board,  
              or that member's sole designee, raising the total membership  
              to 24.

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               Require the Commission to extend invitations to specified  
              federal agencies to participate in the activities of the  
              Commission in a nonvoting capacity. 

               Require the Commission to revise its resource management  
              plan to be consistent with the plan required to be adopted  
              by the Council. 

               The Commission would be required to review and certify the  
              general plans of those counties and cities for consistency  
              with its resource management plan and the plan adopted by  
              the Council.

          1.Require Delta counties, as defined, and the cities within  
            those counties, to revise their general plans and submit the  
            revised plans to the Commission. 

          2.Make numerous findings and declarations regarding the Delta,  
            its importance to California, the numerous threats to the  
            Delta, the consequences of Status Quo, and policies that  
            should be incorporated into state planning, programmatic, and  
            regulatory actions.

          3.Impose a state-mandated local program by authorizing the  
            Council to impose requirements on projects undertaken by local  
            governments, and by imposing requirements on Delta counties  
            and cities with regard to the preparation of their general  
            plans.

          ARGUMENTS IN SUPPORT
          According to the author, "Three years ago, after a series of  
          policy briefings, I reached the conclusion that California's  
          water delivery system, and the eco-system on which it depends,  
          were both in danger of imminent collapse.  The consequences for  
          the environment and the state's economy if we, the Legislature,  
          failed to act would be catastrophic."

          "I concluded at the time, and significant research since has  
          solidified my view, that any solution that would successfully  
          address the threats to the water supply and the collapsing  
          ecosystem would require reengineering the current system to  
          allow the Delta to function as it had evolved - as a brackish  
          estuary. Not, as it was, and is being operated, as a water  
          delivery system, half fresh and half salt."

          "To do this, would require an isolated conveyance facility - to  
          separate, isolate if you will, the freshwater necessary for  
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          California's cities and farms, from the estuary."

          "We needed legislation to accomplish two missions - fix the  
          environment, and secure the water supply. SB12 is that bill"

          ARGUMENTS IN OPPOSITION:  None Received

          COMMENTS 
          
           Based on Blue Ribbon Commission.   The author and his staff  
          worked closely with staff from the Delta Vision Blue Ribbon  
          Commission to ensure the current version of this bill matches,  
          as closely as possible, the recommendations in the Commission's  
          Delta Vision Strategic Plan.  That said, neither the Delta  
          Vision Blue Ribbon Commission, its individual members, nor staff  
          have taken a position on this bill.
           
          Work In Progress  .  This bill, like most of the other bills  
          addressing the Delta, is still evolving.  Consequently, there  
          are some critical blanks and technical issues within the bill.   
          Should this bill move foreword, the Committee may wish to ask  
          the author to commit to working with committee staff to resolve  
          those technical issues as the bill progresses.  

          Also, this bill, like most of the other bills addressing the  
          Delta, contains pages upon pages of Legislative findings and  
          declarations.  While findings and intent statements are  
          occasionally helpful in interpreting statutes, one must question  
          whether all such statements in this bill are necessary.  Should  
          this bill move foreword, the Committee may wish to ask the  
          author to commit to working with committee staff to pare down  
          the findings and intent statements to those truly necessary for  
          accurate interpretation of the statutes.  

           The Plan is the Key.   Everything in this bill tees off from the  
          California Delta Ecosystem and Water Plan - to the extent the  
          plan fails to adequately address one or more critical issue  
          affecting the Delta, the likelihood of successfully achieving  
          the coequal goals of restoring the Delta ecosystem and creating  
          a more reliable water supply is diminished.  
           
           Elephants in the Room  .  The Delta Vision efforts have provided  
          needed clarity to many of the critical problems facing the  
          Delta.  This bill, like a number of other bills, builds upon the  
          efforts and recommendations of the Blue Ribbon Task Force.   
          However, like the Task Force, it does not directly confront many  
          of the crucial questions regarding the Delta.  These include:
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          1.To PC, or not to PC:  That is the question.  Most, if not all,  
            Delta water exporters believe that a peripheral canal or some  
            other sort of isolated conveyance is essential to provide an  
            adequate and reliable supply of water from the Delta.  Most,  
            if not all, in Delta water users believe a peripheral canal  
            would be the demise of the Delta.  The environmental community  
            is of mixed minds on the topic.  And, the Blue Ribbon Task  
            Force largely punted, calling for a dual conveyance strategy  
            incorporating both a through-Delta and an isolated conveyance  
            strategy.  

            Disputes about whether DWR has existing authority to build a  
            PC aside, Delta water policy is not well served by being  
            vague.  The author of this bill, as well as the authors of the  
            other Delta bills, should consider either explicitly  
            prohibiting a PC, explicitly authorizing a PC, or explicitly  
            delineating the conditions under which such a decision would  
            be made, by whom, and using what criteria.

          2.Surface Storage.  Like the conveyance debate, many believe  
            that additional surface storage is essential to provide an  
            adequate and reliable supply of water.  Others argue that  
            while additional storage might be helpful, the data supporting  
            additional surface storage is not persuasive, especially if  
            public funds are involved.  For a variety of reasons, (some  
            good, some not so good), the CalFed program has yet to  
            complete engineering and financial feasibility studies for any  
            of the five surface storage projects identified in the CalFed  
            ROD.

            This is another area calling for plain talk.  The author of  
            this bill, as well as the authors of the other Delta bills,  
            should consider either explicitly prohibiting new surface  
            storage as a part of this effort, explicitly authorizing new  
            surface storage, or explicitly delineating the conditions  
            under which such a decision would be made, by whom, and using  
            what criteria.

          3.The Big One.  Scientific evidence continues to mount that the  
            Delta in its current form is not sustainable.  According to  
            DWR's February 2009 Delta Risk Management Study, under current  
            conditions, there is a greater than 50% chance that within the  
            next 25 years, 30 or more islands will fail because of an  
            earthquake or flood.  The study further estimates that  
            repairing those islands would cost $3.0 - $4.2 billion, taking  
            1120 - 1520 days to close all the breaches, and 1,240 - 1,660  
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            days to drain all the islands.  

            Any plan for the Delta that does not take this potential under  
            explicit consideration is fatally flawed.  The author of this  
            bill, as well as the authors of the other Delta bills, should  
            consider, at a minimum, requiring the Delta Plan to explicitly  
            consider the potential for catastrophic levee failure in the  
            Delta and further to develop appropriate response plans.

          4.Delta Protection Commission.  The Commission is a  
            quasi-regulatory body with oversight authority over local land  
            use decisions in the Delta.  This bill would significantly  
            change the role of the Commission.

            It is not at all clear that a 24 member board is the  
            appropriate structure for this expanded role.  The author of  
            this bill, as well as the authors of the other Delta bills,  
            should be encouraged to revisit the structure of the  
            Commission to determine if the proposed 24 member board with  
            its mix of local and state representatives is the most  
            appropriate for its new role.

          5.CalFed.  This bill would leave intact the California Bay Delta  
            Authority Act.  That act was enacted to oversee the  
            implementation of the CalFed Bay Delta Program.  Among other  
            things, that Act created the California Bay Delta Authority  
            (CBDA).  The CBDA has not met in nearly two years because of  
                                                                    inability to get a quorum.

            It is not at all clear whether this bill is intended to  
            completely replace CalFed, supplement CalFed, or operate  
            independently from CalFed.  Clarity would be helpful.   
            Moreover, the author of this bill, as well as the authors of  
            the other Delta bills, should be encouraged to consider  
            eliminating the CBDA.

          6.Fish & Game.  Restoring the ecosystem functions of the Delta  
            will require a well functioning, scientifically directed,  
            independent Department of Fish and Game.  There is widespread  
            concern that, for a variety of reasons, the Department does  
            not now meet that description, and may not for the foreseeable  
            future.  

            Reform of DFG is probably beyond the scope of this bill.  That  
            said, to not take steps to restore confidence in DFG is  
            probably a recipe for failure.

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          7.Existing Authorities.  In order to achieve a revitalized Delta  
            ecosystem and a reliable water supply for California, while  
            ensuring the Delta remains a unique and valued area, some  
            state and local agencies are going to have to be told "No!"   
            Indeed, one of the principle failures of the California Bay  
            Delta Authority was that it did not have the authority to  
            impose its decisions on others.  

            For the approach described in this bill to work, some existing  
            authorities of state and local governments (and perhaps the  
            federal government as well) are going to have to be eliminated  
            or otherwise made subservient to implementation of the Delta  
            Plan.  Many such agencies are likely to resist.  The earlier  
            the author engages local agencies, the Administration, and the  
            federal government in such discussions, the better.

           Related Bills:   Each of the following bills address one or more  
          aspect of problems the Delta.  
          
          Senate:
          SB 229 (Pavley)Institutes an interim governance structure for  
                       the Delta.
          SB 457 (Wolk)A compressive bill that builds on many, but not  
                       all, of the recommendations of the Blue Ribbon Task  
                       Force.
          SB 458 (Wolk)Establishes a Sacramento- San Joaquin Delta  
                       Conservancy.

          Assembly:
          AB 13 (Salas)Establishes a Sacramento-San Joaquin Delta  
                       Conservancy.
          AB 39 (Huffman)Intended to become a comprehensive bill on the  
                       Delta.

          SUGGESTED AMENDMENTS: None
          
          SUPPORT
          Natural Resources Defense Council (In Concept)

          OPPOSITION
          None Received






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