BILL ANALYSIS                                                                                                                                                                                                    



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          PROPOSED CONFERENCE REPORT NO.  1   - September 9, 2009 
          SB 12 (Simitian)
          As Amended  July 9, 2009
          Majority vote

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          |SENATE: |26-9 |(June 3, 2009)  |ASSEMBLY: |     |(July 13,      |
          |        |     |                |          |     |2009)          |
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                                                       (vote not relevant)

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

           SUMMARY  :  Establishes new legal framework and Delta Stewardship  
          Council (Council) for managing environmental and water resources  
          of the Sacramento-San Joaquin Delta (Delta).  Specifically,  the  
          conference committee amendments  : 

          1)Repeal the California Bay-Delta Authority Act.

          2)Establish new legal framework for Delta management which:

             a)   Sets the coequal goals of "providing a more reliable  
               water supply for California and protecting, restoring, and  
               enhancing the Delta ecosystem" as the foundation for State  
               decisions as to Delta management.

             b)   Sets certain objectives as inherent in the coequal  
               goals.

             c)   Sets state policy of reducing reliance on the Delta to  
               meet future water supply needs through a statewide strategy  
               of investing in improved regional supplies and  
               conservation.

             d)   Requires Council land-use decisions to be guided by  








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               certain findings, policies, and goals.

             e)   States certain "fundamental goals for managing land use  
               in the Delta."

             f)   Describes the longstanding constitutional principle of  
               reasonable use and the public trust doctrine as the  
               foundation of state water management policy.

             g)   Preserves specified statutes and legal doctrines as  
               unaffected by the new division in the Water Code, including  
               area-of-origin protections, water rights and public trust  
               doctrine.

             h)   Establishes the Council as the successor to the  
               California Bay-Delta Authority, and provides for the  
               Council to assume its responsibilities.

             i)   Defines certain terms, including the following key  
               terms:

               i)     "Coequal goals" means "the two goals of providing a  
                 more reliable water supply for California and protecting,  
                 restoring, and enhancing the Delta ecosystem," but those  
                 goals are achieved in a manner to protect the Delta as an  
                 evolving place.
               ii)    "Covered action" means a Delta related plan or  
                 program that meet certain conditions, including  
                 significant impact on achievement of the coequal goals.

               iii)   "Restoration" means achieving a close approximation  
                 of the Delta's ecosystem's natural potential, given past  
                 physical changes and future impact of climate change.

          3)Require the Council to take certain "early actions,"  
            including:

             a)   Appointment of Delta Independent Science Board

             b)   Development of strategy to engage federal government in  
               the Delta

             c)   Certain projects to start now, before the Delta Plan is  
               completed, including the "Two-Barrier" pilot project and  








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               specified ecosystem restoration projects

          4)Require the State Water Resources Control Board (SWRCB) to  
            develop new flow criteria for the Delta ecosystem necessary to  
            protect public trust resources.

             a)   Specify process and substance of development of flow  
               criteria.

             b)   Require SWRCB approval of change in State Water Project  
               (SWP) and Central Valley Project (CVP) point of diversion,  
               as specified, to include flow criteria.

             c)   Require SWRCB to enter agreement with SWP/CVP  
               contractors to pay costs.

             d)   Preserve SWRCB authority to review water rights and  
               impose terms and conditions on water right permits.

          5)Require SWRCB to submit prioritized schedule and costs for  
            instream flow studies for the Delta and other high priority  
            streams, with completion by certain dates.

          6)Create Delta Stewardship Council as an independent state  
            agency.

             a)   Establish 7-member Council, with four appointments by  
               the Governor, two by the Legislature, and the chair of the  
               Delta Protection Commission, with staggered terms.

             b)   Provide for Council salaries, hiring of Council staff  
               and headquarters.

             c)   Specify authority of Council, including:

               i)     Administrative authorities (e.g., contracting).

               ii)    Consultation with other agencies implementing Delta  
                 Plan.

               iii)   Performance measurements.

               iv)    Appeals of state/local agency determinations of  
                 consistency with Delta Plan, including specified  








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                 procedures for such appeals.

          7)Create Delta Watermaster as enforcement officer for SWRCB in  
            the Delta.

          8)Create Delta Independent Science Board (Science Board) and  
            Delta Science Program.

          9)Requires Council to consider including the Bay Delta  
            Conservation Plan (BDCP) under certain circumstances,  
            including:

             a)   Conditions BDCP incorporation into Delta Plan and state  
               funding for BDCP public benefits on compliance with the  
               Natural Community Conservation Planning (NCCP) Act and  
               California Environmental Quality Act (CEQA).

             b)   Requires certain analyses as part of CEQA compliance:

               i)     reasonable range of flow criteria, rates of  
                 diversion and other operational criteria required to  
                 satisfy NCCP Act.

               ii)    reasonable range of Delta conveyance alternatives,  
                 and capacity/design options for a lined canal, an unlined  
                 canal, and pipelines.

               iii)   potential effects of climate change on conveyance  
                 and habitat restoration activities.

               iv)    potential effects on migratory fish and aquatic  
                 resources.

               v)     potential effects on Sacramento River/San Joaquin  
                 River flood management.

               vi)    resilience/recovery of conveyance alternatives in  
                 event of natural disaster.

               vii)   potential effects of each conveyance alternative on  
                 Delta water quality.

             c)   Requires Department of Water Resources (DWR) to consult  
               with Council and Science Board during development of BDCP.








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             d)   Requires Council to have at least one public hearing and  
               incorporate BDCP into Delta Plan if Department of Fish &  
               Game approves BDCP as NCCP.

             e)   Requires annual report to Council on BDCP  
               implementation. 

             f)   Allows Council to make recommendations to BDCP  
               implementing agencies.

             g)   Requires BDCP to include a transparent, real-time  
               operational decisionmaking process in which fishery  
               agencies ensure applicable biological performance measures  
               are achieve in a timely manner.

             h)   Specifies that BDCP chapter does not amend or create any  
               additional legal obligation or cause of action under NCCP  
               Act or CEQA.

          10)Conforms certain laws to provide for creation of the Council.

          11)Makes legislative findings regarding the Delta and California  
            water.

          12)Conditions enactment on enactment of SB 229, SB 458, AB 39  
            and AB 49.

           EXISTING LAW  establishes the California Bay-Delta Authority to  
          oversee implementation of the CALFED Bay-Delta Program, and  
          authorizes more than 200 state and local agencies to govern the  
          Delta.

           AS PASSED BY THE SENATE  , the bill created a Delta Council but  
          provided little detail.

           The Assembly amendments  removed all the substance and stated  
          legislative intent to create a Delta council.

           FISCAL EFFECT  :   Unknown

           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  








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          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 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.

           Legal Framework for Delta  :Since statehood, California has asked  
          much of the Delta, perhaps too much.  Conflicting demands have  
          led to crisis and conflict - between and among agencies,  
          stakeholders and natural resources.  The Delta Vision process  
          spent more than 18 months, investigating the Delta, engaging  
          agencies and stakeholders, and thinking carefully about the  
          Delta's challenges and prospects for change.  The Task Force's  
          first recommendation was to change the fundamental legal  
          framework for the State to make decisions as to its activities  
          in the Delta - encapsulated in two "coequal goals" of "restoring  
          the Delta ecosystem and creating a more reliable water supply  
          for California."  This bill sets a new legal and governance  
          framework for the future of the Delta, explicitly stating for  
          the first time how the state should approach resolving the  
          inherent conflicts in managing Delta resources.  This framework  
          includes legislative findings, policies and definitions, which  








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          provides the foundation for new governance in the Delta.

           Early Actions  :  This bill identifies a series of actions that  
          existing and new agencies need to take as soon as possible -  
          before the Council completes its new Delta Plan.  Some actions  
          are administrative.  Others are substantive projects for the  
          Delta ecosystem and/or water supply reliability.  The early  
          actions part communicates the urgency of responding to the Delta  
          crisis, without waiting for the completion of another Delta  
          plan.

           Council Membership  :  The foundation of this bill's change is the  
          new Delta Stewardship Council, which this bill creates with  
          seven members.  Council members would be required to possess  
          diverse expertise and reflect a statewide perspective.  However,  
          this bill would also designate the chair of the Delta Protection  
          Commission as a voting member of the Council ex officio.  

          Delta Vision suggested the Council should have no slots set  
          aside for persons with specific characteristics.  Others suggest  
          that there must be specific slots for persons with specific  
          characteristics, such as, representing Delta interests,  
          environmental interests, exporter interest, etc.  This bill  
          appears to be a hybrid of the two approaches, with membership  
          appointed by the Governor, Senate Rules Committee, Assembly  
          Speaker and the DPC

          Delta Vision suggested the Council should all be appointed by  
          the Governor, subject to Senate confirmation, with no ex officio  
          members.  That approach would rely solely on the Senate  
          confirmation process to ensure the Governor's appointments  
          fairly balanced state and local interests.  This bill provides  
          the Senate and Assembly an additional method to ensure balance,  
          at least from the Senate and Assembly's perspectives, by  
          allowing each to appoint a member.

           Delta Water Master  :This bill includes a provision that requires  
          SWRCB to appoint a Delta Watermaster.  This version, however, is  
          much narrower than the proposal in the August pre-print version,  
          which had broader authority.  The Watermaster in this bill acts  
          by delegation of authority from the SWRCB.  It is the  
          enforcement officer for the board, with specified delegated  
          authorities.  This version also narrows its geographic  
          jurisdiction to the Delta.








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           Science Board/Program  :This bill establishes a Science Board as  
          well as a science program under the leadership of a Lead  
          Scientist.  This language was developed in cooperation with  
          Professor Jeff Mount, former chair of the CALFED Independent  
          Science Board.

           Bay Delta Conservation Plan  :This bill conditions State funding  
          and incorporation of BDCP into the larger Delta Plan on its  
          approval as a Natural Community Conservation Plan by DFG and  
          completion of robust investigation and analysis pursuant to  
          CEQA.  While some agencies have asserted that BDCP would be an  
          NCCP, the December 2006 planning agreement specifically provided  
          that the signatories were not committed to achieving the higher  
          standard for an NCCP under state Endangered Species Act.  This  
          bill sets the higher NCCP standard ("the gold standard") as the  
          threshold for state funding of the public benefits of BDCP  
          activities, which is a significant step forward, while relying  
          on existing law.  The specified issues that will be analyzed  
          under CEQA also add credibility to the outcome of BDCP, but also  
          rely on the context of existing CEQA law.


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


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