BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           229 (Pavley)
          
          Hearing Date:  05/11/2009           Amended: 04/13/2009
          Consultant:  Brendan McCarthy   Policy Vote: NR&W 7-3














































          SB 229 (Pavley)
          Page 2


          _________________________________________________________________ 
          ____
          BILL SUMMARY: SB 229 would revive the California Water  
          Commission, move it out of the Department of Water Resources,  
          and give it substantial new authority relating to the management  
          of the Delta. The bill would require the implementation of a  
          conservation plan for the Delta, to be funded with fee revenues.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12    Fund
           Water Commission staff costs      Unknown, potentially in the  
          millions               General / 
                                                                  Special  
          *

          Implementation of Bay Delta       Unknown, potentially in the  
          billions               Special ** 
            Conservation Plan

          Implementation of interim         Unknown                    
          Special **
            measures

          * New special fund. Partially offset by fee revenues.       
          ** New special fund. Fully offset by fee revenues.
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense file. 
          
          During its 2005-2006 Regular Session, the Legislature passed and  
          the Governor signed AB1200 (Laird), SB1574 (Kuehl), and AB1803  
          (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.  
           








          SB 229 (Pavley)
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          On September 28, 2006, the Governor issued an Executive Order  
          that, among other things, established a Blue Ribbon Task Force  
          and directed it to develop a vision for the sustainable  
          management of the Delta.
           
          In 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.

          The report of the Blue Ribbon Task force can be considered a  
          starting point for several bills under consideration by this  
          committee relating to the Delta.


          SB 229 revives the California Water Commission (currently  
          inactive) and moves it out of the Department of Water Resources.  
          Under the bill, the Water Commission would continue to approve  
          Department of Water Resources regulations. The Water Commission  
          would also recommend an individual to serve as a watermaster for  
          the Delta.

          In addition, the bill would grant the Water Commission  
          substantial new authority relating to the management of the  
          Delta. Specifically, the bill would grant authority to implement  
          a Bay-Delta Conservation Plan and interim measures to protect  
          the Delta. Currently, a conservation plan is being developed by  







          SB 229 (Pavley)
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          the Department of Water Resources, the Department of Fish and  
          Game, federal agencies, water exporters, and other interested  
          parties. It is not clear from the bill whether the plan  
          currently under development will be adopted and implemented by  
          the Water Commission or whether the Water Commission would be  
          free to develop and adopt its own version of a conservation  
          plan. The full cost to implement a Bay-Delta Conservation Plan  
          is unknown. However, in the planning process currently underway,  
          estimates of the construction and operation costs for the  
          alternatives under consideration range from $500 million to  
          almost $9 billion. Under the bill, costs to implement the  
          conservation plan would be born by those who divert water from  
          the Delta and others who would be granted regulatory protection  
          under the conservation plan, pursuant to the Natural Communities  
          Conservation Planning Act.

          In addition to the implementation of the long-term Bay-Delta  
          Conservation Plan, the bill requires the Water Commission to  
          implement interim measures. The scope of the interim measures is  
          unknown, but the bill directs that they address issues relating  
          to transportation, utilities, recreation, water supply, and  
          flood control. Interim measures would also be paid for with user  
          fees. 


          Staff notes that this bill is one of several bills relating to  
          the Delta that will be before this committee, including SB 12  
          (Simitian), SB 229 (Pavley), and SB 457 (Wolk).