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 457                    HEARING DATE: April 14, 2009   

          AUTHOR: Wolk                       URGENCY: No  
          VERSION: April 13, 2009            CONSULTANT: Dennis O'Connor  
          DUAL REFERRAL: Local Government    FISCAL: Yes  
          SUBJECT: Sacramento-San Joaquin Delta.  
          
          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  
          of the state and federal water projects, and develop a long-term  
          solution for the delta.  The signing of the Accord marked the  
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          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 Assembly Bill 1200 (Laird), Senate Bill 1574  
          (Kuehl), and Assembly Bill 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,  
          2008 with recommendations for implementing the Delta Vision and  
          Strategic Plan.
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          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 

          1.Create Delta Stewardship Council in the Natural Resources  
            Agency

                 The Council would have responsibility for the  
               stewardship of the Sacramento-San Joaquin Delta and all its  
               natural resources.

                 The council would consist of 9 members:
                     Eight members would be appointed by the Governor,  
                 subject to Senate confirmation, serving staggered 5 year  
                 terms.  The 8 members are to include diverse expertise  
                 and perspectives, policy and resource experts, strategic  
                 problem solvers, and individuals having successfully  
                 resolved multi-interest conflicts.
                     One member would be the Chair of the Delta  
                 Protection Commission

                 The Council would be required to, among other things:
                     Develop and approve the Delta Stewardship Plan (see  
                 below)
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                     Determine appeals from the Delta Protection  
                 Commission regarding whether a project proposed by or  
                 approved by a state agency or local government that may  
                 impact the Delta is consistent with the plan.
                     Assume responsibility for any conservation or  
                 habitat management plan developed for the Delta by the  
                 state or federal government.
                     Establish a process to ensure federal and state  
                 consistency with the plan.
                     Review and determine consistency of the Bay Delta  
                 Conservation Plan or EIR for any significant Delta  
                 Conveyance facility with this Division(?)
                     Be designated a trustee agency pursuant to the  
                 California Environmental Quality Act (CEQA).
                     Determine the consistency of major water, road,  
                 railroad, utility, and levee infrastructure projects in  
                 the Delta with the plan, and communicate that  
                 determination to the responsible agencies.
                     Assess policies applied outside the Delta that are  
                 critical to meeting Delta Vision goals and convey the  
                 results of that assessment to the responsible agency.
                     Work with the Delta Science and Engineering Program  
                 and the Delta Science and Engineering Board on adopting  
                 sound principles of adaptive management.
                     Receive and allocate funds to advance policies and  
                 programs related to the Delta.
                     Include issues of environmental justice in the plan  
                 and in future Delta decision-making.
                     Adopt procedures for use of alternative approaches  
                 to dispute resolution, such as joint fact finding and  
                 arbitration to reduce reliance on litigation and the  
                 courts.
                     Have the power to sue to ensure compliance with the  
                 plan.
                     Establish policies and procedures that ensure that  
                 day-to-day operation of water export systems is  
                 consistent with the plan.

          1.Require the Council to develop and approve the Delta  
            Stewardship Plan as follows:

                 The purpose of the Plan would be to guide and shape  
               management of the Delta to ensure its revitalization and  
               create a statewide reliable water delivery system.
                     The plan would be intended to meet the primary goals  
                 of the Delta Vision.
                     The plan would build upon and integrate other plans,  
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                 including the delta Protection Commission Resource  
                 management Plan and the Central Valley Flood protection  
                 Plan, modifying and extending them as needed to meet  
                 (its) responsibilities.

                 The plan would be intended to:
                     Incorporate any species protection requirements that  
                 impact Delta resources.
                     Incorporate requirements for water flow and water  
                 quality in the Delta that achieve the coequal goals.
                     Define state land use interests in the Delta,  
                 especially those that impact the ecosystem, water supply  
                 reliability, and flood concerns. 
                     Provide principles and procedures for adaptive  
                 management.
                     Provide for the modeling, data collection,  
                 management, monitoring, analysis, and interpretation to  
                 support policy decision-making.
                     Ensure flexibility and resiliency in managing the  
                 Delta.
                     Incorporate the recommendations of the Delta Vision  
                 Strategic Plan.
                     Include an accurate up-to-date assessment of water  
                 supply availability.
                     Articulate a detailed financing plan that identifies  
                 costs, benefits, and revenue sources.
                     Serve as a foundational document for a programmatic  
                 environmental impact statement or environmental impact  
                 report, as well as any projects undertaken requiring  
                 permits pursuant to the California Environmental Quality  
                 Act (CEQA) or the federal National Environmental Policy  
                 Act (NEPA).

                 The plan would be developed as follows:
                     Start by assessing existing plans and planning  
                 efforts and use elements which are consistent with the  
                 goals of the Delta Vision.
                     Coordinate with stakeholders as well as state,  
                 federal, and local agencies.
                     Encourage the participation of local, state, and  
                 federal agencies to help to better integrate their  
                 responsibilities and capacities into the plan.

                 The plan would be required to recognize and address the  
               uncertainty involved in Delta decision-making and include  
               an adaptive management plan. The adaptive management plan  
               would be required to do all of the following:
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                     Synthesize existing knowledge about the Delta as a  
                 physical system.
                     State hypotheses about the effects of management  
                 actions recommended in the plan on the ecosystem, water  
                 supply, and other values.
                     Recommend to the council additional management  
                 actions expected to yield desired ecosystem or water  
                 supply outcomes or designed to generate useful knowledge  
                 about the Delta.
                     Design monitoring programs to systematically gather  
                 needed data.
                     Identify and put in place the processes by which the  
                 data will be synthesized, hypotheses evaluated, and new  
                 management actions recommended.
                     On the five-year cycles on which the plan is  
                 reviewed and updated, the results should be integrated  
                 into a report on the knowledge of the Delta, an  
                 assessment of the success of current policies and  
                 management, and the identification, assessment, and  
                 recommendation of possible changes in policies or  
                 management.

                 The council would be required to adopt the plan on or  
               before January 1, 2011.

                 Until the plan is adopted pursuant to this division, the  
               Delta Vision strategic plan would serve as the interim plan  
               for the Delta.

          1.Require the council by March 1, 2010, to appoint a Delta  
            Science and Engineering Board and create a Delta Science and  
            Engineering Program. 

                 Program would be a replacement for, and a successor to,  
               the CALFED Science Program, and that the Board would be a  
               replacement for the CALFED Independent Science Board.

                 The board would consist of between 12 and 20 individuals  
               with natural science, social science, engineering, and  
               policy expertise. Members could serve a maximum of two  
               five-year terms. Lead scientists appointed by the council  
               would have a rotating appointment of three years. Lead  
               scientists would be formally engaged by an agency other  
               than the state.

                 In implementing the program, the Board would, among  
               other things:
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                     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 the 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.Require the Delta Protection Commission to:

                 Revise all of its plans and policies to be consistent  
               with the Delta Stewardship Plan.

                 Review and certify all city and county general plans for  
               consistency with the resource management plan and the Delta  
               Stewardship Plan.

                 Exercise direct consistency determination authority over  
               development proposals in the primary zone.

                 Review, hold public hearings and receive testimony, and  
               provide recommendations to the council on all proposed  
               projects subject to approval by the council.

                 Develop a regional economic development plan.

          1.Create the Delta Stewardship Fund

                 The Commission would be required to deposit in the fund  
               any moneys received from federal, state, local, and private  
               sources for Delta stewardship. 

                 Moneys in the fund would be available, upon  
               appropriation, for regional economic development consistent  
               with the Delta Stewardship Plan.

          1.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.

          2.Impose a state-mandated local program by requiring all general  
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            plans of cities and counties within the Delta to be consistent  
            with the Delta Stewardship Plan.

          ARGUMENTS IN SUPPORT
          According to the Author, "SB 457, the Sacramento-San Joaquin  
          Delta Stewardship Act, establishes the California Delta  
          Stewardship Council to balance the tri-equal goals of the Delta  
          ecosystem, water supply reliability and the Delta as a place by:
           Developing a stewardship plan
           Determining consistency of any project that may impact the  
            Delta witht e stewardship plan
           Receiving and allocating funds for the Delta

          SB 247 puts the Delta community as an equal in policy and  
          funding decisions in the Delta by requiring the needs of fish  
          and water supply be balanced with local needs."

          ARGUMENTS IN OPPOSITION
          According to the Association of California Water Agencies  
          (ACWA), while they support a new model of governance for the  
          Delta, many of the elements in this bill are of concern.  In  
          particular, "ACWA is not convinced that a new overarching body  
          with broad authority over state and federal agencies is  
          necessary."

          COMMENTS 
          
           Work In Progress  .  This bill, like most of the other bills  
          addressing the Delta, is still evolving.  Consequently, there  
          are some inconsistencies and other 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.  

           Basic Structure.   While the language of the bill is occasionally  
          inconsistent, according to the Author's office, the basic  
          structure is intended to be as follows:
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          The Council: 
           Develops and approves the Delta Stewardship Plan.
           Hears appeals from the DPC regarding the consistency of major  
            water projects in the Delta with the plan.
           Review and determine consistency of the Bay Delta Conservation  
            Plan or EIR for any significant Delta Conveyance.
           Assume responsibility for any conservation or habitat  
            management plan developed for the Delta by the state or  
            federal government.
           Uses adaptive management to update the plan.

          The DPC: 
           Revises all of its plans and policies to be consistent with  
            the Delta Stewardship Plan. 
           Reviews and certifies all city and county general plans for  
            consistency with the resource management plan and the Delta  
            Stewardship Plan. 
           Determines the consistency of major water, road, railroad,  
            utility, and levee infrastructure projects in the Delta with  
            the plan. 

          The Plan: 
           Meets the primary goals of the Delta Vision. 
           Build upon and integrate other plans, including the delta  
            Protection Commission Resource management Plan and the Central  
            Valley Flood protection Plan, modifying and extending them as  
            needed to meet its responsibilities. 
           Incorporates any species protection requirements that impact  
            Delta resources. 
           Incorporates requirements for water flow and water quality in  
            the Delta that achieve the coequal goals. 
           Defines state land use interests in the Delta, especially  
            those that impact the ecosystem, water supply reliability, and  
            flood concerns. 
           Provides principles and procedures for adaptive management. 
           Incorporates the recommendations of the Delta Vision Strategic  
            Plan.
           Is updated every 5 years
           Includes, in the 1st update, a consideration of the water  
            rights actions taken by the SWRCB to achieve accurate  
            accounting of real water in the Delta.

           The Plan is the Key.   Everything in this bill tees off from the  
          Delta Stewardship Plan - to the extent the plan fails to  
          adequately address one or more critical issue affecting the  
          delta, the likelihood of successfully achieving a revitalized  
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          Delta ecosystem and a reliable water supply for California,  
          while ensuring the Delta remains is a unique and valued area, 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:

          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, 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, using what  
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            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  
            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 the current 23 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 current structure of the  
            Commission to determine if a 23 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.   
            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  
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            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.

          7.Existing Authorities.  In order to achieve a revitalized Delta  
            ecosystem and a reliable water supply for California, while  
            ensuring the Delta remains is 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  
            that the author engages local agencies, the Administration,  
            and the federal government in such discussions, the better.






















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           Related Bills:   Each of the following bills address one or more  
          aspect of problems the Delta.  
           
          Senate:
          SB 12 (Simitian)A compressive bill that largely mirrors the  
                       recommendations of the Blue Ribbon Task Force
          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)
          Planning and Conservation League

          OPPOSITION
          Association of California Water Agencies (Unless Amended)


















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