BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1469 (Simitian)
          
          Hearing Date:  05/03/2010           Amended: 04/14/2010
          Consultant:  Brendan McCarthy   Policy Vote: NR&W 6-3














































          SB 1469 (Simitian), Page 2


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          BILL SUMMARY: SB 1469 requires the State Water Resources Control  
          Board to identify all parties that benefit from the waters  
          originating in the Sacramento-San Joaquin River Delta watershed,  
          whose activities impact the Delta. The bill also requires the  
          State Board to develop a process for determining how to  
          attribute responsibility for impacts to the Delta environment  
          amongst those parties.  

          The bill requires the Department of Water Resources to include  
          additional, quantitative information about the state's future  
          water infrastructure needs and environmental mitigation  
          responsibilities in the California Water Plan.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           
          Water Board investigations        $195        $195      Special  
          *
             and planning

          Water Plan development Likely over $100 per year        General
          * Water Rights Fund.
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          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          Under current law, the State Water Resources Control Board  
          (Water Board) is responsible for administering and enforcing the  
          state's water rights system and enforcing state and federal  
          water quality laws and regulations.

          Under current law, the Department of Water Resources is required  
          to develop and update the California Water Plan every five  
          years. The California Water Plan is designed to be the state's  
          master plan for developing and maintaining water infrastructure  
          over the long-term.

          In November 2009, in the 7th Extraordinary Session, the  
          Legislature passed a package of bills relating to the management  
          of the Delta. These bills addressed governance issues in the  







          SB 1469 (Simitian), Page 2


          Delta, water conservation, groundwater management, and a general  
          obligation bond measure to support water-related projects  
          throughout the state. A key issue that was debated throughout  
          the process, but ultimately left out of the Delta package, was  
          the inclusion of a long-term funding mechanism for the state's  
          Delta and water-related activities.

          This bill requires the Water Board to identify all parties that  
          benefit from waters originating in the Delta watershed, whose  
          activities impact the environment of the Delta. The Water Board  
          is also required to develop a process to determine the degree of  
          responsibility for environmental impacts to the Delta  
          attributable to those parties. These activities must be  
          completed by January 1, 2012.

          The Water Board estimates that it will need three positions to  
          perform these investigations and develop, but not implement, the  
          required process to attribute responsibility.

          This bill requires the Department to include additional  
          information in the next update of the California Water Plan, due  
          on December 31, 2013, and all subsequent updates. The Department  
          is required to identify water infrastructure needs in the state  
          over the next 30 years, estimate the environmental mitigation  
          and restoration projects associated with those infrastructure  
          needs, and propose a policy for attributing responsibility for  
          the costs of infrastructure and environmental mitigation and  
          restoration to beneficiaries of the state's water system.

          The cost to include additional information and analysis in the  
          California Water Plan is unknown. However, given the complexity  
          and controversy likely to surround the issues that would be  
          included, the Department is likely to need at least one full  
          time position to undertake these analyses.