BILL ANALYSIS                                                                                                                                                                                                    �





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2011-2012 Regular Session                    |
          |                                                                 |
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          BILL NO: AB 1095                   HEARING DATE: July 3, 2012
          AUTHOR: Buchanan                   URGENCY: No
          VERSION: June 27, 2012             CONSULTANT: Dennis O'Connor
          DUAL REFERRAL: No                  FISCAL: Fiscal
          SUBJECT: Sacramento-San Joaquin Delta Reform Act of 2009: 
          Covered Actions.
          
          BACKGROUND AND EXISTING LAW
          The Sacramento-San Joaquin Delta Reform Act of 2009 (Act), among 
          other things:
           Established co-equal goals of providing a more reliable water 
            supply for California and protecting, restoring, and enhancing 
            the Delta ecosystem. 
           Created the Delta Stewardship Council (Council)
           Required the Council to develop and adopt a Delta Plan to 
            achieve the co-equal goals.
           Required all "covered actions" to be consistent with the Delta 
            Plan.

          The Act defined covered actions as a plan, program, or project, 
          as defined in the California Environmental Quality Act (CEQA), 
          that meets all of the following conditions:
           Will occur, in whole or in part, within the boundaries of the 
            Delta or Suisun Marsh.
           Will be carried out, approved, or funded by the state or a 
            local public agency.
           Is covered by one or more provisions of the Delta Plan.
           Will have a significant impact on achievement of one or both 
            of the co-equal goals or the implementation of 
            government-sponsored flood control programs to reduce risks to 
            people, property, and state interests in the Delta.

          The Act also defined a number of specific activities as not 
          being covered actions, including:
           A regulatory action of a state agency.
           Routine maintenance and operation of the State Water Project 
            or the federal Central Valley Project.
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           Regional transportation plans.
           Any plan, program, project, or activity within the secondary 
            zone of the Delta that the applicable metropolitan planning 
            organization has determined is consistent with the provisions 
            of SB 375 (Stats 2008, c. 728).
           Routine maintenance and operation of any facility located, in 
            whole or in part, in the Delta, that is owned or operated by a 
            local public agency.

          The Act further established that "Nothing in the application of 
          �the section of law regarding covered actions] shall be 
          interpreted to authorize the abrogation of any vested right 
          whether created by statute or by common law."




          PROPOSED LAW
          This bill would exclude from the definition of "covered actions" 
          the following:
          1.Any project, as defined by CEQA, that is both within an urban 
            area or urbanizing area, as described in the Final Staff Draft 
            Delta Plan, and in the secondary zone of the Delta, and is 
            within the boundaries of the community's adopted sphere of 
            influence or urban limit line and substantially conforms with 
            an adopted general plan, as of September 30, 2009.

            Any substantive expansion or amendment of the existing 
            boundaries of an urban or urbanizing area's sphere of 
            influence or general plan into the Delta would not be exempt 
            from the definition of "covered action"

          2.Any upgrade to an existing drinking water, stormwater, or 
            wastewater treatment, storage, or conveyance facility, within 
            the existing physical footprint of that facility, to meet a 
            state/federal water quality compliance order consistent with 
            state/federal standards and which complies with CEQA/NEPA 
            (National Environmental Policy Act).

          3.Any flood control project in the secondary zone of the Delta 
            that is consistent with the applicable provisions of the 
            Central Valley Flood Protection plan that would provide 
            protection to an urban or urbanizing area or existing public 
            infrastructure, and which has complied with CEQA, NEPA or 
            both.

          ARGUMENTS IN SUPPORT
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          According to the Delta Coalition, "The changes we seek would 
          provide an exclusion from the definition of 'covered action' for 
          a project or portion of a project that falls specifically within 
          'an urban or urbanizing area' with the Delta's secondary zone, 
          and is within the boundaries of the community's adopted sphere 
          of influence or urban limit line and substantially conforms to 
          an adopted general plan as of September 30, 2009.  Only those 
          very limited situations approved by local governments prior to 
          the enactment of the Delta Reform Act would be exempt."

          "We believe this change is needed to clarify that these projects 
          are consistent with the Delta Plan and do not need to re-apply 
          for a determination, thus avoiding any disruption for financing 
          of private developments in the final states.  Some of those 
          projects being built out are more than 20 years old.  Similar 
          operative provisions would apply to certain flood control 
          projects and levee projects already underway that have already 
          been deemed consistent with the Delta Plan."

          ARGUMENTS IN OPPOSITION
          According to a coalition of water agencies and business 
          interests, "AB 1095 is premature as no actions have been subject 
          to the consistency determination process to date. The author 
          seeks exemptions that are extremely broad and would seriously 
          undermine existing state policy designed to advance the co-equal 
          goals of water supply reliability and ecosystem restoration."

          "We ? have sought to protect the integrity of the 2009 Delta 
          Reform package. The historic Delta package wisely chose to set 
          an achievable and balanced set of state policies to restore this 
          vital estuary and improve the reliability of water supplies if 
          they are given a chance to succeed. For all of the above 
          reasons, we must oppose AB 1095 ?"

          COMMENTS 
           
          Who's In Charge?   Many local governments in and around the Delta 
          are concerned that the Delta Plan might inappropriately impinge 
          on their land use decision making authorities.  This begs the 
          question, "Who makes what land use decisions in the Delta?" 

          The legislature has said that the Delta Plan is to be the 
          comprehensive, long-term management plan for the Delta.  The 
          legislature further said that all "covered actions" must be 
          consistent with that plan, and provided a fairly narrow list of 
          exceptions - generally things that would not change the existing 
          footprint or profile of any project or facility.
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          This bill, among other things, says that general plans and 
          spheres of interest in place when the Legislature began its 
          final effort to pass the Delta Reform Act, should govern land 
          use decisions in the secondary zone of the Delta.  General plans 
          establish long term land use policies, and spheres of influence 
          establish who makes those long term land use policies.  

          If the Delta plan and local general plans are allowed to 
          independently establish long-term land use policies for the 
          Delta, conflicts are inevitable. 

           Who Determines What Is A Covered Action?   According to the Final 
          Staff Draft, the "State or local agency that carries out, 
          approves, or funds a project is the entity that determines 
          whether a proposed plan, program, or project is a covered 
          action."  "Should an agency determine that the proposed plan, 
          program, or project is not a covered action, the determination 
          is not subject to Council review but may be subject to judicial 
          review."

           Aren't Vested Rights Already Protected?   As noted above in the 
          Background, the statute clearly states that it does not 
          "authorize the abrogation of any vested right whether created by 
          statute or by common law."  Typically, development rights are 
          vested either at the time of approval of a development agreement 
          or the approval or conditional approval a vesting tentative map. 
           Some of the proponents of the bill appear to want the 
          assurances that accrue to vesting to occur earlier in the 
          development process, such as at the time of approval of a 
          general plan or general plan amendment.

           High Anxiety.   There was a problem last fall, when staff of the 
          Council sent comment letters to proponents of land use projects 
          undergoing CEQA review.  These letters suggested that there was 
          a potential for the project to be considered a covered action 
          that would then need to comply with the Delta Act.  This cause 
          much confusion and consternation among those contemplating land 
          use projects in and around the Delta.  Upon becoming aware that 
          staff were issuing such letters, the Council directed staff to 
          stop and took the necessary internal actions to ensure such 
          letters aren't issued in the future.  Nonetheless, there may be 
          some lingering apprehension about the Councils' intention 
          regarding covered actions and land use projects.

          Still, to the extent there is such apprehension, it derives more 
          from the fact that the Delta Plan has not yet been finalized, it 
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          is not yet clear precisely how the plan will be applied, and it 
          is not known whether the courts will agree with the Council's 
          interpretation of the statutes.

           Premature?   By most accounts, the Final Staff Draft of the Delta 
          Plan is a significant improvement over the previous draft, and 
          they aren't done yet.  The Council is considering the Final 
          Staff Draft.  If the Council determines it does not need to 
          recirculate the environmental documents, it is likely to adopt 
          the Final Delta Plan sometime in the October-December 2012 time 
          period.  If it is necessary to recirculate, then it would be an 
          additional 3 months or so before final adoption.  Then, once the 
          Council adopts the plan, the Council would need to promulgate 
          regulations to implement the plan.  That process can take up to 
          a year.  So, it will likely be another year and a half before we 
          know precisely how covered actions would be regulated under the 
          Delta Plan.


           Related Bills.   SB 1495 (Wolk) would exempt from the definition 
          of covered actions:
           Leases approved by a special district formed under the Harbors 
            and Navigation Code if specific conditions apply.
           Routine dredging activities that are necessary for maintenance 
            of facilities operated by special districts formed under the 
            Harbors and Navigation Code. 

          Should AB 1095 and SB 1495 both continue moving through the 
          legislative process, chaptering amendments would likely be 
          necessary.

          SUGGESTED AMENDMENTS: None

          SUPPORT
          A.G. Spanos Companies
          California Building Industry Association
          City of Stockton
          Contra Costa County
          Delta Coalition
          Grupe Corporation
          Sacramento County
          Sacramento Regional County Sanitation District
          San Joaquin County
          Stockton East Water District

          OPPOSITION
          Association of California Water Agencies
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          Burbank Water and Power
          California Chamber of Commerce
          Castaic Lake Water Agency
          Coachella Valley Water District
          Eastern Municipal Water District
          Friant Water Authority
          Glendale Water and Power
          Inland Empire Utilities Agency
          Irvine Ranch Water District
          Kern County Water Agency
          Las Virgenes Municipal Water District
          Metropolitan Water District of Southern California
          Mojave Water Agency
          Orange County Business Council 
          Santa Clara Valley Water District
          Southern California Water Committee
          Three Valleys Municipal Water District
          West Basin Municipal Water District
          Western Growers Association
          Western Municipal Water District
          Westlands Water District


























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