BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2000
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          Date of Hearing:   April 24, 2012

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                 Jared Huffman, Chair
                     AB 2000 (Huber) - As Amended:  April 16, 2012
          
          SUBJECT  :   Bay-Delta governance and flood control

           SUMMARY  :   Adds requirements to the Bay Delta Conservation Plan 
          process (BDCP), changes Delta Stewardship Council (DSC) 
          membership, and specifies remaining bond money for flood control 
          projects shall only be used by the Department of Water Resources 
          (DWR) for levee improvements.  Specifically,  this bill  : 

          1)Requires DWR to withdraw from its existing amended Memorandum 
            of Agreement (MOA) with the export water agencies funding BDCP 
            planning and the U.S. Department of Interior, Bureau of 
            Reclamation (Reclamation).

          2)Allows DWR to enter into a new MOA only if the BDCP does all of 
            the following:
             a)   Allows Contra Costa, Sacramento, San Joaquin, Solano and 
               Yolo Counties (Delta Counties) to participate in the making 
               of BDCP decisions including those regarding additional 
               conveyance alternatives, levee restoration, agriculture, 
               recreation, and habitat conservation;
             b)   Evaluates non-diversion alternatives in the environmental 
               impact report prepared pursuant to the California 
               Environmental Quality Act (CEQA) and National Environmental 
               Policy Act (NEPA).
             c)   Establishes technical working groups to address issues in 
               each of the Delta Counties;
             d)   Provides funding to the Delta Counties to study potential 
               BDCP impacts and alternatives;
             e)   Collaborates to integrate local habitat conservations 
               plan and natural community conservation plan efforts; and,
             f)   Coordinates with the Delta Counties to independently 
               review BDCP science. 

          3)Appropriates, to DWR, remaining flood control improvement funds 
            from the Disaster Preparedness and Flood Prevention Bond Act of 
            2006 (Proposition 1E) and the Safe Drinking Water, Water 
            Quality and Supply, Flood Control, River and Coastal Protection 
            Bond Act  of 2006 (Prop. 84) and restricts those monies to 
            levee improvements. 








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          4)Changes the membership of the DSC by:
             a)   Terming out two of the four gubernatorial appointees on 
               January 1, 2013 instead of February 1, 2014; and,
             b)   Replacing those members with the Delta Protection 
               Commission (DPC) Vice-Chair and another member chosen from 
               within the DPC by its members.

           EXISTING LAW  :

          1)Allows DWR to cooperate and contract with any agency of the 
            state or the United States in order to carry out its powers and 
            purposes.



          2)Makes $3 billion available to DWR, upon appropriation, from 
            Prop. 1E for:
             a)   Evaluation, repair, rehabilitation, reconstruction or 
               replacement of levees, weirs, bypasses, and facilities of 
               the State Plan of Flood Control;
             b)   Improving or adding facilities to the State Plan of Flood 
               Control to increase urban flood protection; and,
             c)   Reducing the risk of Delta levee failure

          1)Makes $275 million available to DWR, upon appropriation, from 
            (Prop. 84) for flood control projects in the Sacramento-San 
            Joaquin Delta (Delta) to increase DWR's ability to respond to 
            levee breaches and to reduce levee failures, including 
            acquisition, preservation, protection and restoration of Delta 
            lands.

          2)Establishes the DSC as an independent seven-member body 
            comprised of four members appointed by the governor, two 
            members appointed by the Legislature, and the Chair of the DPC.

          3)Requires the DSC, by January 1, 2012, to draft, adopt and 
            implement a long-term management plan for the Delta (Delta 
            Plan) that meets the coequal goals of improving California's 
            water supply reliability and protecting, restoring, and 
            enhancing the Delta ecosystem.  Requires that the coequal goals 
            are achieved in a manner that protects and enhances the unique 
            cultural, recreational, natural resource, and agricultural 
            values of the Delta as an evolving place. 

           FISCAL EFFECT  :   Unknown








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          COMMENTS  :   For almost half a century the debate has raged about 
          whether export water supplies could be improved by building a new 
          conveyance facility that would extend from the Sacramento River 
          in the northern Delta to the southern Delta where the State Water 
          Project (SWP) pumping plant operated by DWR and the federal 
          Central Valley Project (CVP) pumping plant operated by 
          Reclamation (collective "Export Projects") are both located in 
          close proximity to one another.  More recently, the conversation 
          has included discussion of whether an alternative conveyance, 
          either across or under the Delta, would reduce the Export 
          Projects' current through-Delta impacts on fish and wildlife.  

          BDCP
          In 2006, the 18-agency state and federal planning process for the 
          Delta known as 
          "CALFED" identified a significant funding shortfall that 
          threatened to interrupt program implementation and put 
          agreed-upon CALFED "regulatory commitments" with state and 
          federal export contractors at risk.  Thereafter, on July 28, 
          2006, a funding Memorandum of Agreement (MOA) was reached between 
          California Bay-Delta Authority (the state agency coordinating 
          CALFED), state and federal agencies implementing the program, and 
          export water agencies who had benefitted from the "regulatory 
          commitments."  That MOA obligated the export water contractors to 
          voluntarily contribute funding to CALFED while also launching a 
          new effort: the BDCP.  The BDCP was described as "a conservation 
          plan for the Delta and its upstream basins" with the express 
          mission of obtaining for SWP/CVP Delta operations the permits 
          necessary to comply with the California Endangered Species Act 
          and the Federal Endangered Species Act (FESA) through a state 
          Natural Community Conservation Plan (NCCP) and a federal Habitat 
          Conservation Plan (HCP).  This made the BDCP distinct from CALFED 
          which had provided only a programmatic framework and no 
          endangered species act coverage for the state and federal water 
          projects.

          Delta Stewardship Council and 2009 Historic Delta Legislation
          In 2009, when California faced a third consecutive dry year, 
          former Governor Schwarzenegger called an Extraordinary Session of 
          the Legislature to address water issues that were still pending 
          at the close of the regular session.  In the five-bill package 
          that was signed into law following  those negotiations, SB 1 
          (Simitian, Chapter 5, Statutes of the 7th Extraordinary Session 
          2009-2010), addressed Delta governance and set co-equal goals for 
          the Delta in statute.  SB 1 X7 also restructured the DPC to be a 
          more locally-representative body, and created the DSC as the 







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          governing body mandated to adopt the Delta Plan.  Among its 
          provisions, SB 1 X7 established a policy of reduced reliance on 
          the Delta in meeting California's future water supply needs and 
          imposes specific detailed requirements on the BDCP.  Among them, 
          it mandates that BDCP must be approved by DFG as an NCCP in order 
          to be incorporated in the Delta Plan and eligible for public 
          funding; it must include a reasonable range of flow criteria, 
          rates of diversion, and other operational criteria; it must 
          analyze a "reasonable range of Delta conveyance alternatives 
          including through-Delta, dual conveyance, and including further 
          capacity and design options of a lined canal, an unlined canal, 
          and pipelines"; and assess the "potential effects of each Delta 
          conveyance alternative on water quality."  For any eventual 
          project, SB 1 X7 requires that "BDCP shall include a transparent, 
          real-time operational decisionmaking process in which �USFWS, 
          NMFS and DFG] ensure that applicable biological performance 
          measures are achieved in a timely manner with respect to water 
          system operations."  Finally, SB 1 X7 establishes that any 
          determination by DFG that the BDCP meets both the NCCPA and the 
          requirements of SB 1 X7 can be appealed to the Council.

          Current Status
          Between February 29, 2012 and March 2, 2012, the BDCP made serial 
          releases of draft documents that, in total, comprised most of the 
          elements of what was termed by the California Natural Resources 
          Agency as the BDCP Administrative Draft.  The Administrative 
          Draft effects analysis focused on new conveyance in the Delta 
          sized at the maximum combined pumping capacity of the SWP and 
          CVP, 15,000 cubic feet per second, along with habitat restoration 
          and "other stressors" measures.  By its own analysis the 
          "conservation plan" would increase water exports above current 
          levels and could be worse for some at-risk native fish species 
          than current biological opinions designed to prevent jeopardy.  
          However, the analysis assumes that over time conditions would 
          improve for species due to habitat actions.  To date the draft 
          BDCP plan has assumed that new conveyance would be paid for in 
          the same manner as other units of the State Water Resources 
          Development System; that is the cost of the facility would be 
          reimbursed through contracts for water and power.  On the other 
          hand, so far the plan has assumed that the majority of the 
          habitat restoration costs will fall on the public.
          
           Supporting Arguments  :   The author states this bill is needed to 
          "ensure the Delta counties are fully able to participate in 
          addressing the problems that currently face the �Delta] via the 
          BDCP process" and that a reevaluation of the current BDCP 







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          timeline and approach is needed.  The author states that each 
          county needs to be able to evaluate the impacts of the BDCP 
          proposals and potential alternatives and that, with the exception 
          of Yolo County, none of them have been provided the resources to 
          do so.  The author also advocates that "while the BDCP garners 
          the bulk of the attention, spending already allocated bond 
          funding on levee repair projects is an important action that will 
          benefit both the Delta Counties and the BDCP."  Supporters also 
          state that the BDCP is conducting business on an aggressive 
          timeline that "does not allow for reasoned and appropriate 
          involvement by the Delta counties and in-Delta interests and 
          stakeholders."

           Opposing Arguments  :  Opponents state that this bill "would 
          disrupt the �BDCP] process and delay it for years, if not 
          indefinitely, and threatens a process adopted in the 2009 Delta 
          Reform Act that created a path towards new Delta conveyance and 
          ecosystem recovery."  Opponents also question the legality of 
          requiring "DWR to abandon the existing �MOA] funding agreement 
          during the final months of the planning process."  With regard to 
          the appropriation of levee bond funds in this bill, opponents 
          recommend that those investments should wait until the DSC is 
          given the opportunity to develop a strategic risk reduction 
          investment plan that identifies levee improvements with the 
          greatest public benefit, ensures economic and ecological 
          sustainability and which contributes to the achievement of the 
          coequal goals.  Finally, in addressing proposed changes to the 
          DSC composition, opponents state that the current structure was 
          "designed to fairly balance diverse expertise and a statewide 
          perspective" and that this bill "will disrupt this critical 
          balance."

          While in-Delta interest may have legitimate concerns with regard 
          to the breakneck pace of BDCP and their difficulty in engaging in 
          any meaningful fashion in project development or discussions, 
          this bill's proposed elimination of agreements and shifting of 
          decisionmaking is troubling.  Those concerns are compounded by 
          the elimination of two gubernatorial representatives from the DSC 
          and replacing those seats with two more members of the Delta 
          Protection Commission, which would effectively give the Delta 
          Protection Commission three of the Council's seven seats.  The 
          DSC was structured to be independent and the BDCP and the Delta 
          Plan are separate efforts.  Therefore, it is unclear why the 
          author's concerns regarding BDCP are translating to proposed 
          changes on the DSC.  The DSC does provide an "appellate" role 
          with regard to any determination by the Department of Fish and 







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          Game that BDCP complies with SB 1 X7 and the NCCPA.  But, again, 
          that does not appear to be a justification for changing the 
          composition of the DSC.

          In a similar vein the author has not explained how the 
          appropriation of all remaining Prop. 1E and Prop. 84 Bond Funds 
          to DWR for levee improvements achieves in-Delta objectives.  
          Simply appropriating remaining bond funding to DWR does not 
          prioritize how or where those funds are spent.  It is also 
          unclear what other flood control projects, which are currently 
          eligible for funding under the broader mandates of Prop. 1 E and 
          Prop. 84, would no longer be eligible.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           

          Building Industry Association of the Delta
          Jim Cox Sport Fishing Charters
          Lower Sherman Island Duck Hunters Assoc.
          Restore the Delta
          San Joaquin Council of Governments
          Stockton East Water District
          Western Delta Chapter California Striped Bass Association
          Multiple individual letters

           Opposition  

























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          Alameda Flood Control and Water 
            Conservation  District Zone 7
          Association of California Water Agencies
          California Chamber of Commerce
          Calleguas Municipal Water District
          Castaic Lake Water Agency
          Coachella Valley Water District
          Cucamonga Valley Water District
          Desert Water Agency
          East Valley Water District
          Eastern Municipal Water District
          Friant Water Authority
          Inland Empire Utilities Agency
          Irvine Ranch Water Agency
           Opposition continued

           Kern County Water Agency
          Kings River Conservation District
          Las Virgenes Municipal Water District
          Metropolitan Water District of So. Calif.
          Newhall County Water District
          Orchard Dale Water District
          Rowland Water District
          San Bernardino Valley Muni. Water  Dist.



          Santa Clara Valley Water District
          Southern California Water Committee
          Three Valleys Municipal Water District
          Upper San Gabriel Municipal Water District
          Valley Ag Water Coalition
          Western Growers Association
          Western Municipal Water District
          Westlands Water District
           
          Analysis Prepared by  :    Tina Cannon Leahy / W., P. & W. / (916) 
          319-2096