BILL NUMBER: AB 2421	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 12, 2012

INTRODUCED BY   Assembly Member Bill Berryhill
   (Principal coauthor: Assembly Member Huber)

                        FEBRUARY 24, 2012

   An act to add  Chapter 1.5 (commencing with  
and repeal  Section  115) to Division1  
115  of the Water Code, relating to the Sacramento-San Joaquin
Delta.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2421, as amended, Bill Berryhill.  Sacramento-San
Joaquin Delta: peripheral canal.   Bay Delta
Conservation Plan: Delta Plan project: costs and benefits. 
   Existing law requires various state agencies to administer
programs relating to water supply, water quality, and flood
management in the Sacramento-San Joaquin Delta.  The
Sacramento-San Joaquin Delta Reform Act of 2009 establishes the Delta
Stewardship Council, which is required to develop, adopt, and
commence implementation of a comprehensive management plan for the
Delta (Delta Plan) by January 1, 2012. The act authorizes the
incorporation of the Bay Delta Conservation Plan into the Delta Plan
if certain requirements are met. 
   The bill would require  the Legislative Analyst's Office
to complete a prescribed economic feasibility analysis prior to the
enactment of a statute authorizing the construction of a peripheral
canal, as defined   an independent 3rd party, chosen as
prescribed, to conduct an analysis of the costs and benefits, as
specified, for any project being submitted by the Ba   y
Delta Conservation Plan to the Delta Plan and to submit this to the
Legislature, as prescribed. This bill would prohibit the funding for
these provisions from exceeding $1,000,000  .
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 115 is added to the  
Water Code   , to read:  
   115.  (a) An independent third-party analysis shall be completed
and submitted to the Legislature either prior to any project being
submitted by the Bay Delta Conservation Plan to the Delta Plan, or on
or before June 30, 2013, whichever occurs first. The analysis of the
costs and benefits shall use the Department of Water Resources
Economic Analysis Guidebook of 2008 and include all of the following:

   (1) The total cost of the project, including, but not limited to,
environmental review, planning, design, construction, mitigation, and
all related expenses, and the methods for paying those costs.
   (2) The expected impacts of the project on taxpayers, water
ratepayers, and the General Fund.
   (3) Whether the analysis of the costs and benefits determines that
the direct social benefits of any proposed project or plan outweigh
its social costs over the analysis period. This comparison may be
displayed as either the quotient of benefits divided by costs
representing the benefit to cost ratio, the difference between
benefits and costs representing the net benefits, or both. The
analysis shall include whether the project is economically justified,
meaning whether the present value of the proposed project exceeds
the present value of its net benefits over the life of the project or
plan.
   (b) The third party that conducts this analysis shall be chosen by
the following:
   (1) One representative of the Legislative Analyst's Office.
   (2) One representative of the Delta Protection Commission.
   (3) One representative of the State Water Contractors.
   (c) Funding for the purposes of this section shall not exceed one
million dollars ($1,000,000).
   (d) (1) A report to be submitted to the Legislature pursuant to
subdivision (a) shall be submitted in compliance with Section 9795 of
the Government Code.
   (2) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on June 30, 2017.  
  SECTION 1.    Chapter 1.5 (commencing with Section
115) is added to Division 1 of the Water Code, to read:
      CHAPTER 1.5.  PERIPHERAL CANAL


   115.  As used in this chapter, the following terms have the
following meanings:
   (a) "Delta" means the Sacramento-San Joaquin Delta, as defined in
Section 12220.
   (b) "Peripheral canal" means a facility or structure that conveys
water directly from a diversion point in the Sacramento River to
pumping facilities of the State Water Project or the federal Central
Valley Project south of the Delta.
   116.  Prior to the enactment of any statute authorizing the
construction of a peripheral canal, the Legislative Analyst's Office
shall complete an economic feasibility analysis that includes all of
the following:
   (a) The total cost of the project, including environmental review,
planning, design, construction, mitigation, and all related
expenses, and the methods for paying those costs.
   (b) Expected impacts of the project on taxpayers, water
ratepayers, and the General Fund.
   (c) Expected environmental and economic impacts of the project on
existing public infrastructure in and around the Delta and the Delta
watershed.