Amended in Assembly January 6, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 148

Introduced by Assembly Member V. Manuel Pérez

January 18, 2013

An act to begin delete add Chapter 8.65 (commencing with Section 25752) to Division 15 end delete begin insert amend Sections 2940 and 2942 end insert of the begin delete Public Resources end delete begin insert Fish and Game end insert Code, relating to begin delete renewable energy end delete begin insert the Salton Sea end insert .

LEGISLATIVE COUNSEL’S DIGEST

AB 148, as amended, V. Manuel Pérez. begin delete Renewable energy: end delete Salton begin delete Sea. end delete begin insert Sea Restoration. end insert

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(1) Existing law requires the Secretary of the Natural Resources Agency, in consultation and coordination with the Salton Sea Authority, to lead Salton Sea restoration efforts. Existing law requires the secretary and the Legislature to maintain full authority and responsibility for any state obligation under a specified Quantification Settlement Agreement. Existing law requires the secretary and the Legislature to have final approval for any proposed restoration plan.

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This bill would revise language stating legislative intent regarding restoring the Salton Sea. This bill would eliminate the requirement that the secretary and the Legislature have final approval for any proposed restoration plan. This bill would recast the requirement that the secretary and the Legislature maintain full authority and responsibility for any state obligation under the Quantification Settlement Agreement to instead provide that specified provisions of law do not alter any state responsibility under the Quantification Settlement Agreement or the state’s authority to carry out that responsibility.

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(2) Existing law authorizes the Salton Sea Authority to lead a restoration funding and feasibility study, in consultation with the Natural Resources Agency, as prescribed.

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This bill would instead authorize the authority to undertake a feasibility study, in consultation with the Secretary of the Natural Resources Agency, as prescribed.

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(3) Existing law prohibits an evaluation, study, review, or other activity undertaken pursuant to specified provisions of law from delaying the planning and implementation of ongoing and planned mitigation projects, including, but not limited to, the Salton Sea Species Conservation Habitat Project or other mitigation measures pursuant to existing state and federal programs and agreements.

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This bill would also prohibit an evaluation, study, review, or other activity undertaken pursuant to those provisions of law from delaying the planning and implementation of ongoing and planned restoration projects.

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Existing law requires the State Energy Resources Conservation and Development Commission to administer the Renewable Energy Resources Program to increase the amount of electricity generated by renewable electricity generation resources per year so that the amount equals at least 33% of total retail sales of electricity in California by December 31, 2020.

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Existing law establishes the Salton Sea Restoration Fund that is administered by the Director of Fish and Game and, upon appropriation by the Legislature, used for the restoration of the Salton Sea.

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This bill would require the Secretary of the Natural Resources Agency, in consultation and coordination with the Salton Sea Authority, to establish a Salton Sea Renewable Energy and Biofuel Research and Development Program in the Salton Sea basin to meet high-priority economic and environmental goals by providing grants to facilitate research and the commercial development of renewable energy and biofuel resources. The bill would further authorize the secretary, in consultation and coordination with the authority, to provide grants to eligible research institutions and commercial enterprises for research and demonstration projects leading to the commercial development of the Salton Sea’s vast renewable energy and biofuel resources. To be eligible for a grant, the bill would require a commercial enterprise for a demonstration project to agree to a royalty or other revenue arrangement. The bill would require royalties and revenues received to be deposited into the Salton Sea Restoration Fund. The bill would require the secretary by July 1, 2014, to initiate the rulemaking process for the program and a process for the application, review, and issuance of grants.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert Section 2940 of the end insert begin insert Fish and Game Code end insert begin insert is
amended to read: end insert

2940.  

The Legislature finds and declares all of the following:

(a) The Salton Sea is California’s largest inland water body with
beneficial uses that include fisheries and wildlife habitat and
preservation of endangered species, and is a repository for
agricultural drainage.

(b) The Salton Sea ecosystem is a critical link on the
international Pacific Flyway and supports over 400 species of
birds.

(c) The Salton Sea is threatened by increasing salinity and
reduced inflows. These changes increasingly threaten the
unparalleled wildlife resources at the sea, as well as air quality in
the region.

(d) In cooperation with local governments, nonprofit
organizations, private businesses, and the public, the Salton Sea
Authority can help protect wildlife habitats and endangered species,
improve water and air quality, and enhance recreational
opportunities in the region.

(e) In restoring the Salton Sea, it is the intent of the Legislature
to do all of the following:

(1)  begin delete Permanently protect end delete begin insert Protect end insert fish and wildlife that are
dependent on the Salton Sea ecosystem.

(2) Restore the long-term stable aquatic and shoreline habitat
for fish and wildlife that depend on the Salton Sea.

(3) Mitigate air quality impacts from restoration projects using
the best available technology or best available control measures,
as determined by the South Coast Air Quality Management District
and the Imperial County Air Pollution Control District.

(4) Protect water quality.

(5) Maintain the Salton Sea as a vital link along the Pacific
Flyway.

(6) Preserve local tribal heritage and cultural values associated
with the Salton Sea.

(7) Minimize noxious odors and other water and air quality
problems.

(8) Coordinate with local, state, and federal agencies that are
responsible for air quality, endangered species, and other
environmental mitigation implementation requirements of the
Quantification Settlement Agreement.

(9) Enhance economic development opportunities that will
provide sustainable financial improvements benefiting the local
environment and the economic quality of life for communities
around the Salton Sea.

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begin insert SEC. 2. end insert   

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begin insert Section 2942 of the end insert begin insert Fish and Game Code end insert begin insert is amended
to read: end insert

2942.  

(a) (1) The secretary, in consultation and coordination
with the authority, shall lead the Salton Sea restoration efforts that
shall include all of the following:

(A) Early start habitat demonstration projects.

(B) Biological investigations relating to the restoration of the
Salton Sea.

(C) Investigations of water quality, sedimentation, and inflows
relating to the restoration of the Salton Sea.

(D) Air quality investigations, in consultation and coordination
with local and regional air quality agencies, relating to the
restoration of the Salton Sea.

(E) Geotechnical investigations relating to the restoration of the
Salton Sea.

(F) Financial assistance grant programs to support restoration
activities of local stakeholders.

(2)  begin delete The secretary and the Legislature shall maintain full authority
and responsibility for any state obligation end delete begin insert Nothing in this article
shall alter end insert begin insert any state responsibility end insert under the Quantification
Settlement Agreement begin insert or the state’s authority to carry out any
responsibility under the Quantification Settlement Agreement end insert . begin delete The
secretary and the Legislature shall have final approval for any
proposed restoration plan. end delete

(3) (A) To the extent that funding is appropriated to the
department for Salton Sea restoration activities, the Department
of Water Resources, in coordination and under agreement with the
department, may undertake restoration efforts identified in this
subdivision.

(B) The department and the Department of Water Resources
shall do all of the following for the Salton Sea Species
Conservation Habitat Project:

(i) Immediately make available relevant information relating to
the factors that influence the cost and size of the alternatives
discussed in the environmental impact report or environmental
impact statement for the species habitat conservation program.

(ii) Release all available detail on a final project design
immediately, or upon final determination of a least environmentally
damaging preferred alternative by the United States Army Corps
of Engineers. Details of a final project design shall include location,
configuration, size, and cost.

(iii) Immediately make available project evaluation protocols
that include the following principles of adaptive management:

(I) Goals and objectives of the project.

(II) The project design and an operations plan.

(III) A monitoring plan that will include metrics that identify
benefits to the species.

(IV) A performance evaluation based on species population
identified through monitoring.

(V) A decisionmaking framework to evaluate project
performance and guide operations and management changes.

(b) (1) The authority may begin delete lead a restoration funding and end delete
begin insert undertake a end insert feasibility study, in consultation with the begin delete agency, end delete
begin insert secretary, end insert to do the following:

(A) Investigate access and utility agreements that may contribute
to the future funding of restoration activities at the Salton Sea.

(B) Analyze all feasible funding sources for restoration program
components and activities.

(C) Analyze economic development opportunities, including,
but not limited to, renewable energy, biofuels, mineral
development, and algae production for the purposes of identifying
new revenue sources for the Salton Sea restoration efforts.

(D) Identify state procurement and royalty sharing opportunities.

(E) Review existing long-term plans for restoration of the Salton
Sea and recommend to the secretary changes to existing restoration
plans. In any review pursuant to this subparagraph, the authority
shall consider the impacts of the restoration plan on air quality,
fish and wildlife habitat, water quality, and the technical and
financial feasibility of the restoration plan and shall consider the
impacts on other agencies responsible for air quality, endangered
species, and other environmental mitigation requirements for
implementation of the Quantification Settlement Agreement.

(2) No evaluation, study, review, or other activity pursuant to
this article shall delay the planning and implementation of ongoing
and planned begin insert restoration or end insert mitigation projects, including, but not
limited to, the Salton Sea Species Conservation Habitat Project or
other begin delete mitigation end delete measures pursuant to existing state and federal
programs and begin delete agreements, including, but not limited to, those
programs and agreements undertaken pursuant to the Quantification
Settlement Agreement. end delete begin insert agreements. end insert

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SECTION 1.  

Chapter 8.65 (commencing with Section 25752)
is added to Division 15 of the Public Resources Code, to read:

 

Chapter  8.65. Salton Sea Renewable Energy and Biofuel
Research and Development Program

 

25752.  

This act shall be known, and may be cited, as the Salton
Sea Renewable Energy and Biofuel Research and Development
Program.

25752.1.  

The Legislature finds and declares all of the following:

(a) The Salton Sea is California’s largest lake, covering 365
square miles, and it serves as an important stop on the annual
Pacific Flyway migratory route, supporting over 400 species of
birds and representing over two-thirds of all birds in the continental
United States.

(b) Until recently, the amount of water entering the Salton Sea
was roughly balanced by the amount of water evaporating from
its broad surface.

(c) In 2003, the Legislature enacted legislation implementing
the Quantification Settlement Agreement (QSA), a water transfer
agreement between the Imperial Irrigation District and the San
Diego Metropolitan Water District, that represented the largest
agriculture-to-urban water transfer in the history of the United
States.

(d) Under the QSA, the state agreed to cover the cost of
mitigating the effects of the water transfer on the Salton Sea beyond
the first one hundred thirty-three million dollars ($133,000,000)
in costs.

(e) According to an analysis by the Pacific Institute, by 2018,
reduced water inflows to the sea will reduce the sea’s depth by
five feet, resulting in the exposure of 26.5 square miles of currently
submerged lake bed. By 2037, the sea’s depth will drop by up to
27 feet, resulting in the exposure of 134 square miles of lake bed.

(f) From 1913 to 1924, inclusive, a similar rural-to-urban water
transfer occurred when the Los Angeles Department of Water and
Power (LADWP) began exporting water from Owens Lake to Los
Angeles. After only 11 years, LADWP had successfully drained
all but a fraction of Owens Lake, exposing over 100 square miles
of lake bed.

(g) For decades, the winds blowing across the exposed lake bed
of Owens Lake eroded fine-grained sediments and salts, lofting
them into the air, creating the single largest source of fugitive dust
in the United States.

(h) Since 1998, LADWP has spent one billion two hundred
million dollars ($1,200,000,000) to stem dust pollution in Owens
Valley mainly by flooding a 40-square-mile area of exposed lake
bed at a cost of 30 billion gallons of water a year.

(i) In 2012, the State Air Resources Board upheld an additional
order by the Great Basin Air District that required LADWP to
flood an additional three square miles of exposed lake bed at an
estimated cost of four hundred million dollars ($400,000,000).
LADWP has appealed the state’s order in federal court.

(j) Considering that LADWP will likely spend up to one billion
six hundred million dollars ($1,600,000,000) to mitigate dust
pollution resulting from its draining of Owens Lake, and the
likelihood that mitigating dust pollution created by the Salton Sea
will be substantially more expensive because up to 135 square
miles of lake bed will be exposed as compared to only 100 square
miles at Owens Lake. The creation of the Salton Sea Renewable
Energy and Biofuel Research and Development Program will
enable the creation of a dedicated and continuous funding stream
to mitigate dust pollution resulting from the QSA.

(k) The creation of the Salton Sea Renewable Energy and
Biofuel Research and Development Program will also encourage
the development of one of the state’s largest sources of renewable
energy and provide a significant source of future revenue for the
restoration of the Salton Sea in the form of royalties or other
revenue sharing funds.

25752.2.  

(a) For the purposes of this section, “Salton Sea
Authority” means the joint powers authority comprised of the
County of Imperial, the County of Riverside, the Imperial Irrigation
District, the Coachella Valley Water District, and the Torres
Martinez Desert Cahuilla Indian Tribe.

(b) The Secretary of the Natural Resources Agency, in
consultation and coordination with the Salton Sea Authority, shall
establish a Salton Sea Renewable Energy and Biofuel Research
and Development Program to meet high-priority economic and
environmental goals by providing grants to facilitate research and
the commercial development of renewable energy and biofuel
resources in the Salton Sea basin.

(c) The secretary, in consultation and coordination with the
Salton Sea Authority, may provide grants to eligible research
institutions and commercial enterprises for research and
development projects and demonstration projects intended to lead
to the commercial development of the Salton Sea’s renewable
energy and biofuel resources pursuant to this section. The projects
shall be sited within the Salton Sea basin, as designated by the
secretary. Demonstration projects by commercial enterprises and
research institutions shall do all of the following:

(1) Improve air quality by reducing criteria and toxic air
pollutants, including fine particulates originating from the dry sea
bed.

(2) Improve water quality in the Salton Sea that will stabilize
marine habitats for fish and migratory birds.

(3) Present new options for the state’s restoration plan of the
Salton Sea.

(4) Demonstrate the scalability of renewable energy and biofuel
resources at the Salton Sea, including the following:

(A) Agricultural algae cultivation and production.

(B) Geothermal resource extraction and associated byproducts.

(C) Desalination technologies.

(D) Solar and wind development.

(5) Demonstrate the proposed project will have economic and
job creating benefits for the Salton Sea basin.

(d) The secretary shall initiate the rulemaking process for the
Salton Sea Renewable Energy and Biofuel Research and
Development Program and a process for the application, review,
and issuance of grants under subdivision (c) no later than July 1,
2014.

(e) A commercial enterprise, to be eligible for a grant under
subdivision (c) for a demonstration project, shall meet all of the
following requirements:

(1) Be incorporated as a business authorized to do business in
the state.

(2) Provide matching funds for the proposed project.

(3) Certify use of state funds solely for the proposed project
sited within the state.

(4) Demonstrate the proposed project will have substantial
environmental and economic benefits to the Salton Sea basin
region.

(5) Identify a customer or customers for the product to be
developed.

(6) Agree to a royalty or other revenue sharing arrangement
ensuring the state’s ongoing financial participation in commercially
viable operations authorized under the Salton Sea Renewable
Energy and Biofuel Research and Development Program.

(f) A research institution, to be eligible for a grant under
subdivision (c) for a research and development project, shall meet
all of the following requirements:

(1) Be a nonprofit or educational research institution or
consortium.

(2) Provide matching funds for the proposed project.

(3) Certify use of state funds solely for the proposed project
sited within the state.

(4) Demonstrate how the proposed project will help lead to the
commercial development of the Salton Sea’s vast renewable energy
and biofuel resources.

(5) Demonstrate the proposed project will have substantial
environmental and economic benefits to the Salton Sea basin
region.

(g) Royalties and revenues collected by the state pursuant to
paragraph (6) of subdivision (e) shall be deposited in the Salton
Sea Restoration Fund.

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