BILL ANALYSIS                                                                                                                                                                                                    






            SENATE NATURAL RESOURCES AND WILDLIFE    BILL NO: AB 398
            Senator Tom Hayden, Chair              AUTHOR: Migden
                                                  VERSION: Amended
                                                 Original: February 12,  
            1999
                                                  Amended: August 18,  
            2000
                                                   FISCAL: Yes
                                                  URGENCY: No
                                               CONSULTANT: Michael Pipe
                                              HEARING DATE: August 22,  
            2000


             SUBJECT:

             Cargill Salt Flats Purchase
             
            ISSUE:

             Should land be purchased in south San Francisco Bay to help  
            implement findings of a report regarding San Francisco Bay  
            wetlands restoration?
             
            SUMMARY:  

            AB 398 requires the Wildlife Conservation Board to  
            authorize the acquisition of property in San Francisco Bay  
            currently owned by the Cargill Salt Division, and  
            appropriates up to $150 million for the purchase.

             BACKGROUND & EXISTING LAW:  

            The Cargill Salt Ponds are located at the south end of San  
            Francisco Bay in Alameda, Santa Clara, and San Mateo  
            counties. Cargill says that these ponds are still being  
            used for commercial salt purposes. However, it seems that  
            in recent years, the commercial use of these ponds has  
            seriously diminished and Cargill is now willing to sell  
            part of the acreage.  

            The ponds cover an area of 29,000 acres. Cargill is  
            offering 19,000 acres for sale. The total estimated cost of  












            the acquisition of the salt ponds is $300 million. Congress  
            is moving legislation to have the federal government pay 50  
            percent of the acquisition cost up to $150 million if the  
            State of California also participates in the acquisition.

            Existing law requires the Wildlife Conservation Board to  
            authorize the acquisition of real property, rights in real  
            property, water, or water rights as necessary to carry out  
            the purposes of the Wildlife Conservation Law of 1947.

             PROPOSED LAW:  

            AB 398 creates within the Wildlife Restoration Fund the San  
            Francisco Baylands Restoration Program Account to acquire  
            and restore wetlands in the San Francisco Bay area to  
            achieve the objectives of the Baylands Ecosystem Habitat  
            Goals Report.

            The bill also transfers $150 million from the General Fund  
            to the account.

            The bill allows the Wildlife Conservation Board to buy land  
            if:

                 (a) the price does not exceed the fair market value as  
                 described in state and federal law, including the  
                 McAteer-Petris Act, and

                 (b) the board determines that:

                      (1) funds are available to implement the Goals  
                      Report for a "significant portion" of the  
                      property acquired, or

                      (2) no long-term maintenance of levees and dikes  
                      and other land-use management requirements are  
                      necessary to avoid environmental degradation to  
                      the property, or that the funds and authority  
                      exists to meet these requirements.

                 (c) the board decides to buy the Cargill Salt Ponds  
                 and a matching federal appropriation for the purchase  
                 has been made available, and













                 (d) the board consults with the State Coastal  
                 Conservancy and determines that the purchase is  
                 consistent with most of the goals of the San Francisco  
                 Bay Area Conservancy Program.

            The bill also makes findings and declarations regarding the  
            San Francisco Bay area and the Goals Report.

             COMMENTS:
             
            The Goals Report found that:

                   In this subregion [South Bay], achieving  
                   the Goals will depend largely on the  
                   willingness of the Cargill Salt Division  
                   to undertake major changes in its  
                   operations or to cease commercial salt  
                   production.

            If the Cargill property is purchased the estimated cost of  
            restoring the first 10,000 acres is between $150 million  
            and $300 million. While restoration funds are not yet  
            identified, San Francisco International Airport has said  
            that some $200 million is currently available for  
            restoration. However, this bill does not provide that the  
            restoration funds must come from SFO.

            This bill makes no mention of SFO and is not contingent  
            upon expansion of the SFO. If some other restoration funds  
            were to be made available, those funds could be used and  
            this acquisition would move forward. At this time, no  
            alternate source is known.

            The airport sits directly on San Francisco Bay.

            SFO has one of the worst track records in the world for  
            delayed and cancelled flights, and has proposed to expand  
            the airfield by adding two runways. To do so they would  
            have to fill in up to 1,400 acres of San Francisco Bay.  
            This would require that the impacts of this expansion on  
            San Francisco Bay be mitigated should the expansion be  
            approved.













            Opponents object to using state funds to purchase property  
            for mitigation before the environmental impact report for  
            the project is complete, but still support an interim  
            management strategy. Specifically on the Cargill property,  
            opponents object to the appropriation as too large and say  
            it is premature considering that appraisal of the property  
            in question is not complete.

             SUPPORT:  

            Air Transport Association
            Alameda County Building & Construction Trades Council
            BFI Waste Systems
            Brandfusion
            Browning-Ferris Industries
            California Labor Federation, AFL-CIO
            California Manufactures & Technology Association
            California Chamber of Commerce
            Cargill 
            Century 21 Alliance
            Chinese Chamber of Commerce, San Francisco
            Clarion Hotel, San Francisco International Airport
            Contra Costa Council
            Daly City/Colma Chamber of Commerce
            First National Bank
            Hilderbrand Properties
            Hotel Council of San Francisco
            Larkspur Hospitality
            National Air Traffic Controllers Association
            Northern California Carpenters Regional Council
            Pasha, Bay Area small business
            Providian Financial
            Restore San Francisco Bay Associates
            Samceda, San Mateo County Peninsula 
            San Benito County Building & Construction Trades Council
            San Francisco Building and Construction Trades Council
            San Francisco Central Labor Council
            City and County of San Francisco 
            San Francisco Chamber of Commerce
            San Francisco Visitors and Convention Bureau
            San Francisco International Airport
            San Francisco Labor Council, AFL-CIO












            Sanitary Truck Drivers and Helpers Local No. 350
            San Mateo Building and Construction Trades Council
            San Mateo County Central Labor Council
            Santa Clara County Building & Construction Trades Council
            Silicon Valley Manufacturing Group
            Teamsters Joint Council No. 7
            Teamsters, Local 350
            United Airlines
            The Westin, San Francisco Airport
            James T. Beall, Jr. Santa Clara County Supervisor
            L. Blitch, Chair, San Francisco Chamber of Commerce
            Mary Griffin, San Mateo County Supervisor
            Michael P. Guingona, Councilmember, City of Daly
            Pete McHugh, Santa Clara County Supervisor
            Michael King, San Carlos City Councilmember
            Michael D. Nevin, Supervisor, San Mateo County
            Ralph Nobles, Restore San Francisco Bay Associates

             SUPPORT IF AMENDED:  

            National Audubon Society
            Save the Bay
            Sierra Club

             OPPOSED:

             None on file