BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                   AB 398|
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                                 THIRD READING
                                        

          Bill No:  AB 398
          Author:   Migden (D), et al
          Amended:  8/30/00 in Senate
          Vote:     27

            
           SENATE NATURAL RES. & WILD. COMMITTEE  :  5-2, 8/22/00
          AYES:  Monteith, Alpert, Johannessen, Johnston, Leslie
          NOES:  Bowen, Sher

           SENATE APPROPRIATIONS COMMITTEE  :  10-3, 8/29/00
          AYES:  Johnston, Alpert, Burton, Escutia, Johnson,  
            Karnette, Kelley, Leslie, McPherson, Perata
          NOES:  Bowen, Mountjoy, Vasconcellos

           ASSEMBLY FLOOR  :  Not relevant
           

           SUBJECT  :    Cargill Salt Flats Purchase

           SOURCE  :     Author

           
           DIGEST  :    This bill requires the Wildlife Conservation  
          Board to authorize the acquisition of property in San  
          Francisco Bay currently owned by the Cargill Salt Division  
          and transfers $30 million from the General Fund to  
          implement the recommendations of the Baylands Ecosystem  
          Habitat Goals Report (see Analysis section below).

           ANALYSIS :    The Cargill Salt Ponds are located at the  
          south end of San Francisco Bay in Alameda, Santa Clara, and  
          San Mateo counties. sCargill says that these ponds are  
          still being used for commercial salt purposes.  However, it  
                                                           CONTINUED





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          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.

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

          1.The price does not exceed the fair market value as  
            described in state and federal law, including the  
            McAteer-Petris Act.

          2.The board determines that:

             A.    Funds are available to implement the Goals Report  
                for a "significant portion" of the property acquired,  
                or

             B.    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.

          3.The board decides to buy the Cargill Salt Ponds and a  
            matching federal appropriation for the purchase has been  
            made available.







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          4.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.

          E.The acquisition of the property will not result in any  
            liability to the state for the cleanup of hazardous  
            materials.

          The bill transfers $30 million from the General Fund to the  
          San Francisco Baylands Restoration Program Account.   
          Appropriates the transfer to the Wildlife Conservation  
          Board for expenditure to implement the recommendations and  
          objectives of the Baylands Ecosystem Habitat Goals Report.   
          Provides that if the board determines to purchase the  
          Cargill property, the balance of the purchase price shall  
          be provided by a combination of state and local funds.

          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  
          (SFO) 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.







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          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 requires that the impacts of this expansion on San  
          Francisco Bay be mitigated should the expansion be  
          approved.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  8/22/00)(Unable to reverify at time  
          of writing)

          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







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          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


          CP:cm  8/31/00   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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