The Salton Sea Restoration Act requires the Secretary of the Natural Resources Agency, in consultation and coordination with the Salton Sea Authority, to lead Salton Sea restoration efforts. The act authorizes the authority to lead a feasibility study, in coordination and under contract with the secretary, as prescribed. The act requires the secretary to seek input from the authority with regard to specified components of the restoration of the Salton Sea.

This bill would require, on or before March 31, 2016, the Natural Resources Agency to submit to the Legislature a list of shovel-ready, as defined, Salton Sea restoration projects, including information regarding project costs and project completion timelines.

The Salton Sea Restoration Act requires the Secretary of the Natural Resources Agency, in consultation and coordination with the Salton Sea Authority, to lead Salton Sea restoration efforts. The act authorizes the authority to lead a feasibility study, in coordination and under contract with the secretary, as prescribed. The act requires the secretary to seek input from the authority with regard to specified components of the restoration of the Salton Sea.

This bill would require, on or before March 31, 2016, the Natural Resources Agency to submit to the Legislature a list of shovel-ready, as defined, Salton Sea restoration projects, including information regarding project costs and project completion timelines.

The Salton Sea Restoration Act requires the Secretary of the Natural Resources Agency, in consultation and coordination with the Salton Sea Authority, to lead Salton Sea restoration efforts. The act authorizes the authority to lead a feasibility study, in coordination and under contract with the secretary, as prescribed. The act requires the secretary to seek input from the authority with regard to specified components of the restoration of the the Salton Sea.

This bill would require, on or before March 31, 2016, the Natural Resources Agency to submit to the Legislature a list of shovel-ready, as defined, Salton Sea restoration projects, including information regarding project costs and project completion timelines.

Existing law, the Water Quality, Supply, and Infrastructure Improvement Act of 2014, approved by the voters as Proposition 1 at the November 4, 2014, statewide general election, authorizes the issuance of general obligation bonds in the amount of $7,545,000,000 to finance a water quality, supply, and infrastructure improvement program. The act makes $475,000,000 available, upon appropriation, to the Natural Resources Agency to support projects that fulfill certain obligations of the state, including, among others, intrastate or multiparty water quantification settlement agreement provisions, provisions relating to the Salton Sea, including ecosystem restoration projects, as set forth in specified provisions of law.

This bill would appropriate an unspecified sum from that portion of the Proposition 1 funds to the Natural Resources Agency to be used for restoration projects that fulfill obligations of the state in complying with the above-referenced intrastate or multiparty water quantification settlement agreement provisions relating to the Salton Sea. provisions.

Existing law, the Water Quality, Supply, and Infrastructure Improvement Act of 2014, approved by the voters as Proposition 1 at the November 4, 2014, statewide general election, authorizes the issuance of general obligation bonds in the amount of $7,545,000,000 to finance a water quality, supply, and infrastructure improvement program. The act makes $475,000,000 available, upon appropriation, to the Natural Resources Agency to support projects that fulfill certain obligations of the state, including, among others, intrastate or multiparty water quantification settlement agreement provisions, including ecosystem restoration projects, as set forth in specified provisions of law.

This bill would appropriate an unspecified sum from that portion of the Proposition 1 funds to the Natural Resources Agency to be used for restoration projects that fulfill obligations of the state in complying with the above-referenced intrastate or multiparty water quantification settlement agreement provisions relating to the Salton Sea.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1095

Author:(Eduardo Garcia)

As Amended Ver:July 7, 2015

Majority vote

Original Committee Reference: W., P., & W.

SUMMARY: Requires the California Natural Resources Agency (CNRA), on or before March 31, 2016, to submit to the Legislature a list of shovel-ready Salton Sea restoration projects, including information regarding project costs and project completion timelines.

The Senate amendments define "shovel ready" as projects that are in the final planning, environmental review, or permitting phase.

EXISTING LAW:

1. Authorizes $7.545 billion in general obligation funding for water-related projects and programs in Proposition 1 (2014), the Safe Drinking Water, Quality, and Infrastructure Act of 2014 (Proposition 1) including $475 million to fulfill State obligations related to: the Klamath Agreements; Tahoe Compact; San Joaquin River Restoration Agreement; Salton Sea Restoration; and, Central Valley Project Improvement Act refuge water supplies.

2. Establishes the Salton Sea Restoration Act (SSRA) with the legislative intent of providing that the State of California undertakes restoration of the Salton Sea ecosystem and the permanent protection of the wildlife dependent on that ecosystem based on a "preferred alternative" that is developed as a result of a restoration study and alternative selection process.

3. Requires the SSRA preferred alternative to provide the maximum feasible attainment of specified environmental objectives, including restoration of long-term stable aquatic and shoreline habitat to historic levels and diversity of fish and wildlife dependent on the Salton Sea, elimination of air quality impacts from restoration projects, and protection of water quality.

4. Requires the CNRA Secretary, in consultation with the Department of Fish and Wildlife (DFW), the Department of Water Resources (DWR), the Salton Sea Authority (SSA), air quality districts, and the Salton Sea Advisory Committee, undertake a restoration study to determine a preferred alternative for restoration of the Salton Sea, prepare a Programmatic Environmental Impact Report analyzing the alternatives, and submit a preferred alternative to the Legislature on or before December 31, 2006.

5. Establishes the Salton Sea Restoration Fund, which is administered by the DFW Director, upon Legislative appropriation, for: environmental and engineering studies related to restoration of the Salton Sea; implementation of the preferred Salton Sea restoration alternative and conservation measures necessary to protect fish and wildlife dependent on the Sea; and, administrative, technical, and public outreach costs related to development and selection of the preferred Salton Sea restoration alternative.

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

COMMENTS: The Senate amendments add language requested by the author to clarify what constitutes a shovel ready project. The author states that absent such clarity, the shovel ready project list could potentially be cut short or minimal. The author adds that clarifying that shovel ready means those projects in the final design, permitting, or engineering phase will ensure that more projects that will help the Salton Sea are identified and therefore funded.

The need to identify projects that will help the Salton Sea is urgent. The modern Salton Sea was accidentally created in 1905 when work on a canal led to a breach that allowed the entire flow of the Colorado River to empty into the Salton Sink for two years, filling the historic dry lake bed and creating one of the largest lakes in California. The Salton Sea's water level is currently maintained primarily by agricultural runoff which, under the Quantification Settlement Agreement (QSA), will start being reduced in 2017.

The QSA is related to California's dependence on imported Colorado River water. The Colorado River Compact is a 1922 agreement among the seven Colorado River basin states as to how they will apportion an annual average of 15 million acre-feet (MAF) in Colorado River flows. As the rest of the southwest grew, the six other basin states began to pressure the Secretary of the Interior to give California a deadline to come up with a plan to ratchet back to its original allocation of 4.4 MAF rather than continuing to use about 5.2 MAF. In response, the federal government threatened to discontinue declaring surpluses and cut off the extra water supply until California came up with a "4.4 Plan." Thereafter, the major Colorado River water rights holders, Imperial Irrigation District (IID), the Metropolitan Water District of Southern California, the San Diego County Water Authority, and the Coachella Valley Water District, entered into the QSA to help meet the 4.4 Plan. The QSA is a complex set of agreements to quantify water rights, engage in a series of water transfers, and restore the Salton Sea.

The reason for including Salton Sea restoration is that, beginning in 2017, QSA-related ag-to-urban water transfers will reduce the agricultural runoff from IID that was providing significant inflow to the Sea. As a result, the Sea will shrink considerably in size, increasing in salinity and potentially exposing more than 100 miles of dusty lakebed to the desert winds. This will chronically and adversely affect both the environment and human health. For example, the Salton Sea supports over 400 species of birds, and is an internationally significant stopover site for hundreds of thousands of birds migrating along the Pacific Flyway. Fine particles could also blow over the Coachella and Imperial Valleys with the latter already suffering from the highest childhood asthma hospitalization rate in the state and both areas containing high numbers of seniors who are especially susceptible to poor air quality.

Analysis Prepared by: Tina Leahy / W., P., & W. / (916) 319-2096 FN: 0001388

 THIRD READING  

Bill No: AB 1095

Author: Eduardo Garcia (D)

Amended: 7/7/15 in Senate

Vote: 21

SENATE NATURAL RES. & WATER COMMITTEE: 9-0, 7/14/15

AYES: Pavley, Stone, Allen, Hertzberg, Hueso, Jackson, Monning, Vidak, Wolk

SENATE APPROPRIATONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 78-0, 6/3/15 - See last page for vote

SUBJECT: Salton Sea: restoration projects

SOURCE: Author

DIGEST: This bill requires the California Natural Resources Agency (agency) to submit to the Legislature a list of shovel-ready restoration projects for the Salton Sea, as specified, on or by March 31, 2016.

ANALYSIS:

Existing law:

1. Authorizes $475 million to fulfill state obligations related to a variety of agreements including restoration of the Salton Sea (Sea) from the $7.545 billion in general obligation funding for water-related projects and programs in Proposition 1, passed by the voters in November 2014.

2. Establishes the Salton Sea Restoration Act (act) with the legislative intent of providing that the state undertakes restoration of the Sea’s ecosystem and the permanent protection of the wildlife dependent on that ecosystem based on a “preferred alternative” that is developed as a result of a restoration study and alternative selection process.

3. Requires the act’s preferred alternative to provide the maximum feasible attainment of specified environmental objectives, such as habitat restoration and water quality protection, among others.

4. Requires the Secretary of the agency in consultation with others, undertake a restoration study to determine a preferred alternative for restoration of the Sea, prepare a Programmatic Environmental Impact Report (PEIR) analyzing the alternatives, and submit a preferred alternative to the Legislature. (The background section includes the current status of this statutory requirement.)

This bill requires the agency to submit to the Legislature a list of shovel-ready restoration projects for the Sea, including information regarding project costs and project completion timelines on or by March 31, 2016. “Shovel-ready” is defined as those projects that are substantially through planning, environmental review or permitting.

Background

The Salton Sea, California’s largest man-made lake, is located in a desert sink in Southern California. The Sea’s water level is currently maintained primarily by agricultural runoff, which, by existing agreement – the Quantification Settlement Agreement (QSA) – will start being reduced in 2017. From pre-history through the 19th century, the Sea has periodically filled and receded numerous times. (For information on the history that led up to the QSA, see the Senate Natural Resources and Water Committee analysis.)

The Sea has significant value as a natural resource. It is one of the most important remaining wetland areas in California for migratory waterfowl and shorebirds. The Sea supports over 400 species of birds, and is an internationally important stopover site for the hundreds of thousands of bird migrating along the Pacific Flyway. Fishery resources in the Sea have, however, declined lately due to the increasing salinity, worsening water quality and a decline in the Sea’s water level.

Without significant restoration efforts, the QSA water transfers when fully implemented are highly likely to result in the collapse of the Sea’s ecosystem over the next 10 – 20 years. The Sea itself will shrink in area considerably and the Imperial and Coachella Valleys will experience poor air quality due to the entrainment of fine particles from the exposed sea bed into the atmosphere.

In 2007, the agency completed and released the Salton Sea Ecosystem Restoration Program Plan and Final PEIR. The agency estimated that the preferred alternative identified in the PEIR would cost over $8 billion to implement over a period of 75 years. The PEIR noted that even the “no project” alternative would cost the state over $1 billion due to state and federal requirements to address air quality, water quality and habitat issues. The $8.9 billion plan has not been implemented. The state has an obligation to pay for, but the Legislature is not required to allocate funds for, mitigation and restoration efforts beyond a certain funding level under the QSA.

In 2012, the agency, working with the United States Army Corps of Engineers, prepared and released a draft Salton Sea Conservation Habitat (SCH) Project Environmental Impact Statement/Environmental Impact Report (EIS/EIR). The SCH Project EIS/EIR proposes a range of aquatic habitats to support fish and wildlife species dependent on the Sea. The agency’s preferred alternative identified in the EIS/EIR would include construction of 3,770 acres of habitat ponds. Funding was provided for the first phase of the SCH Project using Proposition 84 bond monies (approximately $27 million was allocated) and included construction of 800 to 1,200 acres of habitat ponds.

Governor’s Budget. The May Revise to the Governor’s Budget acknowledged that “[p]rior comprehensive plans to restore the sea are no longer feasible due to cost and decreased water availability resulting from the drought in California and in the southwestern states.” The Administration announced the creation of a Salton Sea Task Force to develop new medium and long-term restoration plans through a stakeholder process. A leader will be appointed to a new position to lead the Task Force and manage construction of projects to benefit wildlife habitat and air quality. No additional funds were allocated.

Imperial Irrigation District petition. In 2014, the Imperial Irrigation District filed a controversial petition before the State Water Resources Control Board asking that the Board require the state and the parties to the water transfer agreement to come up with a “realistic, feasible restoration plan.” The petition seeks to condition water sales to San Diego on the state fulfilling its promises to pay for offsetting environmental mitigation and restoration. A workshop was held in March 2015 by the Board, and no formal action by the Board appears to have been taken to date.

Comments

Importance of shovel-ready projects. As noted above, water flowing into the Sea will start being reduced in 2017. Therefore there is merit in identifying restoration projects that can be implemented rapidly in order to mitigate the projected adverse environmental and human health impacts.

Related/Prior Legislation

AB 71 (V. Manuel Pérez, Chapter 402, Statutes of 2013) required the Secretary of the agency, in consultation with the Salton Sea Authority, to lead the Sea restoration efforts.

AB 148 (V. Manuel Pérez, Chapter 124, Statutes of 2014) made technical and clarifying changes to AB 71.

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

SUPPORT: (Verified 7/7/15)

San Diego County Water Authority

OPPOSITION: (Verified 7/7/15)

None received

ARGUMENTS IN SUPPORT: The San Diego County Water Authority writes in support, “[t]he key element of the QSA that remains unaddressed is the state’s obligation with respect to Salton Sea restoration.”

“AB 1095 would initiate the important process of attempting to identify near-term projects to determine an appropriate spending plan utilizing Proposition 1 funds for the Salton Sea restoration effort.”

“We believe it is imperative that any spending plan for Salton Sea restoration must be framed by a clear and workable vision and priorities. […] Implementation-ready projects should support effective air quality mitigation and wildlife habitat creation with a high functional value.”

ASSEMBLY FLOOR: 78-0, 6/3/15

AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O’Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins

NO VOTE RECORDED: Gallagher, Thurmond

Prepared by: Katharine Moore / N.R. & W. / (916) 651-4116

8/19/15 20:39:11

**** END ****

SENATE COMMITTEE ON NATURAL RESOURCES AND WATER

Senator Fran Pavley, Chair

2015 - 2016 Regular

Bill No: AB 1095 Hearing Date: July 14, 2015

Subject: Salton Sea: restoration projects.

BACKGROUND AND EXISTING LAW

The Salton Sea, California's largest man-made lake, is located in a desert sink in Southern California. The Salton Sea’s water level is currently maintained primarily by agricultural runoff, which, by existing agreement – the Quantification Settlement Agreement (QSA) – will start being reduced in 2017. (The history of California, the Colorado River’s water supply and the events that led to the QSA are described in the Comments section.)

The current sea was formed in 1905 when the Colorado River flooded its banks during the building of the All-American Canal. However, from the prehistoric era through the 1800s, the sea bed has periodically filled and receded numerous times.

The Salton Sea has significant value as a natural resource. It is one of the most important remaining wetland areas in California for migratory waterfowl and shorebirds. Over 95% of the state’s historical wetlands have been converted to other uses. The Salton Sea supports over 400 species of birds, and is an internationally important stopover site for the hundreds of thousands of bird migrating along the Pacific Flyway. Fishery resources in the Salton Sea have, however, declined lately due to the increasing salinity – about double that of the ocean – worsening water quality and a decline in the amount of the Sea’s water.

Without significant restoration efforts, the QSA water transfers when fully implemented are highly likely to result in the collapse of the Sea’s ecosystem over the next 10 – 20 years, and the sea itself will shrink in area considerably. Fine particle pollution is likely to increase in the Coachella and Imperial Valleys due to the exposed sea bed. The Imperial Valley already suffers from the highest childhood asthma hospitalization rate in the state and both Valleys containing high numbers of seniors who are especially susceptible to poor air quality.

Existing law authorizes $7.545 billion in general obligation funding for water-related projects and programs in Proposition 1, which was passed by the voters in November 2014. Proposition 1 authorizes $475 million in order to fulfill state obligations related to a variety of agreements including restoration of the Salton Sea.

Existing law establishes the Salton Sea Restoration Act (act) with the legislative intent of providing that the state undertakes restoration of the Sea’s ecosystem and the permanent protection of the wildlife dependent on that ecosystem based on a "preferred alternative" that is developed as a result of a restoration study and alternative selection process.

Existing law also requires the act’s preferred alternative to provide the maximum feasible attainment of specified environmental objectives, including restoration of long-term stable aquatic and shoreline habitat to historic levels and diversity of fish and wildlife dependent on the Sea, elimination of air quality impacts from restoration projects, and protection of water quality.

Existing law requires the Secretary of the Natural Resources Agency (agency) to, in consultation with the Department of Fish and Wildlife, the Department of Water Resources, the Salton Sea Authority, air quality districts, and the Salton Sea Advisory Committee, undertake a restoration study to determine a preferred alternative for restoration of the Sea, prepare a Programmatic Environmental Impact Report (PEIR) analyzing the alternatives, and submit a preferred alternative to the Legislature. In 2007, the agency completed and released the Salton Sea Ecosystem Restoration Program Plan and Final PEIR. The agency estimated that the preferred alternative identified in the PEIR would cost over $8 billion to implement over a period of 75 years. The PEIR noted that even the "no project" alternative would cost the State over $1 billion due to state and federal requirements to address air quality, water quality and habitat issues. The $8.9 billion plan has not been implemented.

In 2012, the agency, working with the United States Army Corps of Engineers, prepared and released a draft Salton Sea Conservation Habitat (SCH) Project Environmental Impact Statement/Environmental Impact Report (EIS/EIR). The SCH Project EIS/EIR proposes a range of aquatic habitats to support fish and wildlife species dependent on the Salton Sea. The agency's preferred alternative identified in the EIS/EIR would include construction of 3,770 acres of habitat ponds. Funding was provided for the first phase of the SCH Project using Proposition 84 bond monies (approximately $27 million was allocated) and included construction of 800 to 1,200 acres of habitat ponds. Additional funding for implementation of the SCH Project is being pursued.

PROPOSED LAW

This bill would require the agency to submit to the Legislature a list of shovel-ready restoration projects for the sea, including information regarding project costs and project completion timelines on or by March 31, 2016. “Shovel-ready” is defined as those projects that are substantially through planning, environmental review or permitting.

ARGUMENTS IN SUPPORT

The San Diego County Water Authority writes in support, “[t]he key element of the QSA that remains unaddressed is the state’s obligation with respect to Salton Sea restoration. The QSA implementing legislation requires the state to identify a preferred Salton Sea restoration alternative and funding plan. In 2007, the state identified and submitted to the Legislature an $8.9 billion preferred alternative. The Legislature did not act on the preferred alternative, nor has a viable funding plan been developed.”

“AB 1095 would initiate the important process of attempting to identify near-term projects to determine an appropriate spending plan utilizing Proposition 1 funds for the Salton Sea restoration effort.”

“We believe it is imperative that any spending plan for Salton Sea restoration must be framed by a clear and workable vision and priorities. […] Implementation-ready projects should support effective air quality mitigation and wildlife habitat creation with a high functional value.”

ARGUMENTS IN OPPOSITION

None received

COMMENTS

Importance of shovel-ready projects. As noted above, water flowing into the Sea will start being reduced in 2017. Therefore there is merit in identifying restoration projects that can be implemented rapidly in order to mitigate the projected adverse environmental and human health impacts, among others. The state has an obligation to pay for, but the Legislature is not required to allocate funds for, mitigation and restoration efforts beyond a certain funding level under the QSA, as described below. The timing of the release of the information required by this bill may also be helpful for the budget cycle.

Governor’s Budget. The May Revise to the Governor’s Budget acknowledged that “[p]rior comprehensive plans to restore the sea are no longer feasible due to cost and decreased water availability resulting from the drought in California and in the southwestern state.” The Administration announced the creation of a Salton Sea Task Force to develop new medium and long-term restoration plans through a stakeholder process. A leader will be appointed to a new position to lead the Task Force and manage construction of projects to benefit wildlife habitat and air quality. No additional funds were allocated, however.

History of the Colorado River, agreements to share its water and the state’s obligation to the sea. Multiple western states depend upon the Colorado River for water. In 1922, the Colorado River Compact (compact) was signed by the seven Colorado River basin states. The compact apportions annual Colorado River flows between these states. The Upper Division – Colorado, New Mexico, Utah and Wyoming – receive 7.5 million acre-feet (MAF) annually, and an additional annual 7.5 MAF were assigned to the Lower Division. The Lower Division flows were apportioned as follows: California (4.4 MAF), Arizona (2.8 MAF) and Nevada (0.3 MAF). The flows assigned were based on data collected prior to 1922 and later observations indicate this total volumetric flow was on the high side. California had historically also taken an additional “surplus” 0.8 MAF not being used by the other state’s in order to average about 5.2 MAF of Colorado River water annually.

Over time, the other signatories to the compact pressured the federal government to require California to reduce the amount of water it took to 4.4 MAF annually. California received a deadline of December 31, 2002 to come up with a plan to comply or else the then-Secretary of the Interior threatened to stop declaring surpluses and cut off California’s access to the extra water supply. The major Colorado River water rights holders in California – the Imperial Irrigation District, the Metropolitan Water District of Southern California, the San Diego County Water Authority and the Coachella Valley Water District – agreed to quantify their water rights, engage in a series of water transfers and restore the Sea. This agreement is the QSA mentioned above. The Sea was included in the QSA because the QSA called for agriculture-to-urban water transfers starting in 2017 that would reduce the runoff from the Imperial Irrigation District that was providing the majority of water inflow to the Sea.

The state's obligation to fund restoration of the sea is related to the QSA. In order to facilitate the implementation of the QSA, the Legislature passed and the Governor signed a package of three bills in September 2003. That legislation detailed the financial responsibility the state assumed with respect to mitigation, and required the formation of a joint powers authority (JPA) to implement and allocate mitigation responsibilities between local agencies and the state. The JPA consists of Department of Fish and Wildlife, the Coachella Valley Water District, the Imperial Irrigation District, and the San Diego County Water Authority. Under the QSA, Coachella, Imperial, and San Diego agreed to fund the first $133 million (in 2003 dollars) for mitigation costs related to habitat restoration and air quality and the state assumed responsibility for all mitigation and monitoring beyond that first $133 million. This open-ended State obligation was subject to litigation with the Third District Court of Appeal ruling that while the state is contractually liable for the excess mitigation costs, neither the QSA parties nor anyone else can compel the Legislature to appropriate funds to pay for the mitigation.

Imperial Irrigation District petition. In 2014, the Imperial Irrigation District filed a controversial petition before the State Water Resources Control Board asking that the Board require the state and the parties to the water transfer agreement to come up with a “realistic, feasible restoration plan.” The petition seeks to condition water sales to San Diego on the state fulfilling its promises to pay for offsetting environmental mitigation and restoration. A workshop was held in March 2015 by the Board, and no formal action by the Board appears to have been taken.

Recent related legislation

AB 71 (V. Manuel Pérez, c. 402, Statutes of 2013). This bill required the agency secretary, in consultation with the Salton Sea Authority, to lead Salton Sea restoration efforts.

AB 148 (V. Manuel Pérez, c. 124, Statutes of 2014). This bill made technical and clarifying changes to AB 71.

SUPPORT

San Diego County Water Authority

OPPOSITION

None Received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1095

Author:(Eduardo Garcia)

As Amended Ver:June 1, 2015

Majority vote

SUMMARY: Requires the California Natural Resources Agency (CNRA), on or before March 31, 2016, to submit to the Legislature a list of shovel-ready Salton Sea restoration projects, including information regarding project costs and project completion timelines.

EXISTING LAW:

1. Authorizes $7.545 billion in general obligation funding for water-related projects and programs in Proposition 1 (2014), the Safe Drinking Water, Quality, and Infrastructure Act of 2014 (Prop. 1).

2. Under Prop. 1, authorizes $475 million in order to fulfill State obligations related to: the Klamath Agreements; Tahoe Compact; San Joaquin River Restoration Agreement; Salton Sea Restoration; and, Central Valley Project Improvement Act refuge water supplies.

3. Establishes the Salton Sea Restoration Act (SSRA) with the legislative intent of providing that the State of California undertakes restoration of the Salton Sea ecosystem and the permanent protection of the wildlife dependent on that ecosystem based on a "preferred alternative" that is developed as a result of a restoration study and alternative selection process.

4. Requires the SSRA preferred alternative to provide the maximum feasible attainment of specified environmental objectives, including restoration of long-term stable aquatic and shoreline habitat to historic levels and diversity of fish and wildlife dependent on the Salton Sea, elimination of air quality impacts from restoration projects, and protection of water quality.

5. Provides that for purposes of the SSRA restoration plan the Salton Sea ecosystem includes the Salton Sea, agricultural lands surrounding the Sea, and the tributaries and drains within Imperial and Coachella Valleys that deliver water to the Sea.

6. Requires the CNRA Secretary, in consultation with the Department of Fish and Wildlife (DFW), the Department of Water Resources (DWR), the Salton Sea Authority (SSA), air quality districts, and the Salton Sea Advisory Committee, undertake a restoration study to determine a preferred alternative for restoration of the Salton Sea, prepare a Programmatic Environmental Impact Report (PEIR) analyzing the alternatives, and submit a preferred alternative to the Legislature on or before December 31, 2006.

7. Establishes the Salton Sea Restoration Fund (SSRF), which is administered by the DFW Director. Authorizes moneys deposited in the SSRF to be expended, upon appropriation by the Legislature, for the following purposes:

   1. Environmental and engineering studies related to restoration of the Salton Sea and the protection of fish and wildlife dependent on the Sea;

   2. Implementation of conservation measures necessary to protect fish and wildlife dependent on the Sea;

   3. Implementation of the preferred Salton Sea restoration alternative; and,

   4. Administrative, technical, and public outreach costs related to development and selection of the preferred Salton Sea restoration alternative.

FISCAL EFFECT: According to the Assembly Appropriations Committee, absorbable costs as Prop. 1 authorizes $475 million in order to fulfill state obligations, including Salton Sea Restoration.

COMMENTS: The Assembly Appropriations Committee struck the prior language of this bill, which earmarked an unspecified amount of Prop. 1 for Salton Sea restoration and instead inserted a requirement for the CNRA to report to the Legislature on or before March 31, 2016, on a list of shovel-ready Salton Sea restoration projects.

The author states that this bill is needed because the Salton Sea is California's largest inland lake and very important to both the residents of Imperial and Riverside counties and to the wildlife that relies upon the Sea for habitat. The author adds that the Salton Sea is nicknamed "California's Everglades" by some as it currently supports 400 species of birds, many of them year-round, and is a critical stopping point along the 5,000-mile Pacific Flyway. The author adds that without restoration windblown particles from the dry lakebed will worsen the already poor air quality in the Imperial and Coachella Valleys to the detriment of many who live there and already suffer air quality-related health problems.

The Salton Sea, California's largest lake, is located in a low-lying trough or desert sink in Southern California, much of which is below sea level. The current sea was formed in 1905 when the Colorado River flooded its banks at a faulty construction site during the building of the All-American Canal. However, the sea bed has periodically filled and receded numerous times, from prehistoric times through the 1800s. The present sea is fed primarily by agricultural runoff. Since it has no natural outlet, it is becoming increasingly saline and today is considerably saltier than the ocean.

The state's obligation to fund Salton Sea restoration is related to the Quantification Settlement Agreement (QSA), which is in turn related to California's dependence on Colorado River water. The Colorado River Compact is a 1922 agreement among the seven Colorado River basin states as to how they will apportion Colorado River flows. Based on the flows of the River prior to 1922, 7.5 million acre-feet (MAF) were assigned to the Upper Division, consisting of Colorado, New Mexico, Utah, and Wyoming and 7.5 MAF were assigned to the Lower Division as follows: California 4.4 MAF , Arizona 2.8 MAF, and Nevada .3 MAF. But even though California received the lion's share, it continuously relied upon another .8 MAF of "surplus" from the other States to average about 5.2 MAF.

As the rest of the southwest grew, the other states began to pressure the Secretary of the Interior to give California a deadline to come up with a plan to ratchet back to 4.4 MAF. In response, Secretary of the Interior Gale Norton gave California a deadline of December 31, 2002 to come up with a "4.4 Plan" or she threatened to discontinue declaring surpluses and cut off the extra water supply. As a result, the major Colorado River water rights holders, Imperial Irrigation District (Imperial), the Metropolitan Water District of Southern California, the San Diego County Water Authority (San Diego), and the Coachella Valley Water District (Coachella), agreed to quantify their water rights, engage in a series of transfers, and restore the Salton Sea. The reason for inclusion of the Salton Sea is that, beginning in 2017, the QSA included ag-to-urban water transfers that would reduce the runoff from Imperial that was providing significant inflow to the Sea. As a result, the Sea will shrink considerably in size, increasing salinity and exposing large areas of dry sea bed playa.

The Salton Sea is one of the most important wetland areas in California for migratory waterfowl and shorebirds, since over 95% of California's historical wetlands have been converted to other land uses. The Salton Sea supports over 400 species of birds, and is an internationally significant stopover site for hundreds of thousands of birds migrating along the Pacific Flyway. Recently, fishery resources in the sea have declined significantly due to increasing salinity, evaporation and declining water quality. Once the QSA water transfers are fully implemented, it is generally recognized that without restoration efforts the ecosystem of the Salton Sea will collapse over the next decade or two. The drying up of the sea also will have human health impacts as more than 100 miles of dusty lakebed could be exposed to the desert winds. That would cause fine particles to blow over the Coachella and Imperial Valleys with the latter already suffering from the highest childhood asthma hospitalization rate in the state and both areas containing high numbers of seniors who are especially susceptible to poor air quality.

To facilitate the implementation of the QSA, the Legislature passed and the Governor signed a package of three bills in September 2003. That legislation detailed the financial responsibility the state assumed with respect to mitigation, and required the formation of a joint powers authority (JPA) to implement and allocate mitigation responsibilities between local agencies and the state. The JPA consists of DFW, Coachella, Imperial, and San Diego. Under the QSA, Coachella, Imperial, and San Diego agreed to fund the first $133 million (in 2003 dollars) for mitigation costs related to habitat restoration and air quality and the State of California assumed responsibility for all mitigation and monitoring beyond that first $133 million. This open-ended State obligation was subject to litigation with the Third District Court of Appeal ruling that while the state is contractually liable for the excess mitigation costs, neither the QSA parties nor anyone else can compel the Legislature to appropriate funds to pay for the mitigation. In other words, the court found that the State's contractual obligation under the QSA to pay for excess mitigation costs may be unenforceable but it is not illusory as the Legislature could choose to fund it.

In 2007, the CNRA completed a restoration study and released the Salton Sea Ecosystem Restoration Program Plan and Final Programmatic Environmental Impact Report (PEIR). The Agency estimated that the preferred alternative identified in the PEIR would cost over $8 billion, expended over a period of 75 years, to implement. The PEIR noted that even the "no project" alternative would cost the State over $1 billion due to state and federal requirements to address air quality, water quality and habitat issues even if no restoration plan is pursued. The $8 billion plan was not implemented.

In 2012, the CNRA, jointly with the United States Army Corps of Engineers, prepared and released a draft Salton Sea Conservation Habitat (SCH) Project Environmental Impact Statement/Environmental Impact Report (EIS/EIR). The SCH Project EIS/EIR proposes a range of aquatic habitats to support fish and wildlife species dependent on the Salton Sea. The CNRA's preferred alternative identified in the EIS/EIR would include construction of 3,770 acres of habitat ponds. Proposition 84 (2006), The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006 made $47 million available for deposit into the SSRF. The Governor's 2013-14 budget included $2 million to study funding and restoration alternatives by the SSA and $28.4 million from the SSRF for the first phase of implementation of the SCH Project. The first phase includes on-the-ground construction of 800 to 1,200 acres of habitat ponds. Additional funding for implementation of the SCH Project is also being sought at the federal level.

Multiple prior bills have sought to aid the sea, including most recently AB 71 (V. Manuel Pérez), Chapter 402, Statutes of 2013, which required the CNRA Secretary, in consultation with the SSA, to lead Salton Sea restoration efforts and AB 148 (V. Manuel Pérez), Chapter 124, Statutes of 2014, which made technical and clarifying changes to AB 71.

Supporters state that only after the State and QSA parties committed to mitigation and restoration measures was the QSA signed. Supporters add that the conservation-based component of the water transfer agreement with San Diego commences in 2017 after 15 years of State Water Resources Control Board-ordered return flows of mitigation water to the Salton Sea and that, as a result, the "need for funding to meet the State's obligation looms very, very large indeed."

There is no known opposition to this bill.

Analysis Prepared by: Tina Leahy / W., P., & W. / (916) 319-2096 FN: 0000818

Date of Hearing: May 13, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

ABPCA Bill Id:AB 1095

Author:(Eduardo Garcia) – As Amended Ver:April 29, 2015

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill appropriates an unspecified amount from the Water Quality, Supply and Infrastructure Improvement Act of 2014 (Proposition 1) to the Natural Resources Agency to fulfill state obligations for Salton Sea Restoration Projects.

FISCAL EFFECT

This bill appropriates an unspecified amount from Proposition 1 funds designated for state obligations.

Proposition 1 authorizes $475 million to fulfill state obligations including Salton Sea Restoration pursuant to the Quantification Settlement Agreement (QSA) as well as Klamath River agreements, the San Joaquin River Restoration agreement, the Tahoe Interstate Compact and Central Valley Improvement Act refuge water supply obligations.

COMMENTS:

1. Purpose. According to the author, this bill is needed because the Salton Sea is California's largest inland lake and very important to both the residents of Imperial and Riverside counties and to the wildlife that relies upon the Sea for habitat.

2. Background. The Salton Sea, California's largest lake was formed in 1905 when the Colorado River flooded its banks at a faulty irrigation diversion site. Restoration is necessary to protect fish and wildlife habitat, preserve endangered species and remediate the salinity caused by agricultural runoff. Restoring the sea will help prevent future significant air quality problems resulting from the shrinking sea.

The Salton Sea is one of the most important wetland areas in the world for shorebirds migrating along the Pacific Flyway.

3. The Quantification Settlement Agreement (QSA). The QSA was a negotiated settlement among the Imperial Irrigation District, The Metropolitan District of Southern California, the Coachella Water District, the San Diego Water Authority and the state to settle claims to Colorado River water and provided a path for the state to reduce its consumption of Colorado River water to its 4.4 million acre foot entitlement. In 2003, the Legislature enacted a package of QSA implementing bills including a requirement to restore the Salton Sea. Under the QSA, the amount of water flowing into the Sea will be significantly reduced in 2017. Without restoration efforts, the environmental consequences of the reduced flows will be significant to fish, wildlife, habitat and air quality.

4. Governor's budget. The Governor's proposed January budget does not include any Proposition 1 appropriations for state obligations.

Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081