BILL NUMBER: AB 2092AMENDED BILL TEXT AMENDED IN SENATE AUGUST 18, 2010 AMENDED IN SENATE AUGUST 2, 2010 AMENDED IN SENATE JUNE 28, 2010 AMENDED IN SENATE JUNE 15, 2010 AMENDED IN ASSEMBLY APRIL 20, 2010 AMENDED IN ASSEMBLY APRIL 6, 2010 INTRODUCED BY Assembly Member Huffman FEBRUARY 18, 2010 An act to add Sections 85053.5, 85215, and 85216 to the Water Code, relating to water. LEGISLATIVE COUNSEL'S DIGEST AB 2092, as amended, Huffman. Delta Plan: financing. Existing law, the Sacramento-San Joaquin Delta Reform Act of 2009, establishes the Delta Stewardship Council as an independent agency of the state. The council is required, on or before January 1, 2012, to develop, adopt, and commence implementation of a comprehensive management plan for the Sacramento-San Joaquin Delta (Delta Plan), meeting specified requirements. This bill would require the council to develop a long-term finance plan to pay for the costs of implementing the Delta Plan by January 1, 2013. The bill would prohibit the council from adopting new fees for these purposes unless authorized by statute. The bill would authorize the council, before adopting and collecting long-term revenue sources, to seek to obtain early funding contributions from entities that may benefit from implementation of the Delta Plan and to track those contributions to provide credit against future funding requirements. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) The Sacramento-San Joaquin Delta is a critically important natural resource for California and the nation and serves Californians as both the most valuable estuary on the west coast of North America and the hub of the California water system. (b) The Sacramento-San Joaquin Delta watershed and water infrastructure are in crisis. (c) In 2009, the Legislature and Governor adopted a comprehensive water package that included new policies and programs to address the crisis. (d) Senate Bill 1 of the Seventh Extraordinary Session adopted the Sacramento-San Joaquin Delta Reform Act of 2009, which created the Delta Stewardship Council and directed the council to develop a comprehensive Delta Plan to address the coequal goals of providing a more reliable water supply for California and protecting, restoring, and enhancing the Delta ecosystem. Senate Bill 1 also stated that the coequal goals shall be achieved in a manner that protects and enhances the unique cultural, recreational, natural resource, and agricultural values of the Delta as an evolving place. (e) Long-term funding is needed to support the implementation of the Delta Plan. (f) A finance plan for implementing the Delta Plan should recognize that public and private interests should contribute in proportion to the benefits received or negative impacts caused. SEC. 2. Section 85053.5 is added to the Water Code, to read: 85053.5. "Beneficiary pays principle" means the allocation of costs to public or private entities in approximate proportion to benefits received from implementation of measures in the Delta Plan and in approximate proportion to negative impacts caused to the Delta and the Delta watershed that the Delta Plan seeks to address. SEC. 3. Section 85215 is added to the Water Code, to read: 85215. (a) By January 1, 2013, the council shall develop a long-term finance plan to pay for the costs of implementing the Delta Plan that includes all projects, programs, and related administrative costs identified in the Delta Plan. The finance plan shall be developed through an economic, scientific, and engineering based, transparent, and open process. The council shall distribute a draft plan for public review and comment at least six months prior to the approval of the final long-term finance plan. (b) The finance plan shall include, but not be limited to, all of the following information: (1) Annual expenditure plans for at least each of the next five years for implementation of the Delta Plan. (2) An estimate of all existing state and federal funds, including General Fund moneys, special fund moneys, fees, and other sources of revenue reasonably expected to be available to support expenditures. (3) An evaluation of existing programs and projects to determine if funding could be redirected to the Delta Plan, including, but not limited to, funding previously directed at the CALFED Bay Delta Program. (4) A definition of public and private benefits. (5) An analysis and description of the basis for allocating program and project costs among private and public entities. (6) An enforceable mechanism that ensures that fees, contractual payments, cost-share agreements, and contributions are expended as intended, and not diverted to other purposes. (c) The finance plan shall recognize and reflect the broad public benefit to the state and nation of restoring and enhancing the Delta ecosystem. (d) The finance plan shall identify and evaluate, pursuant to the beneficiary pays principle, the benefits to, and negative impacts caused by, all entities, including, but not limited to, all of the following: (1) The public. (2) Urban and agricultural water usersexporting water from the Delta and the Delta watersheddiverting water from the Delta for use outside of the Delta , including, but not limited to, the state and federal water contractors. (3) Urban and agricultural water users diverting water from the Delta tributaries for use outside of the Delta watershed.(3)(4) Urban and agricultural water users diverting water for use within the Delta and the Delta watershed.(4)(5) Delta interests benefitting from flood protection.(5)(6) Delta recreational interests.(6)(7) Dischargers into the Delta and the Delta watershed, including, but not limited to, wastewater dischargers and sources of invasive species.(7)(8) Commercial fishing interests within and outside of the Delta.(8)(9) Other interests with infrastructure or operations in the Delta, including business and transportation entities. (e) The finance plan shall recognize that mitigation costs for projects included in the Delta Plan are the responsibility of the project beneficiaries.(e)(f) The finance plan shall allocate costs based on the beneficiary pays principle and pursuant to the analysis required in subdivision (d). Financing proposals to pay for public benefits or impacts shall include, but not be limited to, new and existing state and federal funding including proceeds from the sale of bonds. Financing proposals to pay for private benefits or negative impacts shall include, but not be limited to, new and existing fees, contractual payments, and cost-share agreements. To the extent existing fees, contractual payments, cost-share agreements, and other contributions, support programs and projects included in the Delta Plan, the finance plan developed by the council shall identify which of these existing contributions are eligible to be credited against future funding requirements. The council shall develop a baseline for the purposes of determining credit.(f)(g) The council shall review the finance plan at least once every five years and update the plan as the council deems appropriate.(g)(h) The council shall not adopt new fees pursuant to this section unless a statute is enacted that authorizes the council to adopt a fee pursuant to this section. SEC. 4. Section 85216 is added to the Water Code, to read: 85216. (a) Prior to the establishment or collection of a long-term revenue source pursuant to Section 85215, the council may seek to obtain early funding contributions from groups that may benefit from the implementation of the Delta Plan, for purposes of funding the council's planning and administrative activities related to the preparation of the Delta Plan. (b) The council shall track early funding contributions and shall provide credit for those contributions against future funding requirements.