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AB-2421 Bay Delta Conservation Plan: Delta Plan project: costs and benefits.(2011-2012)

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Amended  IN  Assembly  April 12, 2012

CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 2421


Introduced  by  Assembly Member Bill Berryhill
(Principal Coauthor(s): Assembly Member Huber)

February 24, 2012


An act to add Chapter 1.5 (commencing with and repeal Section 115) to Division1 115 of the Water Code, relating to the Sacramento-San Joaquin Delta.


LEGISLATIVE COUNSEL'S DIGEST


AB 2421, as amended, Bill Berryhill. Sacramento-San Joaquin Delta: peripheral canal. Bay Delta Conservation Plan: Delta Plan project: costs and benefits.
Existing law requires various state agencies to administer programs relating to water supply, water quality, and flood management in the Sacramento-San Joaquin Delta. The Sacramento-San Joaquin Delta Reform Act of 2009 establishes the Delta Stewardship Council, which is required to develop, adopt, and commence implementation of a comprehensive management plan for the Delta (Delta Plan) by January 1, 2012. The act authorizes the incorporation of the Bay Delta Conservation Plan into the Delta Plan if certain requirements are met.
The bill would require the Legislative Analyst’s Office to complete a prescribed economic feasibility analysis prior to the enactment of a statute authorizing the construction of a peripheral canal, as defined an independent 3rd party, chosen as prescribed, to conduct an analysis of the costs and benefits, as specified, for any project being submitted by the Bay Delta Conservation Plan to the Delta Plan and to submit this to the Legislature, as prescribed. This bill would prohibit the funding for these provisions from exceeding $1,000,000.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Section 115 is added to the Water Code, to read:

115.
 (a) An independent third-party analysis shall be completed and submitted to the Legislature either prior to any project being submitted by the Bay Delta Conservation Plan to the Delta Plan, or on or before June 30, 2013, whichever occurs first. The analysis of the costs and benefits shall use the Department of Water Resources Economic Analysis Guidebook of 2008 and include all of the following:
(1) The total cost of the project, including, but not limited to, environmental review, planning, design, construction, mitigation, and all related expenses, and the methods for paying those costs.
(2) The expected impacts of the project on taxpayers, water ratepayers, and the General Fund.
(3) Whether the analysis of the costs and benefits determines that the direct social benefits of any proposed project or plan outweigh its social costs over the analysis period. This comparison may be displayed as either the quotient of benefits divided by costs representing the benefit to cost ratio, the difference between benefits and costs representing the net benefits, or both. The analysis shall include whether the project is economically justified, meaning whether the present value of the proposed project exceeds the present value of its net benefits over the life of the project or plan.
(b) The third party that conducts this analysis shall be chosen by the following:
(1) One representative of the Legislative Analyst’s Office.
(2) One representative of the Delta Protection Commission.
(3) One representative of the State Water Contractors.
(c) Funding for the purposes of this section shall not exceed one million dollars ($1,000,000).
(d) (1) A report to be submitted to the Legislature pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.
(2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on June 30, 2017.

SECTION 1.Chapter 1.5 (commencing with Section 115) is added to Division 1 of the Water Code, to read:
1.5.Peripheral Canal
115.

As used in this chapter, the following terms have the following meanings:

(a)“Delta” means the Sacramento-San Joaquin Delta, as defined in Section 12220.

(b)“Peripheral canal” means a facility or structure that conveys water directly from a diversion point in the Sacramento River to pumping facilities of the State Water Project or the federal Central Valley Project south of the Delta.

116.

Prior to the enactment of any statute authorizing the construction of a peripheral canal, the Legislative Analyst’s Office shall complete an economic feasibility analysis that includes all of the following:

(a)The total cost of the project, including environmental review, planning, design, construction, mitigation, and all related expenses, and the methods for paying those costs.

(b)Expected impacts of the project on taxpayers, water ratepayers, and the General Fund.

(c)Expected environmental and economic impacts of the project on existing public infrastructure in and around the Delta and the Delta watershed.