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SB-204 State Water Project: contracts.(2019-2020)

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Date Published: 05/17/2019 01:12 PM
SB204:v96#DOCUMENT

Amended  IN  Senate  May 17, 2019
Amended  IN  Senate  April 25, 2019
Amended  IN  Senate  March 18, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 204


Introduced by Senator Dodd
(Principal coauthor: Assembly Member Frazier)
(Coauthors: Senators Galgiani, Glazer, and Pan)
(Coauthors: Assembly Members Cooper, Eggman, Grayson, and McCarty)

February 04, 2019


An act to add Section 6525.5 to the Government Code, and amend Section 165 of, to add Section 147.6 to, and to repeal and add Section 147.5 of, the Water Code, relating to water.


LEGISLATIVE COUNSEL'S DIGEST


SB 204, as amended, Dodd. State Water Project: contracts.
(1) Under existing law, the Department of Water Resources operates the State Water Resources Development System, known as the State Water Project, in accordance with the California Water Resources Development Bond Act to supply water to persons and entities in the state. Existing law requires the department to present to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature the details of the terms and conditions of a long-term water supply contract between the department and a state water project contractor and to submit a copy of one long-term contract, as prescribed.
This bill would instead require the department to provide at least 10 days’ notice to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature before holding public sessions to negotiate any potential amendment of a long-term water supply contract that is of projectwide significance with substantially similar terms intended to be offered to all contractors. The bill would require the department, before the execution of a specified proposed amendment to a long-term water supply contract and at least 60 days before final approval of such an amendment, to submit to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature certain information regarding the terms and conditions of a proposed amendment of a long-term water supply contract and to submit a copy of the long-term contract as it is proposed to be amended.

(2)Existing law, the Joint Exercise of Powers Act, authorizes 2 or more public agencies to enter into an agreement to jointly exercise any power common to the contracting parties.

The bill would require a certain joint powers authority and the Department of Water Resources to present to the Joint Legislative Budget Committee by July 1, 2020, specified water conveyance project information and would require the authority and department to report by July 1, 2020, and annually thereafter, that information to the Joint Legislative Budget Committee and to the relevant policy and fiscal committees of the Legislature.

(3)This bill would make legislative findings and declarations as to the necessity of a special statute for the Sacramento-San Joaquin Delta.

(2) Existing law requires the California Water Commission to conduct an annual review of the progress of construction and operation of the State Water Resources Development System and make a report on its findings to the Department of Water Resources and the Legislature.
This bill would require the commission to additionally include in that review and report the progress of the design, construction, and financing of any new water conveyance facility in the Sacramento-San Joaquin Delta to be owned and operated by the department.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.Section 6525.5 is added to the Government Code, to read:
6525.5.

(a)For the purposes of this section, “joint powers authority” means the Delta Conveyance Design and Construction Joint Powers Authority, the Delta Conveyance Finance Authority, any successor to those authorities, or any joint powers authority created for the purposes of designing or constructing a water conveyance in the Sacramento-San Joaquin Delta to be owned and operated by the Department of Water Resources.

(b)By July 1, 2020, and annually thereafter, the Department of Water Resources and the joint powers authority shall report to the Joint Legislative Budget Committee and to the relevant policy and fiscal committees of the Legislature information, in compliance with Section 9795, on all of the following:

(1)Water conveyance project financing, including budgeted and actual sources of funding, including water fees and property tax levies, and the allocation of costs between project beneficiaries.

(2)The status of construction, including a list of all pending and executed contracts valued over ten million dollars ($10,000,000) related to water conveyance planning, design, and construction, the contract schedules, and the progress on meeting goals with respect to contracting with small, minority, woman, or veteran owned businesses.

(3)Decisions made by the Interagency Implementation and Coordination Group, as described in the adaptive management program, regarding the proposed or actual operation of the water conveyance project, including volume and timing of diversions and deliveries to water contractors, water transfers, how decisions regarding operations are made, and the effectiveness of avoiding, reducing, or mitigating operational impacts on fisheries, wildlife, the environment, and Sacramento-San Joaquin Delta communities.

(4)Consultations with Sacramento-San Joaquin Delta communities affected by project construction, operation, or both, including actions taken to address community concerns with a local ombudsman, administration of a community benefits fund, or both.

(5)Actions taken to avoid or mitigate project construction impacts to agriculture, recreation, infrastructure, property, local business operations, worker and community safety, and public health, and the project’s consistency with the management plan adopted for the Sacramento-San Joaquin Delta National Heritage Area.

(c)By July 1, 2020, the Department of Water Resources and the joint powers authority shall present at an informational hearing the information described in subdivision (b) to the Joint Legislative Budget Committee.

SEC. 2.SECTION 1.

 Section 147.5 of the Water Code is repealed.

SEC. 3.SEC. 2.

 Section 147.5 is added to the Water Code, to read:

147.5.
 The department shall provide at least 10 days’ notice to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature before holding public sessions to negotiate any potential amendment of a long-term water supply contract that is of projectwide significance with substantially similar terms intended to be offered to all contractors.

SEC. 4.SEC. 3.

 Section 147.6 is added to the Water Code, to read:

147.6.
 (a) Before the execution of an amendment to a long-term water supply contract described in subdivision (c) and at least 60 days before final approval of such an amendment, the department shall submit to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature information regarding the terms and conditions of a proposed amendment of a long-term water supply contract.
(b) The department shall submit the following information in compliance with subdivision (a):
(1) A summary of the provisions of the proposed amendment.
(2) The estimated costs associated with the proposed amendment, along with an estimate of the allocation of the costs borne by each contractor.
(3) A copy of the long-term contract as it is proposed to be amended.
(c) (1) This section applies to a proposed amendment by the department to a long-term water supply contract that is of projectwide significance with substantially similar terms intended to be offered to all contractors.
(2) This section does not apply to an amendment for which a copy of the long-term water supply contract as it was proposed to be amended was submitted by the department to the Joint Legislative Budget Committee in May 2018.

SEC. 5.

The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of the Sacramento-San Joaquin Delta.

SEC. 4.

 Section 165 of the Water Code is amended to read:

165.
 (a) The California Water Commission shall conduct an annual review of the both of the following:
(1) The progress of construction and operation of the State Water Resources Development System, and System.
(2) The progress of the design, construction, and financing of any new water conveyance facility in the Sacramento-San Joaquin Delta to be owned and operated by the department.
(b) (1) The California Water Commission shall make a report on its findings pursuant to subdivision (a) to the department and to the Legislature, together with whatever recommendations it deems appropriate.
(2) A report submitted to the Legislature pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.