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The 2025-26 Budget: May Revision Trailer Bill Proposals on the Delta Conveyance Project and Water Quality Control Plans


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[PDF] Achieving State Goals for the Sacramento-San Joaquin Delta

January 15, 2015 - The Sacramento-San Joaquin Delta (Delta) is a biodiverse ecosystem that covers about 1,150 square miles and supports over 700 species of fish and wildlife. The Delta is an important source of water for the state and is used to convey water from Northern California to Southern California. The Delta faces several significant problems, including: (1) a decline in key native fish species, (2) reductions in the amount of Delta water available for use elsewhere, (3) water pollutants that cause harm to species and increase treatment costs, and (4) levees at significant risk of failure. The state has engaged in numerous efforts to address these problems and achieve its "coequal goals" for the Delta: water supply reliability and ecosystem restoration. There are many opportunities for the Legislature to improve the success of these efforts. We identified several issues for its consideration, including (1) demands for Delta water, (2) uncertain funding sources and slow implementation of some key activities, (3) limits on the effectiveness of governance in the Delta, and (4) challenges to restoring the Delta ecosystem. By addressing some of these issues, the Legislature can improve the likelihood that its goals and objectives for the Delta will be realized.

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[PDF] Potential Funding Alternatives for the Bay Delta Conservation Plan Planning Process

October 19, 2011 - Potential Funding Alternatives for the Bay Delta Conservation Plan Planning Process

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The Role of Water Transfers in Meeting California's Water Needs

September 8, 1999 - If water transfers are to help the state meet its water needs, we think that the Legislature should address a number of issues, including impediments to transfers and stakeholder concerns about potential negative impacts of transfers on "third parties." Statutory policy on water transfers should be clarified and made more consistent.

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[PDF] 2009-10 Budget Analysis Series: Resources and Environmental Protection

February 3, 2009 - The Governor’s budget proposes only one significant budget-balancing solution in the resources and environmental protection areas—$350 million of loans from various special funds to the General Fund. We offer a number of recommendations for achieving General Fund savings beyond the Governor's proposal, including shifting funding for various programs from the General Fund to new or increased fees. Fees are an appropriate funding source in these cases, in our view, because the state is either providing a service directly to beneficiaries or administering a pollution control program that should be funded on a “polluter pays” basis. Our fee proposals relate to: (1) wildland fire protection, (2) fish and game regulation, (3) water quality regulation, and (4) scientific activities of the Office of Environmental Health Hazard Assessment that support regulatory programs. We also recommend program reductions and/or expenditure deferrals in CalFire and the CALFED Bay-Delta Program to create additional General Fund savings. In addition, we assess the administration’s approach in evaluating alternatives to the way water is currently conveyed through the Delta as a key component of solving Delta water problems. We find that the analysis being conducted by the administration is too narrow to fully inform the Legislature of the costs, benefits, risks, and trade-offs of the various conveyance alternatives.

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The 2022-23 Budget: State Water Resources Control Board—Bay-Delta Plan Update

January 31, 2022 - In this post, we discuss the State Water Resources Control Board’s (SWRCB’s) efforts to update the water quality control plan for the Sacramento‑San Joaquin Bay‑Delta and its source rivers.

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[PDF] The 2014-15 Budget: Resources and Environmental Protection

February 21, 2014 - In this report, we analyze the Governor's 2014-15 budget for the state's resources and environmental protection programs. We review and make recommendations on a number of major policy proposals, including a review of the administration's recently released Water Action Plan as well as the proposal to reduce or eliminate several programs currently funded by the Beverage Container Recycling Fund (commonly referred to as the "bottle bill"). We find that these policy proposals are generally reasonable approaches, though we identify trade-offs in the proposals and offer recommendations for legislative consideration. The report also identifies several issues included in the Governor's budget that merit additional legislative oversight. This includes the proposal to provide the Department of Parks and Recreation and the Department of Forestry and Fire Protection with a total of $43 million from the General Fund to address deferred maintenance backlogs. While we find that it makes fiscal sense to address deferred maintenance, there is uncertainty about what factors have contributed to the large backlogs, as well as how the state can best address maintenance needs on an ongoing basis.

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Environmental Water Account: Need for Legislative Definition and Oversight

January 29, 2001 - We recommend that the Legislature hold oversight hearings to evaluate CALFED's proposal for the Environmental Water Account, implemented to acquire water for endangered species protection and recovery in the Bay-Delta region. There are many policy and implementation issues that the Legislature should consider before CALFED proceeds with the new program, including the program's costs, benefits, impacts, governance, and funding. Funding should be governed by the "beneficiary pays" principle.

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[PDF] The 2016-17 Budget: The State's Drought Response

February 5, 2016 - Despite welcome storms early this winter, statewide drought conditions appear far from over. This report (1) describes the current drought and its impacts across the state, (2) summarizes the state's drought response appropriations and activities thus far, (3) assesses the Governor's drought-related budget proposals for 2016-17, and (4) recommends steps the Legislature can take to address drought both in the coming year and the future.

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[PDF] The 2010-11 Budget: Resources and Environmental Protection

March 8, 2010 - In reviewing the Governor's budget proposal, we uncovered current actions and proposals of the administration that either circumvent the Legislature's authority, make it difficult for the Legislature to oversee the administration's spending, or limit the Legislature's flexibility in making decisions. We found that the administration is: developing new renewable energy procurement requirements that circumvent legislative policy as reflected in current state law (known as the renewables portfolio standard); using an Emergency Fund--intended to pay for large-incident wildland firefighting costs--to cover some day-to-day departmental expenditures that are more appropriately made subject to legislative budget review; proposing a somewhat similar emergency fund for flood management that would be structured to allow the administration to augment it at its discretion without notifying the Legislature; and proposing again to fund recreation activities at State Water Project facilities in a way that escapes legislative budgetary review for all the spending. Finally, we recommend rejection of the Governor’s proposal to dedicate the ongoing Tranquillon Ridge oil lease revenues to support state parks, because it limits the Legislature's future decision making.

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[PDF] The 2021-22 Budget: California Natural Resources Agency

January 27, 2021 - This publication discusses the Governor's 2021-22 January budget proposals for the California Natural Resources Agency, including $125 million for habitat restoration projects and $4.5 million to move to a new office building.

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California’s Water: An LAO Primer

October 20, 2008 - California’s water delivery system is facing a series of challenges due in part to a combination of increasingly variable weather conditions, legal requirements, and system operation and conveyance constraints. These challenges affect water availability, reliability, and delivery. Recent public and private efforts have sought ways to address these challenges. These measures include proposals to increase water through groundwater storage, surface storage, infrastructure changes, and system operation improvements, among others. This report provides, through a “quick reference” document relying heavily on charts to present information, a snapshot of water in California, including: (1) An Overview of California’s Water Governance; (2) Water Supply, Source, and Delivery; (3) How Do We Finance Water Projects? (4) What Drives the Cost of Water?, and (5) Issues for Legislative Consideration

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[PDF] The Delta Vision and Bay Delta Conservation Plan:Financing Issues

February 24, 2009 - Presented to Senate Natural Resources and Water Committee

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Reforming Davis-Dolwig: Funding Recreation in the State Water Project

March 19, 2009 - The Davis-Dolwig Act is a 47-year-old state law that specifies that the state, not water ratepayers, should fund the recreation component of the the State Water Project (SWP). The budget proposes a number of statutory reforms to the act, in part to provide a dedicated funding source for its implementation. We find that the Governor’s proposal does not address a number of major problems with the implementation of the act and that the administration’s approach improperly limits the Legislature’s oversight role. We also find that, over many years, the Department of Water Resources has been allocating costs to the state under Davis-Dolwig that are significantly in excess of the direct costs to SWP for recreation. In our report, we offer the Legislature a package of statutory reforms to address problems that we have identified with the implementation of Davis-Dolwig. These include clarifying the role of public funding for recreation in SWP. We also recommend that the state evaluate the potential to divest itself of SWP reservoirs that are used mainly for recreation.

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[PDF] The 2015-16 Budget: Effectively Implementing the 2014 Water Bond

February 11, 2015 - In August 2014, the Legislature approved Chapter 188, Statutes of 2014 (AB 1471, Rendon), which placed before the voters a water bond measure primarily aimed at increasing the supply of clean, safe, and reliable water and restoring habitat. On November 4, 2014, voters approved the water bond measure—Proposition 1. In this report, we (1) describe Proposition 1, (2) review the Governor’s proposals to implement the bond, (3) identify key implementation principles, and (4) recommend steps for the Legislature to ensure that the bond is implemented effectively.