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

The 2022-23 Budget: State Water Resources Control Board— Bay-Delta Plan Update JANUARY 2022 Summary. In this post, we discuss the State Board in Process of Updating Bay-Delta Water Water Resources Control Board’s (SWRCB’s) efforts Quality Control Plan. Given changing conditions to update the water quality control plan for the and water uses over the past four decades, SWRCB Sacramento-San Joaquin Bay-Delta and its source has occasionally made updates to the Bay-Delta rivers. Updating the water quality objectives for the Plan. While the overall plan received some updates Bay-Delta watershed is long overdue and should be in 2006, the last major update was in 1995. SWRCB a high priority for the state to complete, particularly has been in the process of developing new updates given rapid population declines in native fish to the plan since 2009. In 2018, the board adopted species that depend on the Bay-Delta ecosystem. Phase I of these new updates, which includes The Governor proposes redirecting $1.4 million new water quality flow objectives for the lower in ongoing General Fund that is currently being San Joaquin River and its tributaries (the Stanislaus, used for contract consultant services to instead Tuolumne, and Merced Rivers), as well as updated establish and support five new permanent positions salinity objectives for the South Delta. Specifically, at SWRCB to work on updating the plan. While we to improve conditions for fish and wildlife, the new believe the proposal is reasonable and recommend flow standards call for 40 percent of unimpaired flow its adoption, we also recommend the Legislature in the rivers. The required flows can be adjusted engage with the administration regarding its time within a range of 30 percent to 50 percent between line for updating the plan and whether additional February and June depending on other actions and actions can be taken to help expedite this process. conditions in the fisheries. (According to SWRCB, current unimpaired flows in these rivers range from Background 21 percent to 40 percent on average, but can run SWRCB Regulates Bay-Delta and Its Source as low as 6 percent in dry or drought years, and Rivers Through Water Quality Control Plan. average 10 percent to 20 percent during certain Pursuant to the state Porter-Cologne Water Quality times of the year that are critical for migrating Control Act and federal Clean Water Act, SWRCB fish.) The board is now developing a program of regulates water quality for the waters of the state, implementation for these new standards. including its rivers and streams. As a component SWRCB is still in the process of working on of implementing these responsibilities, in 1978 the Phase 2 of its plan updates, which will include board adopted a water quality control plan for the new water quality objectives and a program of Sacramento-San Joaquin Bay-Delta, known as implementation for the Sacramento River, its the Bay-Delta Plan. This plan establishes water major tributaries, and the Bay-Delta estuary itself. quality objectives—such as flow requirements— The board states that it hopes to adopt new that are intended to protect “beneficial uses” in the flow standards in fall 2023, with development Bay-Delta and its source rivers. Specified beneficial of the implementation plan to follow. Because uses include fish and wildlife, agriculture, and implementing these new standards will necessitate municipal and industrial water uses. The plan also adjustments to water rights, SWRCB is still includes programs of implementation to achieve weighing options for how it will incorporate those the stated objectives, including monitoring and changes once it has approved the new flow compliance actions. objectives, including potentially through adopting new regulations or through adjudicative water rights proceedings. SWRCB Currently Spends $9.1 Million at SWRCB. These positions would help with plan Annually on Updating Plan. Currently, SWRCB implementation and monitoring activities, including receives $9.1 million in ongoing funding it potential regulatory actions. The proposed dedicates towards updating and beginning approach would retain $3.6 million for contracted to implement changes to the Bay-Delta Plan, activities and would be cost-neutral for the state. including $7.5 million from the General Fund and Assessment $1.6 million from the Water Rights Fund. Of this funding, $4.1 million supports 17 existing SWRCB Reasonable to Increase SWRCB Staffing staff—including two in the Office of Chief Counsel— Levels to Accomplish New Tasks. We find and $5 million is used for contracted consultant the Governor’s proposal to increase SWRCB’s services, such as to develop environmental staffing capacity for the next steps of developing documents and conduct scientific and economic and implementing Bay-Delta Plan updates to be modeling and analyses. reasonable. Implementing the new water quality objectives for the San Joaquin River and developing Bay-Delta’s Native Species Experiencing new standards for the Sacramento River-Delta Rapid Declines. As stated in the Phase 1 plan portion of the plan represents increased workload update, “native fish species that migrate through for the board. Moreover, the upcoming tasks— and inhabit the Delta have experienced dramatic such as advising on implementation decisions, population declines in recent years, bringing some developing regulatory actions, conducting species to the brink of extinction.” For example, the enforcement, and overseeing ongoing monitoring— plan highlights that the San Joaquin River basin would benefit from consistent and continuing experienced an 85 percent net loss in returning internal staff expertise; contracted consultants adult fall-run Chinook salmon from 1985 to 2017. would not be appropriate entities to conduct Trends are similarly bleak in the Sacramento such activities. River, where recent drought conditions have precipitously exacerbated escalating declines for Swift Adoption and Implementation of winter-run Chinook salmon. Moreover, the Delta Plan Updates Is Important. Updating the water Smelt, a fish endemic to California that only occurs quality objectives for the Delta watershed is long in the Bay-Delta and which used to be the most overdue and should be a high priority for the state abundant fish in the estuary—once numbering in to complete. As noted, the last major update the millions—has not been observed in the wild at was nearly 30 years ago. Water uses, ecosystem all for the past four years. Such trends are not solely conditions, and the statewide population that related to existing flow requirements, and have been depends on water that passes through the exacerbated by loss of habitat, impediments to fish Bay-Delta all have changed significantly since then, passage such as dams and weirs, water diversion producing a critical need for an updated operating systems including pumps, recurring drought framework. Additionally, the impacts of climate conditions, and warming temperatures. However, change—including higher average temperatures, SWRCB has the responsibility to adopt and enforce more frequent and prolonged droughts, more wet water quality objectives that help protect fish and and warm atmospheric river storms, and rising wildlife given that is one of the statutory beneficial sea levels encroaching into the San Francisco uses in the Bay-Delta. Bay and Delta estuary—already are beginning to affect conditions in the Bay-Delta and its source Governor’s Proposal rivers, and will increasingly do so in the coming Redirects $1.4 Million in Existing Funding years. These changes will render the existing From Contracts to New Staff. The Governor water quality objectives even more outdated. proposes redirecting $1.4 million from the $5 million The current standards and regulatory framework in ongoing General Fund that is currently being have not been sufficient to protect fish and wildlife used for contract consultant services to instead in the watershed. If current trends continue, the establish and support five new permanent positions state is poised to lose some of its native species 2022-23 Budget Series 2 to extinction. Moreover, the prolonged process Explore Whether Additional Steps Are of waiting for new water quality standards to be Needed to Expedite Progress. We also specified and implemented creates uncertainty for recommend that the Legislature engage with water users and thereby complicates their planning the administration regarding its time line for and operational decisions. updating the plan and whether additional actions Additional Oversight and Legislative Action can be taken to help expedite this process. For Might Help Expedite Plan Adoption and example, the Legislature could ask SWRCB to Implementation. While the Governor’s budget respond to questions in spring budget hearings, proposal to add five new positions is reasonable policy committee oversight hearings, or through and relatively modest, the Legislature could meetings with staff or board members. Key take this as an opportunity to engage with the questions for the Legislature to discuss with the administration and consider broader issues related administration include: to the Bay-Delta Plan update. In particular, given the • What Is the Board’s Time Line for Achieving prolonged time line for and importance of updating Improved Outcomes in the Bay-Delta? the plan, the Legislature may want to consider Are there actions that can be taken to expedite whether it could take steps to help expedite this time line? SWRCB’s progress. Such steps could include • What Barriers Have Impeded Adoption and providing additional funding, further increasing Implementation of Plan Updates? Why have staffing levels, or adopting statutory guidance the plan updates taken so long to adopt or deadlines. and implement? What is the board doing to address these barriers? Are there steps the Recommendations Legislature can take to help address existing Adopt Governor’s Proposal to Redirect or anticipated future obstacles? Existing Funding to Support Five New Staff. • Would Additional Resources Help Expedite We recommend the Legislature adopt the Progress? Would supplemental funding for Governor’s proposal to redirect $1.4 million in staff and/or consulting contracts help achieve existing General Fund from contracted consultants plan milestones more quickly? to instead fund five new SWRCB positions. The • What Interim Steps Can Be Taken to board would benefit from additional in-house Improve Outcomes? What actions are expertise to address upcoming workload being undertaken to improve conditions associated with implementing Phase 1 and for at-risk native fish species while the developing, adopting, and implementing Phase 2 of state waits for plan updates to be adopted the Bay-Delta Plan. and implemented? 2022-23 Budget Series 3 LAO PUBLICATIONS This post was prepared by Rachel Ehlers and reviewed by Anthony Simbol. The Legislative Analyst’s Office (LAO) is a nonpartisan office that provides fiscal and policy information and advice to the Legislature. 2022-23 Budget Series 4