The URL can be used to link to this page

Home My WebLink About0380.092'1 . , I . .... , • ! .~ ~. . . '"''".''' ,:, .. . , Auq-Llet S, 1992 THE HONORABLE CITY COUNCIL Palo Alto, California Water policy Legislation Members of the council: Report in Brief..i.. This staff report is to inform Council of the status of pending leqislation regarding feaeral and state water policy. No action is requested of Council. Bagkgrpuod A qreat deal of leqislative activity has been taking place during the latter part of this 6-year drought to reform federal and state water policy. Attempts cor~tinue aJIIonq environmental, agricultural, urban and power interests to seek fair solutions to diverse concerns.. Political pressures continue to increase to write environmental laws that would change state and national vater policy. The four major interests mentioned above are interacting through the legislative process in an atte~pt to settle these difficult issues. Since the issues are complicated and the negotiations through the legislative process are underway, staft's intent is to list City concerns, elements of which are addressed in sever3l different arenas, rather than to recommend a specific position at this time. legislative yrQPosals proposals to encourage massive reform ~hich have a potential tor significant impact on Palo Alto include diverting ~ater from existing uses and transfer of the Central Valley Project (CVP) from federal to state ownership. Among the most prominent is federal leqislation advocatinq the real~ocation of water primarily to fish and wildlife 6S introduced by U.S. Senators Bennett Johnston and Bill Bradley and California Representative George Miller. This is generally re~erreQ to as the Miller Bill. In addition to diversion, ~he Miller Bill creates a Central Valley Project Transfer Committee to prepare a report Won all issues associated with transfer of all Central Valley project facilities ~nd assets ••• •• Responding to concerns over this and ClIR:l80:92 ~<: I r - the severe effect of diversion of sl.Jch a substantial d:ClOunt of vater, Governor Wilson has also proposed the transfer of the CVP ;from the federal g-overj'lment to th(~ State of california~ U.s. Senator John Seymcur and California Representative Calvin Dooley have introduced companion legislation to allow voluntary transfer of water from CVP to other users~ This legislation represents a ccmp~omise between urban and agricultural interests, inclucUnq ~ framework for reiSolvinq displ..:::tes. In addition, it requires diversion of ~ater f~r environmental purposes; however, apparently in amounts ins~fficient to satisfy representatives of environmental interests. Issues and Concerns Some of the major issues still to be ~esolved in ongoing debates include the determination of the envirunmental impacts as a result of the original development cf the water syste~s~ the extent to which these impacts ~eLe caused by the Central valley Project, the amount of wat~r (or dollars) necessary to corre~t the environmental da~age, and: finally, how these costs are to be apportioned am~n; the responsible parties. The city is sensitive to the$e concerns and generally agrees that entities causinq environmental damaqe should participate -equitably· in efforts to mitigate the damage. However, a great deal more compromise and negotiation must occur among the four interests to arrive at reas~nable ohjectives that are clear, rational and achieVable. The ~iller Bill falls short of those objectives in that it allocates a disproportionate share of the burden for repairing environmental damage to the Central Valley Project, which in turn is heavily ~eighteQ against po~er use~s. Since Palo Alto continues its heavy reliance on the CVP through its contract with the western Area Po~er Administration, there would be a large (over 20%) direct impact on wholesale power costs. The amount of water released for environm~ntal purposes is as y2t u~defined. It is likely that additional power would have to be purchased by Western to meet its contract obligations. This supplemental power probably would come from suppliers relying on coal or natural qas fueled qeneration. The net effect is not only increased cost to the City but potential air quality degradation as wall. The increasingly likely prospect of transferring the CVP to the state is obviously a concern to Pale Alto. Governor Wilson has established a CVP Advisory Committee to advise him on the proposal, with a repert to be prepared by October 1992. The NCPA General Manager, Hike MCDonald, has been appointed to the CVP Advis.ory committee. Mr. McDonald has prepared sU ... 'I..maries of items CXI.;380192 2 L , C' - " discussed at the Committe~ and he is aware of the concerns of the various CVP customers including Palo Alto. Palo Alto staff provide their input through a separate CVP custome~ committee. The main concerns are maint.aining ~nd renewing contracts, maintaining status as CVP pr~ferer.ce customers and ~aintaining cost based whclesale rates. The transfer could take slNeral years to act~al1y implement. summery NCPA's staff is monitoring the progress of this legislation anal in fact$ have been dire~tly lobbying the legislators to make them aware of ~h8 concerns primarily facing the po~er users. The proposals will reqyire legislative changes at both the state and federal levels, and therefore could take as long as three years to be passed. This activity has been coordinated through the NCPA Legislative Committee on ~hi~h Council Member cobb has been participating. Botb NCPA and City staff will continue to monitor tbese activities and will become directly involved ~herever possi~le. Council Members eoce and Rosenbaum are prepared to discuss these matters with individual council Members. No councll action is required at thi~ ti~e. Respectfully submitted, 1,0 Ii Ji' [) ;:-), j' lIf&n~M !f '64'1.1'-, RONALD P. BELVAL Manager, Resource Planning ~..-.-« -C -:P~ RICHARD L. YOUNG ,::7 Director of Utilities ~ Assistant City Manager CXII:38 Q: 92 1-11:' .. _-- 3