STATE OF Budget Change Proposal - Cover Sheet DF-46 (REV 09/19) Budget Change Proposal - Cover Sheet

Fiscal Year: 2020-21 Business Unit: 3860 Department: Department of Water Resources Priority Number: Click or tap here to enter text. Budget Request Name: 3860-049-BCP-2020-GB Program: 3230 Subprogram: Click or tap here to enter text.

Budget Request Description: Project

Budget Request Summary: The Department of Water Resources (DWR) requests a $35 million one-time General Fund investment for the construction, operation, and maintenance of a series of pollution capture devices and infrastructure projects on the U.S. side of the Tijuana River Valley that supports health and environmental benefits and address pollution issues affecting the Tijuana River.

Requires Legislation: ☐ Yes ☒ No

Code Section(s) to be Added/Amended/Repealed: Click or tap here to enter text.

Does this BCP contain information technology (IT) components? ☐ Yes ☒ No If yes, departmental Chief Information Officer must sign. Department CIO Name: Click or tap here to enter text. Department CIO Signature: Signed On Date: Click or tap here to enter text. For IT requests, specify the project number, the most recent project approval document (FSR, SPR, S1BA, S2AA, S3SD, S4PRA), and the approval date. Project Number: Click or tap here to enter text. Project Approval Document: Click or tap here to enter text. Approval Date: Click or tap here to enter text.

If proposal affects another department, does other department concur with proposal? ☐ Yes ☐ No Attach comments of affected department, signed and dated by the department director or designee. Prepared By: Vivien Maisonneuve Date: January 8, 2020 Reviewed By: Duard MacFarland Date: January 8, 2020 Department Director: Kathie Kishaba Date: January 8, 2020 Agency Secretary: Amanda Martin Date: January 8, 2020

Department of Finance Use Only

Additional Reviews: Capital Outlay:☐ ITCU:☐ FSCU:☐ OSAE:☐ Department of Technology:☐ PPBA: Sergio Aguilar Date submitted to the Legislature: January 10, 2020

A. Budget Request Summary DWR, in coordination with the California Environmental Protection Agency (CalEPA) request a $35 million General Fund one-time investment for the construction, operation, and maintenance of a series of pollution capture devices and infrastructure projects on the U.S. side of the Tijuana River that supports health and environmental benefits and address pollution issues affecting the Tijuana River.

B. Background/History The Tijuana River has been used as a wastewater conduit since the early 20th century. As such, the issue of sewage in the Tijuana River has been a long-standing health concern for several decades. Raw-sewage overflows on the Mexican side, from canyons along the river, are a recurring problem despite cross- cleanup efforts, and are a main source of pollution in the area. In addition to sewage, trash is carried downstream causing damage to vegetation and contributing to flooding.

CalEPA, and the state and ’s Regional Water Quality Control Board, together with local, regional, and state agencies and non-profit, non-governmental organizations, are working to address long-standing pollution issues affecting the Tijuana River, the Tijuana River Valley, and its residents.

C. State Level Considerations Chapter 542, Statutes of 2017 (SB 507) dedicating funding to the County of San Diego to study and identify solutions designed to remedy Tijuana River pollution. This study, known as the County of San Diego’s SB 507 “Needs and Opportunities Assessment” (SB 507 Study), is currently underway and identifies twenty-six potential solutions in the San Diego area and along the U.S. side of the Tijuana River Valley. The study is expected to be fully completed by Spring of 2020.

The 2019 Budget Act provided $15 million to the Coastal Conservancy for Tijuana River Border Pollution Control Projects. Chapter 381, Statutes of 2019, (SB 690) requires the Conservancy to prioritize those projects identified in the County of San Diego’s SB 507 Study when expending any funds to address transboundary flows and pollution in the Tijuana River Valley.

This proposal will fund certain projects identified in the study conducted pursuant to SB 507 and complement the $15M appropriated to the State Coastal Conservancy, and other resource investments on the Mexican side of the border, in Tijuana.

Investment on the part of the Newsom Administration will also continue the State’s productive relationship and partnership with and , consistent with the recent signing of the Commission of the on December 4, 2019, and leverages recent federal investments in waste water treatment along the U.S. – border.

D. Justification Excessive amounts of sewage and waste accumulated in the of Tijuana and its surrounding areas flow into California along the Tijuana River, through the main channel and canyons along the border, particularly during rain events. This pollution threatens public and ecosystem health in the Tijuana River Valley. The River’s waste discharges generally consist of waste tires, residential and industrial waste, as well as some hazardous waste, building materials, and sediment, all of which contribute to contaminated storm water runoff that flows into the Tijuana River National Estuarine Research Reserve among other ecological, recreational, and economic resources. Waste discharges into the Tijuana River also often result in beach closures along the City of San Diego’s coastline, extending as far North as the City of Coronado and many of the specific contaminants found in the Tijuana River pose potentially grave threats to human health.

The tributaries where these proposed projects will be located feed directly into the Tijuana River’s main channel and out to San Diego’s National Marine Estuary and coastline. If funded, these projects would deliver immediate health and ecological benefits to the Tijuana River Valley; the projects will also alleviate the need for consistent beach closures in and around the San Diego area while demonstrating California’s commitment to an effective cross-border partnership with municipal, state, and federal government partners south of the border.

These investments show good will and strength in holding federal and international agencies accountable for fulfilling their part in addressing these challenges and complement federal and other investments in main-channel solutions for the Tijuana River.

E. Outcomes and Accountability Utilizing the $35M for one-time capital investments to the following canyon and tributary based solutions, with 2 years of operation and maintenance (O&M) costs, will result in better management of sediment and trash runoff affecting the Tijuana River’s main channel. The Natural Resources Agency, CalEPA and the San Diego Regional and State Water Boards are committed to coordinating with local and regional representatives and to continuing their efforts to remedying challenges at the federal level. The specific projects defined below will complement those ongoing efforts and will assist in attaining measureable results on the ground, and ecosystem and health benefits for San Diego area residents.

Proposed Gulch and Canyon Projects:

1. Smuggler’s Gulch sediment and trash detention basins - $17M one time capital investment for the following components: a. sediment basins ($3M to build; approximately $1M/year to operate/maintain); b. automated trash screens ($2M to build; approximately $250k/year to operate/maintain); c. in-stream water quality detention basin to capture flows bypassed from the proposed sedimentation basin upstream ($8M to build; approximately $100k/year to operate/maintain); d. retrofit low flow diversion to increase the low flow diversion and conveyance capacity, including reconstructing the outlet ponding basin to prevent dry-weather flows from flowing downstream ($4M to build; approximately $100k/year to operate/maintain).

This project has public health, recreational usage and ecosystem benefits. By reducing the amount of trash and sediment that flows into a vulnerable and protected estuary, this protects public health from exposure to contaminated trash, allows the public to use trails recreationally for horseback riding and hiking, and allows the natural ecosystem to thrive, as sediment and trash impede its natural health.

2. Yogurt Canyon feasibility studies and pilot channel construction - $1M one-time capital investment for the components: a. feasibility study to assess the feasibility of installing low-flow diversions to divert flows back to existing treatment facilities ($500k to conduct study); b. creation of a Pilot Channel to convey Yogurt Canyon flows and sediments up to a 5-year flood frequency. This would help protect Monument Road, a main road through the estuary that is often closed due to flooding ($500k to build; approximately $50k/year to operate/maintain).

This project would protect Monument Road from hazardous and often toxic winter flooding. Monument Road is the only public-use road available to access Friendship Park (a park designed to facilitate cross-border family visitation) and the southernmost beaches of California, along the border. This road is flooded and closed every year in the winter, prohibiting recreational usage of the public trails and beaches.

3. Goat Canyon low-flow diversions, sediment and trash capture device maintenance – $4M one-time capital investment for the following components: a. retrofit low-flow diversion to increase the low flow diversion and conveyance capacity, including reconstructing the outlet ponding basin to prevent dry-weather flows from flowing downstream ($4M to build; approximately $50k/year to operate/maintain); b. sedimentation and trash management in Goat Canyon: California State Parks operates two existing sedimentation basins and trash booms in Goat Canyon (approximately $5M/year to operate and maintain.) This project would reduce contaminated water, sediment and trash flowing into the Tijuana River Valley estuary, protecting human health, trails, housing, horses, beaches, and vulnerable habitat.

The Administration will work with local and regional representatives to provide local assistance grants for these projects, support design plans, facilitate operation and maintenance agreements, and support environmental review and permitting. The total timeline for completion for construction is anticipated to take 18 months.

F. Analysis of All Feasible Alternatives Alternative 1: Approve $35 million General Fund one-time for the construction, operation, and maintenance of a series of pollution capture devices and infrastructure projects on the U.S. side of the Tijuana River that supports health and environmental benefits and address pollution issues affecting the Tijuana River.

Analysis: Pros: Many portions of the river valley are identified by CalEnviroScreen 3.0 as disadvantaged community areas, and this project would benefit those communities. According to samples taken by IBWC, Yogurt Canyon, Goat Canyon, and Smuggler’s Gulch all had E Coli levels that exceed water quality objectives. The canyon-based options would reduce contaminated flows that reach the valley. The public uses the estuary for hiking, biking, and horseback riding, and the County of San Diego will be building a campground in the valley. The ocean and beaches are used for swimming and recreation. Reducing canyon-based trash and sedimentation in the valley would improve the conditions for the public for recreational use. The Tijuana River National Estuarine Research Reserve encompasses beach, dune, mudflat, salt marsh, riparian, , and upland habitats. Critical issues confronted by the Reserve include habitat conservation and restoration, endangered species management, management of the wastewater from Mexico, sediment management, and the integration of recreation. Reducing trash, sewage and sedimentation flowing into the estuary from the canyons would protect vital estuarine habitat and complement the salt marsh restoration effort and Tijuana Estuary Tidal Restoration Program.

Cons: Results in General Fund costs.

Alternative 2: Approve partial funding.

Analysis: Pros: Will result in the state supporting a limited number of projects based on the approved funding. This will result in continued pollution issues affecting the Tijuana River Valley and hinders human health, recreational usage, and the unique ecosystem of the Tijuana River Valley.

Cons: Results in General Fund costs.

Alternative 3: No funding for the projects.

Analysis:

Pros: No strain on General Fund resources.

Cons: To maintain the status quo of no funding for any of these projects hinders human health, recreational usage, and the unique ecosystem of the Tijuana River Valley.

G. Implementation Plan CalEPA, DWR and the Natural Resources Agency are fully committed to collaborating with local, regional, and federal partners on the implementation of the proposed projects. State Parks, the State and Regional Water Quality Control boards and others will play a key and expert role in assisting to ensure water quality improvements over time.

The projects involve largely straightforward and mobile infrastructure that does not entail complex or lengthy permitting or review. These projects will involve partnerships with local governments and the development of key agreements and the provision of local assistance grants to provide funding to the local entities to achieve the goal of improving overall water quality.

H. Supplemental Information Leverage of the Coastal Conservancy’s $15 million Appropriation:

The infrastructure projects described here complement the Coastal Conservancy’s investment in habitat restoration and coastal watershed preservation in the areas affected by pollution from the Tijuana River, by yielding improvements in water quality and ecosystem health in many of the Tijuana River’s most challenging tributaries and canyons.

The Coastal Conservancy generally funds, directs, and implements projects focused on coastal wildlife and habitat restoration. The 2019 Budget Act provided $15 million to the Conservancy for Tijuana River Border Pollution Control Projects. Senate Bill 690, signed by the Governor in September 2019, requires the Conservancy to prioritize those projects identified in the County of San Diego’s SB 507 Study when expending any funds to address transboundary flows and pollution in the Tijuana River Valley.

I. Recommendation Alternative 1-Approve $35 million General Fund one-time for the construction, operation, and maintenance of a series of pollution capture devices and infrastructure projects on the U.S. side of the Tijuana River that supports health and environmental benefits and address pollution issues affecting the Tijuana River. BCP Fiscal Detail Sheet BCP Title: Tijuana River Project BR Name: 3860-049-BCP-2020-GB Budget Request Summary Operating Expenses and Equipment

Operating Expenses and Equipment FY20 FY20 FY20 FY20 FY20 FY20 Current Budget BY+1 BY+2 BY+3 BY+4 Year Year 54XX - Special Items of Expense 0 35,000 0 0 0 0 Total Operating Expenses and Equipment $0 $35,000 $0 $0 $0 $0 Total Budget Request

Total Budget Request FY20 FY20 FY20 FY20 FY20 FY20 Current Budget BY+1 BY+2 BY+3 BY+4 Year Year Total Budget Request $0 $35,000 $0 $0 $0 $0 Fund Summary Fund Source

Fund Source FY20 FY20 FY20 FY20 FY20 FY20 Current Budget BY+1 BY+2 BY+3 BY+4 Year Year

Local Assistance - 0001 - General Fund 0 35,000 0 0 0 0

Total Local Assistance Expenditures $0 $35,000 $0 $0 $0 $0 Total All Funds $0 $35,000 $0 $0 $0 $0 Program Summary Program Funding

Program Funding FY20 FY20 FY20 FY20 FY20 FY20 Current Budget BY+1 BY+2 BY+3 BY+4 Year Year

3230 - Continuing Formulation of the California 0 35,000 0 0 0 0 Water Plan Total All Programs $0 $35,000 $0 $0 $0 $0