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permitting, FERC licensing, and NEPA compliance. <br />► ESA decisions have major economic impacts, and have created a regulatory <br />drought in California's San Joaquin Valley (50% CVP water supply cut in 1993, <br />a wet year) . <br />► In California, unlike other western states, the state operates a major water <br />supply system. As a result of ESA - listed species, we now have federal biologists <br />directing operation of the SWP on a day -to -day basis. Since California has about <br />two - thirds of the nation's ESA candidate species, we expect to be faced with <br />continuing federal preemption issues. <br />State - Federal Coordination Issues <br />► Some progress has occurred with terrestrial species. The <br />gnatcatcher /California coastal sage scrub habitat coordination attempt is an <br />example. DWR's Coastal Aqueduct, MWD's Domenigoni Reservoir, and <br />CCWD's Los Vaqueros Reservoir demonstrated that projects which improve water <br />management (but develop no new water) can be implemented -- at substantial <br />compliance costs. <br />► Coastal Aqueduct example -- 1 year delay in ESA consultation due to <br />USACE & USFWS internal conflicts, blunt -nosed leopard lizard round -up <br />costs alone of $300,000 (about 70 lizards). [Hold up blunt -nosed t- shirt] <br />► Aquatic species remain problematic -- for example, our Delta experiences. <br />► As result of uncoordinated federal actions by EPA, USFWS, and NMFS, <br />Governor requested establishment of formal fed coordination effort, leading <br />to formation of Club Fed. <br />► Subsequently Framework Agreement signed, to establish state -fed roles <br />in water quality standard setting, water project operation, and long -term <br />solution. <br />P. We find that feds have limited staff resources to participate with us in <br />coordination actions, and especially in long -term Delta solution. USFWS <br />and NMFS are experienced at regulating, but not at implementing solutions. <br />• <br />