BILL ANALYSIS                                                                                                                                                                                                    



                   SENATE AGRICULTURE & WATER RESOURCES COMMITTEE
                             Senator Jim Costa, Chairman

          BILL NO:  SB 610                      HEARING:  4/24/01
          AUTHOR:  Costa                        FISCAL:  Yes
          VERSION:  2/22/01                     CONSULTANT:  Brent  
          Walthall
          
                                Water Supply Planning

          BACKGROUND AND EXISTING LAW

          In 1995, the Legislature passed SB 901 (Costa) which, for the  
          first time, required planning agencies to consider information  
          provided by water suppliers in their decision to approve or deny  
          commercial, industrial, or residential development.  Under SB  
          901 a water provider that has more than 3,000 domestic service  
          connections may provide an assessment of water supply  
          availability to the local planning agency for any of the  
          following:
          (1)a residential development that has more than 500 homes; 
          (2)a business employing more than 1,000 people or having more  
            than 500,000 square feet of floor space; 
          (3)a commercial office building employing more than 1,000 people  
            or having more than 250,000 square feet of floor space;
          (4)a hotel having more than 500 rooms; 
          (5)an industrial complex with more than 1,000 employees and  
            occupying more than 40 acres of land; or 
          (6)a mixed use project that would require the same or greater  
            amount of water as a 500 dwelling-unit project.

          These requirements ensure that developments of all types are  
          subject to similar reviews as part of the water supplier's  
          assessment.
           
          Under SB 901 the assessment must state whether the water supply  
          needs of the development can be met by the supplies available to  
          the water provider as described in its Urban Water Management  
          Plan.  The assessment should determine if the water provider's  
          available water supplies are capable of meeting the  
          development's needs during single-dry and multiple-dry water  
          years as described in the Urban Water Management Plan's 20 year  
          projection.  The heart of SB 901 is the requirement that the  
          lead agency for the project under CEQA must include the water  
          supply assessment in the environmental impact report required  
          for the development.
           
          The local planning agency may deny the development if the  
          assessment shows that insufficient water supplies are available.  




                                     Page 2                        SB 610


           However, the local agency is not required to deny the  
          development and may approve the development if it so chooses.


          PROPOSED LAW

          This bill would make findings and declarations regarding  
          California's inability to predict the amount of water available  
          for development and the overall decrease in water supply  
          reliability that results from continued commercial, industrial,  
          and residential growth.  The findings also state that previous  
          legislation (SB 901 (Costa)) intended to provide planning  
          agencies with information about available water supplies has not  
          been implemented as intended by the Legislature.

          The bill would amend the California Environmental Quality Act  
          (CEQA) to require any city or county that determines a project  
          is subject to CEQA, to require that project to comply with Part  
          2.10 of the Water Code (Water Supply Planning to Support  
          Existing and Planned Future Uses).

          The bill adds to the assessment of service reliability required  
          to be included in Urban Water Management Plans.  The added  
          section would require urban water suppliers whose water supply  
          includes groundwater to identify other users of the groundwater  
          basin, and estimate the maximum amount of water than can be  
          withdrawn from the groundwater basin annually.  The added  
          requirements also would require the urban water supplier to  
          identify whether the groundwater basin is overdrafted, and  
          describe any groundwater management efforts in the basin to  
          mitigate the overdraft. 
           
          Existing law requires water districts to prepare a water supply  
          assessment for any project that requires:  (1) the adoption of a  
          specific plan, or (2) an amendment to a general or specific plan  
          that results in an increase in population or building density.   
          This bill would delete those two criteria thereby making a water  
          supply assessment necessary for any project that is subject to  
          CEQA.  

          The bill would make amendments to existing law by requiring  
          cities and counties to identify the water system that is or may  
          become the water supplier for the project.  If no water supplier  
          can be identified, the Department of Water Resources shall  
          conduct the water supply assessment.  

          The bill would require the water supply assessment to include an  





                                     Page 3                        SB 610


          identification of the water supplier's existing water supply  
          entitlement, water rights, or water service contracts.  The bill  
          requires all of the following as proof of those entitlements,  
          rights and service contracts:  (1) Proof of entitlement to the  
          water supply; (2) copies of an adopted capital outlay program;  
          (3) any necessary federal, state, and local permits to build any  
          necessary infrastructure; and (4) any necessary regulatory  
          approvals for conveyance of the water.

          If the water supplier has not previously received water from the  
          identified water supply entitlements, rights, or service  
          contracts, then the bill would require the water supplier to  
          identify any other water suppliers that also receive water from  
          those same entitlements, rights, or service contracts.

          If the water supplier receives any of its water from groundwater  
          sources, the bill would require the water supplier to identify  
          other users of the groundwater basin, and provide an estimate of  
          the maximum amount of water than can be withdrawn from the  
          groundwater basin annually.  The water supplier must also  
          identify whether the groundwater basin is overdrafted, and  
          describe any groundwater management efforts in the basin to  
          mitigate the overdraft. 

          The city or county shall request DWR to perform the water supply  
          assessment if the water supplier fails to submit the requested  
          water supply assessment to the city or county.  The bill would  
          require the state controller to deduct DWR's cost of producing  
          the water supply assessment from any state funds appropriated to  
          the water supplier. 

          The bill would require the city or county to include the water  
          supply assessment in any environmental document prepared  
          pursuant to CEQA. 

          The bill would add to the definition of a project by including  
          any mixed-use project, general plan, element or amendment that  
          includes any one of the types of projects defined in existing  
          law.  The bill would expand the definition of a project by  
          including any project that would require as much water as a 500  
          dwelling unit project.  The bill would also add to the  
          definition of a project any project that results in a 10% or  
          greater increase in a water supplier's total demand.

          Existing law provides an exemption from these requirements for  
          San Diego County because San Diego voters enacted a measure that  
          is functionally equivalent to the water supply assessment  





                                     Page 4                        SB 610


          requirements.  This bill would ensure that functional  
          equivalency by requiring the Office of Planning and Research to  
          determine that certain requirements have been met.   


          COMMENTS

          1.A recent study of environmental documents for commercial,  
            industrial, and residential developments shows a high level of  
            non-compliance with SB 901.  The East Bay Municipal Utility  
            District examined 119 large scale development projects and  
            found that only 2% complied with all of the requirements of SB  
            901.  Of those that did not comply, 24% did not identify any  
            water supply.  This bill ensures that all commercial,  
            industrial and residential projects have an identified source  
            of water and that city and county planning agencies have  
            sufficient information to determine the adequacy of those  
            supplies before deciding to approve or deny a development  
            project.

          2.California's increasing population and limited water supply  
            virtually guarantee a future of insufficient water supply to  
            support California's forecasted growth.  While this bill  
            provides a much needed link between the planning decisions of  
            cities and counties and the amount of water available for  
            development, it does not address the state's fundamental need  
            for additional water supplies.  

          3.Courts have begun to recognize the importance of water  
            supplies to support development.   Last year the Los Angeles  
            County Superior Court decided a case challenging the adequacy  
            of the environmental documents for the Newhall Ranch  
            residential development.  In that case the court found the  
            environmental documents to be inadequate in part because the  
            water supplies identified by the project proponents were  
            insufficient to meet the project's needs.

          4.Senator Kuehl has introduced SB 221 which also address the  
            issue of land use and water supply.  SB 221 would require a  
            city or county to deny approval of a tentative or parcel map  
            if the city or county finds that the project does not have a  
            sufficient, reliable water supply as defined in the bill.


          SUPPORT
          
          American Planning Association (if amended)





                                     Page 5                        SB 610


          California Building Industry Association (if amended)
          California Business Properties Association (if amended)
          California Chamber of Commerce (if amended)
          California Farm Bureau Federation (if amended)
          California Manufacturers and Technology Association (if amended)
          California Municipal Utilities Association
          Citizens Planning Association of Santa Barbara County
          Department of Justice (Attorney General)
          East Bay Municipal Utility District
          Friends of the River
          National Audubon Society
          Planning and Conservation League
          Sierra Club
          The Nature Conservancy


          OPPOSITION
          
          Association of California Water Agencies