BILL ANALYSIS                                                                                                                                                                                                    



                                        
                       SENATE LOCAL GOVERNMENT COMMITTEE
                          Senator Tom Torlakson, Chair


          BILL NO:  SB 610                      HEARING:  5/2/01
          AUTHOR:  Costa                        FISCAL:  Yes
          VERSION:  2/22/01                     CONSULTANT:  Detwiler
          
                          LAND USE AND WATER SUPPLIES

                           Background and Existing Law  

          Nearly 70 years ago, the Legislature required cities and  
          counties to adopt general plans.   Over time, these general  
          plans have become the legal basis for local decisions about  
          land use development and conservation: zoning,  
          subdivisions, public works, and use permits.  Since the  
          1970s, local land use decisions are subject to  
          environmental review under the California Environmental  
          Quality Act (CEQA).

          Public water systems with more than 3,000 customers must  
          adopt urban water management plans (AB 797, Klehs, 1983).   
          Cities and counties must send their proposed general plan  
          amendments to public water systems for review.  Public  
          water systems must give cities and counties specific  
          information about water supplies and their future plans (AB  
          455, Cortese, 1992).

          In 1995, the Legislature required cities and counties to  
          consider information provided by water suppliers when  
          acting on applications for large-scale residential,  
          commercial, hotel, industrial, or mixed-use projects.  If a  
          project requires an environmental impact report under CEQA,  
          the public water system must assess whether its total  
          projected water supplies will meet the projected water  
          demand from the proposed development project.  The  
          Legislature exempted projects in San Diego County from  
          these requirements because local voters had created a  
          regional planning and growth management review board (SB  
          901, Costa, 1995).

          A recent study by the East Bay Municipal Utility District  
          shows that local officials do not comply with the 1995  
          Costa law.  Of the 119 projects studied, only 2% complied  
          with all of the requirements.






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                                   Proposed Law  

          Senate Bill 610 expands the requirement for public water  
          systems to prepare water supply assessments for large-scale  
          projects.  SB 610 requires every large-scale project to  
          have a water supply assessment, not just projects that need  
          environmental impact reports, or amendments to general  
          plans and specific plans.

          The bill requires smaller public water systems (those with  
          less than 5,000 connections) to prepare water supply  
          assessments on projects that would increase their service  
          connections by 10% or more.

          The bill expands the information required in water supply  
          assessments to include more information about water supply  
          contracts, capital outlay programs, permits, and regulatory  
          approvals in their water supply assessments.  SB 610  
          expands the time for public water systems to approve their  
          water supply assessments from 30 days to 90 days.

          If the city or county cannot identify a public water system  
          to provide the water supply assessment, SB 610 requires the  
          State Department of Water Resources to prepare the  
          assessment.  The bill allows the State Controller to cover  
          the Department's costs.

          The bill exempts projects in San Diego County from the  
          requirement to prepare water supply assessments only if the  
          Office of Planning and Research determines that local and  
          regional officials have met six statutory conditions.

          SB 610 requires urban water management plans to include  
          more information about groundwater supplies.


                                     Comments  

          1.   Knowledge is power  .  Alarmed that cities and counties  
          were approving large-scale developments without enough  
          information about the availability of long-term water  
          supplies, the Legislature reacted in 1995 by passing a bill  
          that required this information to appear in environmental  
          impact reports.  Rather than creating elaborate new review  
          procedures, the 1995 law relied on standard definitions,  
          the existing urban water management plans, and accepted  





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          environmental review processes.  Heralded at the time as a  
          reasonable compromise, the law appears to have been ignored  
          by cities and counties as well as by water suppliers.  SB  
          610 reforms the 1995 law, seeking better compliance.

          2.   Too much, too soon  .  California's land use planning and  
          development laws require builders and local officials to  
          travel a long path from the initial idea to actual  
          construction.  General plans, urban water management plans,  
          congestion management plans, development agreements,  
          zoning, and environmental review all precede the  
          construction of subdivisions, shopping centers, and  
          industrial parks.  While no reasonable person believes that  
          large-scale development can occur without long-term water  
          supplies, asking water purveyors to generate detailed  
          information so early in the development process is a case  
          of asking too much, too soon.  SB 610 forces local  
          officials, water purveyors, and private builders into  
          unnecessary confrontation.

          3.   Hold them accountable  .  The 1995 Costa bill held much  
          promise but local officials' implementation seems lacking.   
          To avoid repeating that poor performance, the Committee may  
          wish to consider setting up a method for observing how  
          cities, counties, and water purveyors carry out the reforms  
          in SB 610.  The Committee may wish to consider asking the  
          State Department of Water Resources and the Governor's  
          Office of Planning and Research to collaborate on a  
          monitoring project that tracks how local officials include  
          water supply information in their environmental documents.   
          Regular, biennial reports would alert legislators to any  
          need for further reforms.

          4.   Second base  .  The Senate Rules Committee ordered a  
          double-referral of SB 610 and the related SB 221 (Kuehl).   
          Both bills passed the Senate Agriculture and Water  
          Resources Committee on Tuesday, April 24.

          5.   Technical amendment  .  The Committee should adopt a  
          technical amendment.  Section 9 of the bill allows local  
          agencies to recoup the costs of the bill's state mandated  
          local programs.  More appropriately the bill should  
          disclaim state reimbursement because local officials can  
          charge fees to recover their costs.







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                          Support and Opposition  (4/26/)

           Support  :  American Planning Association-California Chapter,  
          California Building Industry Association, California  
          Building Properties Association, California Chamber of  
          Commerce, California Farm Bureau Federation, California  
          Manufacturers and Technology Association, California  
          Municipal Utilities Association, Citizens Planning  
          Association of Santa Barbara County, Department of Justice,  
          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.