BILL ANALYSIS SB 409 Page 1 Date of Hearing: June 22, 2005 ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT Simon Salinas, Chair SB 409 (Kehoe) - As Amended: May 11, 2005 SENATE VOTE : 22-14 SUBJECT : General plans: conservation element. SUMMARY : Requires that the water resources portion of a general plan's conservation element be correlated with the land use element. Specifically, this bill : 1)Requires that the water resources portion of a general plan's conservation element be correlated with the land use element. 2)Requires counties and cities to correlate the water supply portion of their conservation elements with their land use elements by one year after the deadline for revising their housing elements after 2007. 3)Allows cities and counties to adopt written findings declaring that their general plans already comply with this requirement. EXISTING LAW : 1)Requires every county and city to adopt a general plan that contains seven mandatory elements: land use, circulation, housing, conservation, open space, noise, and safety. 2)Requires the land use element to designate public and private land use categories, including land for housing, business, industry, open space, education, and public buildings, and include standards for population density and building intensity. 3)Requires the conservation element to address conserving, developing, and using natural resources, including water. 4)Requires a city or county to use a water agency's water management plan as a source document for the adoption or amendment of the conservation element of a general plan. SB 409 Page 2 5)Requires public water systems to provide information on water supply to city or county planning agencies upon notification of proposed adoption or amendment of a general plan. 6)Requires a city or county to deny approval of a tentative or parcel map for any subdivision of more than 500 residential units if the developer cannot provide written verification that an adequate water supply is or will be available. 7)Requires a city or county to make a water supply assessment for any project that is subject to CEQA, and requires cities and counties to identify the water system that is or may become the water supplier for the project. FISCAL EFFECT : The Senate Committee on Appropriations determined that any additional state costs created by SB 409 are not significant and do not and will not require the appropriation of additional state funds, and that SB 409 will cause no significant reduction in revenues, pursuant to Senate Rule 28.8. COMMENTS : 1)In 1995, the Legislature passed SB 901 (Costa), Chapter 881, Statutes of 1995, 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. A recent study of environmental documents for commercial, industrial, and residential developments showed a high level of non-compliance with SB 901. 2)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. Over 90% of the projects identified either the State Water Project (SWP) or the Central Valley Project (CVP) as a water source. However, since both of these systems already have significantly more demand on them than they are capable of meeting, identifying them as water sources for planned development is, at best, unrealistic. 3)In addition, the courts have begun to invalidate environmental impact reports (EIRs) for development projects that do not adequately identify real water supply sources. In Santa SB 409 Page 3 Clarita Organization for Protecting the Environment v. County of Los Angeles, 131 Cal. Rptr. 2d 186 (2003), the court found that "an environmental impact report for a housing development must contain a thorough analysis that reasonably informs the reader of the amount of water available. The dream of water entitlements from the incomplete State Water Project (SWP) is no substitute for the reality of actual water the SWP can deliver," and ruled that Los Angeles County erred in approving the EIR for the Newhall Ranch residential development because the water service portion of the EIR was inadequate. In 2000 the Kern County Superior Court decided another case challenging the adequacy of the environmental documents Newhall Ranch (United Water Conservation District v. County of Los Angeles et al., No. 239324 RDR (Kern Co. Super. Ct. 2000)). 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. In Planning and Conservation League et al. v. Department of Water Resources, 83 Cal.App.4th 892 (2000), (PCL) the court found that the EIR for the so-called "Monterey Agreement," in which DWR and six agricultural and urban contractors to the SWP agreed to revise methods of allocation among contractors, was invalid because it failed to meaningfully analyze alternatives. The court also stated that "where land use planning determinations can be made on the basis of entitlement rather than real water, development can outpace the availability of water, leading to detrimental environmental consequences, excessive groundwater pumping, and pressure to develop additional water supplies" (PCL at 914). 4)SB 610 (Costa), Chapter 643, Statutes of 2001, took significant steps to tighten up and close loopholes in SB 901 in order to ensure 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. SB 610, like SB 901 before it, addressed the issue of water supply assessment fairly early in the planning process, at the level of a specific plan or the creation or revision of an urban water management plan. 5)SB 221 (Kuehl), Chapter 642, Statutes of 2001, also addressed SB 409 Page 4 the broad issue of land use and water supply, but at a different point in the planning process. SB 221 requires a city or county to deny approval of a tentative or parcel map for a subdivision of more than 500 units if the city or county finds that the project does not have a sufficient, reliable water supply. SB 221 is the only one of the chaptered bills in this area that requires action by a developer. The responsibility for compliance with the requirements of SBs 901 and 610 lies with local governments and water districts. 6)Some question has arisen about the definition of the word "correlation" as used in SB 409. According to material provided by the sponsor of SB 409, the Attorney General, previous court cases construing the "correlation" required between the circulation element and the land use element are instructive. In those cases, the courts have found that 1) correlation must be demonstrated; it is not to be assumed (Twain Harte Homeowners Association v. Tuolumne County (1982) 138 Cal.App.3d 664); 2) correlation means, as defined by Webster, "closely, systematically, or reciprocally related?," so only a general alignment between general plan elements is required since these plans are general in nature (Concerned Citizens of Calaveras County v. Board of Supervisors (1985) 166 Cal.App.3d 90); and 3) correlation means that the circulation element must include "meaningful proposals" to address growth changes in the land use element and vice versa (Federation of Hillside & Canyon Associations et al v. City of Los Angeles (2004) 126 Cal.App.4th 1180). Based on these precedents and definitions, SB 409 would require a general alignment between water supply and land use growth, including meaningful proposals to meet future water needs, where appropriate, but would not require that every drop of water ever to be needed in the future must be identified in the conservation element. 7)According to the author, the question raised by this bill is when should the "water supply issue" be addressed? SB 409 is premised on the idea that society would be better off if any water supply issues were addressed as early as possible in the process, with proper coordination between the city/county and the water agency and the ability to develop any needed water supplies. By requiring a correlation between water supply and land use water supply to at the general plan level - the basic blueprint for development - SB 409 can be seen as completing a tiered structure for ensuring adequate supplies of real, not SB 409 Page 5 "paper" water started by SBs 901, 610, and 221. When this system works as it is meant to, a city or county will begin coordinated water supply planning adequate for the level of growth projected in its general plan, information that can be tiered off of at the specific plan/urban water management plan addressed by SB 610, and which in turn can be used by a subdivider to satisfy the requirements of SB 221 with a minimum of effort. SB 409 will, by requiring water supply to be addressed at the earliest stage of development, make it that much less likely that a developer or subdivider will find the requirements of SB 221 a burden, and also reduce the likelihood of litigation over water supply disputes at the level of individual development projects. 8)This bill has been double-referred to the Committees on Local Government and Water, Parks and Wildlife. REGISTERED SUPPORT / OPPOSITION : Support Attorney General Bill Lockyer [SPONSOR] American Federation of State, County, and Municipal Employees CA Farm Bureau Federation CA League of Conservation Voters East Bay Municipal Utility District Opposition CA Association of Realtors CA Building Industry Association CA Business Properties Association CA Business Roundtable CA Chamber of Commerce Consulting Engineers and Land Surveyors of CA Greater Fresno Area Chamber of Commerce Home Ownership Advancement Foundation Milpitas Chamber of Commerce Pardee Homes Resource Landowners Coalition San Rafael Chamber of Commerce Analysis Prepared by : J. Stacey Sullivan / L. GOV. / (916) 319-3958 SB 409 Page 6