BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 409
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          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.









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          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   








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            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  








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            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  








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            "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 








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