BILL ANALYSIS SENATE LOCAL GOVERNMENT COMMITTEE Senator Gloria Negrete McLeod, Chair BILL NO: SB 821 HEARING: 4/25/07 AUTHOR: Kuehl FISCAL: Yes VERSION: 4/23/07 CONSULTANT: Detwiler DEVELOPMENT DECISIONS AND WATER SUPPLY Background and Existing Law Urban water suppliers with more than 3,000 customers must adopt urban water management plans (AB 797, Klehs, 1983). An important component of these plans is an assessment of water reliability service during normal, dry, and multiple-dry years (AB 1845, Cortese, 1995). Urban water suppliers must review their plans in years that end in "0" and "5" (AB 2552, Bates, 2000). Urban water management plans are source documents for cities and counties' general plans. Before they adopt or amend their general plans, city and county planners must notify urban water suppliers and follow a standardized process for determining the adequacy of water supplies (AB 455, Cortese, 1992). Cities and counties must consider information provided by water suppliers when they act on proposals for large-scale residential, commercial, hotel, industrial, or mixed-use projects (SB 901, Costa, 1995). Concerned that local agencies weren't implementing the 1995 requirements, legislators broadened its application and increased the required information. Every large-scale development project must have a water supply assessment (SB 610, Costa, 2001). The Subdivision Map Act requires cities and counties to include as a condition in their approval of a tentative map for a subdivision with more than 500 dwelling units that a sufficient water supply must be available (SB 221, Kuehl, 2001). More specifically, the 2001 Kuehl bill: Required that proof of the availability of a sufficient water supply must be based on a written verification from the applicable public water system. Allowed either the applicant or the city or county to request the written verification and gave the public water system 90 days to respond. SB 821 -- 4/23/07 -- Page 2 Allowed the city or county or any other interested party to seek a writ of mandate if the public water system fails to deliver the water supply assessment. Allowed a city or county to find that sufficient water supplies will be available, even if the public water system does not provide written verification. Required that, when a public water system's written verification relies on projected water supplies, the verification must be based on written contracts, adopted capital outlay programs, and infrastructure construction permits. Required that, when a public water system's written verification relies on groundwater, the public water system must evaluate whether the landowner has additional groundwater rights. Applied these requirements to residential subdivisions with more than 500 dwelling units. The requirements also apply to subdivisions that increase service connections by 10% or more in public water systems with less than 5,000 connections. Applied this same requirement to development agreements that include larger residential subdivisions. Exempted certain residential projects from these requirements. Exempted the County of San Diego under certain conditions. In October 2003, the Senate Local Government Committee and the Senate Agriculture and Water Resources Committee held a joint hearing on "Water and Land Use Planning" in Tracy. After two hours of comments from 14 witnesses, the committees' staffs identified five findings: Local officials have not fully implemented SB 221 and SB 610. There is support for including water supply and water demand information in city and county general plans. Urban water management plans and agricultural water management plans were a good start, but more needs to be done. Legislators should amend the water and land use planning statutes to improve the law's clarity and effectiveness. Legislators should consider lowering the threshold SB 821 -- 4/23/07 -- Page 3 that triggers a water supply and demand analysis for proposed development projects. Six years after the enactment of the 2001 bills, some legislators want to review the statutory connections between land use decisions and water supplies. Proposed Law Senate Bill 821 requires the California Research Bureau (CRB) to report to the Legislature by July 1, 2008. Covering 2004, 2005, and 2006, CRB's report must: Determine the number of subdivisions, determine the number of dwelling units, and estimate the amount of water affected by the Map Act's requirements that apply to subdivisions of 500 or more dwelling units. Determine the number of subdivisions, determine the number of dwelling units, and estimate the amount of water that would have been affected if the threshold had been 250 dwelling units instead of 500 dwelling units. Estimate the number of large-scale, non-residential projects and the amount of water affected by the statutory requirement to prepare water supply analyses. Present options for statutory changes to the Map Act requirements, the water supply planning statutes, and related laws. In preparing this report, CRB must consult with the State Clearinghouse in the Governor's Office of Planning and Research. CRB may consult with other public agencies and private organizations with expertise in water supply or land use planning and development. Comments 1. Knowledge is power . Even though it's been six years since the 2001 Kuehl bill required cities and counties to put water supply conditions on residential subdivisions with more than 500 units, there are no reliable data on the law's effectiveness. No one can say for certain how many subdivisions or how many residential units have come under SB 821 -- 4/23/07 -- Page 4 the existing requirements. Have local officials faithfully followed the law, or did they find ways to dodge the statutory requirements? Without knowing the answers to those questions, it's premature to reduce the size threshold for residential subdivisions or to extend those requirements to nonresidential projects. Before legislators can take the next step, they need to know how the existing laws work. SB 821 provides the descriptive foundation for future discussions. 2. Asking the right questions . In a semi-arid state with a growing population and an expanding economy, it only makes sense to know where the water is coming from before approving more residential, commercial, and industrial development projects. By telling the California Research Bureau to produce a report, legislators may have enough information in time to consider statutory changes next summer. The Committee may wish to consider if legislators need more information than the nine topics listed in SB 821. If so, now is the time to add more items to CRB's assignment. 3. Legislative history . When the Senate Local Government Committee heard SB 821 on April 18, the bill would have extended the existing statutory requirements to smaller subdivisions and nonresidential projects. In response to the testimony and legislators' comments, the April 23 amendments converted the bill into a requirement for a detailed study. Support and Opposition (4/19/07) Support : Planning and Conservation League. Opposition : California Building Industry Association, California Chamber of Commerce.