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.




           
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                 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  





           
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               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  





           
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          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.