BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 2453
          Author:   Achadjian (R)
          Amended:  8/4/14 in Senate
          Vote:     21


           SENATE GOVERNANCE & FINANCE COMMITTEE  :  6-0, 6/18/14
          AYES:  Wolk, Knight, DeSaulnier, Hernandez, Liu, Walters
          NO VOTE RECORDED:  Beall

           SENATE NATURAL RESOURCES AND WATER COMMITTEE  :  8-0, 6/24/14
          AYES:  Pavley, Cannella, Evans, Fuller, Hueso, Lara, Monning,  
            Wolk
          NO VOTE RECORDED:  Jackson

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  50-11, 5/28/14 - See last page for vote


           SUBJECT  :    Paso Robles Basin Water District

           SOURCE  :     Author


           DIGEST  :    This bill, until January 1, 2019, authorizes the  
          formation, governing board structure and powers of the Paso  
          Robles Basin Water District (district) in San Luis Obispo  
          County, with the district's boundaries to be established by the  
          San Luis Obispo County Local Agency Formation Commission  
          (LAFCO).  This bill authorizes the district to develop, adopt,  
          and implement a groundwater management plan to control  
          extractions from the Paso Robles Groundwater Basin aquifers, as  
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          specified.  This bill also authorizes the district to impose  
          groundwater extraction charges, to establish extraction  
          allocations, and to impose extraction surcharges to, among other  
          things, discourage the use of groundwater beyond the extraction  
          allocation.

           ANALYSIS  :    Under existing law, special districts are separate  
          local governments formed to provide limited public services to a  
          geographically designated area.  Most special districts provide  
          a focused governmental service, such as road maintenance but  
          some forms of special districts, such as Community Services  
          Districts, can provide a range of services.  Unlike counties,  
          special districts are not confined to serving a contiguous area.  
           Like cities and counties, special districts have the  
          operational authorities to function and provide direct services.  
           Unlike cities and counties, however, special districts  
          typically do not have police powers, or the power to regulate  
          private behavior, but in some instances limited regulatory  
          powers are authorized.

          Existing law authorizes some 20 types of special districts that  
          have statutory authority to provide water or exercise authority  
          over groundwater.  Additionally, more than a dozen special act  
          districts exercise some form of groundwater authority.   
          Groundwater also can be managed under the police powers of local  
          agencies, such as through ordinances.  The California Department  
          of Water Resources reports that 27 counties have adopted  
          groundwater management ordinances.  Additionally, AB 3030  
          (Costa, Chapter 947, Statutes of 1992) established the  
          California Groundwater Management Act, which authorized but did  
          not require local agencies to put in place a groundwater  
          management plan.  SB 1938 (Machado, Chapter 603, Statutes of  
          2002) furthered the goal of groundwater management by requiring  
          a groundwater management plan before local agencies can seek a  
          range of state funding.

          This bill, until January 1, 2019, authorizes the formation,  
          governing board structure and powers of the district in San Luis  
          Obispo County, with the district's boundaries to be established  
          by the San Luis Obispo County LAFCO.  This bill authorizes the  
          district to develop, adopt, and implement a groundwater  
          management plan to control extractions from the Paso Robles  
          Groundwater Basin aquifers, as specified.  This bill also  
          authorizes the district to impose groundwater extraction  

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          charges, to establish extraction allocations, and to impose  
          extraction surcharges to, among other things, discourage the use  
          of groundwater beyond the extraction allocation.

          The district formation shall comply with the  
          Cortese-Knox-Hertzberg LAFCO Act of 2000, with specified  
          exceptions, and the district's authority will be subject to  
          LAFCO review.  On or before January 1, 2019, 10% of landowners  
          may petition for, or an affected local agency within the county,  
          including the county and the San Luis Obispo County Flood  
          Control and Water Conservation District, may apply for by  
          resolution, the formation of a district, consistent with the  
          specified definitions.

          Following a successful petition by the landowners or a  
          resolution of application by an affected local agency, an  
          election among landowners shall be conducted on the matter of  
          whether to form the district.

          This bill establishes the governing board of directors of the  
          district and voting structure as follows:

           The governing board of the district must include nine  
            landowner members, six of whom shall be elected by landowners,  
            and three of whom shall be elected by resident-voters.

           Of the six directors elected by landowners, two directors must  
            elected by landowners owning 400 or more acres of land in the  
            district, two directors must be elected by landowners owning  
            between 40 and 399 acres of land in the district, and two  
            directors must be elected by landowners owning less than 40  
            acres of land in the district.

           Landowner-voting is weighted, with each landowner-voter  
            casting one vote for each acre of land owned by the voter  
            within the district.  Candidates for the landowner seats can  
            be drawn from any class of landowner. 

           Specifies the three remaining landowner seats shall be elected  
            from among all eligible voters who reside within the district.  
             The landowners must be registered voters residing in the  
            district.

                 Eligibility for the director seats is limited to  

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               landowners who are residents of the districts or who reside  
               within two miles of the district boundary, or within the  
               City of Paso Robles, the Atascadero Mutual Water Company,  
               the Templeton Community Services District, the San Miguel  
               Community Services District, or the San Luis Obispo County  
               Service Area 16.

          The election of the district board of directors is to be carried  
          out according to the terms of the Uniform District Election Law,  
          and shall be treated as a landowner-voter district.  This bill  
          requires voting to be conducted by all mail ballots.

          This bill specifies the participation of landowners in the  
          election and defines several terms.

           Groundwater Management Authority  .  This bill authorizes the  
          district to exercise authority under the Groundwater Management  
          component of state water law and declares that the creation of  
          the district shall not modify the powers of the County of San  
          Luis Obispo or the San Luis Obispo County Flood and Water  
          Conservation District.

          All powers in this part are subject to review and approval by  
          the San Luis Obispo County Local Agency Formation Commission,  
          upon formation, change of organization, or reorganization under  
          the Cortese-Knox-Hertzberg Local Government Reorganization Act  
          of 2000.

          The board of directors of the district may adopt ordinances for  
          the purpose of regulating, conserving, managing, and controlling  
          the use and extraction of groundwater within the territory of  
          the district.  All ordinances shall be adopted, after noticed  
          public hearings by a majority vote of the board.  Notice of the  
          adoption of all ordinances shall be given.  The ordinances of  
          the district shall become effective on the 31st day after  
          adoption except that the board may, by the vote of at least four  
          members of the board, dispense with notice of public hearing and  
          adopt an emergency ordinance that shall become effective  
          immediately upon adoption, if the board determines that the  
          public health, safety, or welfare so requires.

          This bill states that any person who intentionally violates any  
          provision or any district ordinance shall be guilty of an  
          infraction and may be required to pay a fine to the district not  

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          to exceed $500.  Also, any person who negligently or  
          intentionally violates any provision or any district ordinance  
          may also be liable civilly to the district for a sum not to  
          exceed $1,000 per day for each day of violation, in addition to  
          any other penalties that may be prescribed by law.

           Groundwater Management Plans  .  This bill allows the district, in  
          order to balance the water supply and demand within the Paso  
          Robles Groundwater Basin, to do the following:

             A.   Develop, adopt, and implement a groundwater management  
               plan to control extractions from the Paso Robles  
               Groundwater Basin aquifers with the objective of balancing  
               water supply and demand in the region.

             B.   The plan may also include and address the following:

               (1)    Existing groundwater storage.

               (2)    Long-term recoverable storage, including an estimate  
                 of non-recoverable storage.

               (3)    The expected adverse effects of projected  
                 extractions.

          The groundwater management plan may establish distinct zones or  
          regions based on the geology of the basin, land use, water use,  
          the location of extraction facilities, or other concerns as  
          determined by the board.  The groundwater management plan may  
          include a policy for the issuance of new well permits that takes  
          into consideration the location of proposed wells and area of  
          use, projected extractions from the wells, and the effect of the  
          extractions on existing users and on storage. In developing the  
          groundwater management plan, the district may consider a ban on  
          new irrigated acreage or new municipal water system wells. The  
          district may include a contingency plan to deal with seawater  
          intrusion, basin contamination, or other risks that could impair  
          the ability to rely on the basin for groundwater. 

           Groundwater management  .  This bill allows, if the board  
          determines, that groundwater management activities are necessary  
          in order to improve or protect the quantity or quality of  
          groundwater supplies within a groundwater basin or aquifer by  
          ordinance, exercise any of the following powers:

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             A.   Require conservation practices and measures within the  
               affected portion of its territory.

             B.   Control groundwater extractions by regulating, limiting,  
               or suspending extractions from extraction facilities, the  
               construction of new extraction facilities, the enlarging of  
               existing extraction facilities, and the reactivation of  
               abandoned extraction facilities.

             C.   Commence and prosecute legal actions to enjoin  
               unreasonable uses or methods of use of water within the  
               district or outside the territory of the district to the  
               extent those uses or methods of use adversely affect the  
               groundwater supply within the district.

             D.   Impose spacing requirements on new extraction facility  
               construction to minimize well interference.

             E.   Impose reasonable operating regulations on extraction  
               facilities to minimize well interference, including  
               requiring pumpers to operate on a rotation basis.

             F.   Require extraction facilities to be registered with the  
               district within 30 days of notice being given to the  
               operator of the extraction facility.
             G.   Require that the operator of a registered extraction  
               facility provide the district annually with the following  
               information regarding the extraction facility:

               (1)    The name and address of the operator of the  
                 extraction facility.

               (2)    The name and address of the owner of the land upon  
                 which the extraction facility is located.

               (3)    A description of the equipment associated with the  
                 extraction facility.

               (4)    The location of the water extraction facility.

             A.   Require extraction facilities to be equipped with water  
               flow measuring devices installed and calibrated by the  
               district or, at the district's option, by the extraction  

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               facility operator.

           Groundwater Extraction Charges  .  This bill allows by ordinance,  
          the district to levy groundwater extraction charges, including  
          volumetric charges intended to provide an incentive for reduced  
          water use, on the extraction of groundwater from all water  
          extraction facilities within the territory of the district for  
          the purposes of paying the costs of initiating, carrying on, and  
          completing any of the powers, purposes, and groundwater  
          management activities described in this bill.  Any groundwater  
          extraction charges shall be uniform for groundwater extraction  
          within the territory of the district.

          This bill provides that the monies collected by the district  
          shall be available for expenditures by the district to carry out  
          its groundwater management functions.
          All monies collected by the district pursuant to this bill shall  
          be available for expenditure by the district to carry out its  
          groundwater management functions pursuant to this bill.

          This bill makes legislative findings and declaration to its  
          necessity.

           Comments

           This bill establishes the governance structure for a new water  
          district charged with managing the Paso Robles Groundwater Basin  
          and ensuring reliable and equitable access to water that is  
          essential to the residents and communities of the region.  The  
          unique governance structure of this bill brings together  
          landowners and residents, with balanced representation, to  
          manage the often contentious challenges surrounding water.  The  
          governance structure established in this bill results from  
          months of community deliberations and compromise, and represents  
          the best approach to building the community confidence needed to  
          manage the region's groundwater that is the primary - and often  
          the only - water source for area residents, farms and  
          businesses.  This bill is uniquely tailored to the needs of the  
          region.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  8/11/14)

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          California Association of Winegrape Growers
          City of El Paso de Robles
          Paso Robles Agricultural Alliance for Groundwater Solutions
          Pro Water Equity, Inc.
          San Luis Obispo County Board of Supervisors

           OPPOSITION  :    (Verified  8/11/14)

          Clean Water Action California
          Defenders of Wildlife
          North County Water
          Sierra Club California

           ARGUMENTS IN SUPPORT  :    According to the Paso Robles  
          Agricultural Alliance for Groundwater Solutions (PRAAGS) and the  
          California Association of Winegrape Growers (CAWG), "the latest  
          update to the county's Paso Robles Groundwater Basin Model  
          indicates groundwater has been in decline for a number of years.  
           A conventional California Water District model, among others,  
          was considered and found not to meet the diverse needs of the  
          various local interests."

          AB 2453 proposes to create a unique governing structure for the  
          Paso Robles Basin Water District should it be established by the  
          San Luis Obispo County Local Agency Formation Commission.  The  
          governance structure proposed in the measure is a nine-member  
          board of directors, comprised of three at-large members elected  
          by registered voters in the district and six members elected on  
          the basis of acreage - two each from small, medium, and large  
          landowners, respectively.

           ARGUMENTS IN OPPOSITION  :    A coalition of environmental  
          organizations argue, while we support local management of  
          groundwater supply, the candidate qualification and voting  
          process to form and determine Paso Robles Basin Water District  
          directors proposed in AB 2453 are unfair to local residents who  
          do not own large acreage of land.  As written, AB 2453  
          incorporates an acreage-based voting model to form and elect six  
          out of the nine water district directors and requires that those  
          running for the position of director be landowners themselves.   
          There would be nine directors elected to the board: two elected  
          by large landowners, two elected by medium landowners, two  
          elected by small landowners, and three members at large elected  

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          by all registered voters.  The vote to decide whether or not to  
          form this type of water district is strictly acreage-based.   
          This type of voting system and landownership requirements for  
          water district directors will send a signal to local residents  
          that their votes and opinions do not have the same weight as  
          their neighbors who own land or more land.  We would like to see  
          a system where residents are treated equally regardless of the  
          amount of lands owned.  This could be done by putting in place a  
          one-voter-one-vote system and removing the landownership  
          requirement for eligibility to be a director.

           ASSEMBLY FLOOR  :  50-11, 5/28/14
          AYES:  Achadjian, Alejo, Allen, Bigelow, Bocanegra, Bradford,  
            Ian Calderon, Chávez, Chesbro, Conway, Cooley, Dababneh,  
            Dahle, Daly, Dickinson, Donnelly, Eggman, Frazier, Beth  
            Gaines, Garcia, Gatto, Gordon, Gorell, Gray, Grove, Hagman,  
            Hall, Harkey, Holden, Jones, Jones-Sawyer, Linder, Logue,  
            Maienschein, Mansoor, Melendez, Muratsuchi, Nazarian,  
            Nestande, Olsen, Patterson, Perea, Quirk, Quirk-Silva,  
            Ridley-Thomas, Salas, Wagner, Waldron, Wilk, Atkins
          NOES:  Ammiano, Fox, Gomez, Gonzalez, Roger Hernández, Levine,  
            Medina, V. Manuel Pérez, Skinner, Stone, Williams
          NO VOTE RECORDED:  Bloom, Bonilla, Bonta, Brown, Buchanan,  
            Campos, Chau, Fong, Lowenthal, Mullin, Pan, John A. Pérez,  
            Rendon, Rodriguez, Ting, Weber, Wieckowski, Yamada, Vacancy


          AB:e  8/12/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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