BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2453| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 CONTINUED AB 2453 Page 2 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 CONTINUED AB 2453 Page 3 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 CONTINUED AB 2453 Page 4 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 CONTINUED AB 2453 Page 5 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: CONTINUED AB 2453 Page 6 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 CONTINUED AB 2453 Page 7 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) CONTINUED AB 2453 Page 8 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 CONTINUED AB 2453 Page 9 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 **** END **** CONTINUED