BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 757
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          SENATE THIRD READING
          SB 757 (Berryhill)
          As Amended  August 22, 2014
          Majority vote

           SENATE VOTE  :  Vote not relevant
            
           SUMMARY  :  Requires local agencies in high and medium priority  
          basins that are in a condition of long-term overdraft to form a  
          groundwater management agency (GMA) or group of GMAs  by January  
          1, 2018, and to self-certify a groundwater management plan (GMP)  
          or set of GMPs for the basin by January 31, 2020.  Compels  
          counties to assume groundwater management duties if no other  
          local agency steps forward in an area.  Specifically,  this bill  :

          1)Adopts a policy statement regarding groundwater management.

          2)Changes existing water rights law by declaring groundwater  
            storage, in and of itself, to be a beneficial use of water.

          3)Adds a new part 2.74 entitled Groundwater Management to the  
            Water Code directly before the existing part 2.75 entitled  
            Groundwater Management.

          4)Enacts the Groundwater Management Act (Act).

          5)Limits the requirements of the Act to management of high and  
            medium priority basins that are in a condition of long-term  
            overdraft.

          6)Exempts from all requirements of the Act, except copies of  
            documentation, any local agency that conforms to the  
            requirements of an adjudication of water rights in a  
            groundwater basin or to that groundwater basin and includes,  
            but is not limited to, a stated list of groundwater basins  
            that are legally adjudicated. 

          7)Defines various terms, including that a de minimis user of  
            groundwater is one who pumps 20 acre-feet or less annually.

          8)Uses the basin boundaries established by the Department of  
            Water Resources (DWR) in Bulletin 118, but allow DWR to  
            reprioritize basins or adjust boundaries.

          9)Requires DWR to adopt regulations on basin boundary  








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            adjustments.

          10)Allows any local agency or combination of local agencies to  
            elect to be a GMA.

          11)Exempts from the California Environmental Quality Act (CEQA):  
             GMA formation; and, GMP development, adoption, amendment,  
            implementation or enforcement.  Construction or installation  
            of new facilities are not exempted but neither term is  
            defined.

          12)Requires, in an area that is not already managed by a GMA  
            (unmanaged area), that a local agency formation commission  
            (LAFCO) complete all proceedings on the formation of a new GMA  
            for that area, or annexation into an existing GMA, within 180  
            days.

          13)Compels a county or counties in a basin to:

             a)   Be a GMA; or,

             b)   Develop a GMP and enter into a coordination agreement  
               with other GMAs; or,

             c)   Join a joint powers authority (JPA) that is the GMA for  
               the basin so that the unmanaged area is subject to the GMP  
               for the basin.

          14)Provides the GMA with broad powers including, but not limited  
            to, conducting investigations, registering groundwater  
            facilities, requiring well metering or other measurement, and  
            requiring reporting of groundwater withdrawals for any  
            extractor over 20 acre-feet annually.

          15)Allows the GMA to validate an existing groundwater  
            conjunctive use program of another agency.

          16)Allows a GMA to regulate extractions from groundwater wells,  
            including but not limited to establishing well-spacing  
            requirements on new groundwater wells, and regulate, limit, or  
            suspend extractions from individual groundwater wells or  
            groundwater wells in aggregate. 

          17)Authorizes, unless prohibited by law, a GMA to impose any  
            requirement or impose any penalty or fee on the state or any  








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            agency, department, or officer of the state.  Require state  
            agencies and departments to comply with GMPs to the same  
            extent as private parties.

          18)Requires a GMA to develop a GMP in each high and medium  
            priority basin that is in a condition of long-term overdraft  
            and specify mandatory and optional GMP elements including, but  
            not limited to, measurable objectives and interim milestones  
            that will allow the GMP to meet the management goal for the  
            long-term beneficial uses of groundwater within 20 years of  
            the implementation of the plan.

          19)Requires, by January 31, 2020, and every five years  
            thereafter, that a GMA self-certify that its GMP meets the  
            management goal of responsible groundwater management and  
            submit that self-certification to DWR.

          20)Requires DWR or a GMA to provide technical assistance to  
            entities that extract or use groundwater.

          21)Requires DWR to develop advisory best management practices  
            through a public process, as specified.

          22)Allows a GMA to charge fees for activities and services  
            related to the GMP.

          23)Allows the GMA to bring suit to recover delinquent fees and  
            recover litigation fees if it is the prevailing party.

          24)Requires DWR to develop regulations governing the evaluations  
            of GMPs and to periodically evaluate them.

          25)Allows a GMA a minimum of 180 days to remedy a deficiency if  
            DWR finds a GMP is out of compliance.  

          26)Includes a statement that the Legislature intends to develop  
            a streamlined adjudication process.

          27)Allows the State Water Resources Control Board (State Water  
            Board) to designate a noncomplying basin as a probationary  
            basin if, after providing at least 180 days to cure any  
            deficiencies, the State Water Board determines:

             a)   By January 1, 2018, there is no GMA or group of GMAs for  
               the basin; or,








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             b)   By January 31, 2020, there is no GMP or equivalent for  
               the basin; or,

             c)   DWR determines the GMP for the basin is deficient.

          28)Allows the State Water Board to address a probationary  
            basin's management deficiencies by either:

             a)   Initiating a legal adjudication action for the basin;  
               or,

             b)   Developing an interim plan for the basin with remedial  
               actions after providing a 90-day notice of intent to  
               develop an interim plan to any GMA, the County, and by  
               publication intended to reach landowners, groundwater  
               rights holders, and groundwater users.

          29)Requires state entities to comply with the State Water  
            Board's interim plan or provide an explanation, in writing, of  
            why they are not complying.

          30)Allows initiation of a legal adjudication action by:

             a)   A GMA if a GMP has not been adopted and only if it finds  
               an adjudication is the most efficient means of achieving  
               responsible groundwater management;

             b)   By DWR or the State Water Board if all of the  
               qualifications and limitations on designating a  
               probationary basin are met; or,

             c)   By landowners, groundwater rights holders, or  
               groundwater users in the basin.

          31)Allows a GMA to intervene as a matter of right in an  
            adjudication.

          32)Directs the court in an adjudication to determine rights to  
            groundwater in a basin, appoint a water master, and retain  
            continuing jurisdiction to resolve disputes.

          33)Allows a court to impose a GMP in lieu of an adjudication if  
            a landowner or landowners that control at least 50% of the  
            land in the basin and the GMA, if any, agrees.








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          34)Prohibits a court from apportioning or awarding costs to any  
            party in an adjudication.

          35)Allows a GMA to be a California Statewide Groundwater  
            Elevation Monitoring (CASGEM) program entity.

          36)Requires information-sharing between local land use agencies  
            and GMAs.

           COMMENTS  :  This bill was substantially amended that previously  
          dealt with junk dealers and recyclers.  This bill takes partial  
          language from SB 1168 (Pavley) of the current legislative  
          session, and AB 1739 (Dickinson) of the current legislative  
          session, which are known collectively as the Sustainable  
          Groundwater Management Act and are currently pending in the  
          Senate and Assembly, and introduces new and sometimes confusing  
          definitions, reinserts some language that was previously  
          rejected during the stakeholder process that was used to develop  
          SB 1168 and AB 1739, and omits many of the refinements that were  
          subsequently developed in that stakeholder process.  The  
          following is a partial list of problematic issues in this bill.

          Potential Interference with Surface Water Rights.  This bill  
          purports to make water stored in the ground in and of itself a  
          beneficial use of water.  This is legally problematic because it  
          conflates putting water to beneficial use (taking an affirmative  
          action) with a state of being:  water is in the ground.  That  
          undermines State Constitutional requirements that water must  
          continuously, beneficially and reasonably used and could enlarge  
          "paper water rights" to the detriment of other water-rights  
          holders.

          No Ounce of Prevention, No Pound of Cure.  Under this bill  
          requirements for groundwater management plans are limited to  
          those high and medium priority basins that are already in  
          long-term overdraft, a highly-degraded condition.  There are no  
          planning functions in this bill for other high and medium  
          priority basins that are heavily relied upon.  This bill then  
          allows groundwater management agencies to "self-certify" their  
          plans with no requirement for State agency review, instead  
          allowing DWR the option of reviewing plans.  

          Unfunded and Open-Ended State Obligations.  This bill mandates  
          DWR provide technical assistance in response to any request from  








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          a GMA, without qualification.  This bill requires the State  
          Water Board to intervene if no governance, no plan, or an  
          insufficient plan in a basin.  But, unlike the provisions  
          regarding local agencies, this bill does not provide the State  
          Water Board with an ability to require reporting of extractions  
          or fund its management.  In contrast, this bill allows local  
          agencies to "impose any requirement" on the State and charge any  
          penalty or fee on the State or any agency, department or officer  
          of the State that it would impose on a private party, unless  
          prohibited by law.

          Confusing Definitions, Unintended Consequences.  This bill  
          engages in circular reasoning by purporting to require a GMP to  
          meet the threshold of sustainable management but defining  
          sustainable management to include a chronic lowering of  
          groundwater levels as long as that is consistent with the GMP.   
          This bill also exempts from responsible groundwater management  
          all agencies that are conforming to an adjudication of water  
          rights in a basin and all basins where there is an adjudication  
          of water rights, even if those local agencies or basins include  
          areas that are not subject to the adjudication.  This bill also  
          exempts any 20 acre-foot or less extraction of groundwater from  
          responsible groundwater management, without regard to cumulative  
          effects of 20 acre-foot extractions.

          Compels counties to take over groundwater management duties.   
          This bill dictates counties must take over groundwater  
          management in any "unmanaged area" irrespective of the ability  
          of the County to do so.

          No requirement for a diversity of interests in planning.  This  
          bill states a GSA should articulate its process for including  
          stakeholders and can consult with an advisory group but includes  
          no requirements for a minimum diversity of interests and no  
          documentation of how interests were considered.

          Majority landowner control of adjudications.  This bill could  
          impair the ability of parties to a legal adjudication to seek a  
          final determination of their rights by allowing any landowner or  
          landowners that control 50% of the property in a basin,  
          irrespective of their level of groundwater reliance, to combine  
          with groundwater management agencies, if any, in a basin and  
          stipulate to a groundwater management plan instead of a final  
          decree.









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          No allowance for tribal involvement.  This bill has no  
          provisions allowing tribes to voluntarily participate with local  
          agencies in groundwater management and no protection of tribes'  
          sovereign rights if they do participate.

          Provides broad CEQA exemptions.  This bill exempts from the CEQA  
          GMA formation and well as GMP development, adoption, amendment,  
          implementation or enforcement.  It caveats that with a statement  
          that construction or installation of new facilities are not  
          exempted but does not define what those terms mean.  This bill  
          takes the CEQA exemption in SB 1168 for GMP development, which  
          was modeled on the CEQA exemption for urban water management  
          planning, and creates a precedent by broadening it to encompass  
          many other activities such as potential new agency formation  
          under LAFCO or the implementation of an action (increased  
          groundwater pumping under the plan, even if it worsens  
          overdraft) as long as no new facilities are constructed.


           Analysis Prepared by  :    Tina Cannon Leahy / W., P. & W. / (916)  
          319-2096 


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