BILL ANALYSIS                                                                                                                                                                                                    Ó





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2013-2014 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 1168                   HEARING DATE: April 22, 2014
          AUTHOR: Pavley                     URGENCY: No
          VERSION: April 10, 2014            CONSULTANT: Dennis O'Connor
          DUAL REFERRAL: No                  FISCAL: Yes
          SUBJECT: Groundwater Management.
          
          BACKGROUND AND EXISTING LAW
          California is the only state without a mandatory statewide  
          system of groundwater management.  That isn't to say there isn't  
          any groundwater management in California; some of California's  
          groundwater basins are sustainably managed.  However, many are  
          not.

          A number of different entities may manage some aspect of  
          groundwater in California.  These include:
           Special Districts - many types of special districts have some  
            groundwater related authorities under the water code and other  
            statutes.  Such districts include county water districts,  
            municipal utility districts, community service districts, and  
            water replenishment districts.
           Special Act Districts - the legislature has created a number  
            of special districts whose specific purpose is to manage one  
            groundwater basin or another.  These include agencies such as  
            the Orange County Water District and Fox Canyon Groundwater  
            Management Agency.
           Court Appointed Watermasters - in an adjudication, the court  
            determines who has rights to pump from the groundwater basin,  
            how much they can pump, etc.  The court also typically  
            appoints someone to be the "Watermaster" whose job is to  
            ensure that the basin is managed in accordance with the  
            court's decree.
           Cities and Counties - the courts have held that cities and  
            counties, under their general police powers, have the  
            authority to enact ordinances regarding groundwater.  More  
            than 20 counties have done so, generally addressing issues  
            such as banning transfers of groundwater out of the county.   
            Counties also issue drilling permits for water wells.
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          The powers to manage groundwater vary.  In most special act  
          districts, the authorizing act allows the agency to require  
          groundwater users to report their extractions to the agency, who  
          can then levy fees for groundwater management or water supply  
          replenishment.  Some acts also provide the special district the  
          authority to limit exports and extractions.

          For most non-special act districts, the authority to manage  
          groundwater derives from what is commonly referred to as AB 3030  
          (WC §§10750 et seq.).  AB 3030 allows, but does not require,  
          certain defined existing local agencies to develop groundwater  
          management plans in defined groundwater basins and subbasins.

           An AB 3030 plan can be developed only after a public hearing  
            and adoption of a resolution of intention to adopt a  
            groundwater management plan.  If landowners representing more  
            than 50% of the assessed value of lands within the proposed  
            district do not protest the plan, the plan can be adopted  
            within 35 days.  If landowners representing a majority of the  
            assessed value in the proposed district oppose the plan,  
            cannot be adopted and no new plan may be attempted for 1 year.

           AB 3030 plans cannot be adopted in adjudicated basins or in  
            basins where groundwater is managed under other sections of  
            the Water Code without the permission of the court or the  
            other agency.

           Once the plan is adopted, rules and regulations must be  
            adopted to implement the program called for in the plan.  Many  
            plans that have been adopted are relatively simple and in some  
            cases are a means of defining boundaries.


          There are 149 adopted AB 3030 plans.

          If a local agency wishes to receive state funds administered by  
          the Department of Water Resources (DWR) for groundwater projects  
          or for other projects that directly affect groundwater levels or  
          quality, the local agency must have an AB 3030 plan or  
          equivalent groundwater management plan meets specific  
          requirements.  These requirements are sometimes known as "SB  
          1938 requirements."  To meet the SB 1938 requirements, a local  
          agency must:
           Prepare and implement a groundwater management plan that  
            includes basin management objectives for the groundwater basin  
            that is subject to the plan.  The plan must include components  
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            relating to the monitoring and management of groundwater  
            levels, groundwater quality degradation, inelastic land  
            surface subsidence, and changes in surface flow and surface  
            water quality that directly affect groundwater levels or  
            quality or are caused by groundwater pumping in the basin.
           Prepare a plan that enables the local agency to work  
            cooperatively with other public entities whose service area or  
            boundary overlies the groundwater basin.
           Prepare a map that details the area of the groundwater basin  
            and the area of the local agency that will be subject to the  
            plan, as well as the boundaries of other local agencies that  
            overlie the basin in which the agency is developing a  
            groundwater management plan.
           Adopt monitoring protocols that are designed to detect changes  
            in groundwater levels, groundwater quality, inelastic surface  
            subsidence for basins for which subsidence has been identified  
            as a potential problem, and flow and quality of surface water  
            that directly affect groundwater levels or quality or are  
            caused by groundwater pumping in the basin.  The monitoring  
            protocols must be designed to generate information that  
            promotes efficient and effective groundwater management.
           For areas outside delineated groundwater basins, local  
            agencies are required to prepare plans using use geologic and  
            hydrologic principles appropriate to those areas.

          This January, the Governor released his final California Water  
          Action Plan (CWAP).  Among the many initiatives in the CWAP is a  
          call to improve sustainable groundwater management:

            "Groundwater is a critical buffer to the impacts of prolonged  
            dry periods and climate change on our water system.  The  
            administration will work with the Legislature to ensure that  
            local and regional agencies have the incentives, tools,  
            authority and guidance to develop and enforce local and  
            regional management plans that protect groundwater elevations,  
            quality, and surface water-groundwater interactions.  The  
            administration will take steps, including sponsoring  
            legislation, if necessary, to define local and regional  
            responsibilities and to give local and regional agencies the  
            authority to manage groundwater sustainably and ensure no  
            groundwater basin is in danger of being permanently damaged by  
            over drafting.  When a basin is at risk of permanent damage,  
            and local and regional entities have not made sufficient  
            progress to correct the problem, the state should protect the  
            basin and its users until an adequate local program is in  
            place." 

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          PROPOSED LAW
          This bill would establish the statutory framework for a new  
          Sustainable Groundwater Management Act.  The Act states the  
          intent of the Legislature in enacting this Act would be that:
           All groundwater basins and subbasins be managed sustainably by  
            local entities pursuant to an adopted sustainable groundwater  
            management plan.
           Attention to develop, adopt, and implement a sustainable  
            groundwater management plan be directed first to high and  
            medium priority groundwater basins and subbasins.
           Upon a finding of compelling state interest, the state would  
            have recourse to cause a sustainable groundwater management  
            plan to be developed, adopted, and implemented where local  
            interests either cannot or will not do so themselves.

          ARGUMENTS IN SUPPORT
          According to the author, "Even though the Legislature has put in  
          place a number of tools to facilitate effective groundwater  
          management (such as AB 3030 plans, SB 1938 requirements, Special  
          Act Districts, etc,) we still have significant parts of the  
          state that do not have effective groundwater management.  This  
          lack of management is leading to: 
                 Subsidence and damage to public infrastructure such as  
               both the SWP and CVP aqueducts, 
                 Local wells going dry,
                 Further degradation of groundwater water quality,
                 Rivers "losing" water that formerly supported anadromous  
               fish and other species of concern,
                 And the list goes on."

          "The Governor office, ACWA, California Water Foundation,  
          environmental organizations, just about everyone seems working  
          on a revamping of groundwater management.  The Governor's office  
          has also said that he wants to enact any statutory changes  
          necessary to improve groundwater management through trailer bill  
          language as a part of May Revise."

          "I have been working closely with the California Water  
          Foundation and the Governor's office to ensure that SB 1168  
          reflects the current status of those various discussions.  That  
          way, should the Governor's efforts through the budget not be  
          successful, SB 1168 will be available as a vehicle for further  
          discussions."

          ARGUMENTS IN OPPOSITION:  None Received

          COMMENTS 
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           Time May Be Ripe For Action.   The administration held a workshop  
          on April 16, 2014, to hear from a variety of stakeholder groups  
          their proposals for a new approach to groundwater management in  
          California.  There were formal presentations from the following:  

           Lester Snow, Executive Director, California Water Foundation
           Tim Quinn, Executive Director, Association of California Water  
            Agencies and
            David Orth, General Manager, Kings River Conservation  
            District; Vice-Chair, Groundwater Sustainability Task Force,  
            Association of California Water Agencies
           Robert Reeb, Executive Director, Valley Ag Water Coalition
           Jonas Minton, Water Policy Advisor, Planning and Conservation  
            League

          What was remarkable was not only the breadth of acceptance that  
          something needed to be done, but also of many of the key  
          elements of the "solution."

           Much Work Ahead.   While there appears to be general agreement on  
          a broad framework of a sustainable groundwater management  
          system, there are quite a number of potentially quite  
          contentious issues to be resolved.  Some of these include: 
           Appropriate protection of both property rights and community  
            rights
           Integrating water quality with water supply considerations
           Representation on groundwater management entities
           Identifying mandatory elements for groundwater management
           Level of transparency in managing and use of groundwater
           Enforcement powers for groundwater management entities
           Reporting requirements for groundwater users
           Changes in land use planning, or not
           Financing of groundwater management activities
           Permitting of new and/or existing wells
           Scope and limitations on groundwater storage and banking

           Technical Amendment.   The recent amendments made the previous  
          placeholder language unnecessary. (see Amendment)

           Related Measures
            AB 1739 (Dickenson) - is intended to be the Assembly's vehicle  
            for establishing a sustainable groundwater program.

          SUGGESTED AMENDMENT:  Strike out page 5 line 33 through page 9  
          line 31 inclusive
               
          SUPPORT: None Received
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          OPPOSITION: None Received













































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