BILL ANALYSIS Ó ----------------------------------------------------------------- | | | SENATE COMMITTEE ON NATURAL RESOURCES AND WATER | | Senator Fran Pavley, Chair | | 2013-2014 Regular Session | | | ----------------------------------------------------------------- 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. 1 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 2 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." 3 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 4 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 5 OPPOSITION: None Received 6