BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1168| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 1168 Author: Pavley (D) Amended: 4/23/14 Vote: 21 SENATE NATURAL RESOURCES AND WATER COMMITTEE : 7-2, 4/22/14 AYES: Pavley, Evans, Hueso, Jackson, Lara, Monning, Wolk NOES: Cannella, Fuller SENATE APPROPRIATIONS COMMITTEE : 5-2, 5/23/14 AYES: De León, Hill, Lara, Padilla, Steinberg NOES: Walters, Gaines SUBJECT : Groundwater management SOURCE : Author DIGEST : This bill enacts the Sustainable Groundwater Management Act (Act) and states as the intent of the Legislature that, among other things, all groundwater basins and subbasins shall be managed sustainably by local entities pursuant to an adopted sustainable groundwater management plan. ANALYSIS : Existing law: 1.Authorizes local agencies, as defined, to adopt and implement a groundwater management plan. CONTINUED SB 1168 Page 2 2.Requires a groundwater management plan to contain specified components and requires a local agency seeking state funds administered by the Department of Water Resources (DWR) for groundwater projects or groundwater quality projects to do certain things, including, but not limited to, prepare and implement a groundwater management plan that includes basin management objectives for the groundwater basin. This bill: 1.Establishes the statutory framework for a new Act. In imposing this Act, it is the intent of the legislature that all of the following occur: A. All groundwater basins and subbasins be managed sustainably by local entities pursuant to an adopted sustainable groundwater management plan. B. Attention to develop, adopt, and implement a sustainable groundwater management plan be directed first to high and medium priority groundwater basins and subbasins. C. 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. 1.Specifies that these provisions apply to all groundwater basins and subbasins in the state. 2.Authorize unspecified entities to develop a sustainable groundwater management plan, defined as a document that describes the activities intended to be included in a groundwater management program, to be developed and adopted to encompass an entire basin or subbasin in an unspecified manner, and according to an unspecified schedule. 3.Authorizes, under unspecified conditions, the state to take action to cause a sustainable groundwater management plan to be developed, adopted, and implemented. Background CONTINUED SB 1168 Page 3 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: 1.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. 2.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. 3.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. 4.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. 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 CONTINUED SB 1168 Page 4 (Costa, Chapter 947, Statutes of 1192). 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 one 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 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 meet specific requirements. These requirements are sometimes known as "SB 1938 requirements." 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. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee, unknown, at least in the mid-hundreds of thousands to millions of dollars annually, from the General Fund for the state's oversight of groundwater management. CONTINUED SB 1168 Page 5 SUPPORT : (Verified 5/22/14) Association of California Water Agencies California Water Foundation 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's office, ACWA, the California Water Foundation, environmental organizations, just about everyone seems [to be] 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 the May Revise. RM:e 5/25/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED