BILL ANALYSIS Ó SB 1319 Page 1 Date of Hearing: August 28, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 1319 (Hill) - As Amended: August 22, 2014 Policy Committee: N/A Vote:N/A Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY As proposed to be amended , this bill authorizes the State Water Resources Control Board (SWRCB) to designate a groundwater basin subject to sustainable groundwater management requirements as a probationary basin under specified circumstances. This bill authorizes SWRCB to develop an interim management plan in consultation with the Department of Water Resources under specified conditions. Specifically, this bill revises provisions from the August 22, 2014 version of AB 1739 (Dickinson) as follows: 1)Prohibits SWRCB from establishing an interim plan to remedy a condition where the groundwater extractions result in significant depletions of interconnected surface waters until January 1, 2025. This provision delays the similar provision in AB 1739 from 2022 to 2025. 2)Requires SWRCB to exclude any portion of a basin in compliance with groundwater management requirements from probationary status. This provision narrows the similar provision in AB 1739 to only apply to the portion of the basin that is out of compliance. 3)Requires SWRCB to include any element of a groundwater sustainability plan or the entire plan in its interim plan if SWRCB finds it would help meet the sustainability goal. This provision revises the similar provision in AB 1739 to SB 1319 Page 2 allow for the inclusion of local plans when developing interim plans for basins with probationary status. 4)Provides the enactment of this bill is contingent upon the enactment of AB 1739 (Dickinson) and SB 1168 (Pavley). 5)Makes technical and conforming changes. FISCAL EFFECT 1) Increased annual out-year costs of $1 million to $2.5 million (special fund) for state interim plans to be covered by fee revenues. The revisions to AB 1739 provided by this bill will likely result in lower costs due to delays in compliance requirements and the ability to place only portions of basins on probationary status. 2) Absorbable GF costs for DWR to assist SWRCB in developing interim plans. DWR received $22.5 million in the 2014-15 Budget ($2.5 million for FY14-15 and $5 million each year from FY15-16 through FY18-19, which will fund Bulletin 118 updates and technical assistance. COMMENTS 1)Purpose. This bill provides clean-up for certain provisions of AB 1739 (Dickinson) which is currently pending on the Assembly floor for concurrence in Senate amendments. According to the author, this bill makes various changes intended to ease compliance for basins under groundwater sustainability plans and requirements. 2)Background. On March 7, 2014 the Governor's Office released a draft framework soliciting input on actions that can be taken to assure local groundwater managers have the tools and authority to sustainably manage groundwater. The draft framework advises that in developing ideas it may be helpful to consider whether local agencies need enhanced local agency authority, and how the state should structure state backstop authority when local action has not occurred or has been insufficient. In response, Senator Pavley and Assemblymember Dickinson introduced SB 1168 and AB 1739. These bills which moved through the legislation process in nearly identical form while SB 1319 Page 3 the authors and administration convened multiple stakeholder meetings and further developed the provisions of the bills. On August 22, 2014, both bills were amended to divide the provisions between the two bills. Together, SB 1168 and AB 1739 provide a comprehensive groundwater sustainability management program. AB 1739 (Dickinson), among other provisions, authorizes SWRCB to designate a basin as a probationary basin under specified circumstances and to develop an interim management plan in consultation with DWR under specified conditions. This bill, which deletes the current contents of SB 1319, provides revisions to the provisions in AB 1739 relating to SWRCB designating a basin as probationary and developing an interim plan. Analysis Prepared by : Jennifer Galehouse / APPR. / (916) 319-2081