BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                SB 1319
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        (  Without Reference to File  )

        SENATE THIRD READING
        SB 1319 (Pavley)
        As Amended  August 29, 2014
        Majority vote 

         SENATE VOTE  :Vote not relevant  
         
         APPROPRIATIONS      11-5                                         
         
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        |Ayes:|Gatto, Bocanegra,         |     |                          |
        |     |Bradford,                 |     |                          |
        |     |Ian Calderon, Campos,     |     |                          |
        |     |Gomez, Holden, Pan,       |     |                          |
        |     |Quirk, Ridley-Thomas,     |     |                          |
        |     |Weber                     |     |                          |
        |     |                          |     |                          |
        |-----+--------------------------+-----+--------------------------|
        |Nays:|Bigelow, Donnelly,        |     |                          |
        |     |Eggman, Jones, Wagner     |     |                          |
        |     |                          |     |                          |
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         SUMMARY  :  Amends AB 1739 (Dickinson) of the current legislative  
        session which, together with SB 1168 (Pavley) of the current  
        legislative session, form the Sustainable Groundwater Management Act  
        (Act) and related provisions.  Specifically,  this bill  :

        1)Prohibits the State Water Resources Control Board (State Water  
          Board), until January 1, 2025, from using its enforcement  
          authorities under the Act to designate a basin or subbasin as  
          probationary due to significant depletions of interconnected  
          surface waters or require an interim plan to remedy the condition.  
           This provision delays the similar provision in AB 1739 from 2022  
          to 2025.

        2)Requires the State Water Board to exclude any portion of a basin  
          or subbasin in compliance with sustainable 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 the State Water Board to include any element of a  








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          groundwater sustainability plan (GSP), 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  
          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 and SB 1168.

        5)Makes technical and conforming changes.

         FISCAL EFFECT  :  According to the Assembly Appropriations Committee:

           1)   Increased annual out-year costs of between $1 million and  
             $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 only place portions  
             of basins on probationary status.

           2)   Absorbable costs for DWR to assist the State Water Board in  
             developing interim plans.  DWR received $22.5 million in the  
             2014-15 Budget ($2.5 million for Fiscal Year (FY) 14-15 and $5  
             million each year from FY15-16 through FY18-19 which will fund  
             Bulletin 118 updates and technical assistance.

         COMMENTS  :  This bill was amended on August 28, 2014 to remove the  
        prior provisions and insert language that modifies certain  
        provisions of AB 1739, which is currently pending for concurrence on  
        the Assembly floor.  AB 1739 and SB 1168, together, require  
        sustainable groundwater management in basins and subbasins that are  
        determined to be high and medium priority by DWR under criteria set  
        as part of the statute creating the California Statewide Groundwater  
        Elevation Monitoring program in 2009, with certain exceptions.  

        SB 1168 and AB 1739 were developed through an extensive eight-month  
        stakeholder outreach process facilitated by both a nonprofit  
        nonpartisan foundation and an association of water agencies and  
        which included five professionally-facilitated stakeholder meetings  
        and the participation of both authors' offices as well as the  
        Administration of Governor Brown.   Following those meetings  
        language was taken from each bill and the Administration's own  
        proposal and crafted into one integrated statute that was later  
        divided into the two bills with contingent enactment language in  








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        each.

        SB 1168 and AB 1739 set out a locally-driven sustainable groundwater  
        management process which requires local agencies, as specified, to  
        choose how to form their groundwater sustainability agency (GSA)  
        governance within 2  years of the Act's enactment. Thereafter, the  
        GSA or GSAs for the basin or subbasin adopt groundwater  
        sustainability plans within 5 years if the basin or subbasin is in a  
        critical condition of overdraft and within 7 years for all other  
        high and medium priority basins.  Chapter 11 of the Act, which is  
        found in AB 1739, concerns the State's enforcement role if those  
        timelines are not met.

        Recent amendments to AB 1739, as contained in this bill, were made  
        at the request of the Administration regarding the State's role and  
        do three things:

        1)Delay, for 3 years, the State Water Board's authority to intervene  
          in a basin or subbasin that is not in overdraft, but is causing  
          significant depletions of interconnected surface waters.

        2)Clarify that the State Water Board is required to exclude from  
          probationary status any portion of a basin or subbasin for which a  
          groundwater sustainably agency is in compliance with the  
          sustainability goal.

        3)Clarify that the State Water Board is required to include in any  
          interim plan it might create, those existing GSPs and any elements  
          of groundwater plans that comply with or aid in complying with the  
          sustainability goals. 

        The Administration states that these amendments improve the  
        groundwater package.  The Administration adds that in many basins we  
        don't have a complete understanding of the surface water and  
        groundwater interaction and this bill provides additional time for  
        such basins to fill the knowledge gap.  The Administration advises  
        that while the current language of AB 1739 allows the State Water  
        Board to exclude "good actors" in a probationary basin from  
        enforcement action and incorporate their successful GSPs in any  
        interim plan, this amendment reassures those good actors by  
        requiring both.

         Analysis Prepared by  :    Tina Cannon Leahy / W., P. & W. / (916)  
        319-2096                                               FN: 0005573








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