BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
                             Senator Fran Pavley, Chair
                                2015 - 2016  Regular 

          Bill No:            AB 453          Hearing Date:    June 23,  
          2015
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          |Author:    |Bigelow                |           |                 |
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          |Version:   |June 11, 2015    Introduced                          |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Dennis O'Connor                                      |
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                          Subject:  Groundwater management.


          BACKGROUND AND EXISTING LAW
          
          1.Existing law requires the Department of Water Resources (DWR)  
            to evaluate groundwater basins and designate them as high-,  
            medium-, low-, or very low-priority, based on various factors,  
            such as the level of dependence upon the basin by municipal  
            and agricultural users;

          2.Existing law provides for the development of groundwater  
            management plans, also known as AB 3030 plans.  As of January  
            1, 2015, no new AB 3030 plans may be developed nor may  
            existing plans be amended.  AB 3030 plans adopted before  
            January 1, 2015 will remain in effect until a groundwater  
            sustainably plan is adopted under the Sustainable Groundwater  
            Management Act (SGMA).  

            There are two exemptions from the ban on adopting new or  
            renewing existing AB 3030 plans.
             a)   AB 3030 plans can still be adopted or revised in low-or  
               very low-priority basins (but not for high- or  
               medium-priority basins.)
             b)   AB 3030 plans submitted as an alternative to a  
               groundwater sustainability plan can be adopted or revised  
               unless:
                     DWR has not, by January 1 2020, determined that the  
                 plan meets SGMA requirements, or







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                     DWR later determines that the plan does not meet the  
                 requirements of SGMA.

          1.Under SGMA, a groundwater sustainability agency that adopts a  
            groundwater sustainability plan may impose fees on the  
            extraction of groundwater from the basin to fund costs of  
            groundwater management, including the costs of the following:
                 Administration, operation, and maintenance, including a  
               prudent reserve.
                 Acquisition of lands or other property, facilities, and  
               services.
                 Supply, production, treatment, or distribution of water.
                 Other activities necessary or convenient to implement  
               the plan.

            Until a groundwater sustainability plan is adopted, a local  
            agency may impose such fees for an AB 3030 plan provided the  
            AB 3030 plan was adopted before January 1, 2015 is still in  
            effect for the basin.

          1.Under existing law the following are deposited in the Water  
            Rights Fund:
             a.   Annual fees, such as those collected from holders of  
               permits or licenses to appropriate water.
             b.   Fees for service, such as for the application,  
               registration, petition, etc. of various water rights  
               related activities by the State Water Resources Control  
               Board.
             c.   Penalties, such as those assessed for violations of  
               cease and desist orders, violations of terms of water  
               rights, unauthorized diversion or use, or willful  
               misstatements of diversion and use.
             d.   Fees collected to cover the costs of State Board  
               intervention under the Sustainable Groundwater Management  
               Act (SGMA).  Such fees may include:
                     Fees for participation as a petitioner or party to  
                 an adjudicative proceeding.
                     Fees for the filing of reports in probationary  
                 basins and basins without a groundwater sustainably  
                 agency.

            These funds, upon appropriation, may be used for the  
            following:
             a)   Expenditure by the State Board of Equalization to  








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               administer the collection of annual fees from water rights  
               holders.
             b)   Payment of refunds of fees.
             c)   Expenditure by the State Board, including for the  
               following
                     Administering water rights.
                     Appropriation of water by DWR. 
                     Activities associated with developing and enforcing  
                 recycled water regulations.
                     Activities associated with establishing water  
                 quality control plans in connection with plans and  
                 policies that address the diversion or use of water.
                     Intervention by the State Board under the  
                 Sustainable Groundwater Management Act

          PROPOSED LAW
          
          This bill would:

          1.Allow existing AB 3030 plans to be renewed and amended for  
            high and medium priority basins, until a groundwater  
            sustainability plan is adopted.

          2.Change one of the prohibitions on adopting or revising AB 3030  
            plans that are submitted as an alternative to a groundwater  
            sustainability plan:
                 From: If DWR has not, by January 1, 2020, determined  
               that the plan meets SGMA requirement;
                 To: If DWR has, by January 1, 2020, determined that the  
               plan does not meet SGMA requirements. 

          1.Allow a local agency, in addition to imposing fees, to require  
            registration of wells and collect groundwater extraction  
            information for the purpose of revising an AB 3030 plan.

          2.Prohibit the use of Water Rights Fund monies to fund  
            intervention by the State Board under the Sustainable  
            Groundwater Management Act.

          ARGUMENTS IN SUPPORT
          
          According to the Author, "AB 453 clarifies and harmonizes  
          certain provisions of SGMA to ensure that an AB 3030 plan can be  
          amended to utilize new SGMA financing authority as well as have  








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          access to the tools required precedent to the ability to  
          exercise such financial authority. Since an AB 3030 plan may  
          serve as an alternative to a GSP, subject to approval by the  
          Department of Water Resources, it is both necessary and  
          desirable that local agencies have clear authorization to amend  
          existing AB 3030 plans. Further, given the period of time that  
          it will take to develop and adopt a GSP (between five and seven  
          years, depending on the groundwater basin, it makes sense to  
          provide local agencies that currently rely on an AB 3030 plan  
          for groundwater management to improve on those plans and to  
          begin the process of recovering groundwater basin levels as soon  
          as possible."

          ARGUMENTS IN OPPOSITION
          
          A coalition of environmental groups assert, "AB 453 allows  
          current groundwater management plans to be amended until such  
          time as a groundwater sustainability plan is adopted.  This is  
          in direct conflict with the legislation adopted just a few  
          months ago and seems unproductive and unnecessary, given the  
          timeline in which SGMA plans must be completed."

          COMMENTS
          
           What Are AB 3030 Plans?   In 1992, the legislature enacted AB  
          3030 (Costa, Stat. 1992, Ch. 947).  That bill authorized, but  
          did not require, any local agency that is not part of an  
          adjudicated basin and that provides water service to develop a  
          groundwater management plan.  The bill provided that a local  
          agency may develop an AB 3030 plan after it has noticed its  
          intent to develop a plan, held hearings on adopting the plan,  
          and then adopt the plan.  AB 3030 plans must include a wide  
          variety of components including regulation of groundwater  
          levels, mitigation of water quality degradation, review of land  
          use plans, monitoring programs, and facilitation of conjunctive  
          use projects.  Agencies that met the requirements of AB 3030  
          were granted the authorities of water replenishment districts,  
          which included the ability to fix and assess fees to fund its  
          groundwater management activities.  (It appears that no agency  
          has ever exercised the authority to assess fees granted by this  
          last provision).

          In response to growing questions about the efficacy of AB 3030,  
          1997, the legislature enacted SB 1245 (Costa, Stat. 1997, Ch.  








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          548).  That bill required the Department of Water Resources  
          (DWR) to prepare a report on the status of groundwater  
          management plans throughout the state.  DWR produced the report  
          in 1999.

          Among the findings of DWRs "Groundwater Management in  
          California" report were:
           149 agencies had an AB 3030 plan.
           Not all agencies that have adopted an AB 3030 groundwater  
            management plan have adopted rules and regulations as required  
            by AB 3030.
           Not all agencies that have adopted an AB 3030 groundwater  
            management plan have implemented programs as defined in the  
            Water Code.

          The report also made a number of recommendations. These include:

           Require local agencies to submit groundwater management plans  
            to DWR
           Develop a map that shows agency boundaries in each basin and  
            whether that agency has adopted a groundwater management plan.
           Consider incentives to encourage more agencies to engage  
            actively in groundwater management.

          Many of those recommendations and more were addressed in SB 1938  
          (Machado, Stat. 2002, Ch. 603).  SB 1938 amended AB 3030 to:

           Require that groundwater plans adopted in compliance with SB  
            1938's provisions were to be submitted to DWR.  
           Require local agencies prepare a map that details the area of  
            the groundwater basin and the area of the local agency, as  
            well as the boundaries of other local agencies that overlie  
            the basin.
           Require the groundwater management plan to includes basin  
            management objectives for the basin.
           Include much more detail in the plan regarding the condition  
            of the basin and the plans to improve or otherwise manage the  
            basin.
           Require local agencies to comply with the provisions of SB  
            1938, in order to receive state funding 

          Plans that met the requirements of SB 1938 were still AB 3030  
          plans, but were also known as being 1938 compliant.









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          In 2012, DWR and the Association of California Water Agencies  
          (ACWA) jointly conducted a survey of groundwater management  
          agencies.  Among the findings were:

           There were about 118 groundwater plans in all.
           82 of the plans were enacted after SB 1938.
           32 of the plans were actually SB 1938 compliant (39 percent of  
            the post 1938 plans, or 27 percent of all AB 3030 plans).

          The findings of that survey were part of the reason ACWA engaged  
          in the development of SGMA.

           Changes the Default Assumptions.   Currently, alternative plans  
          submitted to DWR are presumed not to satisfy the requirement for  
          such plans unless, before January 31, 2020 DWR finds that it  
          does meet the requirements.  This bill would switch the default  
          so that alternative plans submitted to DWR are presumed to meet  
          the requirements for such plans unless, before January 31, 2020  
          DWR finds that it does not meet the requirements.  Given that  
          less than half of the post SB 1938 plans were truly SB 1938  
          compliant, it may not be prudent to presume that most agencies  
          submitting alternative plans will actually have complaint  
          alternative plans. (See suggested amendment).

           Jumping The Gun?   Currently, once a local agency becomes the  
          groundwater sustainability agency, SGMA grants it the powers and  
          authorities necessary to develop and implement a groundwater  
          sustainability plan. This bill proposes to give agencies with an  
          AB 3030 plan the powers and authorities of a groundwater  
          sustainability agency to impose fees, to require registration of  
          wells and collect groundwater extraction information for the  
          purpose of revising an AB 3030 plan.  These powers would be  
          available whether or not the agency ultimately becomes a  
          groundwater sustainability agency.

          To avoid conflicts between a current AB 3030 agency and a future  
          groundwater sustainability agency regarding fee structure and  
          requirements for well registration and pumping data, it seem  
          reasonable to require to hold off on granting new groundwater  
          management powers until the ultimate governance structure is  
          established. (See suggested amendment).

           Related Bills.   A number of bills were introduced this year to  
          address one or more aspects of groundwater management in general  








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          and SGMA in particular.  Bills still under active consideration  
          this year are:

          AB 617 (Perea)Makes numerous changes throughout SGMA: Some  
                       changes are minor and technical; others are  
                       substantive policy changes, such as eliminating the  
                       requirement that a groundwater sustainability  
                       agency submit its groundwater sustainability plan  
                       to DWR as a condition of a groundwater  
                       sustainability agency becoming authorized exercise  
                       its powers to implement SGMA.
          AB 938 (Salas)Makes a minor technical change regarding  
                       reprioritization of groundwater basins under SGMA.
          AB 939 (Salas)Makes a minor technical change regarding making  
                       data in support of a proposed available to the  
                       public.
          AB 1242 (Gray)Requires the State Water Resources Control Board,  
                       when setting flow requirements for a Water Quality  
                       Control Plan (WQCP), to take into consideration any  
                       applicable groundwater sustainability plans if a  
                       groundwater basin could be affected and to identify  
                       projects for fish recovery that may be undertaken  
                       in lieu of instream flows.
          AB 1390 (Alejo)Streamlines legal processes used to assign water  
                       rights in a groundwater basin.
          SB 13 (Pavley)Makes numerous non-substantive technical changes  
                       to SGMA.
          SB 226 (Pavley)Streamlines legal processes used to assign water  
                       rights in a groundwater basin.

          SUGGESTED AMENDMENT 
          
               On page 3, delete lines 16 through 39.  Delete page 4.
               
          SUPPORT
          Valley Ag Water Coalition (Sponsor)
          African American Farmers of California
          Association of California Water Agencies
          California Agricultural Aircraft Association
          California Association of Nurseries and Garden Centers
          California Citrus Mutual
          California Cotton Ginners Association
          California Cotton Growers Association
          California Fresh Fruit Association








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          California Latino Water Coalition
          California Rice Commission
          California Tomato Growers Association
          National Hmong American Farmers
          Nisei Farmers League
          Regional Water Authority
          Rural County Representatives of California
          Western Agricultural Processors Association

          OPPOSITION
          Center for Biological Diversity
          Clean Water Action
          Community Water Center
          Leadership Counsel for Justice and Accountably
          Natural Resources Defense Council
          Sierra Club California
          The Nature Conservancy
          
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