BILL ANALYSIS Ó SENATE COMMITTEE ON NATURAL RESOURCES AND WATER Senator Fran Pavley, Chair 2015 - 2016 Regular Bill No: AB 453 Hearing Date: June 14, 2016 ----------------------------------------------------------------- |Author: |Salas | | | ----------------------------------------------------------------- ----------------------------------------------------------------- |Version: |March 28, 2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |Yes |Fiscal: |No | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Dennis O'Connor | | | | ----------------------------------------------------------------- Subject: Extraction of groundwater: Semitropic Water Storage District BACKGROUND AND EXISTING LAW 1)Semitropic Water Storage District (WSD) is one of eight water storage districts in California. The district delivers water to nearly 300 customers for the irrigation of approximately 140,000 acres in Kern County for agricultural uses. Semitropic WSD also supplies energy to a variety of users and provides groundwater banking and storage services. The California Storage District Act authorizes WSDs to operate facilities for storage and distribution of water. As part of this operation, the WSDs have the power to set tolls and charges for the use of water, issue bonds, buy and sell property, acquire property it deems necessary by condemnation; sue or be sued; and contract. 2)The Sustainable Groundwater Management Act (SGMA) requires, in high- and medium-priority groundwater basins, groundwater sustainability agencies (GSAs) to develop and implement groundwater sustainability plans. Among other things, GSAs implementing such plans may: a) Impose fees on the extraction of groundwater from the basin to fund the costs of groundwater management. b) Require the reporting of groundwater extractions via meters, the cost of which would be borne by the owner of the well. AB 453 (Salas) Page 2 of ? c) Determine the quantity of groundwater extracted and impose charges on that quantity of water, should the owner or operator of a groundwater extraction facility fail to timely comply with the requirements the district established under this measure. PROPOSED LAW 1)This bill would grant the Semitropic Water Storage District the following additional powers and authorities: a) Impose fees on the extraction of groundwater from the basin to fund the costs of groundwater management. b) Require the reporting of groundwater extractions via meters, the cost of which would be borne by the owner of the well. c) Determine the quantity of groundwater extracted and impose charges on that quantity of water, should the owner or operator of a groundwater extraction facility fail to timely comply with the requirements the district established under this measure. 2)Fees imposed pursuant to this bill could include fixed fees and fees charged on a volumetric basis, including fees that increase based on the quantity of groundwater produced annually, the year in which the production of groundwater commenced from a groundwater extraction facility, and impacts to the basin. 3)The provisions of this bill would apply only to Semitropic WSD. 4)Semitropic WSD could exercise the powers and authorities granted by this bill only until a groundwater sustainability plan has been adopted for the area encompassing the district. 5)The bill includes a provision declaring that a special law is because of the unique circumstances of the Semitropic Water Storage District. 6)The bill is an urgency statute, the urgency being: In order for the Semitropic Water Storage District to timely implement actions to recover a groundwater basin subject to critical overdraft, it is necessary that this act take effect immediately. AB 453 (Salas) Page 3 of ? ARGUMENTS IN SUPPORT According to the author, "The groundwater basin that the Semitropic WSD relies on is subject to critical overdraft; one of 21 basins with such a designation by the Department of Water Resources (DWR). These basins must adopt a groundwater sustainability plan by 2020. Funding early actions ahead of 2020 will allow the District to implement projects and programs that will help achieve local sustainability goals. However, under existing law, the District lacks the authority to implement the provisions outlined in SGMA. Therefore, absent the Legislature granting authority, a water storage district cannot fund projects and programs directly related to groundwater replenishment until their basin is covered within the boundaries of a groundwater sustainability agency." ARGUMENTS IN OPPOSITION: None Received COMMENTS Kern County Subbasin. Semitropic WSD is in the northern part Kern County and overlies a portion of the Kern County Subbasin. The subbasin comprises 1,950,000 acres in the south end of the San Joaquin Valley. DWR has designated it as a high-priority basin and is one of 21 basins designated as being in critical overdraft. Kern County GSAs. As of 6/2/16, no one has filed notice with DWR to be the GSA for the portion of the basin within Semitropic WSD's service area. SUGGESTED AMENDMENTS: None SUPPORT Semitropic Water Storage District (Sponsor) Valley Ag Water Coalition OPPOSITION: None Received -- END --