BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        AB 453|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                   THIRD READING 


          Bill No:  AB 453
          Author:   Salas (D) 
          Amended:  3/28/16 in Senate
          Vote:     27 - Urgency

           SENATE NATURAL RES. & WATER COMMITTEE:  7-1, 6/14/16
           AYES:  Pavley, Allen, Hertzberg, Hueso, Monning, Vidak, Wolk
           NOES:  Stone
           NO VOTE RECORDED:  Jackson

           ASSEMBLY FLOOR:  Not relevant

           SUBJECT:   Extraction of groundwater:  Semitropic Water Storage  
                     District


          SOURCE:    Semitropic Water Storage District

          DIGEST:   This bill grants the Semitropic Water Storage District  
          additional powers and authorities to impose fees and fund  
          projects to help manage groundwater until such time as there is  
          an adopted groundwater sustainability plan.


          ANALYSIS: 


          Existing law:


          1)Authorizes the creation of water storage districts (WSDs) to  
            operate facilities for storage and distribution of water. As  
            part of this operation, the WSDs have the power to set tolls  








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            and charges for the use of water, issue bonds, buy and sell  
            property, acquire property it deems necessary by condemnation;  
            sue o2)r be sued; and contract.


          3)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.


             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 of the plan. 


          This bill:


          1)Grant the Semitropic WSD 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  







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                                                                    Page  3


               or operator of a groundwater extraction facility fail to  
               timely comply with the requirements the district  
               established under this bill. 


          2)Authorizes fees imposed pursuant to this bill to 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)Applies only to Semitropic WSD.


          4)Sunsets the additional powers and authorities granted by this  
            bill to Semitropic WSD upon adoption of a groundwater  
            sustainability plan for the area encompassing the district.


          5)Includes a provision declaring that a special law is because  
            of the unique circumstances of the Semitropic WSD.


          6)Declares 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.


          Comments


          Semitropic WSD is one of eight WSDs 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.









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          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.  The Department of Water Resources (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 June 2, 2016, no one has filed notice  
          with DWR to be the GSA for the portion of the basin within  
          Semitropic WSD's service area.




          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:NoLocal:    No


          SUPPORT:   (Verified6/14/16)


          Semitropic Water Storage District (source)
          Valley Ag Water Coalition


          OPPOSITION:   (Verified6/14/16)


          None received


          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  
          [Sustainable Groundwater Management Act]. Therefore, absent the  
          Legislature granting authority, a water storage district cannot  
          fund projects and programs directly related to groundwater  







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          replenishment until their basin is covered within the boundaries  
          of a groundwater sustainability agency."


           
           
          Prepared by:Dennis O'Connor / N.R. & W. / (916) 651-4116
          6/15/16 17:24:36


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