BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          Bill No:            AB 453          Hearing Date:    August 16,  
          2016
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          |Author:    |Salas                  |           |                 |
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          |Version:   |August 8, 2016                                       |
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          |Urgency:   |Yes                    |Fiscal:    |No               |
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          |Consultant:|Dennis O'Connor                                      |
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           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. 

          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.







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             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)The bill includes a provision declaring that a special law is  
            needed because of the unique circumstances of the Semitropic  
            Water Storage District.



          5)The bill is an urgency statute, the urgency being:

            In order for the Semitropic Water Storage District to pursue  
            early implementation of storage and groundwater projects that  
            are needed in order to help recover the Kern County  
            Groundwater Basin, which is listed by the Department of Water  
            Resources as a critically overdrafted basin, it is necessary  
            that this act take effect immediately.

          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 the Sustainably Groundwater Management  
          Act (SGMA). Therefore, absent the Legislature granting  
          authority, a water storage district cannot fund projects and  
          programs directly related to groundwater replenishment until  








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

          ARGUMENTS IN OPPOSITION: None Received

          COMMENTS
          
           Senate Floor Amendments.   The Senate Floor amendments rewrote  
          this bill to remove all references to the Sustainable  
          Groundwater Management Act.  As the bill is now written, it now  
          provides these new powers and authorities to Semitropic WSD  
          outside of SGMA.  
           
           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.

          SUPPORT
          Semitropic Water Storage District (Sponsor)
          Valley Ag Water Coalition

          OPPOSITION:  None Received

          
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