BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 453| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 453 Author: Salas (D) Amended: 8/8/16 in Senate Vote: 27 - Urgency PRIOR VOTES NOT RELEVANT SENATE NATURAL RES. & WATER COMMITTEE: 7-1, 6/14/16 AYES: Pavley, Allen, Hertzberg, Hueso, Monning, Vidak, Wolk NOES: Stone NO VOTE RECORDED: Jackson SENATE NATURAL RES. & WATER COMMITTEE: 8-0, 8/16/16 (pursuant to Senate Rule 29.10) AYES: Pavley, Stone, Allen, Hueso, Jackson, Monning, Vidak, Wolk NOES: NO VOTE RECORDED: Hertzberg SUBJECT: Extraction of groundwater: Semitropic Water Storage District SOURCE: Semitropic Water Storage District DIGEST: This bill rants the Semitropic Water Storage District (WSD) 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. Senate Floor Amendments of 8/8/16 remove all references to the Sustainable Groundwater Management Act (SGMA). It now provides AB 453 Page 2 these new powers and authorities to Semitropic WSD outside of SGMA. ANALYSIS: Existing law: 1) Authorizes the creation of 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 c2)ontract. 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 the district established under this measure. This bill: 1)Grants the Semitropic WSD the following additional powers and AB 453 Page 3 authorities to: 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 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)Includes a provision declaring that a special law is needed because of the unique circumstances of the Semitropic WSD. 5)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." Comments AB 453 Page 4 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. FISCAL EFFECT: Appropriation: No Fiscal Com.:NoLocal: No SUPPORT: (Verified8/16/16) Semitropic Water Storage District (source) Valley Ag Water Coalition OPPOSITION: (Verified8/16/16) 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 the Sustainably Groundwater Management Act (SGMA). Therefore, absent AB 453 Page 5 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." Prepared by:Dennis O'Connor / N.R. & W. / (916) 651-4116 8/16/16 17:38:42 **** END ****