BILL ANALYSIS Ó AB 453 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 453 (Salas) As Amended August 8, 2016 2/3 vote. Urgency -------------------------------------------------------------------- |ASSEMBLY: |78-1 |(April 16, |SENATE: |35-2 |(August 18, | | | |2015) | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- ---------------------------------------------------------------------- | | | | | | | | | | | | |COMMITTEE VOTE: | | (August 25, |RECOMMENDATION: |concur | | |12-0 |2016) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ---------------------------------------------------------------------- (W., P., & W.) Original Committee Reference: W., P., & W. SUMMARY: This bill would authorize the Semitropic Water Storage District (District) to impose fees on groundwater extraction, AB 453 Page 2 and require the reporting of groundwater extraction with the ability to verify the reported information to fund the cost of groundwater management projects which have completed environmental review before January 1, 2020. Specifically, this bill: 1)Grants the District the following powers and authorities: a) To impose fees on the extraction of groundwater from the basin to fund the costs of the Tulare Lake Storage and Floodwater Protection Project and any other groundwater storage or recharge project for which the District completes an environmental review before January 1, 2020. b) To require the reporting of groundwater extractions via meters, the cost of which would be borne by the owner of the well. c) To 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. 2)Requires fees adopted to be in accordance with the provisions of Proposition 218 of 1996, and permits fixed fees and fees charged on a volumetric basis. 3)Requires a project to comply with the California Environmental Quality Act (CEQA), water rights, the Sustainable Groundwater Management Act (SGMA), and all applicable laws. 4)Is an urgency statute necessary for the District to pursue early implementation of storage and groundwater projects that are needed in order to help recover the Kern County Groundwater Basin. AB 453 Page 3 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 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)SGMA requires, in high- and medium-priority groundwater basins, groundwater sustainability agencies (GSAs) to form by July 1, 2017, and develop and implement groundwater sustainability plans (GSPs). 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. FISCAL EFFECT: This bill is keyed non-fiscal by the Legislative Counsel. COMMENTS: The original version of this bill addressed whether a local agency could amend its existing non-SGMA compliant groundwater management plan prior to developing a GSP that is AB 453 Page 4 SGMA compliant. According to the author the groundwater basin that the District relies on is subject to critical overdraft; one of 21 basins with such a designation by the DWR. These basins must adopt a GSP 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 GSA. The District is one of eight water storage districts in California and is the largest in Kern County. The District began operation in the early 1990's and is one of the largest groundwater banks in operation with an approved storage capacity of at least 1.65 million acre feet. The District delivers water to nearly 300 customers for the irrigation of approximately 140,000 acres for agricultural uses. The District also supplies energy to a variety of users and provides groundwater banking and storage services. The District is in the northern part of 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 DWR has designated it as a high-priority basin and it is one of 21 basins designated as being in critical overdraft. According to the concept paper received by the California Water Commission on March 31, 2016, the Tulare Lake Storage and Floodwater Protection Project will create additional surface storage as well as expand groundwater conjunctive use capacity and has an estimated cost of $500 million dollars. The Project is expected to, among other things, provide improved local water supply reliability, operational flexibility to meet Delta AB 453 Page 5 ecosystem needs, regional flood protection benefits, wildlife habitat and recreation opportunities, and water quality improvements. A GSA could have similar authority as this bill gives to the District. There is no GSA that has filed notice to cover the entire area within the boundaries of the District. However, as of August 3, 2016, the West Kern Water District has filed notice with the Department of Water Resources to be a GSA for a portion of the basin within the District. While there are alternatives to achieve the authority this bill gives to the District the bill will provide for a more direct and immediate path to achieving that authority. Analysis Prepared by: Ryan Ojakian / W., P., & W. / (916) 319-2096 FN: 0004927