BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 453


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          CONCURRENCE IN SENATE AMENDMENTS
          AB  
          453 (Salas)


          As Amended  August 8, 2016


          2/3 vote.  Urgency


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          |ASSEMBLY:  |78-1  |(April 16,     |SENATE: |35-2  |(August 18,      |
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          |COMMITTEE VOTE: |     | (August 25,    |RECOMMENDATION:   |concur     |
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          (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,  








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          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.








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          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  








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          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  








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          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