BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          Bill No:            AB 617          Hearing Date:    July 14,  
          2015
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          |Author:    |Perea                  |           |                 |
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          |Version:   |June 29, 2015    Amended                             |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Dennis O'Connor                                      |
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                               Subject:  Groundwater.


          BACKGROUND AND EXISTING LAW
          
          The Sustainable Groundwater Management Act (SGMA):  


          1.Defines "sustainable groundwater management" as the management  
            and use of groundwater in a manner that can be maintained  
            during the planning and implementation horizon without causing  
            undesirable results.


          2.Defines "undesirable results" as any of the following effects:
                 Chronic lowering of groundwater levels (not including  
               overdraft during a drought if a basin is otherwise  
               managed). 
                 Significant and unreasonable reduction of groundwater  
               storage. 
                 Significant and unreasonable seawater intrusion. 
                 Significant and unreasonable degraded water quality,  
               including the migration of contaminant plumes that impair  
               water supplies. 
                 Significant and unreasonable land subsidence that  
               substantially interferes with surface land uses. 
                 Depletions of interconnected surface water that have  
               significant and unreasonable adverse impacts on beneficial  
               uses of the surface water. 







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          1.Requires that a groundwater sustainability plan be adopted for  
            high and medium priority groundwater basins in California.
                 Limited to "high & medium priority basins" - 127 out of  
               515 basins in the state. 
                 Adjudicated basins are exempt (except for minimal  
               reporting), bringing the number to fewer than 100 affected  
               basins. 
                  "Low & very low priority" basins are exempt, though  
               they are encouraged to adopt plans. 


          1.Establishes a timetable for adoption of groundwater  
            sustainability plans.
                 By 2017, local groundwater sustainability agencies must  
               be identified. 
                 By 2020, overdrafted basins must be covered by a  
               groundwater sustainability plan. Other high and medium  
               priority basins not in overdraft must have plans by 2022. 
                 By 2040, each high and medium priority basin must  
               achieve sustainability, though this can be extended by 10  
               years for good cause. 





          1.Vests local agencies with the responsibility to manage their  
            basins sustainably.
                 Provides groundwater sustainability agencies (GSAs)new  
               authority to adopt and enforce rules, require reporting,  
               raise funds and build new water projects 
                 Directs the Department of Water Resources (DWR) to.  
               provide technical assistance to local agencies. 


          1.Establishes basic requirements for groundwater sustainability  
            plans (GSPs). 
                 Long-term planning and implementation horizon. 
                 Measurable objectives and interim milestones to achieve  
               sustainability in 20 years. 
                 Most requirements similar to the current, voluntary  
               groundwater plan requirements adopted 22 years ago. 








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                 DWR will develop new regulations for updating basin  
               boundaries and criteria to evaluate sustainability plans. 


          1.Provides state oversight to ensure compliance with SGMA.
                 Requires DWR to evaluate groundwater sustainability  
               plans within two years of submission. 
                 Authorizes the State Water Resources Control Board  
               (SWRCB) to temporarily intervene in four limited  
               circumstances: 
                     No governance structure for a basin after 2  years.  

                     No plan after five years (overdrafted basins) or ten  
                 years (other basins). 
                     Plan is inadequate and the basin has serious  
                 groundwater problems. 
                     Local agency has not adequately implemented the plan  
                 and the basin has serious groundwater problems. 
                 Requires the SWRCB to return control to local agencies  
               as soon as they adopt an adequate plan. 
                 Authorizes the SWRCB to limit its temporary control to  
               the portion of the basin not being managed. 

          PROPOSED LAW
          
          This bill would make a number of changes to SGMA.  Specifically,  
          it would:

           State any action to regulate groundwater extractions taken as  
            a means of implementing a groundwater plan sustainability  
            could not be used as evidence of, or to establish or defend  
            against, any claim of prescription.

           Redefine "groundwater recharge" to include in-lieu recharge  
            through delivery of water to persons that otherwise extract  
            groundwater, leaving groundwater in the basin.

           Authorize mutual water companies to participate in a  
            groundwater sustainability agency through a joint powers  
            agreement.

           Require approval of all parties of a groundwater  
            sustainability agency before an investor owned utility would  
            be allowed to participate in the agency.








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           Require DWR to notify a county of any gaps in coverage of the  
            basin for which the county is presumed to be the groundwater  
            sustainability agency.

           Require DWR notify the SWRCB when a county notifies DWR  that  
            it will not be the groundwater sustainability agency for an  
            area within a basin that is not within the management area of  
            a groundwater sustainability agency.

           Explicitly authorize groundwater sustainability agency to  
            enter into written agreements and funding with a private party  
            to assist in, or facilitate the implementation of, a  
            groundwater sustainability plan or any elements of the plan.

           Authorize a groundwater sustainability agency that finds that  
            a state entity is not working cooperatively regarding  
            implementation of a GSP, to file notice with the board  
            regarding its finding. 

           State that "good cause" for DWR to grant a five year extension  
            beyond the 20 sustainability timeline includes litigation that  
            prevented a groundwater sustainability plan or program from  
            being implemented in a manner likely to achieve the  
            sustainability goal.

           Change the requirement that agencies developing multiple GSPs  
            within a single basin coordinate to ensure that the plans  
            utilize the "same" data and methodologies to ensure that the  
            plans utilize "consistent" data and methodologies.

           Exempt the formation of or election to become a GSA from CEQA.  
             States that the amendment to the water code that exempts the  
            formation of groundwater sustainability agency from CEQA does  
            not constitute a change in, but is declaratory of, existing  
            law.

           Authorize, in basins designated as a probationary basin by the  
            SWRCB, the submission of just those groundwater sustainability  
            plans covering portions of a basin that have been excluded  
            from probationary, to comply with the requirement that all  
            GSPs for a basin be submitted at the same time.

           State that nothing the section regarding submission of GSPs to  








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            DWR be construed to prohibit a groundwater sustainability  
            agency from implementing a groundwater sustainability plan  
            prior to evaluation and assessment of the groundwater  
            sustainability plan by the DWR.

           Change the direction to the SWRCB to exclude from probationary  
            status any portion of a basin for which a groundwater  
            sustainability agency demonstrates compliance with the  
            sustainability goal to instead a demonstration that the agency  
            has adopted a GSP and that it is being implemented in a manner  
            that will likely achieve the sustainability goal.

           Require the SWRCB to notify DWR if it will develop an interim  
            plan for a probationary basin and shall identify that portion  
            of a basin that has been excluded from probationary status.

          This bill would also allow integrated resources management plans  
          to be based on GSPs.

          ARGUMENTS IN SUPPORT
          
          Supporters appreciate the author's attempt to clarify language  
          and terms contained in SGMA, as well as to harmonize key  
          provisions in the Act.  A number also state that they are  
          committed to the successful implementation of SGMA, and see the  
          provisions of this bill as only helping in their efforts.

          ARGUMENTS IN OPPOSITION
          
          The Sierra Club objects to the bills proposed changes regarding  
          claims of prescriptive rights [Section 2].  They assert that it  
          would lead to a "race to the bottom" for groundwater  
          extractions.

          COMMENTS
          
           Conflicts With SB 13 (Pavley).   Senator Pavley's SB 13 is being  
          used as a vehicle to make numerous technical and clarifying  
          amendments necessary to help implement SGMA.  To ensure that  
          this bill does not change any of the policies established by  
          SGMA, Senator Pavley has vetted each amendment with the parties  
          involved in the drafting of SB 1168, SB 1319, and AB 1739.  

          This bill amends many of the same sections of SGMA as SB 13, but  








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          often not the same way.  The author has agreed to defer Senator  
          Pavley's language in those areas where the bills conflict.   
          Those conflicting provisions are in Sections 2, 5, 6, 7, 10, 19,  
          20.  With the deletion of Section 20, Section 11 (which  
          cross-references changes in Section 20) is also no longer  
          necessary.

          Deleting Section 10 would also delete a proposed new subdivision  
          (f) which addresses a potential situation where a state agency  
          is not working cooperatively to conform to or otherwise  
          implement a groundwater sustainability plan.  A hypothetical  
          example could be a prison that doesn't report extraction data to  
          the groundwater sustainability agency.  To retain this provision  
          the language should be moved to a new standalone section in  
          SGMA, WC §10732.2. (See Amendment 1)

           Changes In Deliberate Policies.   This bill proposes to change a  
          number policies established in SGMA that were deliberately made  
          by the authors.

           This bill would add a provision stating that "good cause" for  
            DWR to grant a five year extension beyond the 20  
            sustainability timeline includes litigation that prevented a  
            groundwater sustainability plan or program from being  
            implemented in a manner likely to achieve the sustainability  
            goal.  (Section 12)

            The determination of good cause is fact specific.  It is not  
            always the case that litigation is good cause.  For example,  
            an agency may initiate a suit specifically as a delaying  
            tactic; that would not be good cause.  

           This bill would change the requirement that agencies  
            developing multiple GSPs within a single basin coordinate to  
            ensure that the plans utilize the "same" data and  
            methodologies to ensure that the plans utilize "consistent"  
            data and methodologies.  (Section 14)

            The requirements for agencies developing multiple GSPs within  
            a single basin were the subject of much discussion last year.   
            The decision to require agencies use the "same" data and  
            mythologies was to avoid disagreements among agencies with a  
            basin due to data not being "consistent" enough.









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           This bill would exempt from CEQA the formation of or election  
            to become a GSA. (Sections 16 & 21)

            The appropriate application of CEQA was also subject to much  
            discussion last year.  Ultimately, the authors decided to  
            exempt from CEQA only the adoption and updating of groundwater  
            suitability plans.  This is similar to the CEQA exemption for  
            adopting and updating of urban water management plans and  
            agricultural water management plans.  The authors were  
            unwilling to grant any further exemptions to CEQA.

          (See Amendment 2)

           Groundwater Recharge  - This bill does three things regarding  
          "groundwater recharge." First, it changes the definition of  
          "groundwater recharge" to include "in-lieu recharge through  
          delivery of water to persons that otherwise extract groundwater,  
          leaving groundwater in the basin."  (Section 4).  Second, it  
          systematically deletes the phrase "or in-lieu use." (Sections 3,  
          12, & 15).  Third, it adds the word "groundwater" in a few  
          instances where the only the word "recharge" is used.  (Sections  
          13 & 18)

          The change in the definition of groundwater recharge is  
          problematic.  The definition in current law is the same as it is  
          used in groundwater management plans, also known as AB 3030  
          plans.  As many agencies will be converting from AB 3030 plans  
          to groundwater sustainability plans, different definitions of  
          groundwater recharge could be problematic.

          That said, SGMA does not include a definition of "in-lieu  
          recharge."  A solution to all these issues would be to define  
          "groundwater recharge" or "recharge" the same as under current  
          law, add a definition of "in-lieu recharge," and make conforming  
          changes throughout SGMA.  (See Amendment 3)

           Regulation vs Food Fight.   In drafting SGMA, the authors were  
          faced with a choice regarding how to establish GSAs.  They could  
          establish a fairly detailed regulatory-like process for  
          determining who should act as the GSA for all or part of a  
          basin, with requisite notifications between DWR, SWRCB,  
          counties, local agencies etc.  The problem with that is with  
          over 100 basins being under SGMA, it would have been  
          extraordinarily difficult, if not impossible, to come up with a  








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          process that would work for each and every basin.  Or, they  
          could go with the "food fight" approach, where within each basin  
          the local interests work out the who's, what's, and how's of  
          establishing one or more GSAs and ensuring the entire basin was  
          ultimately covered.  The authors went with the "food fight"  
          option.  
           
          This bill on occasion attempts to provide more guidance to local  
          agencies regarding the formation of GSAs, coordination of  
          multiple GSPs within a basin, etc. that would be consistent with  
          the "food fight" option.  (See Amendment 4)

           Editorial Changes.   This bill proposes to make purely editorial  
          changes to one section. (Section 8) (See Amendment 5)  
           
           End Result.   With the proposed amendments, this bill would  
          consist of the following:
          Section 1
          Section 3 with amendments
          Section 9
          Section 13 with amendments
          Section 17 with amendments
          A new WC §10732.2
           
          May Need Chaptering Amends  as the bill moves forward.  This bill  
          and SB 226 (Pavley) both propose to amend WC §10721.

           Related Bills.   A number of bills were introduced this year to  
          address one or more aspects of groundwater management in general  
          and SGMA in particular.  Bills still under active consideration  
          this year are:

           AB 453 (Bigelow)Authorizes existing groundwater management  
                        plans (aka AB 3030 plans) to be renewed and  
                        amended for high and medium priority basins, until  
                        a GSP is adopted.  Also grants agencies operating  
                        under an AB 3030 plan the same powers and  
                        authorities of a groundwater management agencies  
                        the authorities of a groundwater sustainably  
                        agency.

          AB 939 (Salas)Makes minor technical changes regarding making  
                       data in support of a proposed available to the  
                       public and regarding reprioritization of  








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                       groundwater basins under SGMA.

          AB 1242 (Gray)Requires the State Water Resources Control Board,  
                       when setting flow requirements for a Water Quality  
                       Control Plan (WQCP), to take into consideration any  
                       applicable groundwater sustainability plans if a  
                       groundwater basin could be affected and to identify  
                       projects for fish recovery that may be undertaken  
                       in lieu of instream flows.

          AB 1390 (Alejo)Streamlines legal processes used to assign water  
                       rights in a groundwater basin.

          SB 13 (Pavley)Makes numerous non-substantive technical changes  
                       to SGMA.

          SB 226 (Pavley)Streamlines legal processes used to assign water  
                       rights in a groundwater basin.
          
          

          SUGGESTED AMENDMENTS 
          
          AMENDMENT 1: 

               Delete Sections 2, 5, 6, 7, 10, 11, 19, & 20

               Add a new section 10732.2 to the water code incorporating  
               the language beginning on page 14, line 35, through page  
               15, line 9, inclusively

          AMENDMENT 2:
               
               Delete Sections 12, 14, 16, & 21
          
          AMENDMENT 3:
               
               On page 9, beginning on line 16, amend to read:
                         (i) "Groundwater recharge"  or "recharge"  means  
               the augmentation of groundwater, by natural or artificial  
               means  and may include in-lieu recharge through delivery of  
               water to persons that otherwise extract groundwater,  
               leaving groundwater in the basin  .









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               On page 9, after line 32, insert:
                          (m) "In-lieu use" means the use of surface water  
               by persons that could otherwise extract groundwater in  
               order to leave groundwater in the basin.
                
               Renumber the balance of §10721.

               Delete Section 3, 15, & 18

               On page 18, line 22, after "recharge," insert "  in-lieu  
               use, "
          
          AMENDMENT 4:
               
               On page 20, delete lines 7 through 11 and insert  "plans.  
               When the entire basin is covered by groundwater sustainably  
               plans, the groundwater"  
          
          AMENDMENT 5:
               
               Delete Section 8
          

          SUPPORT
          Valley Ag Water Coalition (Sponsor)
          City of Visalia
          Kings River Conservation District
          Kings River Water Association
          Modesto Irrigation District
          Tulare Irrigation District
          Turlock Irrigation District
          Western Growers

          OPPOSITION
          Sierra Club California

          


                                      -- END --

          










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