BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 647


                                                                      Page  1





          ASSEMBLY THIRD READING


          AB  
          647 (Eggman)


          As Amended  May 5, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                 |Noes                 |
          |----------------+------+---------------------+---------------------|
          |Water           |10-1  |Levine, Dodd,        |Beth Gaines          |
          |                |      |Cristina Garcia,     |                     |
          |                |      |Gomez, Gray, Lopez,  |                     |
          |                |      |Medina, Rendon,      |                     |
          |                |      |Ridley-Thomas,       |                     |
          |                |      |Williams             |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Appropriations  |12-1  |Gomez, Bloom, Bonta, |Jones                |
          |                |      |Calderon, Daly,      |                     |
          |                |      |Eggman, Eduardo      |                     |
          |                |      |Garcia, Holden,      |                     |
          |                |      |Quirk, Rendon,       |                     |
          |                |      |Weber, Wood          |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
           ------------------------------------------------------------------- 


          SUMMARY:  Adds to the legal definition of what constitutes a  
          beneficial use of water by including water that is stored  
          unground, under specified conditions.  Specifically, this bill:  









                                                                       AB 647


                                                                      Page  2






          1)Specifies that while water is in the ground it shall be  
            considered as being beneficially used if it meets either or both  
            of the following conditions:


             a)   Protecting water quality, including providing a barrier to  
               saline water intrusion.


             b)   Preventing or remediating significant and unreasonable  
               land subsidence that substantially interferes with surface  
               land uses.


          2)States that it is the intent of the Legislature that water  
            stored in the ground and considered beneficially used under the  
            above two conditions shall not operate to the injury of any  
            legal user of the water involved.


          3)Specifies that the forfeiture period that applies to  
            appropriative water diversions shall not apply when the water is  
            being held in storage for the above uses or, under existing law,  
            when it is being later applied to a specified beneficial use.  


          EXISTING LAW:  


          1)Recognizes that the water resources belong to the people of the  
            State of California but that individuals can hold rights to use  
            water.


          2)Recognizes two primary forms of water rights:


             a)   Riparian rights, which are based on applying water from a  








                                                                       AB 647


                                                                      Page  3





               stream or watercourse to adjoining land; and,


             b)   Appropriative water rights, which attach when an entity,  
               whether or not it borders a water course, is the first in  
               time to divert the water and use it in a way that is both  
               reasonable and beneficial.  


          3)Specifies that any portion of an appropriative water right that  
            is not used beneficially during a five year period may be  
            considered abandoned.  Technically, it means that volume of  
            water reverts back to the public and may be available for use by  
            others.


          4)Allows water that is stored underground to be considered to have  
            been beneficial used if the following three things happen:


             a)   The purpose for which the water was later used was  
               identified at the time of storage; 


             b)   The use that was identified was considered beneficial;  
               and, 


             c)   The water was actually applied to that use.


          5)Specifies that the State Water Resources Control Board may grant  
            an appropriative water rights' holders request to change the  
            point of diversion, place of use, or purpose of use for water  
            that in a specified water rights permit but only that change  
            will not operate to the injury of any legal user of the water  
            involved (the "no injury rule").










                                                                       AB 647


                                                                      Page  4





          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, there will be minor, if any, state costs.


          COMMENTS:  This bill expands the definition of beneficial use for  
          water rights by including water that is stored in the ground as  
          water that is being beneficially used under certain circumstances.


          Converting the status of water that is "parked" underground from  
          an intermediary point on the beneficial use continuum into an end  
          point could have complex ramifications to the existing water  
          rights system.  The author, in recognition that this needs to be  
          addressed, amended this bill in the Assembly Appropriations  
          Committee to include Legislative intent language referencing the  
          "no injury rule" of California water law.


          Beneficial use is a fundamental principal of water rights law.  It  
          defines and limits, on an ongoing basis, the scope of an  
          appropriative water right.  It is the difference between a "paper"  
          water right - a document asserting that an individual has the  
          right to a specific amount of water, whether they have used it or  
          not - and a "wet" water right, meaning a water right of continuing  
          validity because the amount of water described has been  
          reasonably, beneficially, and continuously used.


          The difference between the two does matter.  California is an arid  
          state.  The beneficial use concept was born out of recognition  
          that economic opportunities, from gold mining to farming, are tied  
          to the availability of water.  It rewards those intrepid  
          individuals who are "first in time" to put the water to use and  
          gives them water rights senior to all others who come after.   
          Later the doctrine was modified to prohibit the squandering or  
          hoarding of water by limiting the legal right to only that portion  
          that is used reasonably and continuously.  










                                                                       AB 647


                                                                      Page  5





          The seniority of a water right is important.  In times of shortage  
          the most senior water rights holder receives all of his or her  
          allocation, and then the next most senior, and so on and so forth.  
           The most junior water rights holders might receive nothing.  This  
          is not an intellectual hypothesis.  During the four year drought  
          we are currently experiencing it is happening right now.  Some  
          junior water rights holders are being told to cease withdrawals so  
          that senior water rights holders can be kept whole.


          The author states this bill is necessary to allow entities who  
          wish to recharge an aquifer for the health of the basin, to do so  
          without being at risk of forfeiting their water right.  The author  
          also wants to prevent water in underground storage from being  
          considered abandoned after five years.  The author also states  
          that recharge is necessary and crucial for multiple reasons in  
          that it not only serves as a practical way to augment California's  
          water storage, but it also helps mitigate the consequences of  
          decades of chronic overuse of groundwater.  Supporters state that  
          this bill will confirm into law what Californians already know:  
          that groundwater recharge of surface water is not only a  
          beneficial use of water, but a critical component of stabilization  
          of groundwater basins throughout California.


          Opponents state that they support groundwater banking and  
          conjunctive use programs and that for many decades local  
          governments have successfully managed some groundwater basins  
          (particularly adjudicated basins) and have created groundwater  
          banking and recharge programs in water banks like Kern Water Bank  
          and Semitropic.  Opponents state that they are unaware of any  
          situation where existing law on beneficial use precluded  
          groundwater recharge and management programs and thus question why  
          a change in law is necessary.  Opponents also voice concern that  
          this bill could create significant problems for the State of  
          California, other water users, and the environment and that it  
          could effectively increase the overallocation of water in  
          California and cause injury to existing water rights holders and  
          other water users, including State Water Project and Central  








                                                                       AB 647


                                                                      Page  6





          Valley Project contractors, as well as the state's salmon fishery  
          and other instream beneficial uses of water.


          Related Legislation


          SB 228 (Cannella) of the current legislative session, seeks to  
          declare that groundwater recharge is, in and of itself, a  
          beneficial use of water, as specified.  




          Analysis Prepared by:                                               
                          Tina Leahy / W., P., & W. / (916) 319-2096  FN:  
          0000258