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