BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 936


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          Date of Hearing:  April 22, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          936 (Salas) - As Amended April 15, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:   


          SUMMARY:


          This bill authorizes the Department of Water Resources (DWR) to  
          allow projects and programs in disadvantaged communities  
          currently ineligible for funding due to noncompliance with  
          groundwater monitoring requirements to receive state funding if  








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          the project includes actions necessary to meet groundwater  
          monitoring requirements.   


          FISCAL EFFECT:


          1)Potential increased shifts in the awarding of grants from  
            eligible entities to entities currently ineligible.  



          2)Minor to moderate increased staff costs, likely in the  
            $100,000 to $150,000 range to evaluate applications to  
            determine if the grant request would result in compliance with  
            monitoring functions.
            DWR administers a number of grant programs to which this bill  
            may apply including Integrated Regional Water Management  
            Program, Local Groundwater Assistance Grants, Agricultural  
            Water Conservation grants, and Urban Water Conservation  
            grants.  Each program may potentially have the additional duty  
            of reviewing requests to determine if the applicant is in a  
            disadvantaged community and the grant brings the entity into  
            compliance.


          COMMENTS:


          1)Rationale.  The California Statewide Groundwater Elevation  
            Monitoring Program (CASGEM) requires reporting of groundwater  
            basin elevation information to DWR, and requires DWR to assume  
            monitoring functions if the local agency is unable or  
            unwilling to perform the reporting and monitoring duties.   
            Basins for which DWR assumes the duties, or are out of  
            compliance with CASEGEM requirements, are prohibited from  
            receiving state grants and loans.










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            According to the author,  the policy of denying CASGEM  
            noncompliant basins state funding  is having the negative  
            consequence of preventing local agencies from receiving much  
            needed water grants and loans in order to set up groundwater  
            monitoring programs  This bill would allow basins to receive  
            funding under specified circumstance.


          2)Background.  On January 17, 2014, Governor Brown proclaimed a  
            drought State of Emergency. That was followed on April 25,  
            2014 by a continued State of Emergency and on April 3, 2015 by  
            a seven-page Executive Order, B-29-15, with 31 directives to  
            address the drought crisis.  


            Directive 15 states that local agencies in all high and medium  
            priority groundwater basins are to immediately implement all  
            CASGEM requirements or be referred to the State Water  
            Resources Control Board for possible enforcement action.


            There are currently 127 high and medium priority basins in  
            California. Those groundwater basins account for 96% of all  
            groundwater use.  Of the high and medium priority basins, DWR  
            has determined that 9 are fully unmonitored and 16 are  
            partially unmonitored.  In other words, 102 are currently  
            CASGEM compliant and 25 are noncompliant.


            In the 25 non-compliant basins, local agencies can still be  
            eligible for a water grant or loan if their whole area is a  
            disadvantaged community. That is because it is assumed that  
            the bar to compliance is that the entity's customers are  
            financially incapable of supporting a monitoring program.   
            This bill will further clarify eligibility.












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          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081