BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 937


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          ASSEMBLY THIRD READING


          AB  
          937 (Salas)


          As Amended  June 1, 2015


          Majority vote


           ----------------------------------------------------------------- 
          |Committee       |Votes |Ayes                |Noes                |
          |                |      |                    |                    |
          |                |      |                    |                    |
          |----------------+------+--------------------+--------------------|
          |Water           |15-0  |Levine, Bigelow,    |                    |
          |                |      |Dababneh, Dahle,    |                    |
          |                |      |Dodd, Beth Gaines,  |                    |
          |                |      |Cristina Garcia,    |                    |
          |                |      |Gomez, Harper,      |                    |
          |                |      |Lopez, Mathis,      |                    |
          |                |      |Medina, Rendon,     |                    |
          |                |      |Salas, Williams     |                    |
          |                |      |                    |                    |
          |----------------+------+--------------------+--------------------|
          |Appropriations  |12-0  |Gomez, Bonta,       |                    |
          |                |      |Calderon, Daly,     |                    |
          |                |      |Eggman,             |                    |
          |                |      |                    |                    |
          |                |      |                    |                    |
          |                |      |Eduardo Garcia,     |                    |
          |                |      |Gordon, Holden,     |                    |
          |                |      |Quirk, Rendon,      |                    |
          |                |      |Weber, Wood         |                    |
          |                |      |                    |                    |
          |                |      |                    |                    |








                                                                       AB 937


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          SUMMARY:  Requires the Department of Water Resources (DWR) to  
          provide technical assistance to a disadvantaged community (DAC) so  
          that they may participate in groundwater planning and allows DWR  
          to waive state funding ineligibility for groundwater projects and  
          programs under certain circumstances.  Specifically, this bill:


          1)Requires DWR to provide technical assistance to disadvantaged  
            communities so that they may participate in groundwater  
            planning, including, but not limited to, plans for regional  
            groundwater banking.


          2)Allows DWR to fund groundwater projects and programs that are  
            currently ineligible for state funding due to noncompliance with  
            state groundwater basin monitoring requirements if the entity  
            documents there are special circumstances that prevented  
            compliance, including, but not limited to that a significant  
            portion of the entity's service area qualifies as a DAC and that  
            the water grant or loan project includes those actions needed to  
            comply with groundwater basin monitoring requirements.


          EXISTING LAW:  


          1)Authorizes $7.545 billion in general obligation funding for  
            water-related projects and programs in Proposition 1, the Safe  
            Drinking Water, Quality, and Infrastructure Act of 2014 (Prop.  
            1). 


          2)Provides $900 million for groundwater projects and programs  
            under Prop. 1, Chapter 10, and requires that:










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             a)   At least 10% of the funds shall be allocated for projects  
               serving severely disadvantaged communities (SDACs).


             b)   There be funding for technical assistance to DACs and that  
               the agency administering this funding shall operate a  
               multidisciplinary technical assistance program for small and  
               DAC communities.


          3)Requires DWR to evaluate groundwater basins and designate them  
            as high, medium, low or very low, according to various factors  
            including, but not limited to, level of dependence upon the  
            basin by municipal and agricultural users.


          4)Requires that local agencies in high- and medium-priority  
            groundwater basins subject to the Sustainable Groundwater  
            Management Act (SGMA) form one or more local Groundwater  
            Sustainability Agencies (GSAs) by June 30, 2017, in order to  
            develop and implement Groundwater Sustainability Plans (GSPs)  
            that provide for the sustainable management of the groundwater  
            basin or subbasin, as defined.


          5)Requires that GSAs in basins with chronic overdraft develop and  
            adopt GSPs for their basin or subbasin by January 31, 2020, and  
            that all other high and medium priority basins subject to SGMA  
            develop and adopt GSPs by January 31, 2022.


          6)Authorizes the State Water Board to declare a basin in  
            probationary status and adopt an interim plan for a basin,  
            subbasin, or portion of a basin or subbasin, if deadlines are  
            not met, as specified.


          7)Requires all groundwater basins to be monitored locally and  
            systematically for their groundwater elevations.








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             8)   Requires reporting of groundwater basin elevation  
               information to DWR's California Statewide Groundwater  
               Elevation Monitoring (CASGEM) program.


          9)Requires DWR to assume groundwater elevation monitoring  
            functions if no local agency is able or willing to and prohibits  
            DWR from charging for the cost of monitoring.


          10)Prohibits basins where DWR has assumed monitoring functions  
            from being eligible for state water grants and loans unless an  
            entity can prove that its entire service area qualifies as a  
            DAC. 


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee:


          1)Unknown costs for DWR to provide local assistance to  
            disadvantaged communities, potentially in the millions of  
            dollars (General Fund or special fund).


          2)Minor to moderate increased staff costs for DWR, likely in the  
            $100,000 to $150,000 range, to evaluate applications to  
            determine if the grant request would result in compliance with  
            groundwater basin monitoring functions.


          COMMENTS:  This bill would require DWR to provide technical  
          assistance to DACs so that they may participate in groundwater  
          planning, including banking, and would authorize DWR to fund some  
          previously ineligible local groundwater plans and programs upon  
          the requisite showing. 









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          The author states this bill is needed to help DACs, including in  
          circumstances where 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.  


          Other supporters state that many small and rural counties have  
          limited staff and resources to implement new and ongoing programs  
          proscribed by the state and that this bill would ensure necessary  
          funding is available to bring more entities into compliance with  
          the CASGEM program.  


          This bill could help DWR to establish a DAC assistance program  
          similar in some ways to the program created at the State Water  
          Resources Control Board (State Water Board).  The State Water  
          Board has established a technical assistance office for  
          disadvantaged communities, the Office of Sustainable Water  
          Solutions (Office). The Office's purposes include, but are not  
          limited to: providing assistance, including technical assistance,  
          to small drinking water systems and disadvantaged communities  
          without clean, safe, and reliable drinking water or wastewater  
          treatment systems; promoting and facilitating regional drinking  
          water solutions and wastewater projects; and advancing the  
          delivery of affordable, safe, drinking water throughout the state.


          The Office was established through AB 92 (Budget Committee),  
          Chapter 1, Statutes of 2015, as part of the 2015 Emergency Drought  
          Legislation.  The Office was created in recognition that the  
          drought is affecting many disadvantaged communities, some with  
          shallow wells that are going dry, are impaired by contamination,  
          or both, and who may lack the technical assistance to develop and  
          implement long-term solutions.  


          The need to address CASGEM noncompliant basins is more acute due  








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          to drought.  On January 17, 2014, as California entered its fourth  
          consecutive year of extremely dry conditions, 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.




          Analysis Prepared by:                                               
                          Tina Leahy / W., P., & W. / (916) 319-2096  FN:  
          0000801













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