BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 1242


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          ASSEMBLY THIRD READING


          AB  
          1242 (Gray)


          As Amended  May 5, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                 |Noes                 |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Water           |8-4   |Bigelow, Dodd, Beth  |Levine, Cristina     |
          |                |      |Gaines, Gray,        |Garcia, Lopez,       |
          |                |      |Harper, Mathis,      |Williams             |
          |                |      |Medina,              |                     |
          |                |      |Ridley-Thomas        |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Natural         |8-1   |Williams, Dahle,     |Mark Stone           |
          |Resources       |      |                     |                     |
          |                |      |                     |                     |
          |                |      |Cristina Garcia,     |                     |
          |                |      |Hadley, Harper,      |                     |
          |                |      |McCarty, Rendon,     |                     |
          |                |      |Wood                 |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Appropriations  |16-0  |Gomez, Bigelow,      |                     |
          |                |      |Bonta, Calderon,     |                     |
          |                |      |Chang, Daly,         |                     |
          |                |      |Gallagher, Eduardo   |                     |
          |                |      |Garcia, Gordon,      |                     |








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          |                |      |Holden, Jones,       |                     |
          |                |      |Quirk, Rendon,       |                     |
          |                |      |Wagner, Weber, Wood  |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
           ------------------------------------------------------------------- 


          SUMMARY:  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.


          EXISTING LAW:  


          1)Maintains that the waters of the state are held in trust for the  
            people of California and cannot be privately owned but can only  
            be reasonably and beneficially used.


          2)Tasks the State Water Resources Control Board (State Water  
            Board) with protecting and enforcing water rights and water  
            quality laws, included delegated water quality authorities under  
            the federal Clean Water Act.  Places nine Regional Water Quality  
            Control Boards (Regional Water Boards) under the State Water  
            Board.


          3)Requires the Regional Water Boards, or State Water Board under  
            specified circumstances, to formulate and adopt WQCPs for all  
            areas within each region of the state that protect beneficial  
            uses of water and meet water quality objectives.


          4)Defines beneficial uses of the waters of the state to include  








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            domestic, municipal, agricultural, and industrial supply; power  
            generation; recreation; aesthetic enjoyment; navigation; and  
            preservation and enhancement of fish, wildlife, and other  
            aquatic resources or preserves.


          5)Requires the WQCP to include objectives that will ensure the  
            reasonable protection of all beneficial uses, protection of  
            water quality, and the prevention of nuisance while considering  
            factors such as past, present and probably future beneficial  
            uses of water, environmental characteristics, regional  
            economics, the need to develop housing, and the need to expand  
            and use recycled water.


          6)Requires the Department of Water Resources (DWR) to prioritize  
            California's groundwater basins in order to focus state  
            resources.  The basins are prioritized as either high, medium,  
            low, or very low based on a combination of factors including,  
            but not limited to, overlying population, level of dependence  
            for urban and agricultural water supplies, and impacts on the  
            groundwater from overdraft, subsidence, saline water intrusion,  
            and water quality degradation.


          7)Requires, by June 30, 2017, the formation of one or more  
            Groundwater Sustainability Agencies (GSAs) in all high and  
            medium priority basins subject to the Sustainable Groundwater  
            Management Act (SGMA).


          8)Requires, by January 31, 2020, that GSAs in all high and medium  
            priority basins subject to a chronic condition of overdraft  
            develop and adopt Groundwater Sustainability Plans (GSPs) that  
            provide for the sustainable management of the groundwater basin,  
            as defined.


          9)Requires, by January 31, 2022, that GSAs in all other high and  








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            medium priority basins subject to SGMA develop and adopt GSPs.


          10)Allows the State Water Board to impose an interim plan for  
            management of a groundwater basin if no GSA is formed by the  
            deadline, no GSP is adopted by the appropriate deadline, or a  
            GSP is adopted which DWR deems insufficient and where the basin  
            is in a chronic condition of overdraft or in a condition where  
            groundwater pumping is causing a significant depletion of  
            interconnected surface waters. 


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, increased contract costs for the State Water Board to  
          perform the duties required in the bill of up to $21 million  
          (General Fund or special fund).


          COMMENTS:  This bill would require the State Water Board to  
          consider SGMA GSPs, or any alternatives, when setting instream  
          flow requirements that could "affect" a groundwater basin.  This  
          bill is assuming that if the State Water Board requires adequate  
          water to be left instream to meet water quality needs, then locals  
          will pump more groundwater in response.  


          This bill is also requiring the State Water Board to identify  
          projects for fish recovery that may be undertaken in lieu of  
          instream flows.  However, in the Delta, there is significant  
          scientific disagreement as to whether habitat projects or other  
          actions can substitute for flows needed to recovery fisheries.  


          The Sacramento and San Joaquin Rivers meet in the Delta and part  
          of the flow passes through the San Francisco Bay and out to sea  
          under the Golden Gate Bridge.  The Delta is important to the  
          natural environment and economy of California.  The Delta's flows  
          provide part of the drinking water supply for two-thirds of the  
          State's population and water for a multitude of other urban uses  








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          as well as supplying some of the State's most productive  
          agricultural areas both inside and outside of the Delta.  The  
          Delta is also one of the largest ecosystems for fish and wildlife  
          habitat production in the United States, including commercial runs  
          of salmon.


          This bill is a direct response to the State Water Board's current  
          process of setting in-stream flows sufficient to meet the Delta's  
          WQCP needs.  For 30 years parties on the Sacramento River and its  
          tributaries, including the State Water Project and federal Central  
          Valley Project, have been required to help meet flow requirements  
          in accordance with the 1995 Delta WQCP.  However, at the time that  
          the 1995 Delta WQCP was developed, the parties on the Merced,  
          Tuolumne and Stanislaus Rivers, which are tributaries to the San  
          Joaquin River, claimed there was insufficient scientific  
          information to establish flow requirements and proposed a  
          multi-year experiment to inform the determination.  


          The objective of the experiment, called the "Vernalis Adaptive  
          Management Plan" or "VAMP" was to evaluate the relative  
          relationship between flows down the tributaries and export pumping  
          in the Delta on fish survival. VAMP ended in 2011 after more than  
          a decade during which the VAMP participants did not provide the  
          high end of the flow range that was necessary to complete the  
          experiment.  Meanwhile, populations of at-risk fish species  
          crashed in the Delta.  


          The Delta WQCP received a minor update in 2006.  As part of that  
          update four "emerging issues" were identified.  These included:  
          the decline of pelagic or "open water" fish such as smelt and  
          threadfin shad; climate change impacts; Delta and Central Valley  
          salinity; and, San Joaquin River flows.  With regard to San  
          Joaquin River flows, the State Water Board referenced data that  
          showed various fish species within the Delta and San Joaquin River  
          basin had not shown significant signs of recovery since adoption  
          of the VAMP experiment and recommended additional study.   








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          Thereafter, in 2009, the State Water Board commenced a triennial  
          update of the WQCP that is ongoing and will include a  
          determination of what responsibility parties on the individual  
          tributaries to the San Joaquin River have for contributing to  
          Delta flows.  


          The author states this bill is necessary because the State Water  
          Board is considering a proposal to develop new unimpaired flow  
          requirements on the Tuolumne, Merced, and Stanislaus Rivers.  The  
          author maintains that the proposed plan would significantly  
          increase the level of water into the Delta and thus devastate the  
          groundwater basins in the valley by reducing surface water  
          recharge opportunities and eliminating surface water deliveries to  
          domestic and agricultural water users.  The author maintains that  
          the State Board's action will deny Central Valley basins one of  
          the most important tools in the tool box: the ability to recharge  
          the depleted groundwater table with surface flows.    


          Opponents state that this bill would unreasonably limit the  
          authority of the State Water Board to balance the use of water in  
          the state for all beneficial uses, including fish and wildlife  
          that are held in trust by the state.  Opponents state that this  
          bill also threatens vulnerable communities from unsustainable  
          groundwater management by inserting a broad and inappropriate  
          requirement that essentially makes every Basin Plan subservient to  
          any and all GSPs in that basin with the effect of interfering with  
          the State Water Board's ability to protect water quality.  
          Specifically, with regard to the San Joaquin River and its  
          tributaries, opponents note that in some years more than 80% of  
          the natural flow of these rivers is diverted, which has  
          devastating impacts on salmon, steelhead, and other native  
          fisheries as well as the health of the Delta.  Opponents add that  
          during the negotiations for SGMA the author attempted to link  
          groundwater management and the State Water Board's potential  
          requirement for the San Joaquin River tributaries to provide  
          adequate water to the Delta, but the approach was rejected.









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          Analysis Prepared by:                                               
                          Tina Leahy / W., P., & W. / (916) 319-2096  FN:  
          0000772