BILL ANALYSIS Ó
AB 1587
Page 1
Date of Hearing: April 27, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1587 (Mathis) - As Amended April 14, 2016
-----------------------------------------------------------------
|Policy |Water, Parks and Wildlife |Vote:|14 - 0 |
|Committee: | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| | | | |
| | | | |
| | | | |
-----------------------------------------------------------------
Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill appropriates $50 million from Proposition 1 funds for
groundwater sustainability plans and projects, and requires that
special consideration be given to projects that create
groundwater recharge basins in areas of fallow farmland.
FISCAL EFFECT:
AB 1587
Page 2
Appropriates $50 million to the Department of Water Resources
from the Proposition 1, Sustainable Groundwater Planning Program
(SGWP).
COMMENTS:
1)Purpose. According to the author, a critical number of
groundwater basins are in a state of overdraft. NASA and USDA
estimate that more than 1 million acres of farms and ranches
in California have gone fallow due to drought conditions.
This bill will provide an opportunity to create "water farms"
which will help people save their farms and create additional
water storage.
2)Background. Subsidence is a significant and growing problem in
the state. Subsidence is typically caused by depleting the
groundwater table through groundwater pumping. In times of
drought, when there is greater reliance on groundwater because
surface water is not available, subsidence can occur. Often
times when subsidence occurs, the future availability of
groundwater basin to store water is diminished permanently.
3)Water Bond. AB 1471 (Rendon), Chapter 188, Statutes of 2014,
placed Proposition 1, a $7.545 billion general obligation bond
for water-related projects and programs on the November 4,
2014 ballot, where it passed with 67% of the vote.
Proposition 1, Chapter 10 authorized $900 million in
groundwater funding. Of that $900 million, $100 million is
directed to DWR to provide competitive grants for management
plans and projects through its Sustainable Groundwater
Planning Program (SGWP). SGWP is a competitive grant program
AB 1587
Page 3
for projects that develop and implement groundwater plans and
projects in accordance with groundwater planning requirements
under current law.
Of the $100 millionm, $7 million comes off the top for bond
issuance costs, audits and administrative costs. A total of
$93 million is available for competitive grants, with $5
million allocated to support DWR's program delivery over the
life of the program, and $2 million for statewide bond cost.
4)2015-16 Budget. The Legislature appropriated $60 million in
SGWP funds to support local groundwater planning efforts, as
follows:
$50 million for technical and direct assistance and
grants to local agencies for groundwater sustainability
governance and planning (known as the "Sustainable
Groundwater Planning" solicitation), of which $1.25 million
was subsequently allocated to DWR's Program Delivery.
$10 million for counties with stressed groundwater
basins to update or develop local ordinances and plans
that: 1) protect basins and their beneficial uses; and 2)
help facilitate basin-wide sustainable groundwater
management under SGMA, in coordination with other local
water managers (known as the "Counties with Stressed
Basins" solicitation).
Approximately $33 million in Local Assistance (LA) funding
has not yet been appropriated. The author may wish to
reduce the appropriation in his bill to reflect available
funds.
AB 1587
Page 4
1)DWR Program Implementation: In October 2015, DWR issued the
2015 SGWP Grant Program Guidelines and the initial competitive
grant solicitation for this program, from which $6.7 million
of the $10 million was awarded to counties with stressed
basins and the remaining $3.3 million will revert to
supplement the existing $50 million for local assistance.
DWR is in the process of developing regulations that define
what elements make up a Sustainable Groundwater Plan.
It is unclear how this bill fits with the current regulatory
and funding process at DWR.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081