BILL ANALYSIS Ó AB 1704 Page 1 Date of Hearing: April 27, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1704 (Dodd) - As Amended March 30, 2016 ----------------------------------------------------------------- |Policy |Water, Parks and Wildlife |Vote:|11 - 1 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires the State Water Resources Control Board (SWRCB) in consultation with the Department of Fish and Wildlife (DFW) to adopt general conditions for registrants to divert and store water for small irrigation uses, as specified. This bill requires registrants to pay initial fees of $500 and renewal fees of $250 to DFW. AB 1704 Page 2 FISCAL EFFECT: 1)Significant annual administrative costs of approximately $4 million (GF) plus $11 million in contract funds (GF) for SWRCB to set general conditions statewide for small irrigation use. 2)Ongoing costs of approximately $2 million (Water Rights Fund) for SWRCB to issue and renew registrations following the development of general conditions. 3)DFW estimates it will require 31.0 PYs and $4,727,000 (GF) to implement this bill. However, DFW has also requested $7.7 million (GF) and 31.0 PYs, in the proposed 2016-17 budget to protect fish and wildlife resources from the harmful effects of marijuana cultivation and fulfill duties established in the medical marijuana regulatory framework. It is possible that some duties can be streamlined between the two similar activities, resulting in lower overall costs. Although this bill authorizes fees for DFW, it is unlikely the fee revenues would be sufficient to cover costs. This bill does not provide additional fee authority for SWRCB beyond their existing authority. COMMENTS: 1)Purpose. According to the author, many vineyards and other farmers in the Central Coast and North Coast rely on water diverted from streams that support salmon and steelhead. Some AB 1704 Page 3 of these agricultural water diversions occur during the irrigation season when streamflow is naturally low and juvenile salmon and steelhead are in the streams. Some existing diverters would like to reduce diversions during the irrigation season and transition to winter water storage. However, obtaining rights for a new storage pond is a complex and expensive multi-year endeavor requiring compliance with California appropriative water rights law, Fish and Game Code streambed alteration agreements, Endangered Species Acts, CEQA, and County land use and zoning requirements. This bill allows SWRCB and DFW to develop general conditions to allow small irrigation water users to divert and store water for later use. 2)Background. AB 964, Chapter 579, Statutes of 2011, created the current small irrigation registration process in response to resource conflicts resulting from simultaneous water demands. Sprinklers used to protect vineyards, when combined with other water uses, were causing drops in river flows potentially harmful to salmon and other fish. The registration process created an expedited water right for a pond that stores less than 20 acre-feet annually so that a vineyard could draw from its pond for frost protection instead of directly from the stream. At that time, SWRCB determined one quarter of its currently-pending water rights applications were for uses of 20 acre-feet per year or less. Creating the small irrigation registration process was expected to streamline permitting and help SWRCB eliminate some of the permitting backlog. AB 964 allowed SWRCB to develop general conditions for some AB 1704 Page 4 areas or uses before others, but mandated that the SWRCB develop general conditions for frost protection uses in the northern California coastal stream area by June 30, 2012, unless SWRCB determined there were insufficient funds. On July 25, 2012, the SWRCB approved an initial set of general conditions for Small Irrigation Use registrations. 3)Fish and Wildlife Restrictions. In addition to DFW's authority to impose project-specific terms and conditions on water registrations, AB 964 required SWRCB to develop general conditions that protect in-stream beneficial uses before the small irrigation registration process may be used. The conditions were developed by the SWRCB's Division of Water Rights staff in consultation with a stakeholder group that included representatives from DFW, Trout Unlimited, the Wine Institute, the California Association of Wine Grape Growers and others. Registrants still need to comply with additional conditions and processes imposed by the DFW. As a result, according to proponents of the bill, many of the proposed registrations were not acted upon in a timely manner due in part to limited staff resources at DFW, and to a lack of information as to what should be included in the application. In addition, the author objects to a provision in the existing AB 1704 Page 5 law that prohibits new small irrigation use registrations from being issued for diversions from streams for which DFW recommends instream flow requirements. Instead, this bill would allow the registrations to be issued for such streams if the registration includes conditions that are consistent with the proposed streamflow requirements. 4)Discussions Continue. The author and sponsors the California Association of Winegrape Growers and the Wine Institute, indicate this bill is a work in progress, and are committed to continuing to work with the SWRCB and the DFW to address the costs and other concerns. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081