BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1704


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          Date of Hearing:  April 27, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          1704 (Dodd) - As Amended March 30, 2016


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          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.










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          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  








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            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  








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            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  








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            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