BILL ANALYSIS Ó AB 1986 Page 1 Date of Hearing: April 27, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1986 (Wilk) - As Amended April 14, 2016 ----------------------------------------------------------------- |Policy |Water, Parks and Wildlife |Vote:|12 - 2 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires the State Water Resources Control Board (SWRCB) to reissue notices of applications for permits to appropriate water and provide opportunity for protests under specified conditions. Specifically, this bill: AB 1986 Page 2 1)Requires the SWRCB, if it has not rendered a final determination on an application for a permit to appropriate water within 20 years from the date the application was filed, to issue another notice of application, as prescribed, and mail the notice to the applicant and interested parties. 2)Excludes applications that have already been canceled or denied, for which a new notice and opportunity to protest has been provided in the past five years, and for which the SWRCB has already agreed to hold a hearing and allow interested parties to participate. 3)Requires the applicant to publish and post the notice as prescribed by applicable law. 4)Authorizes any interested person to file a written protest with the SWRCB against the application within the time frame allowed in the notice or by the SWRCB for good cause. 5)Requires the SWRCB to conduct proceedings on the application in accordance with existing law governing hearings on protested applications. FISCAL EFFECT: Increased ongoing annual costs of $280,000 (2PY) for SWRCB to re-notice applications, process new protests and possibly hold a water rights hearing or field investigation (Water Rights Fund). COMMENTS: AB 1986 Page 3 Rationale. According to the Author, in 1990, the Bureau of Land Management (BLM) issued two 10-year contracts to mine 56 million tons of aggregate from a site near Soledad Canyon and the 14 Freeway. The current owner of the proposed mine site is CEMEX. In August of last year, BLM announced that the contracts, held for more than 25 years but never acted on, had been cancelled. CEMEX has appealed that decision. CEMEX's predecessor in interest filed an application with the SWRCB in 1991 to appropriate 322 acre-feet of water per year from the Santa Clara River for use on the mine site. The SWRCB never acted on the application which is still pending and could be reactivated. If the application were reactivated, the time period for filing of protests has long passed. This bill would require publication of a new notice of application, and would reopen the protest period and related administrative processes. According to the author, this notice will allow members of the community to make a case with state regulators as to why the mine and associated application to appropriate water for the project should be denied. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081 AB 1986 Page 4