AB 2304, as introduced, Levine. California Water Market Exchange.
Existing law, the Costa-Isenberg Water Transfer Act of 1986, requires the Department of Water Resources to establish an ongoing program to facilitate the voluntary exchange or transfer of water and implement the various laws that pertain to water transfers. The act requires the department to create and maintain a list of entities seeking to enter into water supply transfers, leases, exchanges, or other similar arrangements and to maintain a list of the physical facilities that may be available to carry out water supply transfers. The act requires the department to prepare a water transfer guide with prescribed components.
This bill would establish the California Water Market Exchange, governed by a 5-member board, in the Natural Resources Agency. This bill would require the market exchange, on or before December 31, 2017, to create a centralized water market platform on its Internet Web site that provides ready access to information about water available for transfer or exchange. This bill, for all transfers and exchanges of water occurring on or after January 1, 2018, would require the submission of certain data and information to the market exchange and the payment of an administrative fee to the market exchange, as specified. This bill would require the market exchange to develop specified procedures in consultation with federal, state, and local agencies.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
It is the intent of the Legislature in creating the
2California Water Market Exchange that the market exchange do
3all of the following:
4(a) Create water sustainability, resiliency, and adaptability to
5drought and climate change.
6(b) Provide important benefits and opportunities for
7disadvantaged communities and environmental resources.
8(c) Increase transparency and decisionmaking capacity by better
9integrating data collection and reporting.
10(d) Facilitate water transfers and exchanges by the establishment
11of a centralized exchange platform and
streamline review and
12approval processes.
13(e) Enable and encourage public and private investments in
14water use efficiency measures through participation in water
15transfers and exchanges.
16(f) Provide water transfers and exchanges as an effective
17mechanism for sustainable management of surface and groundwater
18resources in the state.
Chapter 7.5 (commencing with Section 485) is added
20to Division 1 of the Water Code, to read:
21
This chapter shall be known, and may be cited, as the
25California Water Market Exchange Act of 2016.
The following definitions govern the construction of this
27chapter:
28(a) “Disadvantaged community” has the same meaning as
29defined in Section 79505.5.
30(b) “Market exchange” means the California Water Market
31Exchange established in Section 487.
32(c) “Small community water system” has the same meaning as
33defined in Section 116275 of the Health and Safety Code.
(a) The California Water Market Exchange is hereby
35established in the Natural Resources Agency.
P3 1(b) The market exchange shall be governed by a five-member
2board, composed as follows:
3(1) The Secretary of the Natural Resources Agency.
4(2) Four individuals appointed by the Governor.
5(c) Each board member appointed by the Governor shall hold
6office for a term of four years. The Governor shall stagger the
7terms of the initial members appointed. A vacancy shall be filled
8by the Governor by appointing a member to serve the remainder
9of the
term.
(a) On or before December 31, 2017, the market exchange
11shall create a centralized water market platform on its Internet
12Web site that provides ready access to information about water
13available for transfer or exchange. The platform shall be readily
14available to the public and contain all data and information
15collected by the market exchange in order to ensure transparency
16of information regarding the quantities of water available for
17transfer or exchange and the prices paid for transferred or
18exchanged water.
19(b) Before a transfer or exchange of water, the market exchange
20shall require the submission of data and information that includes,
21but is not limited to, all of the following:
22(1) The names of the water buyer and seller.
23(2) The quantity of water to be transferred or exchanged.
24(3) The price to be paid for the water transfer or exchange.
25(4) The time and duration of the water transfer or exchange.
26(5) The nature of the underlying right to the water proposed to
27be transferred or exchanged.
28(6) The origin location and proposed place of use of the
29transferred or exchanged water.
30(7) A description of the conveyance and storage facilities
31necessary to complete the transfer or exchange.
32(8) An identification of any third-party
impacts that may result
33from the transfer or exchange.
34(c) After a transfer or exchange of water, the market exchange
35shall require the submission of data and information that includes,
36but is not limited to, all of the following:
37(1) The quantity of water transferred or exchanged.
38(2) The conveyance and storage facilities used to complete the
39water transfer or exchange.
40(3) The time and duration of the water transfer or exchange.
The Legislature intends that water transfers and exchanges
2protect and enhance environmental and community benefits that
3include the following:
4(a) Instream flows and ecosystem water supply.
5(b) Improved water monitoring and data networks.
6(c) Ecosystem restoration projects benefitting aquatic and
7riparian species.
8(d) Improved drinking water supply and quality projects.
9(e) Development of needed technical, managerial, and financial
10capacity for disadvantaged communities.
11(f) Acquisition through the market exchange of needed water
12supplies for small community water systems.
On or before December 31, 2017, the market exchange
14shall do both of the following:
15(a) Develop procedures, in consultation with federal, state, and
16local agencies with jurisdiction over water transfers or exchanges,
17to streamline and expedite review and action upon applications to
18transfer or exchange water and to prioritize projects that provide
19environmental and community benefits as described in Section
20489. The procedures shall recommend types of transfers and
21exchanges that could be more routinely approved.
22(b) Establish standards and procedures to ensure that transfers
23and exchanges protect environmental and community benefits
24consistent with Section 489 and to encourage projects that improve
25
environmental conditions, provide safe drinking water, and provide
26other community benefits.
(a) Anyone submitting information pursuant to
28subdivision (b) or (c) of Section 488 shall pay an administrative
29fee, established by the market exchange, to recover the reasonable
30costs of the market exchange in administering this chapter.
31(b) Fees imposed pursuant to subdivision (a) shall be deposited
32in the California Water Market Exchange Fund that is hereby
33created in the State Treasury. Moneys in the fund shall be available,
34upon appropriation by the Legislature, to the market exchange for
35the purposes of this chapter.
(a) This chapter applies in addition to any other law
37relating to water transfers and exchanges.
P5 1(b) This chapter applies to all transfers and exchanges of water
2occurring on or after January 1, 2018.
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