BILL ANALYSIS Ó AB 2357 Page 1 Date of Hearing: April 12, 2016 ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE Marc Levine, Chair AB 2357 (Dahle) - As Amended April 5, 2016 SUBJECT: Water rights: monitoring and reporting SUMMARY: Restricts specific existing measurement and reporting requirements on small agricultural water users to only those in year round use. EXISTING LAW: 1)Requires a water right holder who diverts 10 acre-feet or more per year to be capable of continuously measuring and reporting with a month to month breakdown at a minimum annually. Permits adoption of measurement and reporting requirements on all water right holders. 2)Allows for a registration and certification water right for small agricultural uses that are capped at 10 acre-feet or less annually. Allows registrations and certifications to be conditioned by the State Water Resources Control Board (State Water Board) FISCAL EFFECT: Unknown. AB 2357 Page 2 COMMENTS: Restricts specific existing measurement and reporting requirements on small agricultural water users to only those in year round use. 1)Author's statement: SB 88, which was enacted in 2015, implemented new measuring, monitoring and reporting requirements on any individual or entity diverting surface water of more than 10 acre-feet. Although the statute allows the State Water Board the ability to provide exemptions based on the cost of compliance, the regulations provide little flexibility for diverters to comply. It's estimated that the cost of the monitoring equipment could cost $20,000-$50,000, which for these small diverters is very hard to afford. AB 2357 will clarify that only stock ponds that are filled by a year-round diversion to storage are subject to the regulations, and exempts small livestock ponds that are filled intermittently during rainy months. 2)Background: Last year SB 88 (Budget) Chapter 27, Statutes of 2015, added measurement and reporting requirements for a substantial number of diverters. The additional requirements are administered by the State Water Board. In January of this year the State Water Board adopted regulations applying measurement requirements on all water right holders who divert more than 10 acre-feet of water per year. Reporting requirements in the regulation apply to all water right holders irrespective of size, including registrations and certifications. The reporting requirements for registrations and certifications do not take effect until January 1, 2018. The State Water Board has anticipated that the new requirements could present challenges and is holding meetings and workshops around the state to receive input on key issues in the emergency regulation. AB 2357 Page 3 This bill creates a narrow exemption from reporting requirements in the State Water Board regulations by exempting short lived small agricultural use storage ponds. 3)Prior and Related Legislation: SB 88 (Budget) Chapter 27, Statutes of 2015, added measurement and reporting requirements for a substantial number of diverters. 4)Supporting Arguments: Active surface water diversions to small stock ponds typically occur during California's rainy season. Ponds fill with runoff from precipitation and dry up near the end of the summer grazing season. In order to fully comply with monitoring, measuring, and reporting requirements a rancher must be physically present to monitor a diversion. Many stock ponds for summer pasture fill during the rainy season but the rancher is not present to monitor the diversion. Exempting small livestock stock ponds that are filled intermittently only during rainy months will provide necessary regulatory relief to small family farmers and ranchers and not impede on the Legislature's desire to collect more accurate and timely information. 5)Opposition Arguments: This bill will impair implementation of SB 88. Oftentimes, management decisions have been dealing with small margins of error, and all information is necessary so the State Water Board can do its job. Water diversion information is needed now. REGISTERED SUPPORT / OPPOSITION: AB 2357 Page 4 Support California Cattlemen's Association California Farm Bureau Federation California Waterfowl Association Opposition Sierra Club California Analysis Prepared by:Ryan Ojakian / W., P., & W. / (916) 319-2096