BILL ANALYSIS Ó AB 2373 Page 1 Date of Hearing: March 29, 2016 ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE Marc Levine, Chair AB 2373 (Gray) - As Introduced February 18, 2016 SUBJECT: Merced Irrigation District SUMMARY: Appropriates $45,000 from the General Fund to the Merced Irrigation District for specified irrigation and water use efficiency. Specifically, this bill: directs the Merced Irrigation District to implement irrigation and water use efficiency strategies for small communal farms in Merced County EXISTING LAW: 1)Appropriates $35 million to the Department of Water Resources for agricultural water efficiency programs. 2)Requires agricultural water suppliers to develop water management plans and implement efficient water management practices. FISCAL EFFECT: Unknown, but appropriates $45,000 from the General Fund. AB 2373 Page 2 COMMENTS: Appropriates $45,000 from the General Fund to the Merced Irrigation District for communal farm irrigation and water use efficiency. 1)Author's Statement: In Merced county dozens of Hmong refugee families have come together to share the cost and labor of farming. Unfortunately these families lack capital to invest in their farms. Water pumps are in disrepair, which hinders the efficiency and energy use of irrigation. The modest sum appropriated in this bill will provide significant reductions in energy, fuel, and water use. 2)Background: The 2015-16 proposed budget for Merced Irrigation District was $78 million with $86 million in revenue. Merced Irrigation District encompasses 164,000 gross acres. Total irrigable lands in the Merced Irrigation District are 138,000 acres. In 2007 88,000 acres of land were supplied with water from Merced Irrigation District. Typically appropriations are made through the budget process. This bill declares that a special law is necessary to implement irrigation and water use efficiency strategies for small communal farms in Merced County, and that irrigation and water use efficiency will benefit the public as a whole. The 2015-16 budget appropriated $35 million to the Department of Water Resources to implement agricultural water efficiency programs. The Department of Water Resources has made $30 million available through competitive grants. The guidelines for these grants were completed January 27, 2016 and applications are due by March 30, 2016. Irrigation districts are among the eligible applicants for these grants. AB 2373 Page 3 Project types to be funded are those that will produce potential benefits to the State including: technical assistance, training, education and public outreach. The Office of Sustainable Water Solutions within the State Water Resources Control Board provides technical assistance to parties that are in need of aid with funding applications, among other things. Groundwater sustainability is an area in which the Office of Sustainable Water Solutions will be playing a technical assistance role. While the Office of Sustainable Water Solutions' primary objective is to promote sustainable safe, affordable, and reliable drink water they can provide technical assistance for additional projects. Non-profits and public agencies are eligible for assistance from the Office of Sustainable Water Solutions. While the Department of Water Resources does not have an arm analogous to the Office of Sustainable Water Solutions to aid disadvantaged communities, grant program managers will assist potential applicants with technical questions. It is not clear if the communal farms that this bill would provide funding for would win an agricultural water use efficiency grant. However, Merced Irrigation District is in a position to apply for a grant, appears to have the resources to apply, and if not could request assistance if needed to aid with the grant. Additionally if there is concern that a grant application focused solely on communal farms would not receive funding the potential exists for Merced Irrigation District to build a larger application. A larger application could include communal farms and additional efficiencies such as addressing the 75% of the 825 miles of water distribution facilities that Merced Irrigation District operates that are earthen lined AB 2373 Page 4 channels. 3)Prior and Related Legislation: a) AB 1471 (Rendon), Chapter 188, Statutes of 2014 placed Proposition 1, a $7.545 billion general obligation bond for water-related projects and programs on the November 4, 2014 ballot where it passed with 67% of the vote. 4)Supporting Arguments: Merced Irrigation District states that the dedication of funding to assist in water-use efficiency strategies for small communal farms could be a valuable tool in pursuing groundwater sustainability objectives in the region. REGISTERED SUPPORT / OPPOSITION: Support Merced Irrigation District Opposition None on file AB 2373 Page 5 Analysis Prepared by:Ryan Ojakian / W., P., & W. / (916) 319-2096