BILL ANALYSIS Ó
SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
Senator Fran Pavley, Chair
2015 - 2016 Regular
Bill No: AB 2874 Hearing Date: June 14,
2016
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|Author: |Beth Gaines | | |
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|Version: |June 2, 2016 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Dennis O'Connor |
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Subject: Groundwater sustainability agencies: fees
BACKGROUND AND EXISTING LAW
The Sustainable Groundwater Management Act (SGMA) authorizes
groundwater sustainability agencies (GSAs) to impose fees,
including but not limited to, permit fees and fees on
groundwater extraction, to fund the costs of a groundwater
sustainability program.
The California Public Utilities Commission (CPUC) regulates
privately owned electric, natural gas, telephone, water, and
sewer utilities, including approving all utility rate change
requests.
PROPOSED LAW
This bill would require a GSA, before imposing or increasing a
fee relating to a groundwater basin that includes a water
corporation regulated by the CPUC, to notify the CPUC.
ARGUMENTS IN SUPPORT
According to the sponsor, "Despite the significant impact SGMA
has on CPUC-regulated water utilities, the act does not provide
for a process in which the CPUC may participate in the
policymaking alongside other state and local officials. Without
consideration of the CPUC's regulatory responsibility, and the
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regulated utilities' circumstances, customers of regulated water
utilities could be harmed through changes in fees and
groundwater rights. This bill will protect customers of
CPUC-regulated water utilities from the omission in SGMA of a
formal coordination process between the GSA and the CPUC."
ARGUMENTS IN OPPOSITION:
The Association of California Water Agencies (ACWA), in its
oppose unless amended letter, writes "While the bill intends to
ensure that the CPUC's oversight responsibilities to protect
taxpayers remain intact and that the CPUC has coordination with
eh GSA that implements SGMA in a basin that includes a private
water corporation, AB 2874 could potentially require GSAs to
notify the CPUC regarding fees that are not related to SGMA. As
GSA's are created to implement SGMA, they should notify CPUC
regarding fees that relate to the Act.
ACWA respectfully requests that AB 2874 be amended as follows:
A groundwater sustainability agency, before imposing or
increasing, pursuant to this chapter, increasing a fee
pursuant to Section 10730 or 10730.2 relating to a
groundwater basin that includes a water corporation
regulated by the Public Utilities Commission, shall notify
the Public Utilities Commission.
COMMENTS:
ACWA's Issue Resolved. The amendments of a 6/2/16 mirror those
requested by ACWA.
SUGGESTED AMENDMENTS: None
SUPPORT:
California Water Association (Sponsor)
OPPOSITION:
Association of California Water Agencies (ACWA), Unless Amended
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