BILL ANALYSIS Ó SENATE COMMITTEE ON NATURAL RESOURCES AND WATER Senator Fran Pavley, Chair 2015 - 2016 Regular Bill No: AB 2909 Hearing Date: June 28, 2016 ----------------------------------------------------------------- |Author: |Levine | | | ----------------------------------------------------------------- ----------------------------------------------------------------- |Version: |June 21, 2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Dennis O'Connor | | | | ----------------------------------------------------------------- Subject: Water: transfer or exchange: expedited review BACKGROUND AND EXISTING LAW 1. Current law provides "It is hereby declared to be the established policy of this state to facilitate the voluntary transfer of water and water rights where consistent with the public welfare of the place of export and the place of import." To that end, the Department of Water Resources (DWR), the State Water Resources Control Board (state board), "and all other appropriate state agencies are directed to encourage voluntary transfers of water and water rights, including, but not limited to, providing technical assistance to persons to identify and implement water conservation measures which will make additional water available for transfer." 2. Under current law, a person with a water rights permit or licensee may temporarily change the point of diversion, place of use, or purpose of use due to a transfer or exchange of water or water rights if the transfer meets certain criteria. These include: The transfer would only involve the amount of water that would have been consumptively used or stored by the permittee or licensee in the absence of the proposed temporary change. AB 2909 (Levine) Page 2 of ? The transfer would not injure any legal user of the water, during any potential hydrologic condition that the board determines is likely to occur during the proposed change, through significant changes in water quantity, water quality, timing of diversion or use, consumptive use of the water, or reduction in return flows. The transfer would not unreasonably affect fish, wildlife, or other instream beneficial uses. Key definitions include: "Temporary change" - any change of point of diversion, place of use, or purpose of use involving a transfer or exchange of water or water rights for a period of one year or less. This is sometimes also called a short-term transfer. "Consumptively used" - the amount of water which has been consumed through use by evapotranspiration, has percolated underground, or has been otherwise removed from use in the downstream water supply as a result of direct diversion. Short-term transfers are exempt from the California Environmental Quality Act (CEQA). A short-term transfer is initiated by a petition to the state board to change the terms of the permit or license. The process is as follows: The petitioner is required to provide a copy of the petition to the Department of Fish and Wildlife (DFW), the board of supervisors of the county or counties in which the petitioner currently stores or uses the water subject to the petition, and the board of supervisors of the county or counties to which the water is proposed to be transferred. Within 10 days of the date of submission of a petition: The petitioner must publish a notice of the petition and a brief description of the terms of the proposed temporary change. The state board must provide to the petitioner a list of water right holders of record on file with the board who may be affected by the transfer, The petitioner must provide written notice to those AB 2909 (Levine) Page 3 of ? water right holders not later than 10 days after the date on which the petition is submitted, and The state board must post the notice of petition on its Internet Web site. The notice of the petition must specify the date on which comments are due. Also within 10 days of the date of receipt of a petition, the state board must begin an investigation of the proposed temporary change. As a part of that investigation, the state board must: Determine if the water proposed to be transferred would have been consumptively used or stored in the absence of the proposed. Evaluate the changes in water storage, timing and point of diversion, place and purpose of use, timing and point of return flow, water quality, and instream flows, and other changes that are likely to occur as a result of the proposed temporary change. Water users that may be affected by a proposed temporary change and any other interested party may file a written comment regarding a petition with the state board. Comments shall be filed not later than 30 days after the date that the notice was published. The state board is required to render a decision on the petition not later than 35 days after the date that investigation commenced or the date that the notice was published, whichever is later, with two exceptions (below). The board must explain its decision in writing and send copies of the decision to the petitioner, the DFW, the relevant board(s) of county supervisors, the proposed transferee, and any party who has filed a written comment. If comments are filed on the proposed transfer, the state board may extend the date of its decision for up to 20 days. If the state board or the petitioner determines that an additional extension of time for a decision is necessary for the state board to make its findings or that a hearing is necessary for the board to make those findings, the board may extend the time for a decision with the consent of the petitioner. 3. Also under current law, neither the state, nor any regional AB 2909 (Levine) Page 4 of ? or local public agency may deny a transferor of water the use of a water conveyance facility which has unused capacity, for the period of time for which that capacity is available, if fair compensation is paid for that use, subject to the following: Any person that has a long-term water service contract with or the right to receive water from the owner of the conveyance facility has the right to use any unused capacity prior to any bona fide transferor. The commingling of transferred water will not diminish the beneficial uses or quality of the water in the facility. Any person has a water service contract with or the right to receive water from the owner of the conveyance facility who has an emergency need may use the unused capacity that was made available pursuant to this section for the duration of the emergency. The use of a water conveyance facility would not: Injure any legal user of water. Unreasonably affect fish, wildlife, or other instream beneficial uses Unreasonably affect the overall economy or the environment of the county from which the water is being transferred. 4. DWR has contracts with the water agencies participating in the state water project (SWP). Provisions of those contracts govern how, among other things, DWR treats requests to exchange water among SWP contractors. (The contracts do not allow for selling what are known as Table A supplies, only exchanges.) PROPOSED LAW This bill would: Require the state board to develop and implement an expedited 30-day review process for approval of petitions to temporarily change the point of diversion, place of use, or purpose of use due to a transfer or exchange of water or water rights if the transfer is for a reoccurring water transfer or an environmentally beneficial transfer. AB 2909 (Levine) Page 5 of ? Require DWR to develop a 30-day review process for reoccurring water transfers between contractors for State Water Project water and for reoccurring water transfers that utilize facilities of the State Water Project. Define the following terms "Environmentally beneficial transfer" means a transfer that does not negatively impact an ecosystem's health or local drinking water supply in the source area and includes any of the following: A transfer between water users that is designed to benefit the environment. A transfer that protects habitat and sensitive wildlife or enhances managed wetland supply, wildlife refuges, ecosystems, and instream flow. A transfer that benefits local drinking water supplies by reducing local groundwater overdraft or improving water quality. A transfer that contributes to the implementation of the Sustainable Groundwater Management Act (SGMA). "Reoccurring water transfer" means a transfer of one year or less that is substantially similar in volume, time of year, and hydrologic conditions to a transfer previously approved by the department or the board in the past 48 months. Further provide: Transfers under this bill shall not alter the priority for use of conveyance facilities. The provisions of this bill are in addition to any other law relating to water transfers or exchanges. This bill shall remain in effect only until January 1, 2022, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2022, deletes or extends that date. ARGUMENTS IN SUPPORT According to the author, "Water transfers make up only 3% of all water use in California. Clearly we can do better. It is AB 2909 (Levine) Page 6 of ? important that we remove as many barriers to transfers as possible. This bill is a simple step to ensure that where substantially similar transfers have been completed before they do not have to go back to square one for approval. Additionally, a more nimble response to critical environmental needs is provided. This will allow for improved efficiency in completing transfers as we move forward and will help us more efficiently distribute water." ARGUMENTS IN OPPOSITION: None Received COMMENTS How Long Does Approving Short-Term Transfers Normally Take? By law, the state board moves pretty quickly in approving short term transfers. Current law requires public notice of the petition to be provided within 10 days of the date of submission of the petition to the State Water Board. The notice period per the Water Code lasts 30 days. If no comments are received, the state board usually acts on the petition within 5 days. If comments are received, the State Board may extend their decision for up to 20 days. All told, this means the state board acts between about 45 days to 60 days to approve short-term transfers. Balance Of Expediency And Protection Of Water Rights. The current process reflects a balancing of acting quickly versus ensuring no harm to legal water users and the environment. Reducing the state board's time to process a short term transfer means reducing the level of effort by the state board and interested parties to ensure the transfer will do no harm to any legal water user or the environment. Access to SWP. DWR has to consider two key issues when determining whether to transport (or "wheel") water using the SWP: Would the transfer harm any legal water user or the environment? Does the SWP have sufficient excess capacity to move that water? The question about excess capacity hinges on two additional things. First, DWR's window for wheeling non-SWP water is July-August-September. That is when the various biological AB 2909 (Levine) Page 7 of ? opinions and other constraints allow wheeling of non-SWP water. Second, DWR cannot know if it will have excess capacity during that transfer window until it schedules all SWP deliveries, and DWR determines that in May. So, the decision regarding wheeling of non-SWP water hinges more on the time of year than the administrative review process. Definition Of An Environmentally Beneficial Transfer Is Broad. For example, it includes any transfer that reduces local groundwater overdraft or helps to implement SGMA. Arguably, any transfer that brings water into an overdrafted basin will help reduce overdraft, either by reducing demands for ground water or by recharging groundwater through water that percolates after use for irrigation. Recurring Short Term Transfer Vs. Long Term Transfers. Short-term transfers have a fairly quick approval process and are exempt from CEQA. Long-term transfers, defined in statute as any period in excess of one year, are not exempt from CEQA and so their approval process can take significantly more time. By requiring the state board to develop a process to approve short-term transfers that are "substantially similar in volume, time of year, and hydrologic conditions" to a previously approved transfer, this bill seems to be blurring the difference between short-term transfers and some long-term transfers. SUGGESTED AMENDMENTS: None SUPPORT: None Received OPPOSITION: None Received -- END --