BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2909 (Levine) - Water:  transfer or exchange:  expedited  
          review
          
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          |Version: June 21, 2016          |Policy Vote: N.R. & W. 8 - 0    |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 8, 2016    |Consultant: Narisha Bonakdar    |
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          This bill meets the criteria for referral to the Suspense File.

          Bill  
          Summary:  AB 2909 requires the State Water Resources Control  
          Board (SWRCB) and the Department of Water Resources to develop  
          and implement an expedited 30-day review process for petitions  
          to transfer or exchange water or water rights if the transfer is  
          for a reoccurring water transfer or an environmentally  
          beneficial transfer.


          Fiscal  
          Impact:  Unknown, likely in the high hundreds of thousands  
          (General Fund or special fund) for each agency to develop and  
          implement the expedited review. 


          Background:  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 the following criteria:

           The transfer would only involve the amount of water that would  







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            have been consumptively used or stored by the permittee or  
            licensee in the absence of the proposed temporary change. 

           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.

          A short-term transfer is initiated by a petition to the SWRCB to  
          change the terms of the permit or license, and is exempt from  
          the California Environmental Quality Act (CEQA).  


          Proposed Law:  
            This bill:

          1)Requires the SWRCB 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.

          2)Requires DWR to develop a 30-day review process for  
            reoccurring water transfers that use State Water Project  
            facilities.

          3)Defines an "Environmentally beneficial transfer" as 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. 








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                 A transfer that contributes to the implementation of the  
               Sustainable Groundwater Management Act.

          1)Defines a "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.

          2)States that transfers under this bill do not alter the  
            priority for use of conveyance facilities, and that the  
            provisions of this bill are in addition to any other law  
            relating to water transfers or exchanges.

          3)Sunsets the bill on January 1, 2022.

          Staff Comments: 
          
          Purpose. According to the author, "Water transfers make up only  
          3% of all water use in California.  Clearly we can do better.   
          It is 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."
          
          Implementation costs. This bill would require the SWRCB and DWR  
          to build staff capacity, or redirect staff upon receipt of a  
          petition, to ensure petitions eligible for the expedited 30-day  
          approval timeline are completed on time.  Each permit approval  
          requires several specialized staff to review the petition and  
          determine the impact the diversion will have on the environment  
          and other water rights holders. 

          Cost of expediency.  As noted in the Senate Natural Resources  
          and Water analysis, 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.  
          Additionally, this expedited review will result in the need for  








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          additional staff or irregular redirections of staff time to  
          ensure permits are approved within 30 days.  
           
           


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