Amended in Assembly May 21, 2015

Amended in Senate April 23, 2015

Amended in Senate February 24, 2015

Senate Bill No. 13

Introduced by Senator Pavley

December 1, 2014

An act to amend Sections 5202, begin insert 10720.5, 10720.7, 10722.2, 10722.4, end insert 10723, 10723.6, 10723.8, 10724, begin insert 10726.8, 10730.2, 10733.2, end insert 10733.3, 10735.2, 10735.4, 10735.6, and 10933 of begin insert , and to add Section 10729.2 to, end insert the Water Code, relating to groundwater.

LEGISLATIVE COUNSEL’S DIGEST

SB 13, as amended, Pavley. Groundwater.

Existing law, the Sustainable Groundwater Management Act, requires all groundwater basins designated as high- or medium-priority basins by the Department of Water Resources that are designated as basins subject to critical conditions of overdraft to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2020, and requires all other groundwater basins designated as high- or medium-priority basins to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2022, except as specified. The act authorizes the State Water Resources Control Board to designate a basin as a probationary basin if the state board makes a certain determination and to develop an interim plan for the probationary basin. The act requires a local agency or groundwater sustainability agency to have 90 or 180 days, as prescribed, to remedy the deficiency if the board designates the basin as a probationary basin.

This bill would specify that the board is authorized to designate a high- or medium-priority basin as a probationary basin. This bill would provide a local agency or groundwater sustainability agency 90 or 180 days, as prescribed, to remedy certain deficiencies that caused the board to designate the basin as a probationary basin. This bill would authorize the board to develop an interim plan for certain probationary basins one year after the designation of the basin as a probationary basin.

Existing law authorizes a combination of local agencies to form a groundwater sustainability agency by a joint powers agreement, memorandum of agreement, or other legal agreement, and authorizes a water corporation regulated by the Public Utilities Commission to participate in a groundwater sustainability agency if the local agencies approve.

This bill would authorize a mutual water company to participate in a groundwater sustainability agency and would provide that a water corporation or a mutual water company may participate through a memorandum of agreement or other legal agreement.

Existing law establishes a groundwater monitoring program pursuant to which specified entities, including a groundwater sustainability agency, may propose to be designated by the department as groundwater monitoring entities, as defined, for the purposes of monitoring and reporting with regard to groundwater elevations in all or part of a groundwater basin or subbasin. Existing law requires the department to identify the extent of monitoring of groundwater elevations that is being undertaken in groundwater basins and subbasins, and if the department determines that all or part of a basin or subbasin is not being monitored, to determine whether there is sufficient interest in establishing a groundwater management plan, an integrated regional water management plan, or a groundwater monitoring association.

This bill, if the department determines that all or part of a basin or subbasin is not being monitored, would require the department to determine whether there is sufficient interest in establishing a groundwater sustainability plan.

Existing law requires a local agency or combination of local agencies that elect to be a groundwater sustainability agency for a basin to submit a prescribed notice of intent to the Department of Water Resources. Existing law requires the department to post the notice on its Internet Web site within 15 days of receipt.

This bill would eliminate these provisions.

begin insert

Existing law requires the department to categorize each basin as high-, medium-, low-, or very low priority and authorizes a local agency to request that the department revise the boundaries of a basin. Existing law provides that a local agency has 2 years from the date of a reprioritization that elevates a basin to a medium- or high-priority basin to either establish a groundwater sustainability agency or submit an alternative to the department and 5 years from the date of reprioritization to adopt a groundwater sustainability plan, as prescribed.

end insert begin insert

This bill would extend the deadline for a basin that is elevated to a medium- or high-priority basin before January 31, 2017, and is not subject to critical conditions of overdraft to be managed under a groundwater sustainability plan to January 31, 2022.

end insert begin insert

Existing law, the Administrative Procedure Act, governs the procedure for the adoption, amendment, or repeal of regulations by state agencies and for the review of those regulatory actions by the Office of Administrative Law.

end insert begin insert

This bill would state that a guideline, criterion, bulletin, or other technical or procedural analysis or guidance prepared by the department as required by the Sustainable Groundwater Management Act is not subject to the Administrative Procedure Act, except as prescribed.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 5202 of the Water Code is amended to
read:

5202.  

(a) This section applies to a person who does either of
the following:

(1) Extracts groundwater from a probationary basin 90 days or
more after the board designates the basin as a probationary basin
pursuant to Section 10735.2.

(2) Extracts groundwater on or after July 1, 2017, in an area
within a high- or medium-priority basin subject to the requirements
of subdivision (a) of Section 10720.7 that is not within the
management area of a groundwater sustainability agency and where
the county does not assume responsibility to be the groundwater
sustainability agency, as provided in subdivision (b) of Section
10724.

(b) Except as provided in subdivision (c), a person subject to
this section shall file a report of groundwater extraction by
December 15 of each year for extractions made in the preceding
water year.

(c) Unless reporting is required pursuant to paragraph (2) of
subdivision (c) of Section 10735.2, this section does not apply to
any of the following:

(1) An extraction by a de minimis extractor.

(2) An extraction excluded from reporting pursuant to paragraph
(1) of subdivision (c) of Section 10735.2.

(3) An extraction reported pursuant to Part 5 (commencing with
Section 4999).

(4) An extraction that is included in annual reports filed with a
court or the board by a watermaster appointed by a court or
pursuant to statute to administer a final judgment determining
rights to water. The reports shall identify the persons who have
extracted water and give the general place of use and the quantity
of water that has been extracted from each source.

(d) Except as provided in Section 5209, the report shall be filed
with the board.

(e) The report may be filed by the person extracting water or
on that person’s behalf by an agency that person designates and
that maintains a record of the water extracted.

(f) Each report shall be accompanied by the fee imposed
pursuant to Section 1529.5.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 10720.5 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

10720.5.  

(a) Groundwater management pursuant to this part
shall be consistent with Section 2 of Article X of the California
Constitution. Nothing in this part modifies rights or priorities to
use or store groundwater consistent with Section 2 of Article X of
the California Constitution, except that in basins designated
medium- or high-priority basins by the department, no extraction
of groundwater between January 1, 2015, and the date of adoption
of a groundwater sustainability plan pursuant to this begin delete part, end delete begin insert part or
the approval by the department of an alternative submitted
pursuant to Section 10733.6, end insert whichever is sooner, may be used as
evidence of, or to establish or defend against, any claim of
prescription.

(b) Nothing in this part, or in any groundwater management
plan adopted pursuant to this part, determines or alters surface
water rights or groundwater rights under common law or any
provision of law that determines or grants surface water rights.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 10720.7 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

10720.7.  

(a) (1) By January 31, 2020, all basins designated
as high- or medium-priority basins by the department that have
been designated in Bulletin 118, as begin insert it end insert may be updated or revised
on or before January 1, 2017, as basins that are subject to critical
conditions of overdraft shall be managed under a groundwater
sustainability plan or coordinated groundwater sustainability plans
pursuant to this part.

(2) By January 31, 2022, all basins designated as high- or
medium-priority basins by the department that are not subject to
paragraph (1) shall be managed under a groundwater sustainability
plan or coordinated groundwater sustainability plans pursuant to
this part.

(b) The Legislature encourages and authorizes basins designated
as low- and very low priority basins by the department to be
managed under groundwater sustainability plans pursuant to this
part. Chapter 11 (commencing with Section 10735) does not apply
to a basin designated as a low- or very low priority basin.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 10722.2 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

10722.2.  

(a) A local agency may request that the department
revise the boundaries of a basin, including the establishment of
new subbasins. A local agency’s request shall be supported by the
following information:

(1) Information demonstrating that the proposed adjusted basin
can be the subject of sustainable groundwater management.

(2) Technical information regarding the boundaries of, and
conditions in, the proposed adjusted basin.

(3) Information demonstrating that the entity proposing the
basin boundary adjustment consulted with interested local agencies
and public water systems in the affected basins before filing the
proposal with the department.

(4) Other information the department deems necessary to justify
revision of the basin’s boundary.

(b) By January 1, 2016, the department shall adopt regulations
regarding the information required to comply with subdivision (a),
including the methodology and criteria to be used to evaluate the
proposed revision. The department shall adopt the regulations,
including any amendments thereto, authorized by this section as
emergency regulations in accordance with the Administrative
Procedure Act (Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code). The
adoption of these regulations is an emergency and shall be
considered by the Office of Administrative Law as necessary for
the immediate preservation of the public peace, health and safety,
or general welfare. Notwithstanding the Administrative Procedure
Act, emergency regulations adopted by the department pursuant
to this section shall not be subject to review by the Office of
Administrative Law and shall remain in effect until revised by the
department.

(c) Methodology and criteria established pursuant to subdivision
(b) shall address all of the following:

(1) How to assess the likelihood that the proposed basin can be
sustainably managed.

(2) How to assess whether the proposed basin would limit the
sustainable management of adjacent basins.

(3) How to assess whether there is a history of sustainable
management of groundwater levels in the proposed basin.

(d) Prior to adopting begin delete and finalizing the regulations, end delete begin insert the
regulations pursuant to subdivision (b), end insert the department shall
conduct three public meetings to consider public comments. The
department shall publish the draft regulations on its Internet Web
site at least 30 days before the public meetings. One meeting shall
be conducted at a location in northern California, one meeting
shall be conducted at a location in the central valley of California,
and one meeting shall be conducted at a location in southern
California.

(e) The department shall provide a copy of its draft revision of
a basin’s boundaries to the California Water Commission. The
California Water Commission shall hear and comment on the draft
revision within 60 days after the department provides the draft
revision to the commission.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 10722.4 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

10722.4.  

(a) Pursuant to Section 10933, for the purposes of
this part the department shall categorize each basin as one of the
following priorities:

(1) High priority.

(2) Medium priority.

(3) Low priority.

(4) Very low priority.

(b) The initial priority for each basin shall be established by the
department pursuant to Section 10933 no later than January 31,
2015.

(c) Any time the department updates Bulletin 118 boundaries
pursuant to subdivision (b) of Section 12924, the department shall
reassess the prioritization pursuant to Section 10933.

(d)  begin delete Any time end delete begin insert If end insert the department changes begin delete the basin end delete priorities
pursuant to Section begin delete 10933, if a basin is elevated end delete begin insert 10933 to elevate
a basin from a low- or very low priority basin end insert to a medium- or
high-priority basin after January 31, begin delete 2015, a end delete begin insert 2015, the agency
formation and planning deadlines of this part shall be extended
as follows: end insert

begin insert (1) end insert begin insert   end insert begin insert A end insert local agency shall have two years from the date of
reprioritization to either establish a groundwater sustainability
agency pursuant to Chapter 4 (commencing with Section 10723)
begin delete and five years from the date of reprioritization to adopt a
groundwater sustainability plan pursuant to Chapter 6 (commencing
with Section 10727) end delete or two years to satisfy the requirements of
Section 10733.6.

begin insert

(2) A groundwater sustainability agency shall have five years
from the date of reprioritization to meet the requirements of
subdivision (a) of Section 10720.7, except that if the reprioritization
occurs before January 31, 2017, a groundwater sustainability
agency subject to paragraph (2) of subdivision (a) of Section
10720.7 shall have until January 31, 2022.

end insert

begin delete SEC. 2. end delete
begin insert SEC. 6. end insert   

Section 10723 of the Water Code is amended to read:

10723.  

(a) Except as provided in subdivision (c), any local
agency or combination of local agencies overlying a groundwater
basin may opt to become a groundwater sustainability agency for
that basin.

(b) Before opting to become a groundwater sustainability
agency, and after publication of notice pursuant to Section 6066
of the Government Code, the local agency or agencies shall hold
a public hearing in the county or counties overlying the basin.

(c) (1) Except as provided in paragraph (2), the following
agencies created by statute to manage groundwater shall be deemed
the exclusive local agencies within their respective statutory
boundaries with powers to comply with this part:

(A) Alameda County Flood Control and Water Conservation
District, Zone 7.

(B) Alameda County Water District.

(C) Desert Water Agency.

(D) Fox Canyon Groundwater Management Agency.

(E) Honey Lake Valley Groundwater Management District.

(F) Long Valley Groundwater Management District.

(G) Mendocino City Community Services District.

(H) Mono County Tri-Valley Groundwater Management
District.

(I) Monterey Peninsula Water Management District.

(J) Ojai Groundwater Management Agency.

(K) Orange County Water District.

(L) Pajaro Valley Water Management Agency.

(M) Santa Clara Valley Water District.

(N) Sierra Valley Groundwater Management District.

(O) Willow Creek Groundwater Management Agency.

(2) An agency identified in this subdivision may opt out of
becoming the exclusive groundwater management agency within
its statutory boundaries by sending a notice to the department,
which shall be posted pursuant to Section 10733.3. If an agency
identified in paragraph (1) opts out of becoming the exclusive
groundwater management agency, any other local agency or
combination of local agencies operating within the statutory
boundaries of the agency that has opted out may opt to become
the groundwater sustainability agency.

(3) A local agency listed in paragraph (1) may comply with this
part by meeting the requirements of Section 10733.6 or opting to
become a groundwater sustainability agency pursuant to this
section. A local agency with authority to implement a basin-specific
management plan pursuant to its principal act shall not exercise
any authorities granted in this part in a manner inconsistent with
any prohibitions or limitations in its principal act unless the
governing board of the local agency makes a finding that the
agency is unable to sustainably manage the basin without the
prohibited authority.

begin delete SEC. 3. end delete
begin insert SEC. 7. end insert   

Section 10723.6 of the Water Code is amended to read:

10723.6.  

(a) A combination of local agencies may form a
groundwater sustainability agency by using any of the following
methods:

(1) A joint powers agreement.

(2) A memorandum of agreement or other legal agreement.

(b) A water corporation regulated by the Public Utilities
Commission or a mutual water company may participate in a
groundwater sustainability agency through a memorandum of
agreement or other legal agreement. The authority provided by
this subdivision does not confer any additional powers to a
nongovernmental entity.

begin delete SEC. 4. end delete
begin insert SEC. 8. end insert   

Section 10723.8 of the Water Code is amended to read:

10723.8.  

(a) Within 30 days of deciding to become or form a
groundwater sustainability agency, the groundwater sustainability
agency shall inform the department of its decision and its intent
to undertake sustainable groundwater management. The notification
shall include the following information, as applicable:

(1) The service area boundaries, the basin the agency is
managing, and the other groundwater sustainability agencies
operating within the basin.

(2) A copy of the resolution forming the new agency.

(3) A copy of any new bylaws, ordinances, or new authorities
adopted by the local agency.

(4) A list of interested parties developed pursuant to Section
10723.2 and an explanation of how their interests will be
considered in the development and operation of the groundwater
sustainability agency and the development and implementation of
the agency’s sustainability plan.

(b) Except as provided in subdivision (d), 90 days following
the posting of the notice pursuant to this section, the groundwater
sustainability agency shall be presumed the exclusive groundwater
sustainability agency within the area of the basin begin insert within the service
area of the local agency that end insert the agency is managing as described
in the notice, provided that no other notice was submitted.

(c) A groundwater sustainability agency may withdraw from
managing a basin by notifying the department in writing of its
intent to withdraw.

(d) This section does not preclude the board from taking an
action pursuant to Section 10735.6.

(e) The department shall post all notices received under this
section in accordance with Section 10733.3.

begin delete SEC. 5. end delete
begin insert SEC. 9. end insert   

Section 10724 of the Water Code is amended to read:

10724.  

(a) In the event that there is an area within a high- or
medium-priority basin that is not within the management area of
a groundwater sustainability agency, the county within which that
unmanaged area lies will be presumed to be the groundwater
sustainability agency for that area.

(b) A county described in subdivision (a) shall provide
notification to the department pursuant to Section 10723.8 unless
the county notifies the department that it will not be the
groundwater sustainability agency for the area. Extractions of
groundwater made on or after July 1, 2017, in that area shall be
subject to reporting in accordance with Part 5.2 (commencing with
Section 5200) of Division 2 if the county does either of the
following:

(1) Notifies the department that it will not be the groundwater
sustainability agency for an area.

(2) Fails to provide notification to the department pursuant to
Section 10723.8 for an area on or before June 30, 2017.

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 10726.8 of the end insert begin insert Water Code end insert begin insert is amended to
read: end insert

10726.8.  

(a) This part is in addition to, and not a limitation
on, the authority granted to a local agency under any other law.
The local agency may use the local agency’s authority under any
other law to apply and enforce any requirements of this part,
including, but not limited to, the collection of fees.

(b) Nothing in this part shall be construed as authorizing a local
agency to make a binding determination of the water rights of any
person or begin delete entity. end delete begin insert entity, or to impose fees or regulatory
requirements on activities outside the boundaries of the local
agency. end insert

(c) Nothing in this part is a limitation on the authority of the
board, the department, or the State Department of Public Health.

(d) Notwithstanding Section 6103 of the Government Code, a
state or local agency that extracts groundwater shall be subject to
a fee imposed under this part to the same extent as any
nongovernmental entity.

(e) Except as provided in subdivision (d), this part does not
authorize a local agency to impose any requirement on the state
or any agency, department, or officer of the state. State agencies
and departments shall work cooperatively with a local agency on
a voluntary basis.

(f) Nothing in this chapter or a groundwater sustainability plan
shall be interpreted as superseding the land use authority of cities
and counties, including the city or county general plan, within the
overlying basin.

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 10729.2 is added to the end insert begin insert Water Code end insert begin insert , to read: end insert

begin insert

begin insert 10729.2. end insert   

With the exception of regulations required by Sections
10722.2 and 10733.2, a guideline, criterion, bulletin, or other
technical or procedural analysis or guidance prepared by the
department as required by this part is not subject to the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code).

end insert

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 10730.2 of the end insert begin insert Water Code end insert begin insert is amended to
read: end insert

10730.2.  

(a) A groundwater sustainability agency that adopts
a groundwater sustainability plan pursuant to this part may impose
fees on the extraction of groundwater from the basin to fund costs
of groundwater management, including, but not limited to, the
costs of the following:

(1) Administration, operation, and maintenance, including a
prudent reserve.

(2) Acquisition of lands or other property, facilities, and services.

(3) Supply, production, treatment, or distribution of water.

(4) Other activities necessary or convenient to implement the
plan.

(b)  Until a groundwater sustainability plan is adopted pursuant
to this part, a local agency may impose fees in accordance with
the procedures provided in this section for the purposes of Part
2.75 (commencing with Section 10750) as long as a groundwater
management plan adopted before January 1, 2015, is in begin delete effect for
the basin. end delete begin insert effect. end insert

(c) Fees imposed pursuant to this section shall be adopted in
accordance with subdivisions (a) and (b) of Section 6 of Article
XIII D of the California Constitution.

(d) Fees imposed pursuant to this section may include fixed fees
and fees charged on a volumetric basis, including, but not limited
to, fees that increase based on the quantity of groundwater produced
annually, the year in which the production of groundwater
commenced from a groundwater extraction facility, and impacts
to the basin.

(e) The power granted by this section is in addition to any
powers a groundwater sustainability agency has under any other
law.

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 10733.2 of the end insert begin insert Water Code end insert begin insert is amended to
read: end insert

10733.2.  

(a) (1) By June 1, 2016, the department shall adopt
regulations for evaluating groundwater sustainability plans, the
implementation of groundwater sustainability plans, and
coordination agreements pursuant to this chapter.

(2) The regulations shall identify the necessary plan components
specified in Sections 10727.2, 10727.4, and 10727.6 and other
information that will assist local agencies in developing and
implementing groundwater sustainability plans and coordination
agreements.

(b) (1) The department may update the regulations, including
to incorporate the best management practices identified pursuant
to Section 10729.

(2) The regulations adopted pursuant to paragraph (1) of
subdivision (a) shall identify appropriate methodologies and
assumptions for baseline conditions concerning hydrology, water
demand, regulatory restrictions that affect the availability of surface
water, and unreliability of, or reductions in, surface water deliveries
to the agency or water users in the basin, and the impact of those
conditions on achieving sustainability. The baseline for measuring
unreliability and reductions shall include the historic average
reliability and deliveries of surface water to the agency or water
users in the basin.

(c) By June 1, 2016, the department shall adopt regulations for
evaluating alternatives submitted pursuant to Section 10733.6.

(d) The department shall adopt the regulations, including any
amendments thereto, authorized by this section as emergency
regulations in accordance with the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code). The adoption of
these regulations is an emergency and shall be considered by the
Office of Administrative Law as necessary for the immediate
preservation of the public peace, health and safety, or general
welfare. Notwithstanding the Administrative Procedure Act,
emergency regulations adopted by the department pursuant to this
section shall not be subject to review by the Office of
Administrative Law and shall remain in effect until revised by the
department.

(e) Before adopting begin delete and finalizing end delete the begin delete regulations, end delete begin insert regulations
pursuant to this section, end insert the department shall conduct three public
meetings to consider public comments. The department shall
publish the draft regulations on its Internet Web site at least 30
days before the public meetings. One meeting shall be conducted
at a location in northern California, one meeting shall be conducted
at a location in the central valley of California, and one meeting
shall be conducted at a location in southern California.

begin delete SEC. 6. end delete
begin insert SEC. 14. end insert   

Section 10733.3 of the Water Code is amended to
read:

10733.3.  

The department shall post all notices it receives
pursuant to Section 10723.8 on its Internet Web site within 15
days of receipt.

begin delete SEC. 7. end delete
begin insert SEC. 15. end insert   

Section 10735.2 of the Water Code is amended to
read:

10735.2.  

(a) The board, after notice and a public hearing, may
designate a high- or medium-priority basin as a probationary basin,
if the board finds one or more of the following applies to the basin:

(1) After June 30, 2017, none of the following have occurred:

(A)  A local agency has decided to become a groundwater
sustainability agency that intends to develop a groundwater
sustainability plan for the entire basin.

(B)  A collection of local agencies has formed a groundwater
sustainability agency or prepared agreements to develop one or
more groundwater sustainability plans that will collectively serve
as a groundwater sustainability plan for the entire basin.

(C)  A local agency has submitted an alternative that has been
approved or is pending approval pursuant to Section 10733.6. If
the department disapproves an alternative pursuant to Section
10733.6, the board shall not act under this paragraph until at least
180 days after the department disapproved the alternative.

(2)  The basin is subject to paragraph (1) of subdivision (a) of
Section 10720.7, and after January 31, 2020, none of the following
have occurred:

(A)  A groundwater sustainability agency has adopted a
groundwater sustainability plan for the entire basin.

(B)  A collection of local agencies has adopted groundwater
sustainability plans that collectively serve as a groundwater
sustainability plan for the entire basin.

(C) The department has approved an alternative pursuant to
Section 10733.6.

(3) The basin is subject to paragraph (1) of subdivision (a) of
Section 10720.7 and after January 31, 2020, the department, in
consultation with the board, determines that a groundwater
sustainability plan is inadequate or that the groundwater
sustainability program is not being implemented in a manner that
will likely achieve the sustainability goal.

(4) The basin is subject to paragraph (2) of subdivision (a) of
Section 10720.7, and after January 31, 2022, none of the following
have occurred:

(A) A groundwater sustainability agency has adopted a
groundwater sustainability plan for the entire basin.

(B) A collection of local agencies has adopted groundwater
sustainability plans that collectively serve as a groundwater
sustainability plan for the entire basin.

(C) The department has approved an alternative pursuant to
Section 10733.6.

(5) The basin is subject to paragraph (2) of subdivision (a) of
Section 10720.7, and either of the following have occurred:

(A) After January 31, 2022, both of the following have occurred:

(i) The department, in consultation with the board, determines
that a groundwater sustainability plan is inadequate or that the
groundwater sustainability plan is not being implemented in a
manner that will likely achieve the sustainability goal.

(ii) The board determines that the basin is in a condition of
long-term overdraft.

(B) After January 31, 2025, both of the following have occurred:

(i) The department, in consultation with the board, determines
that a groundwater sustainability plan is inadequate or that the
groundwater sustainability plan is not being implemented in a
manner that will likely achieve the sustainability goal.

(ii) The board determines that the basin is in a condition where
groundwater extractions result in significant depletions of
interconnected surface waters.

(b) In making the findings associated with paragraph (3) or (5)
of subdivision (a), the department and board may rely on periodic
assessments the department has prepared pursuant to Chapter 10
(commencing with Section 10733). The board may request that
the department conduct additional assessments utilizing the
regulations developed pursuant to Chapter 10 (commencing with
Section 10733) and make determinations pursuant to this section.
The board shall post on its Internet Web site and provide at least
30 days for the public to comment on any determinations provided
by the department pursuant to this subdivision.

(c) (1)   The determination may exclude a class or category of
extractions from the requirement for reporting pursuant to Part 5.2
(commencing with Section 5200) of Division 2 if those extractions
are subject to a local plan or program that adequately manages
groundwater within the portion of the basin to which that plan or
program applies, or if those extractions are likely to have a minimal
impact on basin withdrawals.

(2) The determination may require reporting of a class or
category of extractions that would otherwise be exempt from
reporting pursuant to paragraph (1) of subdivision (c) of Section
5202 if those extractions are likely to have a substantial impact on
basin withdrawals or requiring reporting of those extractions is
reasonably necessary to obtain information for purposes of this
chapter.

(3) The determination may establish requirements for
information required to be included in reports of groundwater
extraction, for installation of measuring devices, or for use of a
methodology, measuring device, or both, pursuant to Part 5.2
(commencing with Section 5200) of Division 2.

(4) The determination may modify the water year or reporting
date for a report of groundwater extraction pursuant to Section
5202.

(d) If the board finds that litigation challenging the formation
of a groundwater sustainability agency prevented its formation
before July 1, 2017, pursuant to paragraph (1) of subdivision (a)
or prevented a groundwater sustainability program from being
implemented in a manner likely to achieve the sustainability goal
pursuant to paragraph (3), (4), or (5) of subdivision (a), the board
shall not designate a basin as a probationary basin for a period of
time equal to the delay caused by the litigation.

(e) The board shall exclude from probationary status any portion
of a basin for which a groundwater sustainability agency
demonstrates compliance with the sustainability goal.

begin delete SEC. 8. end delete
begin insert SEC. 16. end insert   

Section 10735.4 of the Water Code is amended to
read:

10735.4.  

(a) If the board designates a basin as a probationary
basin pursuant to paragraph (1), (2), or (4) of subdivision (a) of
Section 10735.2, a local agency or groundwater sustainability
agency shall have 180 days to remedy the deficiency. The board
may appoint a mediator or other facilitator, after consultation with
affected local agencies, to assist in resolving disputes, and
identifying and implementing actions that will remedy the
deficiency.

(b) After the 180-day period provided by subdivision (a), the
board may provide additional time to remedy the deficiency if it
finds that a local agency is making substantial progress toward
remedying the deficiency.

(c) The board may develop an interim plan pursuant to Section
10735.8 for the probationary basin at the end of the period provided
by subdivision (a) or any extension provided pursuant to
subdivision (b), if the board, in consultation with the department,
determines that a local agency has not remedied the deficiency
that resulted in designating the basin as a probationary basin.

begin delete SEC. 9. end delete
begin insert SEC. 17. end insert   

Section 10735.6 of the Water Code is amended to
read:

10735.6.  

(a) If the board designates a basin as a probationary
basin pursuant to paragraph (3) or (5) of subdivision (a) of Section
10735.2, the board shall identify the specific deficiencies and
identify potential actions to address the deficiencies. The board
may request the department to provide local agencies, within 90
days of the designation of a probationary basin, with technical
recommendations to remedy the deficiencies.

(b) The board may develop an interim plan pursuant to Section
10735.8 for the probationary basin one year after the designation
of the basin pursuant to paragraph (3) or (5) of subdivision (a) of
Section 10735.2, if the board, in consultation with the department,
determines that a local agency has not remedied the deficiency
that resulted in designating the basin a probationary basin.

begin delete SEC. 10. end delete
begin insert SEC. 18. end insert   

Section 10933 of the Water Code is amended to read:

10933.  

(a)  The department shall commence to identify the
extent of monitoring of groundwater elevations that is being
undertaken within each basin and subbasin.

(b) The department shall prioritize groundwater basins and
subbasins for the purpose of implementing this section. In
prioritizing the basins and subbasins, the department shall, to the
extent data are available, consider all of the following:

(1) The population overlying the basin or subbasin.

(2) The rate of current and projected growth of the population
overlying the basin or subbasin.

(3) The number of public supply wells that draw from the basin
or subbasin.

(4) The total number of wells that draw from the basin or
subbasin.

(5) The irrigated acreage overlying the basin or subbasin.

(6) The degree to which persons overlying the basin or subbasin
rely on groundwater as their primary source of water.

(7) Any documented impacts on the groundwater within the
basin or subbasin, including overdraft, subsidence, saline intrusion,
and other water quality degradation.

(8) Any other information determined to be relevant by the
department, including adverse impacts on local habitat and local
streamflows.

(c) If the department determines that all or part of a basin or
subbasin is not being monitored pursuant to this part, the
department shall do all of the following:

(1) Attempt to contact all well owners within the area not being
monitored.

(2) Determine if there is an interest in establishing any of the
following:

(A) A groundwater sustainability plan pursuant to Part 2.74
(commencing with Section 10720).

(B) A groundwater management plan pursuant to Part 2.75
(commencing with Section 10750).

(C) An integrated regional water management plan pursuant to
Part 2.2 (commencing with Section 10530) that includes a
groundwater management component that complies with the
requirements of Section 10753.7.

(D) A voluntary groundwater monitoring association pursuant
to Section 10935.

(d) If the department determines that there is sufficient interest
in establishing a plan or association described in paragraph (2) of
subdivision (c), or if the county agrees to perform the groundwater
monitoring functions in accordance with this part, the department
shall work cooperatively with the interested parties to comply with
the requirements of this part within two years.

(e) If the department determines, with regard to a basin or
subbasin, that there is insufficient interest in establishing a plan
or association described in paragraph (2) of subdivision (c), and
if the county decides not to perform the groundwater monitoring
and reporting functions of this part, the department shall do all of
the following:

(1) Identify any existing monitoring wells that overlie the basin
or subbasin that are owned or operated by the department or any
other state or federal agency.

(2) Determine whether the monitoring wells identified pursuant
to paragraph (1) provide sufficient information to demonstrate
seasonal and long-term trends in groundwater elevations.

(3) If the department determines that the monitoring wells
identified pursuant to paragraph (1) provide sufficient information
to demonstrate seasonal and long-term trends in groundwater
elevations, the department shall not perform groundwater
monitoring functions pursuant to Section 10933.5.

(4) If the department determines that the monitoring wells
identified pursuant to paragraph (1) provide insufficient
information to demonstrate seasonal and long-term trends in
groundwater elevations, the department shall perform groundwater
monitoring functions pursuant to Section 10933.5.