BILL ANALYSIS Ó SB 13 Page 1 Date of Hearing: June 30, 2015 ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE Marc Levine, Chair SB 13 (Pavley) - As Amended June 24, 2015 SENATE VOTE: 36-0 SUBJECT: Groundwater. SUMMARY: This bill makes several technical cleanup changes to the Sustainable Groundwater Management Act (SGMA) and related statutory sections. Specifically, this bill: 1)Clarifies in several places that SGMA and its enforcement provisions are only mandatory in high and medium priority basins. 2)Corrects a reference to clarify that the time period during which groundwater extractions cannot be used to establish a new or expanded groundwater right terminates with either adoption by the Groundwater Sustainability Agency (GSA) of a Groundwater Sustainability Plan (GSP) or, in the alternative, with Department of Water Resources (DWR) approval of an alternative to a Groundwater Sustainability Plan (GSP). SB 13 Page 2 3)Simplifies and clarifies the SGMA notice process for becoming a GSA by eliminating redundant and confusing notice provisions and specifying that overlapping, uncoordinated notices must be resolved locally before taking effect. 4)Makes the requirements for when a basin or subbasin is reprioritized to medium or high priority, and thus subject to SGMA, consistent with SGMA's other deadlines by: a) Adding that, in addition to forming a GSA within two years that locals may submit an alternative to a GSP; and, b) Adding that, in addition to having five years to draft and adopt a GSP that a reprioritization that occurs before January 31, 2017, will have until January 31, 2022. 5)Allows a private mutual water company to join a GSA in the same way that a private water corporation regulated by the Public Utilities Commission may join a GSA, which is through a memorandum of agreement or other legal agreement, but specifies that such agreement will not confer additional powers to either nongovernmental entity. 6)Clarifies that a local agency's powers to enforce fees and regulatory requirements are limited to that local agency's own boundaries. 7)Specifies that only SGMA-required regulations are subject to the California Administrative Procedure Act (APA) and not other SGMA-related guidelines or guidance, as specified. SB 13 Page 3 8)Allows DWR, in a basin that is not being monitored in compliance with the California Statewide Groundwater Elevation Monitoring (CASGEM) program, to determine if there is an interest in establishing a GSP pursuant to SGMA. 9)Corrects several minor wording errors and cross-references. EXISTING LAW: 1)Requires DWR to evaluate groundwater basins and designate them as high, medium, low or very low, according to various factors including, but not limited to, level of dependence upon the basin by municipal and agricultural users. 2)Requires that local agencies in high and medium priority groundwater basins subject to SGMA form one or more local GSAs by June 30, 2017 in order to develop and implement GSPs that provide for the sustainable management of the groundwater basin or subbasin, as defined. 3)Requires that GSAs in basins with chronic overdraft develop and adopt GSPs for their basin or subbasin by January 31, 2020 and that all other high- and medium-priority basins subject to SGMA develop and adopt GSPs by January 31, 2022, with certain exceptions. 4)Requires that adopted GSPs utilize a 50 year planning horizon that will achieve sustainability in a basin or subbasin within 20 years and include identified milestones at five year SB 13 Page 4 intervals. 5)Defines sustainable groundwater management in a GSP as avoiding undesirable results in the basin or subbasin from groundwater pumping such as the following, where significant and unreasonable: lowering of groundwater levels: reduction of groundwater storage; seawater intrusion; degraded water quality; land subsidence; and, depletions of interconnected surface waters. 6)Provides GSAs with optional tools for reaching sustainability including, but not limited to, the ability to conduct investigations, collect fees, limit pumping, require measurement and reporting of groundwater extractions, monitor compliance, charge civil penalties for violations, and implement plans and programs to recharge a basin or subbasin. 7)Authorizes the State Water Resources Control Board (State Water Board) to declare a basin in probationary status and adopt an interim plan for a basin, subbasin, or portion of a basin or subbasin, under three narrow circumstances: a) There is no GSA for all or a portion of a basin or subbasin by June 30, 2017; b) There is no GSP for all or a portion of a basin or subbasin by the relevant deadline; or, c) A submitted GSP is deemed inadequate by DWR and there is also either: SB 13 Page 5 i) Chronic overdraft in the basin or subbasin; or, ii) Groundwater pumping is causing a significant depletion of interconnected surface waters in the basin or subbasin. 8)Allows the State Water Board, in an area that has no GSA by June 30, 2017, to require direct reporting of groundwater extractions and to charge fees to administer that program. FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. COMMENTS: This bill clarifies that low and very low priority basins are not subject to SGMA enforcement provisions. This bill clarifies in multiple sections that alternatives to GSPs can also satisfy various SGMA deadlines. This bill also allows private mutual water companies to join GSAs in the same manner as a private water corporation regulated by the Public Utilities Commission may currently join GSAs but clarifies that such agreements do not confer governmental-type powers to either type of private entity. Lastly, the bill simplifies GSA notice provisions, specifies which SGMA-related regulations are subject to the APA, and makes other conforming and technical changes. 1)Author's statement: The author states that this bill makes numerous technical and clarifying amendments necessary to help implement SGMA and that she does not intend to change any of the policies embodied by SGMA in this measure. The author adds that she has "vetted each amendment with the parties involved in the drafting of SB 1168, SB 1319, and AB 1739" and SB 13 Page 6 that she "intends to follow this same process with any future amendments." 2)Background: SGMA and its related statutory provisions were developed as a three-bill package of legislation after intensive stakeholder input and involvement, including public meetings facilitated by Governor Jerry Brown's administration. Negotiations over SGMA began in earnest after the Governor released his California Water Action Plan (CWAP) and budget in January of 2014. The CWAP and budget clearly signaled the Governor's intention to begin enforcing sustainable groundwater management through the State Water Resources Control Board if locals could not or would not do it. Thereafter, Assemblymember Roger Dickinson introduced AB 1739 and Senator Fran Pavley introduced SB 1168 in February of 2014. AB 1739 and SB 1168 were the response of both Legislative houses that such far-reaching and historic policy should be developed through legislation. To help with that effort, on March 11, 2014 the Assembly Water, Parks & Wildlife Committee held an informational hearing on Management of California's Groundwater Resources and on March 18, 2014 the Senate Natural Resources and Water Committee, chaired by Senator Pavley, held an informational hearing on Managing California's Groundwater: Issues and Challenges. Both hearings revealed that dropping groundwater levels were wreaking havoc across an ever widening swath of farms and communities. Land subsidence was buckling infrastructure, cracking irrigation canals, and depositing threatening levels of sediment into flood control structures. Streams were being dewatered, depriving both senior water rights holders and wildlife of crucial surface flows. Coastal zones were suffering saline water intrusion. And the lower the water tables fell the greater the cost to drill new wells and pump water, for those that could afford to do so in the first place. Some poor communities with shallow wells simply went dry. SB 13 Page 7 In April, the Association of California Water Agencies (ACWA), which was working with Assemblymember Dickinson on AB 1739, produced its Recommendations for Achieving Groundwater Sustainability. In May, the California Water Foundation (CWF), which was working with Senator Pavley on SB 1168, published its Recommendations for Sustainable Groundwater Management: Developed Through a Stakeholder Dialogue. Both groups then worked with the two authors to refine the bill language and create a locally-driven sustainable groundwater management framework. CWF also launched a new web site featuring a diverse set of agricultural, water agency, environmental, and environmental justice leaders under the banner: Everyone's Talking About Water. For Once, They're Saying the Same Thing. The featured "voices" included everyone from Miles Riter of Driscoll Strawberries to Curtis Knight of California Trout. On May 22, 2014, after holding multiple stakeholder meetings and receiving significant stakeholder response, the Governor's office posted its own draft statutory language to its groundwater web site. Thereafter, Assemblymember Dickinson and Senator Pavley, who were now each other's principle coauthor's, worked with the Governor's Office throughout the July Legislative Recess to hold four professionally-facilitated stakeholder meetings attended by hundreds of people, both in person and through conference capabilities. At the end of those discussions both bills were amended into identical form and a fifth professionally-facilitated stakeholder meeting to discuss the amendments was held. Following that final stakeholder discussion, the language was split into two contingently-enacted pieces of legislation. SB 13 Page 8 The Administration however felt there needed to be an additional response to some outstanding concerns of agricultural stakeholders and others, including how the State would treat the "good actors" in a basin that was not being sustainably managed (now called a "probationary basin"). As a result a third bill, SB 1319 (Pavley), was amended to modify AB 1739 and SB 1168. On September 16, 2014, Governor Jerry Brown held a signing ceremony at the State Capitol referring to the 3-bill package enacting SGMA and related statutes as historic and stating, "We have to learn to manage wisely water, energy, land and our investments. That's why this is important." 3)Prior and related legislation: The three-bill package of legislation forming SGMA and related statutes is: SB 1168 (Pavley), Chapter 346, Statutes of 2014; AB 1739 (Dickinson) Chapter 347, Statutes of 2014; and, SB 1319 (Pavley), Chapter 348, Statutes of 2014. This is one of 7 currently-active bills in the Legislature proposing changes to SGMA and its related statutes. AB 617 (Perea) is the most directly-related bill. AB 617 makes substantive changes to SGMA including, but not limited to, allowing mutual water companies to join GSA's using Joint Powers of Agreement, which conflicts with the provisions of this bill. SB 13 Page 9 AB 453 (Bigelow) allows groundwater management plans adopted prior to SGMA to be amended and extended; allows a local agency to impose fees and collect groundwater extraction information for developing and adopting a revised groundwater management plan; and, prohibits Water Rights Fund fees from being used for SGMA enforcement. AB 938 (Salas) specifies that when a basin is reprioritized to high or medium and thus becomes subject to SGMA then extended SGMA deadlines apply to a combination of agencies (plural) and not just an agency (singular). AB 939 (Salas) changes the time period for providing technical data upon which a SGMA fee is based from 10 days before the meeting to adopt the fee to 20 days before such meeting. AB 1242 (Gray) requires the State Water Board, when setting in-stream flows, to take into account any groundwater management plan, including under SGMA, and requires the State Water Board to identify projects for fish recovery that may be undertaken in lieu of instream flows. AB 1390 (Alejo) creates a streamlined process for groundwater adjudications, including allowing SGMA plans to be incorporated. SB 226 (Pavley) adds procedures for streamlined groundwater adjudications to SGMA. 4)Supporting Arguments: Supporters advise that this bill will SB 13 Page 10 provide appropriate clarifications of last year's statute that do not impact underlying policy. Supporters also request adding additional language to clarify that when DWR receives notices from parties who desire to be a GSA that those notices are complete. Supporters advise that DWR has stated the statute does not provide it the authority to require notices to be complete before posting them. 5)Opposing arguments: None on file. 6)Suggested Committee amendment: Before a local agency can become the GSA for an area it must submit a notice for DWR to post on its web site. SGMA details various requirements that must be incorporated into that notice; however, it does not state the notice must be complete before DWR posts it. Committee staff recommends that this bill, page 10, line 18, be clarified as follows: (b) The department shall post all complete notices received under this section in accordance with Section 10733.3. REGISTERED SUPPORT / OPPOSITION: Support California Groundwater Coalition Clean Water Action SB 13 Page 11 Community Water Center Leadership Counsel for Justice and Accountability Union of Concerned Scientists Opposition None on file Analysis Prepared by:Tina Leahy / W., P., & W. / (916) 319-2096