BILL ANALYSIS                                                                                                                                                                                                    Ó



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          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).










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          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.









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          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  









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            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:










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                 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  









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            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.









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            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.











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            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.  











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            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  









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            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  










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          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