BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      SB 37  


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          Date of Hearing:  August 10, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 37  
          (Vidak) - As Amended August 4, 2016


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          |Policy       |Local Government               |Vote:|8 - 0        |
          |Committee:   |                               |     |             |
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          |-------------+-------------------------------+-----+-------------|
          |             |Water, Parks and Wildlife      |     |14 - 0       |
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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:  This bill creates the Kings River East Groundwater  
          Sustainability Agency (Agency) in the Counties of Fresno and  
          Tulare, and specifies the boundaries, Board composition, powers  
          and duties of the agency, and adds the Agency to the list of  
          exclusive local agencies created to manage groundwater.  
          Specifically, this bill: 


          1)Adds the Agency to the list of agencies created by statute to  
            manage groundwater with powers to comply with the Sustainable  








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            Groundwater Management Act (SGMA).


          2)Requires the Agency to be a groundwater sustainability agency  
            (GSA), pursuant to existing law, for that portion of the Kings  
            Subbasin that lies within the boundaries of the Agency.


          3)Requires the Agency to develop and implement a groundwater  
            sustainability plan (GSP) to achieve sustainable groundwater  
            management within the territory of the Agency.


          4)Provides that the Agency only has the powers granted by this  
            Act and SGMA, for purposes 


          of groundwater management within the boundaries of the Agency.  
            Requires the Agency to abide by the rules and regulation  
            promulgated by the Department of Water Resources (DWR) and the  
            State Water Resources Control Board (SWRCB) to implement SGMA.
          5)Allows the board to adopt ordinances for the purpose of  
            regulating, conserving, managing, and controlling the use and  
            extraction of groundwater within the territory of the Agency.


          6)Requires the Agency to enter into a coordination agreement  
            with other local agencies for purposes of coordinating the  
            Agency's plan with other agencies or GSP's within the Kings  
            Subbasin, as required by SGMA.


          7)Allows, pursuant to SGMA, the Agency to impose fees,  
            including, but not limited to, permit fees and fees on  
            groundwater extraction or other regulated activity, to fund  
            the costs of a groundwater sustainability program that  
            include, but are not limited to, the preparation, adoption,  
            and amendments of a groundwater sustainability plan,  
            investigations, inspections, compliance assistance,  








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            enforcement, program administration, and a prudent reserve.


          8)States that in the event of a conflict between the Agency's  
            Act and SGMA, the provisions of SGMA prevail.


          FISCAL EFFECT:


          Negligible state fiscal impact.  Although a state mandate, costs  
          are not reimbursable because the Agency has authority to levy  
          fees sufficient to cover any costs. 


          COMMENTS:


          1)Purpose. According to the author, "In 2014 the Legislature  
            passed the Sustainable Groundwater Management Act (SGMA).  The  
            legislation requires local agencies to manage groundwater  
            basins in a sustainable manner and allows for state  
            intervention when necessary to protect groundwater resources.  
            SGMA provides local agencies the ability to develop plans and  
            implement strategies to sustainability manage groundwater  
            resources, prioritizes basins with the greatest need and sets  
            a timeline for implementation.  Establishing a sustainability  
            agency as required by SGMA, authorizes any local agency or a  
            combination of local agencies to elect to be a GSA through a  
            joint powers agreement, or memorandum of agreement.  This bill  
            will create the Kings River East Groundwater Sustainability  
            Agency as a special act district.  The GSA will cover an area  
            in Fresno and Tulare counties east of the Kings River,  
            including all of the cities of Dinuba, Orange Cove, and  
            Reedley as well as the communities of Cutler, East Orosi,  
            London, Orosi, and Sultana."


          2)Background.  SGMA requires the development of a local process  








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            to sustainably manage groundwater. Specifically, in all SGMA  
            regulated basins GSAs must be formed by June 30, 2017, GSPs  
            for critically overdrafted basins must be written by 2020, and  
            sustainability must be reached by 2040 (the timeline is two  
            years later for all other basins).  


            Prior to SGMA, there were several ways that groundwater was  
            managed at the local level. 


            A local agency that provided water service was authorized to  
            develop and implement a groundwater management plan, known as  
            AB 3030 plans.  The Legislature also created a number of  
            "special act special districts" that addressed groundwater  
            management - these local agencies were created via statute to  
            establish unique governance structures and grant powers that  
            were customized to the problems and solutions of a particular  
            groundwater basin.  
            SGMA requires local entities in medium- and high-priority  
            basins to establish GSAs by June 2017, to avoid state  
            intervention.  GSAs must self-identify, by June 30, 2017, to  
            DWR, and can include a city, a county, a special district, or  
            a combination of these agencies organized via a legal  
            agreement, like a Joint Powers Authority or Memorandum of  
            Agreement.  One agency can form a GSA for the entire basin, or  
            multiple agencies can form individual GSAs and coordinate for  
            basin sustainability.  There are multiple options for local  
            agencies to manage groundwater under SGMA, including  
            alternatives to forming a GSA and developing a GSP.  SGMA does  
            not specify exactly how GSAs should govern local groundwater  
            resources to achieve sustainability goals.  


            All groundwater basins designated as medium- or high-priority  
            and identified as subject to critical conditions of overdraft  
            must be managed under one or more GSPs by January 31, 2020.  
            The Kings Subbasin that is the subject of this bill has been  
            designated to be in a state of critical overdraft.








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          3)Related Legislation. SB 564 (Cannella), before this Committee  
            today, creates the North Fork Kings Groundwater Sustainability  
            Agency. 


          4)Prior Legislation. SB 1168 (Pavley), Chapter 346, and AB 1738  
            (Dickinson), Chapter 347, the Statutes of 2014, enacted SGMA.


          Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081