BILL ANALYSIS Ó SB 37 Page 1 Date of Hearing: August 10, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 37 (Vidak) - As Amended August 4, 2016 ----------------------------------------------------------------- |Policy |Local Government |Vote:|8 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Water, Parks and Wildlife | |14 - 0 | | | | | | | | | | | ----------------------------------------------------------------- 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 SB 37 Page 2 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, SB 37 Page 3 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 SB 37 Page 4 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. SB 37 Page 5 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