BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                         SB 37|
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                                UNFINISHED BUSINESS 


          Bill No:  SB 37
          Author:   Vidak (R), et al.
          Amended:  8/18/16  
          Vote:     21 

           PRIOR VOTES NOT RELEVANT

           SENATE NATURAL RES. & WATER COMMITTEE:  8-0, 8/25/16 (pursuant  
            to Senate Rule 29.10)
           AYES:  Pavley, Stone, Allen, Fuller, Hertzberg, Jackson,  
            Monning, Wolk

           ASSEMBLY FLOOR:  78-0, 8/23/16 - See last page for vote

           SUBJECT:   Kings River East Groundwater Sustainability Agency  
                     Act


          SOURCE:    Author
          
          DIGEST:   This bill creates the Kings River East Groundwater  
          Sustainability Agency (Agency), specifies the board of directors  
          composition of the Agency, and adds the Agency to the list of  
          agencies created by statute to manage groundwater that are  
          deemed the exclusive local agencies to comply with the  
          Sustainable Groundwater Management Act (SGMA).  


          Assembly Amendments delete prior language regarding Proposition  
          1E funding and replace with the current language creating the  
          Kings River East Groundwater Sustainability Agency Act.


          ANALYSIS:









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          Existing law:


          1)Enacts SGMA which, among other things:


             a)   Requires that a groundwater sustainability plan be  
               adopted for high and medium priority groundwater basins in  
               California.


                 i)       Limited to "high & medium priority basins" - 127  
                   out of 515 basins in the state.


                 ii)      Adjudicated basins are exempt (except for  
                   minimal reporting), bringing the number to fewer than  
                   100 affected basins.


                 iii)     "Low & very low priority" basins are exempt,  
                   though they are encouraged to adopt plans.


             b)   Establishes a timetable for adoption of groundwater  
               sustainability plans.


                 i)       By 2017, local groundwater sustainability  
                   agencies must be identified.


                 ii)      By 2020, overdrafted basins must be covered by a  
                   groundwater sustainability plan. Other high and medium  
                   priority basins not in overdraft must have plans by  
                   2022.


                 iii)     By 2040, each high and medium priority basin  
                   must achieve sustainability, though this can be  
                   extended by 10 years for good cause.








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             c)   Empowers local agencies to manage their basins  
               sustainably.


                 i)       Gives local agencies new authority to adopt and  
                   enforce rules, require reporting, raise funds and build  
                   new water projects.


                 ii)      Department of Water Resources (DWR) will provide  
                   technical assistance to local agencies.


             d)   Establishes basic requirements for groundwater  
               sustainability plans.


                 i)       Long-term planning and implementation horizon.


                 ii)      Measurable objectives and interim milestones to  
                   achieve sustainability in 20 years.


                 iii)     Most requirements similar to the current,  
                   voluntary groundwater plan requirements adopted 22  
                   years ago.


                 iv)      DWR will develop new regulations for updating  
                   basin boundaries and criteria to evaluate  
                   sustainability plans.


          2)Creates 15 special act districts to manage groundwater, which  
            are also deemed the exclusive local agencies within their  
            respective statutory boundaries with powers to comply with  
            SGMA.  These include districts include, for example:










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             a)   Alameda County Water District.


             b)   Desert Water Agency.


             c)   Fox Canyon Groundwater Management Agency.


             d)   Monterey Peninsula Water Management District.


             e)   Ojai Groundwater Management Agency.


             f)   Orange County Water District.


          This bill:


          1)Enacts the Kings River East Groundwater Sustainability Agency  
            Act, which creates the Agency created in the Counties of  
            Fresno and Tulare.


             a)   The boundaries of the Agency generally comprise the  
               south eastern portion of the Kings groundwater subbasin. 


                 i)       The initial boundaries of the Agency may be  
                   changed upon a petition to the boards of supervisors of  
                   the Counties of Fresno and Tulare after a noticed  
                   public hearing in the county in which the change is  
                   proposed.


                 ii)      The boundaries of the Agency shall not be  
                   adjusted to include an area of the basin within the  
                   management area of another groundwater sustainability  
                   agency unless the Agency has entered into a memorandum  
                   of agreement or other legal agreement with that  








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                   groundwater sustainability agency that permits the area  
                   to be included.


             b)   The Agency shall be governed by a board of directors  
               that shall consist of seven members, as follows:


                 i)       One member shall be chosen by Alta Irrigation  
                   District.


                 ii)      One member shall be chosen by the County of  
                   Fresno.


                 iii)     One member shall be chosen by the County of  
                   Tulare.


                 iv)      One member shall be chosen by the cities from  
                   the members of the city councils of the cities whose  
                   territory, at least in part, overlies the territory of  
                   the Agency. 


                 v)       One member shall be chosen from the members of  
                   the governing boards of the specified special districts  
                   that are not governed by the board of supervisors of  
                   either county, are engaged in water activities, and  
                   whose territory, at least in part, overlies the  
                   territory of the Agency:


                 vi)      One member shall be chosen from the members of  
                   the governing boards of special districts that provide  
                   drinking water within the territory of the Agency.


                 vii)     One member shall be chosen by the other six  
                   board members to represent agricultural interests  
                   within the territory of the Agency. This member shall  








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                   reside and be actively and primarily engaged in  
                   production of agriculture within the territory of the  
                   agency. This member shall be selected from a list of at  
                   least five nominations submitted from the Fresno County  
                   Farm Bureau and the Tulare County Farm Bureau, acting  
                   jointly, but the five nominees need not be members of  
                   either organization.


             c)   The board may adopt ordinances for the purpose of  
               regulating, conserving, managing, and controlling the use  
               and extraction of groundwater within the territory of the  
               Agency.


             d)   The Agency shall enter into a coordination agreement  
               with other local agencies for purposes of coordinating the  
               Agency's plan with other agencies or groundwater  
               sustainability plans within the Kings Subbasin as required  
               by SGMA.


             e)   The Agency may exclude from any of the requirements of  
               the Act, or the operation of any ordinance, any operator  
               who annually extracts less than a minimum amount of  
               groundwater as specified by an ordinance adopted by the  
               board.


             f)   The Agency may collect data and conduct technical and  
               other investigations of all kinds in order to carry out the  
               provisions of this Act.


             g)   The Agency shall develop and implement a groundwater  
               sustainability plan pursuant to SGMA to achieve sustainable  
               groundwater management within the territory of the Agency.


             h)   The Agency may exercise any of the powers granted to  
               groundwater sustainability agencies by SGMA.









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             i)   The Agency may impose fees, including groundwater  
               extraction or other regulated activity, to fund the costs  
               of a groundwater sustainability program.


          2)Adds Kings River East to the list of special act districts  
            which are deemed the exclusive local agencies within their  
            respective statutory boundaries with powers to comply with  
            SGMA.


          3)Includes chaptering instructions should both this bill and SB  
            564 (Cannella) pass.


          Comments


          Kings groundwater subbasin.  The Kings subbasin has been  
          designated by DWR as a high-priority basin.  DWR has also  
          identified it as being one of 21 basins in critical overdraft.


          Why does agriculture get its own seat?  It is not clear why  
          private agricultural interests need additional representation on  
          a board, considering that an irrigation district directly  
          appoints one of the members and other irrigation districts have  
          input on a second.  In addition, while members of the public on  
          the governing boards of some local governments may sometimes be  
          appointed and may have backgrounds in the private sector, the  
          selection from a list provided by private entities is unusual.   
          At a minimum, it is a departure from the way most groundwater  
          sustainability agencies are governed.


          Related Legislation


          SB 564 (Cannella) creates the North Fork Kings Groundwater  
          Sustainability Agency, also overlaying a portion of the Kings  
          subbasin and located north east of the Kings River East  








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          Groundwater Sustainability Agency.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes


          According to the Assembly Appropriations Committee, there will  
          be 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.


          SUPPORT:   (Verified8/24/16)


          Alta Irrigation District 
          Association of California Water Agencies
          California Citrus Mutual
          City of Dinuba
          City of Orange Cove
          City of Reedley
          Community Water Center
          Cutler Public Utility District
          Gillette Citrus, Inc.
          Hills Valley Irrigation District
          Kings County Water District
          Kings River Water District
          London Community Services District
          Orange Cove Irrigation District
          Orosi Public Utility District
          Peltzer Enterprises
          Sultana Community Services District
          Tulare County Board of Supervisors
          Tulare County Farm Bureau


          OPPOSITION:   (Verified8/24/16)


          None received









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          ARGUMENTS IN SUPPORT:  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 [groundwater  
          sustainability agency] through a joint powers agreement, or  
          memorandum of agreement.  The act leaves no room for a private,  
          non-profit, or unelected member of the public to sit on a GSA as  
          a voting member."

          "SB 37 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."

          "The GSA created under SB 37 would consist of seven members  
          chosen by the following categories:  1) Alta Irrigation  
          District; 2) Tulare County; 3) Fresno County; 4) Cities (Dinuba,  
          Orange Cove, Reedley); 5) Water Districts (Hills Valley  
          Irrigation District, Orange Cove Irrigation District, Tri-Valley  
          Water District, and Kings River Water District); 6) Special  
          Districts that provide drinking water (Cutler Public Utility  
          District, East Orosi Community Services District, London  
          Community Service District, Orosi Public Utilities District, and  
          Sultana Community Services District); and 7) an agricultural  
          representative."

          "SB 37 provides that the GSA shall only have the ability to  
          carry out the powers provided in SGMA.  Additionally, the  
          creation of this district will not pose challenges to other GSAs  
          in terms of coordination because of requirements under SGMA for  
          multiple plans implemented by multiple GSAs within a basin to be  
          coordinated pursuant to a single coordination agreement."








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          ASSEMBLY FLOOR:  78-0, 8/23/16
          AYES:  Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brown, Burke, Calderon,  
            Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper,  
            Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Gallagher,  
            Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez,  
            Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger  
            Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey,  
            Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes,  
            McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,  
            O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez,  
            Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
          NO VOTE RECORDED:  Brough, Beth Gaines


          Prepared by:Dennis O'Connor / N.R. & W. / (916) 651-4116
          8/25/16 17:34:50


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