BILL ANALYSIS Ó SB 226 Page 1 Date of Hearing: August 26, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair SB 226 (Pavley) - As Amended August 17, 2015 ----------------------------------------------------------------- |Policy |Water, Parks and Wildlife |Vote:|8 - 5 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Judiciary | |7 - 3 | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill modifies the Sustainable Groundwater Management Act (SGMA) and streamlines groundwater adjudication procedures. Specifically, this bill: SB 226 Page 2 1) Establishes a comprehensive, streamlined procedure to be used in legal actions to obtain a basin-wide adjudication of groundwater rights within SGMA. 2) Authorizes the state to intervene in any water rights suit brought in any court. 3) Adds legislative intent language in SGMA to provide a more efficient, cost-effective groundwater adjudication process as specified. 4) Allows a court with jurisdiction over specified adjudicated basins to order the proceeding to be conducted according to the adjudicated process specified in the bill. 5) Defines expert witness and small state water system. 6) Makes conforming changes and technical clarifications. FISCAL EFFECT: Unknown costs, potentially in the hundreds of thousands of dollars, for state agency intervention in water rights suits. COMMENTS: 1)Purpose. According to the author, groundwater rights adjudications take an extraordinarily long time and are extraordinarily expensive. The author adds that as she was SB 226 Page 3 working last year to enact SGMA it became clear that there will almost certainly be more adjudications and that it "will be difficult, if not impossible, for some basins to comply with the requirements of SGMA if we don't speed up the adjudication process." The author adds that this bill "tackles head-on the various time sinks" that witnesses identified at her informational hearing last November on groundwater adjudication regarding basin boundaries, notice and service, discovery, and expert witnesses. The author concludes that with these changes, this bill "will reduce needless delays while still protecting due process rights." 2)Background. Groundwater is either a subterranean stream flowing through a known and definite channel or percolating groundwater. Groundwater that is a subterranean stream is subject to the same State Water Resources Control Board (SWRCB) water right permitting requirements as surface water. There is no statewide permitting requirement for percolating groundwater, which is the majority of groundwater in the state. The Department of Water Resources (DWR) is required to prioritize groundwater basins based on multiple factors including, but not limited to, the level of population and irrigated acreage relying on the groundwater basin as a primary source of water and the current impacts on the groundwater basin from overdraft, subsidence, saline intrusion and other water quality degradation. The groundwater basins identified in DWR's Groundwater Report, Bulletin 118, are required to be regularly and systematically monitored locally and the information is required to be readily and widely available. DWR is required to perform the groundwater elevation monitoring function if no local entity will do so, but then bars the county and other entities eligible to monitor that basin from receiving state water grants or loans. SB 226 Page 4 3)The Sustainable Groundwater Management Act (SGMA). Last year, AB 1739 (Dickinson, Chapter 347, Statutes of 2014) and SB 1168 (Pavley, Chapter 346, Statutes of 2014), established landmark state policy and requirements for groundwater sustainability and management. By January 31, 2020, SGMA requires groundwater sustainability plans (GSPs) in all groundwater basins experiencing critical conditions of overdraft that DWR determines to be of medium or high priority. SGMA requires sustainable groundwater management plans for all other medium or high priority basins by January 31, 2022, unless the basin is legally adjudicated or the local agency establishes it is otherwise sustainably managed. SGMA requires local agencies to identify or form a groundwater sustainability agency (GSA) by January 1, 2017. Counties are presumed to be the default agency if no other agency identifies itself. Water corporations regulated by the PUC are able to participate in the GSA if other agencies approve. During last year's Committee hearings on groundwater management, California Court of Appeal Judge Ronald Robie suggested that even with comprehensive sustainable management plans, the state would still need to streamline its groundwater adjudication procedures. Governor Brown made the same point when he signed the SGMA legislation. 4)Related Legislation. AB 1390 (Alejo) currently pending in Senate Appropriations, establishes an alternative adjudication process in the Civil Code of Procedures, rather than within SGMA as proposed by SB 226. The most recent amendments to SB 226, provided by the Administration, contain many provisions similar to those in AB 1390. The two authors may wish to work together to develop a legislative response to the Administration's amendments. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) SB 226 Page 5 319-2081