Amended in Assembly August 1, 2016

Amended in Assembly June 16, 2016

Senate Bill No. 564

Introduced by Senator Cannella

February 26, 2015

An act to amend Section 10723 of the Water Code, and to create the West Kings Groundwater Sustainability Agency, and prescribing its boundaries, organization, operation, management, financing, and other powers and duties, relating to water districts.

LEGISLATIVE COUNSEL’S DIGEST

SB 564, as amended, Cannella. West Kings Groundwater Sustainability Agency Act.

Existing law, the Sustainable Groundwater Management Act, requires all groundwater basins designated as high- or medium-priority basins by the Department of Water Resources that are designated as basins subject to critical conditions of overdraft to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2020, and requires all other groundwater basins designated as high- or medium-priority basins to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2022, except as specified. begin insert The act authorizes any local agency or combination of local agencies overlying a groundwater basin to decide to become a groundwater sustainability agency for that basin. The act deems certain agencies created by statute to manage groundwater the exclusive local agencies within their respective statutory boundaries with powers to comply with the act and authorizes these agencies to opt out of being the exclusive groundwater management agency. end insert

This bill would create the West Kings Groundwater Sustainability Agency, would establish the initial boundaries of the agency, and would authorize the agency’s boundaries to be changed by the boards of supervisors of the Counties of Fresno and Kings after a noticed public hearing. The bill would require the agency to elect to be a groundwater sustainability agency under the Sustainable Groundwater Management Act for that portion of the Kings Subbasin that lies within the boundaries of the agency and would require the agency to develop and implement a groundwater sustainability plan to achieve sustainable groundwater management within the territory of the agency. The bill would generally specify the powers and purposes of the agency. The bill would prescribe the composition of the 7-member board of directors of the agency and would require members and alternates to be chosen by certain member agencies, as specified. By imposing duties on the agency and the member agencies, the bill would impose a state-mandated local program. begin insert The bill would deem the West Kings Groundwater Sustainability Agency the exclusive local agency with powers to comply with the Sustainable Groundwater Management Act. end insert

begin insert

This bill would incorporate additional changes to Section 10723 of the Water Code proposed by both this bill and SB 37 to become operative only if both bills are enacted and become effective before January 1, 2017, and this bill is chaptered last.

end insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

This act shall be known and may be cited as the West Kings Groundwater Sustainability Agency.

West Kings Groundwater Sustainability Agency

 

Article 1.  Findings and Declarations

 

101.  

The Legislature hereby finds and declares that the
preservation of the groundwater resources within the territory of
the agency for agricultural, municipal, and industrial uses is in the
public interest and that the creation of the agency pursuant to this
act is for the common benefit of water users.

102.  

The Legislature further finds and declares that the
groundwater management activities of the agency benefit all
operators of groundwater extraction facilities within the territory
of the agency.

103.  

The Legislature further finds and declares that
circumstances in the territory of the agency to be formed hereby,
which may not exist in other locations, justify the formation of the
agency and the grant of powers contained in this act. The territory
of the agency to be formed hereby includes vast areas of the
nation’s top farm producing lands and places that have been
designated by the State of California as disadvantaged communities
disproportionately impacted by air quality and socioeconomic
burdens. There are a number of scattered small public and private
water entities in the territory of the agency that do not have the
staff or resources to otherwise form a groundwater sustainability
agency. These entities agree the territory is best served by a single
dedicated agency to manage the groundwater resources.

 

Article 2.  Creation and Purposes

 

201.  

(a) A groundwater management agency is hereby created
in the Counties of Fresno and Kings to be known as the West Kings
Groundwater Sustainability Agency.

(b)  The agency shall be governed by a board as specified in
Section 501 and shall have the boundaries specified in Section
301. The agency shall only exercise the powers granted by this act
and the Sustainable Groundwater Management Act (Part 2.74
(commencing with Section 10720) of Division 6 of the Water
Code) for purposes of groundwater management within the
boundaries of the agency, together with any other powers as are
reasonably implied, necessary, and proper to carry out the
objectives and purposes of the agency to implement the Sustainable
Groundwater Management Act. The agency shall abide by the
rules and regulations promulgated by the Department of Water
Resources and the State Water Resources Control Board to
implement the Sustainable Groundwater Management Act.

 

Article 3.  Boundaries

 

301.  

For purposes of this act, the initial boundaries of the
agency shall be as follows:

Beginning at the intersection of the southwestern boundary of
Raisin City Water District (Raisin City WD) and Highway 145,
the North Fork Groundwater Sustainability Agency Boundary
(Boundary) follows Highway 145 southwest to the southern
boundary of Reclamation District 1606 (RD 1606). It then follows
the southern boundaries of RD 1606 and James Irrigation District
(James ID) to the intersection of the James ID boundary with the
Kings Subbasin boundary. Then, it follows said subbasin boundary
south and east to its intersection with the southwestern boundary
of Consolidated Irrigation District (Consolidated ID). The
Boundary then continues north and west following the southern
Consolidated ID boundary and the southern and western Raisin
City WD boundaries to the point of beginning.

302.  

The agency’s initial boundaries shall be established by
the boards of supervisors of the Counties of Fresno and Kings after
a noticed public hearing. The boundaries shall be depicted on a
map that shall be adopted by the boards of the supervisors of those
counties and thereafter recorded in the office of the county recorder
of each county.

303.  

The boards of supervisors of the Counties of Fresno and
Kings may adjust the boundaries of the agency in the same manner
prescribed for in establishment of the initial boundaries if the
boundaries of the basin are revised, including the establishment
of new subbasins.

 

Article 4.  Definitions

 

401.  

Unless otherwise indicated by their context, the definitions
set forth in this article govern the interpretation of this act.

402.  

“Actively and primarily engaged in production of
agriculture” means that a person derives at least 75 percent of his
or her annual income from production agriculture.

403.  

“Agency” means the West Kings Groundwater
Sustainability Agency established by this act.

404.  

“Aquifer” means a geologic formation or structure that
transmits water in sufficient quantities to supply pumping wells
or springs.

405.  

“Basin” has the same meaning as defined in Section 10721
of the Water Code.

406.  

“Board” means the board of directors of the agency, as
more particularly described in Section 501.

407.  

“Coordination agreement” has the same meaning as
defined in Section 10721 of the Water Code.

408.  

“County” means either the County of Fresno or the County
of Kings, as the context requires. “Counties” means the County
of Fresno and the County of Kings.

409.  

“Extraction” means the act of obtaining groundwater by
pumping or other controlled means.

410.  

“Groundwater” has the same meaning as defined in
Section 10721 of the Water Code.

411.  

“Groundwater management activities” means programs,
measures, or actions taken to preserve, protect, and enhance
groundwater resources within the territory of the agency.

412.  

“Kings Subbasin” means the San Joaquin Valley
Groundwater Basin Kings Subbasin.

413.  

“Member” means any person or entity entitled to
representation on the agency’s board of directors as specified in
Section 501.

414.  

“Operator” has the same meaning as defined in Section
10721 of the Water Code.

415.  

“Person” includes any state or local governmental agency,
private corporation, firm, partnership, limited liability company,
individual, group of individuals, or, to the extent authorized by
law, any federal agency.

416.  

“Plan” means a groundwater sustainability plan prepared
by the agency pursuant to this act.

417.  

“Supplemental water” means surface water or groundwater
imported from outside the watershed or watersheds of the basin
or aquifer and floodwaters that are conserved and saved within the
watershed or watersheds that would otherwise have been lost or
would not have reached the basin or aquifer.

 

Article 5.  General Provisions

 

501.  

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

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

(2) One member shall be a resident or landowner chosen by the
members of the governing boards of the following entities:

(A) Clark’s Fork Reclamation District.

(B) Laguna Irrigation District.

(C) Upper San Jose Water Company.

(3) One member shall be chosen by the member of the governing
boards of the following special districts that provide drinking water,
who shall be chosen from the members of the governing boards
of the special districts:

(A) Laton Community Services District.

(B) Riverdale Public Utility District.

(4) One member shall be a resident or landowner chosen by the
members of the governing boards of the following entities:

(A) Crescent Canal Company.

(B) Stinson Canal and Irrigation Company.

(5) One member shall be a resident or landowner chosen by the
members of the governing boards of the following entities:

(A) Burrel Ditch Company.

(B) Liberty Canal Company.

(6) One member shall be a resident or landowner chosen by the
members of the governing boards of the following entities:

(A) Liberty Mill Race Company.

(B) Reed Ditch Company.

(7) One member shall be chosen by the members of the
governing boards of the following special districts, who shall be
chosen from the members of the governing boards of the special
districts:

(A) Liberty Water District.

(B) Riverdale Irrigation District.

(b) There shall be an alternate for each board member, chosen
in the same manner and by the same entities as the board member.
The alternate member shall act in place of the board member he
or she is an alternate for in case of that board member’s absence
or inability to act.

502.  

The members shall serve for a four-year term of office.
A member may serve for more than one term of office.

503.  

(a) The board may adopt an ordinance to provide
compensation to members of the board in an amount not to exceed
one hundred dollars ($100) per day for each day’s attendance at
meetings of the board or for each day’s service rendered as a
member of the board by request of the board. For purposes of this
section, the determination of whether a board member’s activities
on any specific day are compensable shall be made pursuant to
Article 2.3 (commencing with Section 53232) of Chapter 2 of Part
1 of Division 2 of Title 5 of the Government Code.

(b) Reimbursement for expenses of members of the board is
subject to Sections 53232.2 and 53232.3 of the Government Code.

(c) The board may adopt an ordinance to increase the
compensation received by members of the board above the amount
of one hundred dollars ($100) per day. The increase shall not
exceed an amount equal to 5 percent, for each calendar year
following the operative date of the last adjustment, of the
compensation that is received when the ordinance is adopted.

(d) A board member shall not be compensated for more than a
total of 10 days in any calendar month.

504.  

(a) 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.

(b) An ordinance adopted by the board shall become effective
30 days from the date of its passage.

(c)  All ordinances shall be adopted at noticed, public hearings
by a majority vote of the board. No ordinance shall be adopted by
the board except at a public hearing. Notice of the hearing shall
be published in a newspaper of general circulation pursuant to
Section 6066 of the Government Code.

(d) The board shall provide notice of the adoption of all
ordinances.

505.  

No provision of this act shall be construed as denying to
any member agency any rights or powers that they already have
or that they may be granted.

506.  

The agency may contract with member entities for staff
and other services. The agency may hire contractors and consultants
as it considers appropriate.

507.  

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 the Sustainable Groundwater
Management Act (Part 2.74 (commencing with Section 10720) of
Division 6 of the Water Code).

508.  

The agency may exclude from any of the requirements of
this 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.

 

Article 6.  Studies and Investigations

 

601.  

The agency may collect data and conduct technical and
other investigations of all kinds in order to carry out the provisions
of this act. All hydrological investigations and studies carried out
by or on behalf of the agency shall be constructed by or under the
supervision of licensed engineers or other persons qualified in
groundwater geology or hydrology.

602.  

The agency may recommend and encourage water
recycling, stormwater capture, and other water development
projects, where those projects will enhance and contribute to the
responsible management of groundwater resources, as part of its
annual plan for implementation of groundwater management
objectives.

 

Article 7.  Sustainable Groundwater Management Powers

 

701.  

The agency shall develop and implement a groundwater
sustainability plan pursuant to Chapter 6 (commencing with Section
10727) of Part 2.74 of Division 6 of the Water Code to achieve
sustainable groundwater management within the territory of the
agency.

702.  

The agency shall elect to be a groundwater sustainability
agency pursuant to Chapter 4 (commencing with Section 10723)
of Part 2.74 of Division 6 of the Water Code for that portion of
the Kings Subbasin that lies within the boundaries of the agency.

703.  

The agency may exercise any of the powers described in
Chapter 5 (commencing with Section 10725) of Part 2.74 of
Division 6 of the Water Code and the enforcement powers
described in Chapter 9 (commencing with Section 10732) of Part
2.74 of Division 6 of the Water Code.

704.  

The availability of supplemental water to any operator
shall not subject that operator to regulations that are more
restrictive than those imposed on other operators.

 

Article 8.  Fee Authority

 

801.  

Pursuant to Chapter 8 (commencing with Section 10730)
of Part 2.74 of Division 6 of the Water Code, the agency may
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 amendment of a
groundwater sustainability plan, investigations, inspections,
compliance assistance, enforcement, and program administration,
including a prudent reserve.

SEC. 2.  

Section 10723 of the Water Code is amended to read:

10723.  

(a) Except as provided in subdivision (c), any local
agency or combination of local agencies overlying a groundwater
basin may decide to become a groundwater sustainability agency
for that basin.

(b) Before deciding to become a groundwater sustainability
agency, and after publication of notice pursuant to Section 6066
of the Government Code, the local agency or agencies shall hold
a public hearing in the county or counties overlying the basin.

(c) (1) Except as provided in paragraph (2), the following
agencies created by statute to manage groundwater shall be deemed
the exclusive local agencies within their respective statutory
boundaries with powers to comply with this part:

(A) Alameda County Flood Control and Water Conservation
District, Zone 7.

(B) Alameda County Water District.

(C) Desert Water Agency.

(D) Fox Canyon Groundwater Management Agency.

(E) Honey Lake Valley Groundwater Management District.

(F) Long Valley Groundwater Management District.

(G) Mendocino City Community Services District.

(H) Mono County Tri-Valley Groundwater Management
District.

(I) Monterey Peninsula Water Management District.

(J) Ojai Groundwater Management Agency.

(K) Orange County Water District.

(L) Pajaro Valley Water Management Agency.

(M) Santa Clara Valley Water District.

(N) Sierra Valley Groundwater Management District.

(O) West Kings Groundwater Sustainability Agency.

(P) Willow Creek Groundwater Management Agency.

(2) An agency identified in this subdivision may opt out of being
the exclusive groundwater management agency within its statutory
boundaries by sending a notice to the department, which shall be
posted on the department’s Internet Web site within 15 days of
receipt. If an agency identified in paragraph (1) opts out of being
the exclusive groundwater management agency, any other local
agency or combination of local agencies operating within the
statutory boundaries of the agency that has opted out may notify
the department pursuant to Section 10723.8 of its decision to be
the groundwater sustainability agency.

(3) A local agency listed in paragraph (1) may comply with this
part by meeting the requirements of Section 10733.6 or opting to
become a groundwater sustainability agency pursuant to this
section. A local agency with authority to implement a basin-specific
management plan pursuant to its principal act shall not exercise
any authorities granted in this part in a manner inconsistent with
any prohibitions or limitations in its principal act unless the
governing board of the local agency makes a finding that the
agency is unable to sustainably manage the basin without the
prohibited authority.

(d) The decision of a local agency or combination of agencies
to become a groundwater sustainability agency shall take effect
as provided in Section 10723.8.

begin insert

begin insert SEC. 2.5. end insert   

end insert

begin insert Section 10723 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

10723.  

(a) Except as provided in subdivision (c), any local
agency or combination of local agencies overlying a groundwater
basin may decide to become a groundwater sustainability agency
for that basin.

(b) Before deciding to become a groundwater sustainability
agency, and after publication of notice pursuant to Section 6066
of the Government Code, the local agency or agencies shall hold
a public hearing in the county or counties overlying the basin.

(c) (1) Except as provided in paragraph (2), the following
agencies created by statute to manage groundwater shall be deemed
the exclusive local agencies within their respective statutory
boundaries with powers to comply with this part:

(A) Alameda County Flood Control and Water Conservation
District, Zone 7.

(B) Alameda County Water District.

(C) Desert Water Agency.

(D) Fox Canyon Groundwater Management Agency.

(E) Honey Lake Valley Groundwater Management District.

begin insert

(F) Kings River East Groundwater Sustainability Agency.

end insert begin delete

(F)

end delete

begin insert (G) end insert  Long Valley Groundwater Management District.

begin delete

(G)

end delete

begin insert (H) end insert  Mendocino City Community Services District.

begin delete

(H)

end delete

begin insert (I) end insert  Mono County Tri-Valley Groundwater Management District.

begin delete

(I)

end delete

begin insert (J) end insert  Monterey Peninsula Water Management District.

begin delete

(J)

end delete

begin insert (K) end insert  Ojai Groundwater Management Agency.

begin delete

(K)

end delete

begin insert (L) end insert  Orange County Water District.

begin delete

(L)

end delete

begin insert (M) end insert  Pajaro Valley Water Management Agency.

begin delete

(M)

end delete

begin insert (N) end insert  Santa Clara Valley Water District.

begin delete

(N)

end delete

begin insert (O) end insert  Sierra Valley Groundwater Management District.

begin insert

(P) West Kings Groundwater Sustainability Agency.

end insert begin delete

(O)

end delete

begin insert (Q) end insert  Willow Creek Groundwater Management Agency.

(2) An agency identified in this subdivision may opt out of being
the exclusive groundwater management agency within its statutory
boundaries by sending a notice to the department, which shall be
posted on the department’s Internet Web site within 15 days of
receipt. If an agency identified in paragraph (1) opts out of being
the exclusive groundwater management agency, any other local
agency or combination of local agencies operating within the
statutory boundaries of the agency that has opted out may notify
the department pursuant to Section 10723.8 of its decision to be
the groundwater sustainability agency.

(3) A local agency listed in paragraph (1) may comply with this
part by meeting the requirements of Section 10733.6 or opting to
become a groundwater sustainability agency pursuant to this
section. A local agency with authority to implement a basin-specific
management plan pursuant to its principal act shall not exercise
any authorities granted in this part in a manner inconsistent with
any prohibitions or limitations in its principal act unless the
governing board of the local agency makes a finding that the
agency is unable to sustainably manage the basin without the
prohibited authority.

(d) The decision of a local agency or combination of agencies
to become a groundwater sustainability agency shall take effect
as provided in Section 10723.8.

begin insert

begin insert SEC. 3. end insert   

end insert begin insert

Section 2.5 of this bill incorporates amendments to
Section 10723 of the Water Code proposed by both this bill and
Senate Bill 37. It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2017, (2)
each bill amends Section 10723 of the Water Code, and (3) this
bill is enacted after Senate Bill 37, in which case Section 2 of this
bill shall not become operative.

end insert

begin delete SEC. 3. end delete

begin insert SEC. 4. end insert   

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
a local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.