BILL ANALYSIS Ó
SB 564
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Date of Hearing: June 29, 2016
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Susan Talamantes Eggman, Chair
SB
564 (Cannella) - As Amended June 16, 2016
SENATE VOTE: Vote not relevant
SUBJECT: West Kings Groundwater Sustainability Agency Act.
SUMMARY: Creates the West Kings Groundwater Sustainability
Agency, specifies the Board 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.
Specifically, this bill:
1)Establishes the West Kings Groundwater Sustainability Agency
Act (Act) and creates the West Kings Groundwater
Sustainability Agency (Agency) within the Counties of Fresno
and Kings.
2)Adds the Agency to the list of agencies created by statute to
manage groundwater that are deemed the exclusive local
agencies within their respective statutory boundaries with
powers to comply with the Sustainable Groundwater Management
Act (SGMA).
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3)Specifies the Agency's governing board, consisting of seven
(7) members, as follows:
a) One (1) member shall be chosen by the County of Fresno;
b) One (1) member shall be a resident or landowner chosen
by the members of the governing board of the following
entities:
i) Clark's Fork Reclamation District;
ii) Laguna Irrigation District; and,
iii) Upper San Jose Water Company;
c) One (1) 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:
i) Laton Community Services District; and,
ii) Riverdale Public Utility District.
d) One (1) member shall be a resident or landowner chosen
by the members of the governing boards of the following
entities:
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i) Crescent Canal Company; and,
ii) Stinson Canal and Irrigation Company.
e) One (1) member shall be a resident or landowner chosen
by the members of the governing boards of the following
entities;
i) Burrel Ditch Company; and,
ii) Liberty Canal Company.
f) One (1) member shall be a resident or landowner chosen
by the members of the governing boards of the following
entities:
i) Liberty Mill Race Company; and,
ii) Reed Ditch Company.
g) One (1) 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:
i) Liberty Water District; and,
ii) Riverdale Irrigation District.
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4)Requires there to 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.
5)Requires the members to serve for a four-year term of office.
Allows a member to serve for more than one term of office.
6)Allows the Board to adopt an ordinance to provide compensation
to members of the Board in an amount not to exceed $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.
7)Allows the Board to adopt an ordinance to increase the
compensation received by members of the Board above the amount
of $100 per day. Prohibits a Board member from being
compensated for more than a total of 10 days in any calendar
month.
8)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.
9)Specifies that an ordinance adopted by the Board shall become
effective 30 days from the date of its passage.
10)Requires all ordinances to be adopted at noticed, public
hearings by a majority vote of the Board. Prohibits any
ordinance from being adopted by the Board, except at a public
hearing. Requires notice of the hearing to be published in a
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newspaper of general circulation, as specified.
11)Provides that 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.
12)Allows the Agency to contract with member entities for staff
and other services. Allows the Agency to hire contractors and
consultants as it considers appropriate.
13)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 groundwater
sustainability plans with the Kings Subbasin, as required by
the SGMA.
14)Allows the Agency to 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.
15)Allows the Agency to collect data and conduct technical and
other investigations of all kinds in order to carry out the
provisions of this Act. Requires all hydrological
investigations and studies carried out by or on behalf of the
Agency to be constructed by or under the supervision of
licensed engineers or other persons qualified in groundwater
geology or hydrology.
16)Allows the Agency to recommend and encourage water recycling
and other water development projects, where those projects
will enhance and contribute to the responsible management of
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groundwater resources, as part of its annual plan for
implementation of groundwater management objectives.
17)Requires the Agency to develop and implement a groundwater
sustainability plan, pursuant to existing law, to achieve
sustainable groundwater management within the territory of the
Agency.
18)Requires the Agency to elect to be a groundwater
sustainability agency, pursuant to existing law, for that
portion of the Kings Subbasin that lies within the boundaries
of the Agency.
19)Allows the Agency to exercise specified powers, pursuant to
SGMA.
20)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,
enforcement, and program administration, including a prudent
reserve.
21)Specifies the Agency's boundaries and provides that 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. Requires the boundaries to be
depicted on a map that shall be adopted by the Boards of those
counties and thereafter recorded in the office of the county
recorder of each county. Allows the Boards to adjust the
boundaries of the Agency in the same manner prescribed for in
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establishment of the initial boundaries if the boundaries of
the basin are revised, including the establishment of new
subbasins.
22)Declares that 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.
23)Specifies that the Agency shall only exercise the powers
granted by this Act and the SGMA 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 SGMA. Requires the Agency to abide by the
rules and regulations promulgated by the Department of Water
Resources (DWR) and the State Water Resources Control Board
(Water Board) to implement the SGMA.
24)Defines terms, as follows:
a) "Actively and primarily engaged in production of
agriculture" to mean that a person derives at least 75% of
his or her annual income from production agriculture;
b) "Agency" to mean the West Kings Groundwater
Sustainability Agency;
c) "Aquifer" to mean a geologic formation or structure that
transmits water in sufficient quantities to supply pumping
wells or springs;
a) "Basin" to mean a groundwater basin or subbasin
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identified and defined in the Department of Water
Resources' "California Groundwater: Bulletin 118" updated
in 2003, as it may be subsequently updated or revised, as
specified;
b) "Board" to mean the Board of Directors of the Agency;
c) "Coordination agreement" to mean a legal agreement
adopted between two or more groundwater sustainability
agencies that provides the basis for coordinating multiple
agencies or groundwater sustainability plans within a
basin;
d) "County" to mean either the County of Fresno or the
County of Kings, as the context requires. "Counties" to
mean the County of Fresno and the County of Kings;
e) "Extraction" to mean the act of obtaining groundwater by
pumping or other controlled means;
f) "Groundwater" to mean water beneath the surface of the
earth within the zone below the water table in which the
soil is completely saturated with water, but does not
include water that flows in known and definite channels;
g) "Groundwater management activities" to mean programs,
measures, or actions taken to preserve, protect, and
enhance groundwater resources within the territory of the
Agency;
h) "Kings Subbasin" to mean the San Joaquin Valley
Groundwater Basin Kings Subbasin;
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i) "Member" to mean any person or entity entitled to
representation on the Agency's Board of Directors;
j) "Operator" to mean a person operating a groundwater
extraction facility. The owner of a groundwater extraction
facility shall be conclusively presumed to be the operator,
unless a satisfactory showing is made to the governing body
of the groundwater sustainability agency that the
groundwater extraction facility actually is operated by
some other person;
aa) "Person" to include 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;
bb) "Plan" to mean a groundwater sustainability plan
prepared by the Agency; and,
cc) "Supplemental water" to mean 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.
1)States that no reimbursement is required by this act 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, as
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specified.
1)Makes findings and declarations.
EXISTING LAW:
1)Establishes the Sustainable Groundwater Management Act (SGMA)
to provide local groundwater agencies with the authority and
the technical and financial assistance necessary to
sustainably manage groundwater.
2)Requires, by January 31, 2020, all basins designed as high- or
medium-priority basins by DWR that have been designated in
Bulletin 118, as may be updated or revised on or before
January 1, 2017, as basins that are subject to critical
conditions of overdraft, to be managed under a groundwater
sustainability plan or coordinated groundwater sustainability
plans.
3)Requires, by January 31, 2022, all basins designed as high- or
medium-priority basins by DWR that are not subject to 2),
above, to be managed under a groundwater sustainability plan
or coordinated groundwater sustainability plans.
4)Allows any local agency or combination of local agencies
overlying a groundwater basin to elect to be a groundwater
sustainability agency for that basin, except as specified.
5)Requires the local agency or agencies to hold a public hearing
in the county or counties overlying the basin, prior to
electing to be a GSA, and to provide specified notice of that
hearing, pursuant to existing law.
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6)Requires a local agency or combination of local agencies that
elects to be the GSA to submit a notice of intent to DWR, as
specified.
7)Allows a combination of local agencies to form a GSA by using
any of the following methods:
a) A joint powers agreement (JPA); or,
b) A memorandum of agreement (MOA) or other local
agreement.
8)Requires a groundwater sustainability plan to be developed and
implemented for each medium- or high- priority basin by a GSA
to meet the sustainability goal established, pursuant to SGMA.
9)Specifies that a GSP may be any of the following:
a) A single plan covering the entire basin developed and
implemented by one GSA;
b) A single plan covering the entire basin developed and
implemented by multiple GSAs; or,
c) Multiple plans implemented by multiple GSAs and
coordinated, pursuant to a single coordination agreement
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that covers the entire basins, as specified.
10)Allows the State Water Board, after notice and public
hearing, to designate a basin as a probationary basin, if the
board makes certain specified findings.
FISCAL EFFECT: This bill is keyed fiscal.
COMMENTS:
1)Local Groundwater Management and the Sustainable Groundwater
Management Act (SGMA). The Legislature passed SGMA (SB 1168
(Pavley), AB 1739 (Dickinson) and
SB 1319 (Pavley), Statutes of 2014), creating a statewide
requirement to sustainably manage groundwater resources. The
package of bills was signed by Governor Brown with the
objective to ensure the long-term reliability of groundwater
resources and connected surface water resources by requiring
sustainable management. Groundwater Sustainability Agencies
(GSAs) must by formed by 2017, Groundwater Sustainability
Plans (GSPs) for critically overdrafted basins must be written
by 2020, and sustainability must be reached by 2040. Prior to
2014, there was no statutory mandate to manage groundwater in
California.
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
an AB 3030 plan. The Legislature also created a number of
"special act special districts" that addressed groundwater
management - these local agencies were created via statute to
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establish unique governance structures and grant powers that
were customized to the problems and solutions of a particular
groundwater basin. The acts creating these special act
districts are located in the Water Appendix.
Local Control and Governance Options under SGMA. 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 the DWR, and can
include a city,
a county, a special district, or a combination of these
agencies organized via a legal agreement, like a JPA or MOA.
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 deadline is two years later (January 31, 2022) for other
medium- or high-priority basins. The goal of the GSPs is to
achieve operation within the basins' sustainable yield within
20 years of plan implementation.
Because of the June 30, 2017, date to have GSAs in place, the
timeline for local agencies to make decisions on management at
the local level, and governance, is very short.
2)Bill Summary. This bill creates a special act district called
the West Kings Basin Groundwater Sustainability Agency, and
requires the Agency to be the GSA under SGMA for that portion
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of the Kings Subbasin that lies within the boundaries of the
Agency, and would require the Agency to develop and implement
a GSP to achieve sustainable groundwater management within the
territory of the Agency. The bill additionally specifies the
powers and purposes of the Agency, and prescribes the
composition of the seven-member board of directors of the
Agency, including the terms, how the members are chosen, and
their compensation and reimbursement. The bill also adds the
Agency to the list of agencies created by statute to manage
groundwater that are deemed the exclusive local agencies
within their respective statutory boundaries with powers to
comply with SGMA.
This bill is sponsored by the West Kings Basin Groundwater
Coalition.
3)Author's Statement. According to the author, "It was the
expressed intent of the Legislature in writing SGMA to "manage
groundwater basins through the actions of local governmental
agencies to the greatest extent feasible, while minimizing
state intervention to only when necessary to ensure that local
agencies manage groundwater in a sustainable manner"
[subdivision (h), Section 10720.1, Water Code].
"This legislation, in creating a special act agency to serve
as the groundwater sustainability for an area encompassing 265
square miles, is fully consistent with legislative intent for
a number of reasons. First, the portion of the basin to be
covered by the GSA would not contain any so-called "white
areas" as the territory of the GSA would cover the entire
area. Second, this is important because significant acreage in
the territory is not served by local agencies, but by mutual
water companies. The special act agency would include in its
governing body traditionally disparate interests, including
representatives appointed by the principal land use agency,
local agencies providing drinking water to disadvantaged
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communities, local agencies providing farm water supplies and
mutual water companies that provide farm water supplies.
Mutual water companies would not be a member of the GSA, but a
representative of a mutual water company may be appointed to
serve on the governing body.
"The goal of this legislation is to provide 'a seat at the
table' for all of the entities that have a stake in
sustainable groundwater management in this area. This
approach offers the best governance model for achieving
sustainable groundwater management in this area. A GSA that
consists of only local agencies would require other interested
parties to participate only through attending meetings and
reviewing and commenting on the development and implementation
of the groundwater sustainability plan. It will be far better
to provide equal and equitable access to the decision making
process."
4)Policy Considerations. The Committee may wish to consider the
following:
a) Mutual Water Company Involvement. This bill allows for
several mutual water companies to have a say in choosing
board members, and for the board members to either be a
"resident" or a "landowner." Essentially, the bill allows
several of the seven-member board to be representatives of
mutual water companies.
SGMA specifically allows any local public agency or
combination of local agencies to elect to be a GSA for that
basin or subbasin. In this manner, SGMA places
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requirements on local public agencies.
Most mutual water companies are organized, pursuant to the
General Corporation Law or the Nonprofit Mutual Benefit
Corporation Law. Shareholders in a mutual water company
hold a right to purchase water from the company. Stock in
a company is usually linked to the ownership of a parcel
served by the company and transfers with the land when the
parcel is sold to successive owners. This type of
corporate structure allows landowners to establish,
essentially, a customer-owned water provider to serve their
properties. State law exempts a mutual water company from
state regulation if it is organized to deliver water to its
stockholders and members, with specified exceptions.
Governance of a mutual water company is generally limited
to shareholders, or members, of the company. While the
details of any particular company's governing structure are
determined by its articles and bylaws, most mutual water
companies allow only shareholders and members to vote on
organizational matters and serve on the company's governing
board.
The Committee may wish to consider the policy of allowing
certain mutual water companies to have the power to appoint
representatives to the West Kings GSA's Board, and whether
that runs contrary to the legislative intent of SGMA.
b) Other Alternatives to Special Act District. The
Committee may wish to ask the author to discuss why other
local management options (JPA, MOA, electing to have an
existing district serve as the GSA) do not suffice.
5)Arguments in Support. According to the supporters, it is the
intent of all the interested parties to work collaboratively
to solve the groundwater issues in the region and to develop
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the governance structure that will facilitate implementing a
groundwater sustainability plan.
6)Arguments in Opposition. None on file.
7)Double-Referral. This bill is double-referred to the Water,
Parks and Wildlife Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
Burrel Ditch Company
Clark's Fork Reclamation District #2069
Crescent Canal Company
Laguna Irrigation District
Liberty Canal Company
Liberty Mill Race Co.
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Liberty Water District
Reed Ditch Company
Riverdale Irrigation District
Riverdale Public Utility District
Stinson Canal & Irrigation Co.
Upper San Jose Water Company
Opposition
None on file
Analysis Prepared by:Debbie Michel / L. GOV. / (916)
319-3958
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