BILL ANALYSIS Ó SB 564 Page 1 Date of Hearing: August 10, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 564 (Cannella) - As Amended August 4, 2016 ----------------------------------------------------------------- |Policy |Water, Parks and Wildlife |Vote:|14 - 1 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Local Government | |9 - 0 | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: This bill creates the North Fork Kings Groundwater Sustainability Agency (Agency) in the counties of Fresno and Kings, 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: SB 564 Page 2 1)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). 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 the Agency to establish advisory committees for SB 564 Page 3 assisting the board in the development and operation of the GSA and the development and implementation of the GSP. 8)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, program administration, and a prudent reserve. 9)Provides 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, "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. This legislation, in creating a special act agency to serve as the GSA for an area encompassing 265 square miles, is fully consistent with legislative intent for a number of reasons. 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 SB 564 Page 4 drinking water to disadvantaged 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." 2)Background. SGMA requires the development of a local process 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 SB 564 Page 5 "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 (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 Kings Subbasin that is the subject of this bill has been designated to be in a state of critical overdraft. 3)Related Legislation. SB 37(Vidak), before this Committee today, creates the Kings River East Groundwater Sustainability Agency. 4)Prior Legislation. SB 1168 (Pavley), Chapter 346, and AB 1738 (Dickinson), Chapter 347, the Statutes of 2014, enacted SGMA. SB 564 Page 6 Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081