Amended in Senate May 11, 2016

Amended in Senate April 27, 2016

Senate Bill No. 1262

Introduced by Senators Pavley and Wieckowski

February 18, 2016

An act to amend Section 66473.7 of the Government Code, and to amend Section 10910 of the Water Code, relating to land use.

LEGISLATIVE COUNSEL’S DIGEST

SB 1262, as amended, Pavley. Water supply planning.

(1) Existing law requires a city or county that determines a project, as defined, is subject to the California Environmental Quality Act to identify certain water systems that may supply water for the project and to request those public water systems to prepare and approve a specified water supply assessment. Under existing law, if no public water system is identified, the city or county is required to prepare and approve the water supply assessment. Existing law provides that if, as a result of its assessment, the public water system or city or county concludes that its water supplies are, or will be, insufficient, the public water system or city or county is required to provide its plans for acquiring additional water supplies, as prescribed.

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. The act authorizes the State Water Resources Control Board to designate a basin as a probationary basin if the state board makes a certain determination and to develop an interim plan for the probationary basin.

This bill would require a city or county that determines a project is subject to the California Environmental Quality Act to identify any water system whose service area includes the project site and any water system adjacent to the project site. begin delete This bill would require, if a water source for a proposed project includes water of a quality not sufficient to meet certain drinking water standards, that prescribed additional information be included in a water supply assessment. end delete This bill would provide that hauled water or groundwater from a probationary basin are not sources of water for the purposes of a water supply begin delete assessment. end delete begin insert assessment, as specified. end insert This bill would, if a water supply for a proposed project includes groundwater, require certain additional information to be included in the water supply assessment. By imposing additional duties on cities and counties, this bill would impose a state-mandated local program.

(2) Existing law, the Subdivision Map Act, establishes a statewide regulatory framework for controlling the subdividing of land. The act generally requires a subdivider to submit, and have approved by the city, county, or city and county in which the land is situated, a tentative map for subdivisions of land, as specified. Existing law requires a city or county to deny approval of a tentative map, or parcel map for which a tentative map was not required, if it makes certain findings relating to the proposed subdivision. Existing law requires a city or county to include as a condition in any tentative map that includes a subdivision a requirement that a sufficient water supply be available. Existing law requires proof of the availability of a sufficient water supply, as prescribed, and that the written verification of a public water system’s ability or inability to provide a sufficient water supply be supported by substantial evidence.

This bill would revise the definition of sufficient water supply to include additional factors relating to a proposed subdivision that relies in whole or in part on groundwater. This bill would provide that groundwater from a probationary basin is not a water supply for these begin delete purposes. end delete begin insert purposes, as specified. end insert

(3) 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.  

Section 66473.7 of the Government Code is
amended to read:

66473.7.  

(a) For the purposes of this section, the following
definitions apply:

(1) “Subdivision” means a proposed residential development
of more than 500 dwelling units, except that for a public water
system that has fewer than 5,000 service connections, “subdivision”
means any proposed residential development that would account
for an increase of 10 percent or more in the number of the public
water system’s existing service connections.

(2) “Sufficient water supply” means the total water supplies
available during normal, single-dry, and multiple-dry years within
a 20-year projection that will meet the projected demand associated
with the proposed subdivision, in addition to existing and planned
future uses, including, but not limited to, agricultural and industrial
uses. In determining “sufficient water supply,” all of the following
factors shall be considered:

(A) The availability of water supplies over a historical record
of at least 20 years.

(B) The applicability of an urban water shortage contingency
analysis prepared pursuant to Section 10632 of the Water Code
that includes actions to be undertaken by the public water system
in response to water supply shortages.

(C) The reduction in water supply allocated to a specific water
use sector pursuant to a resolution or ordinance adopted, or a
contract entered into, by the public water system, as long as that
resolution, ordinance, or contract does not conflict with Section
354 of the Water Code.

(D) The amount of water that the water supplier can reasonably
rely on receiving from other water supply projects, such as
conjunctive use, reclaimed water, water conservation, and water
transfer, including programs identified under federal, state, and
local water initiatives such as CALFED and Colorado River
tentative agreements, to the extent that these water supplies meet
the criteria of subdivision (d).

(E) If a proposed subdivision relies in whole or in part on
groundwater, the following factors:

(i) For a basin for which a court or the State Water Resources
Control Board has adjudicated the rights to pump groundwater,
the order or decree adopted by the court or the State Water
Resources Control Board.

(ii) For a basin that has not been adjudicated, as follows:

(I) For a basin designated as high- or medium-priority pursuant
to Section 10722.4 of the Water Code, the most recently adopted
or revised adopted groundwater sustainability plan or approved
alternative. begin insert If there is no adopted groundwater sustainability plan
or approved alternative, information as to whether the Department
of Water Resources has identified the basin or basins as
overdrafted or has projected that the basin will become overdrafted
if present management conditions continue. end insert

(II) For a basin designated as low- or very low priority pursuant
to Section 10722.4 of the Water Code, information as to whether
the Department of Water Resources has identified the basin or
basins as overdrafted or has projected that the basin will become
overdrafted if present management conditions continue.

(3) “Public water system” means the water supplier that is, or
may become as a result of servicing the subdivision included in a
tentative map pursuant to subdivision (b), a public water system,
as defined in Section 10912 of the Water Code, that may supply
water for a subdivision.

(b) (1) The legislative body of a city or county or the advisory
agency, to the extent that it is authorized by local ordinance to
approve, conditionally approve, or disapprove the tentative map,
shall include as a condition in any tentative map that includes a
subdivision a requirement that a sufficient water supply shall be
available. Proof of the availability of a sufficient water supply
shall be requested by the subdivision applicant or local agency, at
the discretion of the local agency, and shall be based on written
verification from the applicable public water system within 90
days of a request.

(2) If the public water system fails to deliver the written
verification as required by this section, the local agency or any
other interested party may seek a writ of mandamus to compel the
public water system to comply.

(3) If the written verification provided by the applicable public
water system indicates that the public water system is unable to
provide a sufficient water supply that will meet the projected
demand associated with the proposed subdivision, then the local
agency may make a finding, after consideration of the written
verification by the applicable public water system, that additional
water supplies not accounted for by the public water system are,
or will be, available prior to completion of the subdivision that
will satisfy the requirements of this section. This finding shall be
made on the record and supported by substantial evidence.

(4) If the written verification is not provided by the public water
system, notwithstanding the local agency or other interested party
securing a writ of mandamus to compel compliance with this
section, then the local agency may make a finding that sufficient
water supplies are, or will be, available prior to completion of the
subdivision that will satisfy the requirements of this section. This
finding shall be made on the record and supported by substantial
evidence.

(c) The applicable public water system’s written verification of
its ability or inability to provide a sufficient water supply that will
meet the projected demand associated with the proposed
subdivision as required by subdivision (b) shall be supported by
substantial evidence. The substantial evidence may include, but is
not limited to, any of the following:

(1) The public water system’s most recently adopted urban water
management plan adopted pursuant to Part 2.6 (commencing with
Section 10610) of Division 6 of the Water Code.

(2) A water supply assessment that was completed pursuant to
Part 2.10 (commencing with Section 10910) of Division 6 of the
Water Code.

(3) A groundwater sustainability plan adopted or alternative
approved pursuant to Part 2.74 (commencing with Section 10720)
of Division 6 of the Water Code.

(4) Other information relating to the sufficiency of the water
supply that contains analytical information that is substantially
similar to the assessment required by Section 10635 of the Water
Code.

(d) When the written verification pursuant to subdivision (b)
relies on projected water supplies that are not currently available
to the public water system, to provide a sufficient water supply to
the subdivision, the written verification as to those projected water
supplies shall be based on all of the following elements, to the
extent each is applicable:

(1) Written contracts or other proof of valid rights to the
identified water supply that identify the terms and conditions under
which the water will be available to serve the proposed subdivision.

(2) Copies of a capital outlay program for financing the delivery
of a sufficient water supply that has been adopted by the applicable
governing body.

(3) Securing of applicable federal, state, and local permits for
construction of necessary infrastructure associated with supplying
a sufficient water supply.

(4) Any necessary regulatory approvals that are required in order
to be able to convey or deliver a sufficient water supply to the
subdivision.

(e) If there is no public water system, the local agency shall
make a written finding of sufficient water supply based on the
evidentiary requirements of subdivisions (c) and (d) and identify
the mechanism for providing water to the subdivision.

(f) In making any findings or determinations under this section,
a local agency, or designated advisory agency, may work in
conjunction with the project applicant and the public water system
to secure water supplies sufficient to satisfy the demands of the
proposed subdivision. If the local agency secures water supplies
pursuant to this subdivision, which supplies are acceptable to and
approved by the governing body of the public water system as
suitable for delivery to customers, it shall work in conjunction
with the public water system to implement a plan to deliver that
water supply to satisfy the long-term demands of the proposed
subdivision.

(g) The written verification prepared under this section shall
also include a description, to the extent that data is reasonably
available based on published records maintained by federal and
state agencies, and public records of local agencies, of the
reasonably foreseeable impacts of the proposed subdivision on the
availability of water resources for agricultural and industrial uses
within the public water system’s service area that are not currently
receiving water from the public water system but are utilizing the
same sources of water. To the extent that those reasonably
foreseeable impacts have previously been evaluated in a document
prepared pursuant to the California Environmental Quality Act
(Division 13 (commencing with Section 21000) of the Public
Resources Code) or the National Environmental Policy Act (Public
Law 91-190) for the proposed subdivision, the public water system
may utilize that information in preparing the written verification.

(h) (1) Where a water supply for a proposed subdivision
includes groundwater, the public water system serving the proposed
subdivision shall evaluate, based on substantial evidence, the extent
to which it or the landowner has the right to extract the additional
groundwater needed to supply the proposed subdivision. Nothing
in this subdivision is intended to modify state law with regard to
groundwater rights.

(2) Groundwater from a basin designated by the State Water
Resources Control Board as a probationary basin pursuant to
Chapter 11 (commencing with Section 10735) of Part 2.74 of
Division 6 of the Water Code is not considered as a water supply
for the purposes of this section. begin insert This paragraph does not apply to
groundwater from any portion of a basin excluded from
probationary status pursuant to subdivision (e) of Section 10735.2
of the Water Code. end insert

(i) This section shall not apply to any residential project
proposed for a site that is within an urbanized area and has been
previously developed for urban uses, or where the immediate
contiguous properties surrounding the residential project site are,
or previously have been, developed for urban uses, or housing
projects that are exclusively for very low and low-income
households.

(j) The determinations made pursuant to this section shall be
consistent with the obligation of a public water system to grant a
priority for the provision of available and future water resources
or services to proposed housing developments that help meet the
city’s or county’s share of the regional housing needs for lower
income households, pursuant to Section 65589.7.

(k) The County of San Diego shall be deemed to comply with
this section if the Office of Planning and Research determines that
all of the following conditions have been met:

(1) A regional growth management strategy that provides for a
comprehensive regional strategy and a coordinated economic
development and growth management program has been developed
pursuant to Proposition C as approved by the voters of the County
of San Diego in November 1988, which required the development
of a regional growth management plan and directed the
establishment of a regional planning and growth management
review board.

(2) Each public water system, as defined in Section 10912 of
the Water Code, within the County of San Diego has adopted an
urban water management plan pursuant to Part 2.6 (commencing
with Section 10610) of the Water Code.

(3) The approval or conditional approval of tentative maps for
subdivisions, as defined in this section, by the County of San Diego
and the cities within the county requires written communications
to be made by the public water system to the city or county, in a
format and with content that is substantially similar to the
requirements contained in this section, with regard to the
availability of a sufficient water supply, or the reliance on projected
water supplies to provide a sufficient water supply, for a proposed
subdivision.

(l) Nothing in this section shall preclude the legislative body of
a city or county, or the designated advisory agency, at the request
of the applicant, from making the determinations required in this
section earlier than required pursuant to subdivision (b).

(m) Nothing in this section shall be construed to create a right
or entitlement to water service or any specific level of water
service.

(n) Nothing in this section is intended to change existing law
concerning a public water system’s obligation to provide water
service to its existing customers or to any potential future
customers.

(o) Any action challenging the sufficiency of the public water
system’s written verification of a sufficient water supply shall be
governed by Section 66499.37.

SEC. 2.  

Section 10910 of the Water Code is amended to read:

10910.  

(a) Any city or county that determines that a project,
as defined in Section 10912, is subject to the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code) under Section 21080 of the
Public Resources Code shall comply with this part.

(b) The city or county, at the time that it determines whether an
environmental impact report, a negative declaration, or a mitigated
negative declaration is required for any project subject to the
California Environmental Quality Act pursuant to Section 21080.1
of the Public Resources Code, shall identify any water system
whose service area includes the project site and any water system
adjacent to the project site that is, or may become as a result of
supplying water to the project identified pursuant to this
subdivision, a public water system, as defined in Section 10912,
that may supply water for the project. If the city or county is not
able to identify any public water system that may supply water for
the project, the city or county shall prepare the water assessment
required by this part after consulting with any entity serving
domestic water supplies whose service area includes the project
site, the local agency formation commission, and any public water
system adjacent to the project site.

(c) (1) The city or county, at the time it makes the determination
required under Section 21080.1 of the Public Resources Code,
shall request each public water system identified pursuant to
subdivision (b) to determine whether the projected water demand
associated with a proposed project was included as part of the most
recently adopted urban water management plan adopted pursuant
to Part 2.6 (commencing with Section 10610).

(2) If the projected water demand associated with the proposed
project was accounted for in the most recently adopted urban water
management plan, the public water system may incorporate the
requested information from the urban water management plan in
preparing the elements of the assessment required to comply with
subdivisions (d), (e), (f), and (g).

(3) If the projected water demand associated with the proposed
project was not accounted for in the most recently adopted urban
water management plan, or the public water system has no urban
water management plan, the water supply assessment for the project
shall include a discussion with regard to whether the public water
system’s total projected water supplies available during normal,
single dry, and multiple dry water years during a 20-year projection
will meet the projected water demand associated with the proposed
project, in addition to the public water system’s existing and
planned future uses, including agricultural and manufacturing uses.

(4) If the city or county is required to comply with this part
pursuant to subdivision (b), the water supply assessment for the
project shall include a discussion with regard to whether the total
projected water supplies, determined to be available by the city or
county for the project during normal, single dry, and multiple dry
water years during a 20-year projection, will meet the projected
water demand associated with the proposed project, in addition to
existing and planned future uses, including agricultural and
manufacturing uses.

(d) (1) The assessment required by this section shall include
an identification of any existing water supply entitlements, water
rights, or water service contracts relevant to the identified water
supply for the proposed project, and a description of the quantities
of water received in prior years by the public water system, or the
city or county if either is required to comply with this part pursuant
to subdivision (b), under the existing water supply entitlements,
water rights, or water service contracts.

(2) An identification of existing water supply entitlements, water
rights, or water service contracts held by the public water system,
or the city or county if either is required to comply with this part
pursuant to subdivision (b), shall be demonstrated by providing
information related to all of the following:

(A) Written contracts or other proof of entitlement to an
identified water supply.

(B) Copies of a capital outlay program for financing the delivery
of a water supply that has been adopted by the public water system.

(C) Federal, state, and local permits for construction of necessary
infrastructure associated with delivering the water supply.

(D) Any necessary regulatory approvals that are required in
order to be able to convey or deliver the water supply.

(e) If no water has been received in prior years by the public
water system, or the city or county if either is required to comply
with this part pursuant to subdivision (b), under the existing water
supply entitlements, water rights, or water service contracts, the
public water system, or the city or county if either is required to
comply with this part pursuant to subdivision (b), shall also include
in its water supply assessment pursuant to subdivision (c), an
identification of the other public water systems or water service
contractholders that receive a water supply or have existing water
supply entitlements, water rights, or water service contracts, to the
same source of water as the public water system, or the city or
county if either is required to comply with this part pursuant to
subdivision (b), has identified as a source of water supply within
its water supply assessments.

(f) If a water supply for a proposed project includes
groundwater, the following additional information shall be included
in the water supply assessment:

(1) A review of any information contained in the urban water
management plan relevant to the identified water supply for the
proposed project.

(2) (A) A description of any groundwater basin or basins from
which the proposed project will be supplied.

(B) For those basins for which a court or the board has
adjudicated the rights to pump groundwater, a copy of the order
or decree adopted by the court or the board and a description of
the amount of groundwater the public water system, or the city or
county if either is required to comply with this part pursuant to
subdivision (b), has the legal right to pump under the order or
decree.

(C) For a basin that has not been adjudicated that is a basin
designated as high- or medium-priority pursuant to Section
10722.4, information regarding the following:

(i) Whether the department has identified the basin as being
subject to critical conditions of overdraft pursuant to Section 12924.

(ii) Whether the board has designated the basin as a probationary
basin pursuant to Chapter 11 (commencing with Section 10735)
of Part 2.74.

(iii) If a groundwater sustainability agency has adopted a
groundwater sustainability plan or has an approved alternative, a
copy of that alternative or plan.

(D) For a basin that has not been adjudicated that is a basin
designated as low- or very low priority pursuant to Section 10722.4,
information as to whether the department has identified the basin
or basins as overdrafted or has projected that the basin will become
overdrafted if present management conditions continue, in the
most current bulletin of the department that characterizes the
condition of the groundwater basin, and a detailed description by
the public water system, or the city or county if either is required
to comply with this part pursuant to subdivision (b), of the efforts
being undertaken in the basin or basins to eliminate the long-term
overdraft condition.

(3) A detailed description and analysis of the amount and
location of groundwater pumped by the public water system, or
the city or county if either is required to comply with this part
pursuant to subdivision (b), for the past five years from any
groundwater basin from which the proposed project will be
supplied. The description and analysis shall be based on
information that is reasonably available, including, but not limited
to, historic use records.

(4) A detailed description and analysis of the amount and
location of groundwater that is projected to be pumped by the
public water system, or the city or county if either is required to
comply with this part pursuant to subdivision (b), from any basin
from which the proposed project will be supplied. The description
and analysis shall be based on information that is reasonably
available, including, but not limited to, historic use records.

(5) An analysis of the sufficiency of the groundwater from the
basin or basins from which the proposed project will be supplied
to meet the projected water demand associated with the proposed
project. A water supply assessment shall not be required to include
the information required by this paragraph if the public water
system determines, as part of the review required by paragraph
(1), that the sufficiency of groundwater necessary to meet the initial
and projected water demand associated with the project was
addressed in the description and analysis required by paragraph
(4) of subdivision (b) of Section 10631.

(g) (1) Subject to paragraph (2), the governing body of each
public water system shall submit the assessment to the city or
county not later than 90 days from the date on which the request
was received. The governing body of each public water system,
or the city or county if either is required to comply with this act
pursuant to subdivision (b), shall approve the assessment prepared
pursuant to this section at a regular or special meeting.

(2) Prior to the expiration of the 90-day period, if the public
water system intends to request an extension of time to prepare
and adopt the assessment, the public water system shall meet with
the city or county to request an extension of time, which shall not
exceed 30 days, to prepare and adopt the assessment.

(3) If the public water system fails to request an extension of
time, or fails to submit the assessment notwithstanding the
extension of time granted pursuant to paragraph (2), the city or
county may seek a writ of mandamus to compel the governing
body of the public water system to comply with the requirements
of this part relating to the submission of the water supply
assessment.

(h) Notwithstanding any other provision of this part, if a project
has been the subject of a water supply assessment that complies
with the requirements of this part, no additional water supply
assessment shall be required for subsequent projects that were part
of a larger project for which a water supply assessment was
completed and that has complied with the requirements of this part
and for which the public water system, or the city or county if
either is required to comply with this part pursuant to subdivision
(b), has concluded that its water supplies are sufficient to meet the
projected water demand associated with the proposed project, in
addition to the existing and planned future uses, including, but not
limited to, agricultural and industrial uses, unless one or more of
the following changes occurs:

(1) Changes in the project that result in a substantial increase
in water demand for the project.

(2) Changes in the circumstances or conditions substantially
affecting the ability of the public water system, or the city or county
if either is required to comply with this part pursuant to subdivision
(b), to provide a sufficient supply of water for the project.

(3) Significant new information becomes available that was not
known and could not have been known at the time when the
assessment was prepared.

(i) For the purposes of this section, the following are not
considered as a source of water:

(1) Hauled water.

(2) Groundwater from a basin designated by the board as a
probationary basin pursuant to Chapter 11 (commencing with
Section 10735) of Part 2.74. begin insert This paragraph does not apply to
groundwater from any portion of a basin excluded from
probationary status pursuant to subdivision (e) of Section 10735.2
of the Water Code. end insert

begin delete

(j) If a water supply for a proposed project includes water of a
quality not sufficient to meet all primary and secondary drinking
water standards, the following additional information shall be
included in the water supply assessment:

(1) A detailed description of the concentration of contaminants.

(2) The proposed method for treating, blending, or otherwise
ensuring that the water will meet drinking water quality standards.

(3) The project cost to achieve drinking water quality.

(4) An analysis of the affordability of water for the project’s
anticipated residents.

end delete

SEC. 3.  

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.