BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1317| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 1317 Author: Wolk (D) Amended: 5/10/16 Vote: 21 SENATE NATURAL RES. & WATER COMMITTEE: 6-2, 4/12/16 AYES: Pavley, Allen, Hertzberg, Jackson, Monning, Wolk NOES: Stone, Vidak NO VOTE RECORDED: Hueso SENATE GOVERNANCE & FIN. COMMITTEE: 5-2, 4/20/16 AYES: Hertzberg, Beall, Hernandez, Lara, Pavley NOES: Nguyen, Moorlach SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8 SUBJECT: Groundwater extraction permit SOURCE: Author DIGEST: This bill requires cities and counties overlying a basin designated as a high- or medium-priority basin to establish a process for the issuance of a groundwater extraction permit for the development of a groundwater extraction facility. ANALYSIS: Existing law: SB 1317 Page 2 1)Specifies that cities and counties have a number of different responsibilities, including: a) Land use planning and permitting. b) Issuing permits for water well construction. 2)Enacts the Sustainable Groundwater Management Act (SGMA). The two principal bills that enacted SGMA were SB 1168 (Pavley, Chapter 346, Statutes of 2014) and AB 1738 (Dickinson, Chapter 347, Statutes of 2014), which included the following parallel legislative findings: a) Failure to manage groundwater to prevent long-term overdraft infringes on groundwater rights. b) Groundwater resources are most effectively managed at the local or regional level. c) Groundwater management will not be effective unless local actions to sustainably manage groundwater basins and subbasins are taken. 3)Establishes as the Legislature's intent, in enacting SGMA: "To recognize and preserve the authority of cities and counties to manage groundwater pursuant to their police powers." 4)Requires, under SGMA, all groundwater basins designated as high- or medium-priority basins by the Department of Water Resources (DWR) that are designated as basins subject to critical conditions of overdraft to be managed by a groundwater sustainability agency under a groundwater sustainability plan or coordinated groundwater sustainability SB 1317 Page 3 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. 5)Provides that, among the powers SGMA grants to groundwater sustainability agencies is: "To control groundwater extractions by regulating, limiting, or suspending extractions from individual groundwater wells or extractions from groundwater wells in the aggregate, construction of new groundwater wells, enlargement of existing groundwater wells, or reactivation of abandoned groundwater wells, or otherwise establishing groundwater extraction allocations?" This bill: 1)Requires a city or county overlying a basin designated as a high- or medium-priority basin to do both of the following: a) By January 1, 2018, establish a process for the issuance of a groundwater extraction permit for the development of a groundwater extraction facility. The process must require an applicant for a groundwater extraction permit to demonstrate that extraction of groundwater from a proposed groundwater extraction facility will not contribute to or create an undesirable result. b) Prohibit the issuance of a groundwater extraction permit for a new groundwater extraction facility in either of the following: i) A probationary basin. SB 1317 Page 4 ii) A basin designated in Bulletin 118 as a basin subject to critical conditions of overdraft. c) A groundwater extraction permit for the development of a groundwater extraction facility shall not be required for any of the following: i) A de minimis extractor. ii) The replacement of an existing groundwater extraction facility with a new groundwater extraction facility with the same or a lessor extraction capacity. Replacement includes the deepening of a groundwater extraction facility. iii) A groundwater extraction facility constructed to provide drinking water to a water system, if it provides water to a disadvantaged unincorporated community and the system has received a citation for a violation of primary drinking water standards within the prior two years. iv) A groundwater extraction facility necessary for habitat or wetlands conservation. v) A groundwater extraction facility necessary for a renewable energy project such as utility scale solar. 2)Does not require a city or county to establish a new process for the issuance of a groundwater extraction permit if the city or county has in effect an ordinance adopted before January 1, 2017, that imposes conditions on the development of a new groundwater extraction facility in order to prevent the new groundwater extraction facility from contributing to or creating an undesirable result. SB 1317 Page 5 3)Does not require a city or county overlying a medium- or high-priority basin to have a process for the issuance of a groundwater extraction on or after January 31, 2022, or once the DWR has evaluated a groundwater sustainability plan for the basin the city or county overlies and determined the plan to be adequate and likely to achieve the sustainability goal for the basin, whichever comes first. 4)Does not apply to a basin for which a court or the State Water Resources Control Board has adjudicated the rights to extract groundwater. 5)Does not apply within the statutory boundaries of a special act water district. 6)Makes a number of findings and declarations: a) Most findings and declarations describe the potential harm "from the explosive increase in new wells." b) The findings also include "Preventing undesirable results in a high- or medium-priority basin pursuant to this article and in furtherance of Section 113 of the Water Code is a matter of statewide concern and not a municipal affair, as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this act applies to charter cities." Background California has 515 groundwater basins and subbasins that provide about 40 percent of the state's water supply. Of these 515 basins, 127 have been designated by DWR as high- or medium-priority basins. These 127 basins account for about 96 percent of the state's groundwater use and are overlain by about 88 percent of the population served by groundwater. SB 1317 Page 6 Additionally, 21 of these basins have been identified by DWR as being in a condition of critical overdraft. Comments First law of holes. The first law of holes states that "if you find yourself in a hole, stop digging." Groundwater elevation charts show, that in at least some of our high- and medium-priority groundwater basins, there are distinct holes that continue to grow. No more rubber stamps? Rural County Representatives of California and others wrote, commenting on a previous version of the bill, "A well permit is currently a relatively simple and low cost process ?" and observe that requiring a conditional use permit could be a lengthy and costly process. Some would argue that that is the point - we should no longer just rubberstamp well permits without some consideration of the potential impact on the aquifers and other groundwater users. Consistent with SGMA? One of the overarching themes in SGMA is that the Legislature established the desired outcomes and provided local agencies a suite of tools to attain those desired outcomes, and it was up to local agencies to determine which set of those tools they were going to use to meet attain the desired outcomes. This bill proposes that one tool local agencies in all 127 high- and medium-priority basins must use is requiring a conditional use for new wells, and a tool that must be used in all 21 of the critically overdrafted basins is a ban on new wells for all but de minimis groundwater users. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: Yes SUPPORT: (Verified5/18/16) SB 1317 Page 7 Azul California Climate and Agriculture Network California League of Conservation Voters Clean Water Action Community Alliance with Family Farmers Community Water Center Food and Water Watch Leadership Counsel Lutheran Office of Public Policy California Natural Resources Defense Council Planning and Conservation League Sierra Club The Nature Conservancy Union of Concerned Scientists Wholly H2O OPPOSITION: (Verified5/23/16) Agricultural Council of California Association of California Water Agencies California Building Industry Association California Cattlemen's Association California Chamber of Commerce California Citrus Mutual California Cotton Ginners and Growers Associations California Dairies, Inc. California Farm Bureau California Fresh Fruit Association California Groundwater Association California League of Food Processors California Municipal Utilities Association California State Association of Counties City of Roseville Fresno County Grower-Shipper Association Kern County League of California Cities Merced County Nisei Farmers League Rural County Representatives of California Sacramento County SB 1317 Page 8 San Joaquin County Santa Clara Valley Water District Valley Ag Water Coalition Western Agricultural Processors Association Western Growers Western Plant Health Association ARGUMENTS IN SUPPORT: According to the author, "Even with the passage of the Sustainable Groundwater Management Act of 2014, many of California's groundwater basins are in serious and immediate danger of overdraft. We have to recognize that there are urgent problems in some groundwater basins that must be addressed before SGMA regulations start to take effect in 2020. Local governments need to take responsibility for their critically overdrafted basins. In the 21 critically overdrafted groundwater basins identified by the Department of Water Resources, measures must be taken at the local level - with guidance from the State - to restrict further depletion of groundwater and subsequent land subsidence. Local governments must actively analyze the condition and sustainability of its groundwater basins before approving new drilling permits. In other words, if you have a problem, you stop digging." ARGUMENTS IN OPPOSITION: The Rural County Representatives of California (RCRC), the California State Association of Counties (CSAC), and the League of California Cities (LCC) wrote, commenting on a previous version of this bill, "RCRC, CSAC and the LCC believe SB 1317 would get ahead of the GSA/GSP process and would intervene in the local agency decision-making process which is a key element and foundation of SGMA. Some of the specific concerns with SB 1317 include that out of the 127 high and medium priority basins only 21 have been designated as being in critical overdraft and the legislation would impose requirements in areas that do not have a groundwater problem. Second, for areas that may be experiencing a groundwater problem, SB 1317 provides a prescriptive solution that may not be in the local interest or the best approach to address the issue. SGMA was premised on local control and the "one size fits all" approach as outlined in SB 1317 would undermine both the premise and spirit of SGMA." SB 1317 Page 9 Prepared by:Dennis O'Connor / N.R. & W. / (916) 651-4116 5/23/16 11:37:25 **** END ****