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  ****