BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1317


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          Date of Hearing:  June 28, 2016


                  ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE


                                 Marc Levine, Chair


          SB  
          1317 (Wolk) - As Amended June 20, 2016


          SENATE VOTE:  21-17


          SUBJECT:  Groundwater extraction permit


          SUMMARY:  Requires a city or county overlying a basin designated  
          as a high- or medium-priority basin to, under specified  
          conditions and with exceptions, prohibit the issuance of a  
          permit for a new groundwater extraction facility, or establish a  
          process which requires an applicant for a permit to demonstrate  
          the extraction of groundwater from the proposed facility will  
          not contribute to or create an undesirable result. Specifically,  
          this bill:  


          1)By January 1, 2018, requires cities and counties overlying a  
            basin designated as a high- or medium priority basin to  
            establish a process for a groundwater extraction facility  
            applicant to demonstrate that the extraction of groundwater  
            from the facility will not contribute to or create an  
            undesirable result or adopt an ordinance that prevents a new  
            groundwater extraction facility from contributing to or  
            creating an undesirable result.  










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          2)Prohibits the issuance of a groundwater extraction permit,  
            with exceptions, for a new groundwater extraction facility in  
            a probationary basin or basin subject to critical overdraft.



          3)Removes the requirement that specified cities and counties  
            have a process for the issuance of a groundwater extraction  
            permit on or after January 31, 2022, or once the Department of  
            Water Resources (DWR) has determined a Groundwater  
            Sustainability Plan (GSP) for the basin to be adequate.



          4)Does not apply the provisions of the bill to an adjudicated  
            basin, a special act water district, or the county of Napa if  
            both the county's groundwater conservation ordinance and its  
            water availability analysis policy remain in effect and are  
            substantially the same as they existed on January 1, 2016.
          EXISTING LAW:    


          1)Specifies that cities and counties have a number of different  
            responsibilities, including land use planning and permitting,  
            and issuing permits for water well construction.



          2)Requires the DWR to evaluate groundwater basins and designate  
            them as high, medium, low or very low, according to various  
            factors including, but not limited to, level of dependence  
            upon the basin by municipal and agricultural users.



          3)Requires the DWR to investigate existing patterns of  
            groundwater extraction and groundwater recharge within basins  
            to identify basins that are subject to critical conditions of  








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            overdraft.






          4)Requires that local agencies in high- and medium-priority  
            basins subject to the Sustainable Groundwater Management Act  
            (SGMA) form one or more Groundwater Sustainability Agency's  
            (GSAs) by June 30, 2017.



          5)Requires that GSAs in basins with chronic overdraft develop  
            and adopt a GSP for their basin by January 31, 2020.



          6)Requires that GSAs in all other high- and medium-priority  
            basins subject to SGMA develop and adopt GSPs by January 31,  
            2022.



          7)Prohibits a groundwater extractor who increases pumping after  
            January 1, 2015, during the time the GSP is under development,  
            from using that pumping increase, as the basis of an expanded  
            claim to groundwater against other user's rights.



          8)Defines sustainable groundwater management in a GSP as  
            avoiding undesirable results in the basin from groundwater  
            pumping that results in any of the following: lowering of  
            groundwater levels, reduction of groundwater storage, seawater  
            intrusion, degraded water quality, land subsidence, and  
            depletions of interconnected surface waters.









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          9)Provides GSAs with optional tools for reaching sustainability  
            including, but not limited to, the ability to conduct  
            investigations, collect fees, limit pumping, require  
            measurement and reporting of groundwater extractions, monitor  
            compliance, charge civil penalties for violations, and  
            implement plans and programs to recharge a basin. 



          10)Authorizes the State Water Board to declare a basin in  
            probationary status under specified circumstances.



          FISCAL EFFECT:  Unknown.


          COMMENTS:  This bill requires a city or county overlying a basin  
          designated as a high- or medium-priority basin to, under  
          specified conditions and with exceptions, prohibit the issuance  
          of a permit for a new groundwater extraction facility, or  
          establish a process which requires an applicant for a permit to  
          demonstrate the extraction of groundwater from the proposed  
          facility will not contribute to or create an undesirable result.


          1)Author's Statement: Even with the passage of SGMA 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  
            at-risk and critically overdrafted basins.  New wells are  
            being dug daily all over the state at an alarming rate in  
            anticipation of SGMA.  New straws suck the water out of the  
            ground without any analysis of the impacts on neighboring  
            farmers or the community within the groundwater basin.  This  








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            bill seeks to slow this run on wells so there will actually be  
            some groundwater left to manage in 2020.



          2)Background:  Groundwater is a critically important component  
            of water supply in California.  Depending on conditions,  
            groundwater provides a third to nearly two-thirds of the  
            state's water supply.  The swing in the amount of total state  
            supply that comes from groundwater is affected by a variety of  
            factors including drought, the ability to move water across  
            the state, local and state regulations, land use, and local  
            conditions.  While there has been increasingly more  
            information gathered on groundwater wells and groundwater  
            supplies we do not yet have a clear picture of the status of  
            groundwater across the state.   
            The DWR estimates that there are between one to two million  
            water wells (irrespective of condition or whether used or  
            idle) scattered throughout the State. On average, 10,000 to  
            15,000 more wells are added to this total each year. Most are  
            situated in the 515 groundwater basins/subbasins in  
            California, although many are located in the hilly and  
            mountainous areas. They range from hand dug wells to carefully  
            designed large production wells drilled to great depths.   
            While costs of a well vary dramatically it is not unusual for  
            wells to cost hundreds of thousands of dollars.  


            The DWR is responsible for maintaining information on well  
            completion reports, which must be submitted whenever a driller  
            constructs, alters, or destroys a well. Information on well  
            completion reports can be a valuable resource to learn about  
            subsurface geologic conditions. The Legislature passed SB 83  
            (Committee on Budget), Chapter 24, Statutes of 2015, that  
            among other things allows public access to well completion  
            reports. The DWR has about 800,000 reports on file, SB 83  
            required that personal information be removed from the reports  
            prior to making them public.  Because it requires significant  
            effort to redact the personal data from all reports those  








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            reports will, most likely, not be made publicly available  
            until later this year.   



            In 2009, the Legislature passed SB6 x7 (Steinberg), Chapter 1,  
            Statues of 2009, Seventh Extraordinary Session, which mandated  
            a statewide groundwater elevation monitoring program to track  
            seasonal and long-term trends in groundwater elevations in  
            California's groundwater basins.  As a result the DWR  
            developed the California Statewide Groundwater Elevation  
            Monitoring (CASGEM) program. The law anticipates that the  
            monitoring of groundwater elevations required by the  
            legislation will be done by local entities. The first two  
            statewide CASGEM reports have been submitted, but do not yet  
            paint a complete groundwater picture for the state.

            In 2014, in the fourth year of drought with mounting evidence  
            that groundwater was being depleted at an increasing rate,  
            California became the last western state to regulate  
            groundwater use through the enactment of SGMA.  Overall, the  
            State has been withdrawing more groundwater annually than is  
            being replenished, on average by 1 million to 2 million  
            acre-feet per year.  


            SGMA did not alter groundwater rights.  In most areas of the  
            State, overlying land owners may extract groundwater and put  
            it to beneficial use without impediment.  


            Implementation of SGMA:  SGMA requires a local process for  
            high- or medium- priority basins to sustainably manage basins  
            within 20 years, with basins in critical overdraft having to  
            come into compliance two years earlier.  California has 515  
            groundwater basins and subasins.  Of the 515 basins, 127 have  
            been designated by the DWR as high- or medium-priority basins.  
             The 127 basins account for about 96% of the state's  
            groundwater use.  Additionally, 21 basins have been identified  








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            by the DWR as being in a condition of critical overdraft.   
            While critically overdraft basins are spread throughout the  
            state, most of the San Joaquin Valley basins have been  
            designated as being in a condition of critical overdraft.  


            SGMA Soon Enough:  The question this bill raises is will SGMA  
            be effective soon enough. One of the central features of SGMA  
            was that groundwater management in California is best  
            accomplished locally.  GSA's are required to address  
            undesirable results that occur after January 1, 2015.   
            Meaning, there is reason for local agencies to prevent severe  
            actions that would make future implementation of  
            sustainability challenging.  GSP's will be very through  
            documents with a scientific level of understanding and  
            coordination of regulation in each basin that does not exist  
            today.  As a result, the current timeframes that exist in SGMA  
            are going to be challenging for many regions to meet.


            This bill, by January 1, 2018, puts a limitation or  
            prohibition on groundwater extraction that contributes to or  
            creates an undesirable result.  Undesirable results in high  
            and medium priority basins will not be defined until GSP's are  
            established by January 31, 2022.  This is a flaw that requires  
            coming into compliance by 2018 with a standard that may not  
            exist until 2022. 


            Local Actions: Cities and counties are responsible for issuing  
            permits for groundwater extraction facilities. This bill is  
            modeled off of an ordinance in Stanislaus County which would  
            prohibit new groundwater wells that lead to "the unsustainable  
            extraction of groundwater within the unincorporated areas of  
            the County."  Similar to this legislation, the Stanislaus  
            County ordinance requires applicants for groundwater  
            extraction facility permits to demonstrate that the extraction  
            from the facility will not "constitute unsustainable  
            extraction of groundwater".  Other counties currently have or  








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            at times have put in place restrictions on groundwater  
            extraction in response to their local groundwater management  
            needs. 


            The Stanislaus County ordinance faced and prevailed, in  
            Superior Court, a California Environmental Quality Act (CEQA)  
            lawsuit. The challenge pertained to the County not applying a  
            CEQA analysis on the permitting of wells because of reliance  
            on the applicant certifying the impacts of the new facility.   
            Last year, the Legislature passed SB 88 (Committee on Budget),  
            Chapter 27, Statues of 2015, that among other things, excluded  
            city and county ordinances that limit or prohibit the drilling  
            of new or deeper groundwater wells from CEQA until July 1,  
            2017, or the end of the drought state of emergency declared by  
            the Governor, whichever is later.


            It is clear that the authority to enact local ordinances  
            exists.  It is clear that SGMA envisioned a local process that  
            could include local ordinances.  It is not clear if requiring  
            local actions will enhance the ability to meet the  
            requirements of sustainable groundwater management under SGMA.


            Double Referral: If this bill should pass this committee it  
            will be re-referred to Assembly Local Government Committee. 


          3)Prior and Related Legislation:



                  a)        SB 1168 (Pavley), Chapter 346, Statutes of  
                    2014, enacted SGMA.



                  b)        AB 1738 (Dickinson), Chapter 347, Statutes of  








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                    2014, enacted SGMA.

                  c)        SB 88 (Committee on Budget), Chapter 27,  
                    Statutes of 2015, added CEQA exemptions for city or  
                    county ordinances limiting or prohibiting the drilling  
                    of new or deeper groundwater wells.





                  d)        SB 83 (Committee on Budget), Chapter 24,  
                    Statutes of 2015, required public access to  well  
                    completion reports.



                  e)        SB6 x7 (Steinberg), Chapter 1, Statues of  
                    2009, Seventh Extraordinary Session, which mandated   
                    statewide groundwater elevation monitoring.



          1)Supporting Arguments: This bill will help prevent adverse  
            impact to communities, the environment, and the economy  
            dependent on groundwater while implementation of SGMA begins.   
            Throughout the State, many basins are seeing rapid drawdown of  
            groundwater levels due to unchecked permitting of new  
            groundwater extraction sites, leading to subsidence, reduced  
            water availability for communities, and environmental  
            degradation.  In many counties, the decision to grant a well  
            permit is given no thought as to whether the well may cause  
            undesirable results or permanent damage to the aquifer.  Since  
            the enactment of SGMA, and due to drought, we are seeing a  
            rapid increase in well drilling across California.  This bill  
            will slow the pace of groundwater depletion by prohibiting the  
            permitting of new wells within critically overdrafted basins  
            and limiting well drilling in high and medium priority basins.  
             This is a much needed step in order to protect the State's  








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            aquifers from permanent damage as we implement SGMA, which  
            does not fully take effect until 2042.



          2)Opposing Arguments: This bill undermines the intent of SGMA to  
            achieve groundwater sustainability through local management by  
            taking management decisions out of the hands of locals.  The  
            bill substantially interferes with the implementation of SGMA  
            by mandating a city or county overlying a high or medium  
            priority water basin to establish a process by January 1,  
            2018, for issuing a groundwater extraction permit and  
            restricts permits for probationary basins and those in  
            critical overdraft.  This bill hinders the ability of local  
            agencies to analyze and determine the necessary management  
            tools required to achieve sustainability in each basin.  SGMA  
            should be given time to be implemented and the many  
            significant local efforts should be allowed to succeed before  
            adding additional mandates.  
          REGISTERED SUPPORT / OPPOSITION:




          Support


          AZUL
          California League of Conservation Voters
          Clean Water Action
          Community Water Center
          Endangered Habitats League
          Food and Water Watch
          Institute for Ecological Health
          Leadership Counsel for Justice & Accountability
          Lutheran Office of Public Policy
          Natural Resources Defense Council
          Planning and Conservation League
          Sierra Club California








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          The Nature Conservancy
          Union of Concerned Scientists
          Wholly H2O

          Opposition

          Agricultural Council of California
          Almond Hullers & Processors Association
          Association of California Egg Farmers
          Association of California Water Agencies
          California Association of Wheat Growers
          California Association of Winegrape Growers
          California Bean Shippers Association 
          California Building Industry Association
          California Cattlemen's Association
          California Chamber of Commerce
          California Citrus Mutual
          California Construction and Industrial Materials Association
          California Cotton Ginners and Growers Associations
          California Dairies, Inc.
          California Farm Bureau Federation
          California Fresh Fruit Association 
          California Grain and Feed Association
          California Groundwater Association
          California League of Food Processors
          California Municipal Utilities Association
          California Pear Growers Association
          California Seed Association
          California State Association of Counties
          California State Floral Association
          California Women for Agriculture
          City of Roseville
          Coachella Valley Water District
          County of Del Norte Board of Supervisors
          County of Sacramento
          County of San Diego
          Desert Water Agency
          Fresno County Board of Supervisors
          Grower-Shipper Association of Central California








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          Humboldt County Board of Supervisors
          Indian Wells Valley Water District
          Kern County Board of Supervisors
          League of California Cities
          Merced County Board of Supervisors
          Nisei Farmers League
          Regional Water Authority
          Rural County Representatives of California
          Sacramento County Board of Supervisors
          San Joaquin County Board of Supervisors
          San Joaquin Delta Coalition
          Tehama Flood Control and Water Conservation District
          Valley Ag Water Coalition
          Western Agricultural Processors Association
          Western Growers Association
          Western Plant Health Association




          Analysis Prepared by:Ryan Ojakian / W., P., & W. / (916)  
          319-2096