BILL NUMBER: AB 49	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 18, 2009
	AMENDED IN ASSEMBLY  JUNE 1, 2009
	AMENDED IN ASSEMBLY  APRIL 13, 2009

INTRODUCED BY   Assembly Members Feuer and Huffman

                        DECEMBER 1, 2008

   An act to add Part 2.55 (commencing with Section 10608) to, 
to amend and repeal Section 10631.5 of,  and to repeal and add
Part 2.8 (commencing with Section 10800) of, Division 6 of the Water
Code, relating to water.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 49, as amended, Feuer. Water conservation: agricultural water
management planning.
   (1) Existing law requires the Department of Water Resources to
convene an independent technical panel to provide information to the
department and the Legislature on new demand management measures,
technologies, and approaches. "Demand management measures" means
those water conservation measures, programs, and incentives that
prevent the waste of water and promote the reasonable and efficient
use and reuse of available supplies.
   This bill would require the state to achieve a 20% reduction in
urban per capita water use in California by December 31, 2020. The
state would be required to make incremental progress towards this
goal by reducing per capita water use by at least 10% on or before
December 31, 2015. The bill would require each urban retail water
supplier to develop urban water use targets and interim urban water
use targets by December 31, 2010, in accordance with specified
requirements. The bill would require agricultural water suppliers to
implement water use efficiency best management practices and would
impose related reporting requirements on agricultural water
suppliers. The bill would require the department, in consultation
with other state agencies, to develop a single standardized water use
reporting form. The bill, with certain exceptions, would condition
eligibility for certain water management grants or loans to urban
water suppliers  , beginning July 1, 2016,  and agricultural
water suppliers  , beginning July 1, 2013,  on the
implementation of water conservation requirements established by the
bill.  The bill would repeal on July 1, 2016, an existing
requirement that   conditions eligibility for certain water
management grants or loan to an urban water supplier on the
implementation of certain water demand management measures. 
   (2) Existing law, until January 1, 1993, and thereafter only as
specified, requires certain agricultural water suppliers to prepare
and adopt water management plans.
   This bill would substantially revise existing law relating to
agricultural water management planning to require agricultural water
suppliers to prepare and adopt agricultural water management plans
with specified components on or before December 31,  2011
  2012  , and  updated on or before 
December 31, 2015, and on or before December 31 every 5 years
thereafter. An agricultural water supplier that becomes an
agricultural water supplier after December 31, 2012, would be
required to prepare and adopt an agricultural water management plan
within one year after becoming an agricultural water supplier. The
agricultural water supplier would be required to notify each city or
county within which the supplier provides water supplies with regard
to the preparation or review of the plan. The bill would require the
agricultural water supplier to submit copies of the plan to the
department and other specified entities. The bill would provide that
an agricultural water supplier is ineligible to receive specified
state funds if the supplier does not prepare, adopt, and submit the
plan in accordance with the requirements established by the bill.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Part 2.55 (commencing with Section 10608) is added to
Division 6 of the Water Code, to read:

      PART 2.55.  WATER CONSERVATION


      CHAPTER 1.  GENERAL DECLARATION AND POLICY


   10608.  The Legislature finds and declares all of the following:
   (a) Water is a public resource that the California Constitution
protects against waste and unreasonable use.
   (b) Growing population, climate change, and the need to protect
and grow California's economy while protecting and restoring our fish
and wildlife habitats make it essential that the state manage its
water resources as efficiently as possible.
   (c) Reduced water use through conservation provides significant
energy and environmental benefits, and can help protect water
quality, improve streamflows, and reduce greenhouse gas emissions.
   (d) The success of state and local water conservation programs to
increase efficiency of water use is best determined on the basis of
measurable outcomes related to water use or efficiency.
   (e) Improvements in technology and management practices offer the
potential for increasing water efficiency in California over time,
providing an essential water management tool to meet the need for
water for urban, agricultural, and environmental uses.
   (f) The Governor has called for a 20 percent per capita reduction
in urban water use statewide by 2020.
   (g) The factors used to formulate water use efficiency targets can
 vary  significantly from location to location based on
factors including weather, patterns of urban and suburban
development, and past efforts to enhance water use efficiency.
   (h) Per capita water use is a valid measure of a water provider's
efforts to reduce urban water use within its service area. However,
per capita water use may be less useful for measuring relative water
use efficiency between different water providers. Differences in
weather, historical patterns of urban and suburban development, and
density of housing in a particular location need to be considered
when assessing per capita water use as a measure of efficiency.
   10608.4.  It is the intent of the Legislature, by the enactment of
this part, to do all of the following:
   (a) Require all water suppliers to increase the efficiency of use
of this essential resource.
   (b) Establish a framework to meet the state targets for urban
water conservation identified in this part and called for by the
Governor.
   (c) Measure increased efficiency of urban water use on a per
capita basis.
   (d) Establish a method or methods for urban retail water suppliers
to determine targets for achieving increased water use efficiency by
the year 2020, in accordance with the Governor's goal of a
20-percent reduction.
   (e) Establish consistent water use efficiency planning and
implementation standards for urban water suppliers and agricultural
water suppliers.
   (f) Promote urban water conservation standards that are consistent
with the California Urban Water Conservation Council's adopted best
management practices and the requirements for demand management in
Section 10631.
   (g) Establish standards that recognize and provide credit to water
suppliers that made substantial capital investments in urban water
conservation since the drought of the early 1990s.
   (h) Recognize and account for the investment of urban retail water
suppliers in providing recycled water for beneficial uses.
   (i) Require implementation of specified best management practices
for agricultural water suppliers.
   (j) Support the economic productivity of California's
agricultural, commercial, and industrial sectors.
   10608.8.  (a) This part does not limit or otherwise affect the
application of Section 1011.
   (b) This part does not limit or otherwise affect the application
of Chapter 3.5 (commencing with Section 11340), Chapter 4 (commencing
with Section 11370), Chapter 4.5 (commencing with Section 11400),
and Chapter 5 (commencing with Section 11500) of Part 1 of Division 3
of Title 2 of the Government Code.
   (c) This part does not require a reduction in the total water used
in the agricultural or urban sectors, because other factors such as
changes in agricultural economics or population growth may have
greater effects on water use. This part does not limit the economic
productivity of California's agricultural, commercial, or industrial
sectors.
      CHAPTER 2.  DEFINITIONS


   10608.12.  Unless the context otherwise requires, the following
definitions govern the construction of this part:
   (a) "Agricultural water supplier" means a water supplier, either
publicly or privately owned, providing water to more than 2,000 acres
of agricultural land, or supplying more than 2,000 acre-feet of
agricultural water annually, excluding recycled water. An
agricultural water supplier includes a supplier or contractor for
water, regardless of the basis of right, which distributes or sells
water for ultimate resale to customers.
   (b) "Base daily per capita water use" means the  as follows:

    (1)     The  urban retail water
supplier's estimate of its  existing  average gross
daily water use per capita, reported in gallons per capita per day
and calculated over a continuous 10-year period ending in 2004 or
later. 
   (2) For an urban retail water supplier that meets at least 10
percent of its 2008 metered retail water demand through recycled
water that is delivered within the service area of an urban retail
water supplier or its urban wholesale water supplier, the urban
retail water supplier may extend the calculation described in
paragraph (1) up to an additional five years to a maximum of a
continuous 15-year period ending in 2004 or later.  
   (3) For the purposes of paragraph (3) of subdivision (b) of
Section 10608.20, the urban retail water supplier's estimate of its
average gross daily water use per capita, reported in gallons per
capita per day and calculated over a continuous five-year period
ending in 2007 or later.  
   (c) "Baseline commercial, industrial, and institutional water use"
means an urban retail water supplier's base daily per capita water
use for commercial, industrial, and institutional users. 

   (c) 
    (d)  "Commercial water user" means a water user that
provides or distributes a product or service. 
   (d) 
    (e)  "Compliance daily per capita water use" means the
gross daily water use per capita during  a   the
final year of the  reporting period, reported in gallons per
capita per day. 
   (e) 
    (f)  "Disadvantaged community" means a community with an
annual median household income that is less than 80 percent of the
statewide annual median household income. 
   (f) 
    (g)  "Gross water use" means the total volume of
 treated or untreated water   water, whether
treated or untr   eated,  entering the distribution
system of an urban retail water supplier, excluding all of the
following:
   (1) Recycled water  that is delivered within the service area
of an urban retail water supplier or its urban wholesale water
supplier  .
   (2) The net volume of water that the urban retail water supplier
places into long-term storage.
   (3) The volume of water the urban retail water supplier conveys
for use by another urban water supplier.
   (4) If the urban retail water supplier elects to exclude
agricultural water use from its urban water use target, the volume of
water delivered for agricultural use. 
   (g) 
    (h)  "Industrial water user" means a water user that is
primarily a manufacturer or processor of materials as defined by the
Standard Industrial Classifications Code numbers 2000 through 3999.

   (h) 
    (i)  "Institutional water user" means a water user
dedicated to public service. This includes higher education
institutions, schools, courts, churches, hospitals, and government
facilities. 
   (i) 
    (j)  "Interim urban water use target" means 
one-half of the difference  the midpoint  between
the urban retail water supplier's base daily per capita water use and
the urban retail water supplier's urban water use target  for
2020  . 
   (j) 
    (k)  "Locally cost effective" means that the present
value of the local benefits of implementing an agricultural best
management practice is greater than or equal to the present value of
the local cost of implementing that measure. 
   (k) "Recycled water" means water that, as a result of treatment of
waste, is suitable for a direct beneficial use or a controlled use
that would not otherwise occur.  
   (l) "Recycled water" means recycled water, as defined in
subdivision (n) of Section 13050. "Recycled water" includes any
metered recycled water supplies, developed through planned
investment, treated to a minimum tertiary level, conveyed through a
distribution system constructed specifically for recycled water, and
used for indirect potable reuse through groundwater recharge or
reservoir augmentation.  
   (l) 
    (m)  "Reporting period" means the years for which an
urban retail water supplier reports compliance with the urban water
use targets. 
   (m) 
    (n)  "Urban retail water supplier" means a water
supplier, either publicly or privately owned, that directly provides
municipal water to more than 3,000 end users or that supplies more
than 3,000 acre-feet of water annually  at retail for municipal
purposes  . 
   (n) 
    (o)  "Urban water use target" means the urban retail
water supplier's targeted future daily per capita water use. 

   (o) 
    (p)  "Urban wholesale water supplier," either publicly
or privately owned, means a water supplier that provides more than
3,000 acre-feet of water annually at wholesale for municipal
purposes. 
   (p) 
    (q)  "Water conservation" means the efficient management
of water resources for beneficial uses, preventing waste, or
accomplishing additional benefits with the same amount of water.
      CHAPTER 3.  URBAN WATER SUPPLIERS


   10608.16.  (a) The state shall achieve a 20-percent reduction in
urban per capita water use in California on or before December 31,
2020.
   (b) The state shall make incremental progress towards the state
target specified in subdivision (a) by reducing per capita water use
by at least 10 percent on or before December 31, 2015.
   10608.20.  (a) (1) Each urban retail water supplier shall develop
urban water use targets and interim urban water use targets by
December 31, 2010. Urban retail water suppliers may elect to
determine and report progress toward achieving these targets on an
individual or regional basis  , as provided in subdivision (a) of
Section 10608.28,  and may determine the targets on a fiscal
year or calendar year basis.
   (2) It is the intent of the Legislature that the urban water use
targets described in subdivision (a) cumulatively result in a
20-percent reduction from the baseline daily per capita water use by
2020.
   (b) An urban retail water supplier shall adopt one of the
following methods for determining its urban water use target pursuant
to subdivision (a):
   (1) Eighty percent of the urban retail water supplier's baseline
per capita daily water use.
   (2) The per capita daily water use that is estimated using the sum
of the following performance standards:
   (A) For indoor residential water use, 55 gallons per capita daily
water use as a provisional target. Upon completion of the department'
s 2016 report to the Legislature pursuant to Section 10608.42, this
target may be adjusted.
   (B) For landscape irrigated through dedicated or residential
meters, water efficiency equivalent to the standards of the Model
Water Efficient Landscape Ordinance set forth in Chapter 2.7
(commencing with Section 490) of Division 2 of Title 23 of the
California Code of Regulations, as in effect the later of the year of
the landscape's installation or 1992. An urban retail water supplier
using this approach shall use satellite imagery, site visits, or
other best available technology to develop an accurate estimate of
landscaped areas.
   (C) For commercial, industrial, and institutional uses, a
10-percent reduction in water use  from the baseline commercial,
industrial, and institutional   water use  by 2015.
Upon completion of the  task force  report described in
Section 10608.43, targeted savings  equivalent to full
implementation of the recommended alternative best management
practices identified in that report shall be used for the 2020
target.   for 2020 shall be based on the commercial,
industrial, and institutional efficiency standards among the various
sectors of water use established by the task force pursuant to
Section 10608.43. If the task force report is not completed by April
1, 2012, the 10-percent targeted reduction in water use shall be
extended from 2015 to 2020. 
   (D) For agricultural irrigation use, water efficiency equivalent
to the standards for landscape areas in the Model Water Efficient
Landscape Ordinance set forth in Chapter 2.7 (commencing with Section
490) of Division 2 of Title 23 of the California Code of
Regulations, as in effect the later of the year of the landscape's
installation or 1992. An urban retail water supplier may elect to
exclude agricultural water use from its urban water use target. If
the urban retail water supplier elects to exclude agricultural water
use from its urban water use target and if the urban retail water
supplier is also an agricultural water supplier, it shall address
agricultural water use as set forth in Chapter 4 (commencing with
Section 10608.48).
   (3) For urban water suppliers that were members of the California
Urban Water Conservation Council prior to 1994, and  that are
  whose base dail   y per capita water use is
 at or below the applicable state hydrologic region target, as
set forth in the state's draft 20x2020 Water Conservation Plan (dated
April 30, 2009), 95 percent of base  daily  per capita
water use.  If the service area of an urban water  
supplier encompasses more than one hydrologic region, the supplier
shall apportion its service area to each region based on population
or area. An urban retail water supplier may adopt the criteria in
this paragraph for determining its urban water use target only if its
base daily per capita water use is at or below the hydrologic region
target for each region within its service area. 
   (c) An urban retail water supplier shall include in its urban
water management plan required pursuant to Part 2.6 (commencing with
Section 10610) due in 2010 the baseline daily per capita water use,
urban water use target, interim urban water use target, and
compliance daily per capita water use, along with the bases for
determining those estimates  along with references to the
data supporting those estimates   ,   including
references to supporting data  .
   (d) When calculating per capita values for the purposes of this
chapter, an urban retail water supplier shall determine population
using federal, state, and local population reports and projections.
   (e) An urban retail water supplier may update its 2020 urban water
use target in its 2015 urban water management plan required pursuant
to Part 2.6 (commencing with Section 10610).
   10608.24.  (a) Each urban retail water supplier shall meet its
interim urban water use target by December 31, 2015.
   (b) Each urban retail water supplier shall meet its urban water
use target by December 31, 2020.
   (c) An urban retail water supplier's compliance daily per capita
water use shall be the measure of progress toward achievement of its
urban water use target.
   (d) When determining compliance daily per capita water use, an
urban retail water supplier may consider weather-normalizing factors,
including, but not limited to, any differences in evapotranspiration
and rainfall in the baseline period compared to the compliance
reporting period. If the urban retail water supplier elects to
include weather-normalization factors in its estimate of compliance
daily per capita water use, it shall provide the basis for, and data
supporting, the weather-normalization factors in the report required
by Section 10608.40.
   10608.28.  (a) An urban retail water supplier may meet its urban
water use target within its retail service area, or by 
participation in cooperative programs at geographic scales including
urban wholesale water supplier, regional water management group,
integrated regional water management funding area, hydrologic region,
or other appropriate geographic scales for which computation methods
have been developed by the department.   any of the
following:  
   (1) Through an urban wholesale water supplier.  
   (2) Through a regional agency authorized to plan and implement
water conservation, including, but not limited to, an agency
established under the Bay Area Water Supply and Conservation Agency
Act (Division 31 (commencing with Section 81300)).  
   (3) Through a regional water management group.  
   (4) By an integrated regional water management funding area. 

   (5) By hydrologic region.  
   (6) Through other appropriate geographic scales for which
computation methods have been developed by the department. 
   (b) An urban retail water supplier may meet its urban water use
target entirely through efficiency gains in its residential water use
sector, entirely through efficiency gains in its landscape water use
sector, entirely through efficiency gains in its commercial,
institutional, and industrial sector, or through  some
combination between  any combination among  these
sectors.
   10608.32.  All costs incurred pursuant to this part by a water
utility regulated by the Public Utilities Commission may be
recoverable in rates subject to review and approval by the Public
Utilities Commission, and may be recorded in a memorandum account and
reviewed for reasonableness by staff of the Public Utilities
Commission.
   10608.36.  Urban wholesale water suppliers shall include in the
urban water management plans required pursuant to Part 2.6
(commencing with Section 10610) an assessment of their present and
proposed future measures, programs, and policies to help achieve the
water use reductions required by this part.
   10608.40.  Urban water retail suppliers shall report to the
department on their progress in meeting their urban water use targets
as part of their urban water management plans submitted pursuant to
Section 10631.
   10608.42.  The department shall review the 2015 urban water
management plans and report to the Legislature by December 31, 2016,
on progress towards achieving a 20-percent reduction in urban water
use by 2020. The report may include recommendations on changes to
water efficiency standards or urban water use targets in order to
achieve the 20-percent reduction and to reflect updated efficiency
information and technology changes.
   10608.43.  The department shall, in conjunction with the
California Urban Water Conservation Council, by April 1, 2010,
convene a task force consisting of experts to develop alternative
best management practices for  the  commercial,
industrial, and institutional  sector   users
 . The task force shall submit a report to the Legislature
 with recommendations by April 1, 2012   , by
April 1, 2012, that shall   include a review of multiple
sectors and that shall establish water use efficiency standards for
commercial, industrial, and institutional users among various sectors
of water use  .
   10608.44.  State agencies shall reduce water use on facilities
they own or operate to support urban retail water suppliers in
meeting the target identified in Section 10608.16.
      CHAPTER 4.  AGRICULTURAL WATER SUPPLIERS


   10608.48.  (a) On or before July 31, 2012, an agricultural water
supplier shall implement water use efficiency best management
practices pursuant to subdivisions (b) and (c).
   (b) Agricultural water suppliers shall implement all of the
following critical best management practices:
   (1) Measure the volume of water delivered to customers with
sufficient accuracy to comply with subdivision (a) of Section 531.10
and to implement volumetric pricing pursuant to paragraph (4).
   (2) Designate a water conservation coordinator who will develop
and implement the water management plan and prepare progress reports.

   (3) Provide for the availability of water management services to
water users. These services may include, but are not limited to, all
of the following:
   (A) On-farm irrigation and drainage system evaluations.
   (B) Normal year and real-time irrigation scheduling and crop
evapotranspiration information.
   (C) Surface water, groundwater, and drainage water quantity and
quality data.
   (D) Agricultural water management educational programs and
materials for farmers, staff, and the public.
   (4) Adopt a pricing structure for water customers based at least
in part on quantity delivered.
   (5) Evaluate the policies of agencies that provide the supplier
with water to identify the potential for institutional changes to
allow more flexible water deliveries and storage.
   (6) Evaluate and improve the efficiencies of the supplier's pumps.

   (c) Agricultural water suppliers shall implement additional best
management practices, including, but not limited to, practices to
accomplish all of the following, if the measures are locally
cost-effective and technically feasible:
   (1) Facilitate alternative land use for lands with exceptionally
high water duties or whose irrigation contributes to significant
problems, including drainage.
   (2) Facilitate use of available recycled water that otherwise
would not be used beneficially, meets all health and safety criteria,
and does not harm crops or soils.
   (3) Facilitate the financing of capital improvements for on-farm
irrigation systems.
   (4) Implement an incentive pricing structure that promotes one or
more of the following goals:
   (A) More efficient water use at the farm level.
   (B) Conjunctive use of groundwater.
   (C) Appropriate increase of groundwater recharge.
   (D) Reduction in problem drainage.
   (E) Improved management of environmental resources.
   (F) Effective management of all water sources throughout the year
by adjusting seasonal pricing structures based on current conditions.

   (5) Line or pipe distribution systems and construct regulatory
reservoirs to increase distribution system flexibility and capacity,
decrease maintenance, and reduce seepage.
   (6) Increase flexibility in water ordering by, and delivery to,
water customers within operational limits.
   (7) Construct and operate supplier spill and tailwater recovery
systems.
   (8) Increase planned conjunctive use of surface and groundwater
within the supplier service area.
   (9) Automate canal control structures.
   (10) Facilitate or promote customer pump testing and evaluation.
   (d) Agricultural water suppliers shall report to the department on
which best management practices have been implemented and are
planned to be implemented, an estimate of the water savings that have
occurred since the last report, and an estimate of the water savings
estimated to occur five and 10 years in the future. If an
agricultural water supplier determines that a best management
practice is not locally cost-effective or technically feasible, the
supplier shall submit information documenting that determination.
   (e) The reports shall be submitted to the department on or before
 ____   December 31, 2012  , and thereafter
in years ending in zero and years ending in five.
   (f) Agricultural water supplier reporting requirements may be met
through the submission to the department of an agricultural water
management plan required pursuant to Section 10820, or developed for
the United States Bureau of Reclamation that is consistent with this
part.
   (g) The reports shall be submitted using a standardized form
developed pursuant to Section  ____   10608.52
 . 
   (h) On or before December 31, 2013, December 31, 2016, and
December 31, 2021, the department, in consultation with the state
board, shall submit to the Legislature a report on the agricultural
best management practices that have been implemented and are planned
to be implemented and an assessment of the manner in which the
implementation of those best management practices has affected and
will affect agricultural operations, including estimated water
savings, if any.  
   (h) 
    (i)  The department may update the best management
practices required pursuant to subdivisions (b) and (c), in
consultation with the Agricultural Water Management Council, the
United States Bureau of Reclamation, and after technical and
public input provided pursuant to Section ____.   and
the state board. All best management practices for agricultural water
use pursuant to this chapter shall be adopted or revised by the
department only after the department conducts public hearings to
allow participation of the diverse geographical areas and interests
of the state. 
      CHAPTER 5.  STANDARDIZED DATA COLLECTION


   10608.52.  (a) The department, in consultation with the board, the
California Bay-Delta Authority, the State Department of Public
Health, and the Public Utilities Commission, shall develop a single
standardized water use reporting form to meet the water use
information needs of each agency  , including the needs of urban
water suppliers that elect to d   etermine and report
progress toward achieving targets on a regional basis as provided in
subdivision (a) of Section 10608.28  .
   (b) At a minimum, the form shall be developed to accommodate
information sufficient to assess an urban water supplier's compliance
with conservation targets pursuant to Section 10608.24 and an
agricultural water supplier's compliance with implementation of best
management practices pursuant to subdivision (a) of Section 10608.48.
 The form shall accommodate reporting by water suppliers on an
individual or regional basis as provided in subdivision (a) of
Section 10608.28. 
                                      CHAPTER 6.  FUNDING PROVISIONS


   10608.56.  (a) Beginning  August 1, ____  
July 1, 2016  , the terms of, and eligibility for, a water
management grant or loan made to urban retail water suppliers and
awarded or administered by the department, board, or California
Bay-Delta Authority or its successor agency shall be conditioned on
the implementation of this part.
   (b) Beginning  January 1, ____   July 1, 2013
 , the terms of, and eligibility for, a water management grant
or loan made to agricultural water suppliers and awarded or
administered by the department, board, or California Bay-Delta
Authority or its successor agency shall be conditioned on the
implementation of this part.
   (c) Notwithstanding subdivision (a), the department shall
determine that an urban retail water supplier is eligible for a water
management grant or loan even though the supplier has not met the
per capita reductions required pursuant to Section 10608.24, if the
urban retail water supplier has submitted to the department for
approval a schedule, financing plan, and budget, to be included in
the grant or loan agreement, for achieving the per capita reductions.
The supplier may request grant or loan funds to achieve the per
capita reductions to the extent the request is consistent with the
eligibility requirements applicable to the water management funds.
   (d) Notwithstanding subdivision (b), the department shall
determine that an agricultural water supplier is eligible for a water
management grant or loan even though the supplier is not
implementing all of the best management practices described in
Section 10608.48, if the agricultural water supplier has submitted to
the department for approval a schedule, financing plan, and budget,
to be included in the grant or loan agreement, for implementation of
the best management practices. The supplier may request grant or loan
funds to implement the best management practices to the extent the
request is consistent with the eligibility requirements applicable to
the water management funds.
   (e) Notwithstanding subdivision (a), the department shall
determine that an urban retail water supplier is eligible for a water
management grant or loan even though the supplier has not met the
per capita reductions required pursuant to Section 10608.24, if the
urban retail water supplier has submitted to the department for
approval documentation demonstrating that their entire service area
qualifies as a disadvantaged community.
   10608.60.  (a) It is the intent of the Legislature that funds made
available by Section 75026 of the Public Resources Code should be
expended, consistent with Division 43 (commencing with Section 75001)
of the Public Resources Code and upon appropriation by the
Legislature, for grants to implement this part. In the allocation of
funding, it is the intent of the Legislature that the department give
consideration to disadvantaged communities to assist in implementing
the requirements of this part.
   (b) It is the intent of the Legislature that funds made available
by Section 75041 of the Public Resources Code should be expended
consistent with Division 43 (commencing with Section 75001) of the
Public Resources Code and, upon appropriation by the Legislature, for
direct expenditures to implement this part.
      CHAPTER 7.  QUANTIFYING AGRICULTURAL WATER USE EFFICIENCY


   10608.64.  The department shall develop a methodology for
quantifying the efficiency of agricultural water use. Alternatives to
be assessed shall include, but not be limited to, determination of
efficiency levels based on crop type or irrigation system
distribution uniformity. On or before December 31, 2011, the
department shall report to the Legislature on a proposed methodology
and a plan for implementation. The plan shall include the estimated
implementation costs and the types of data needed to support the
methodology.
   SEC. 2.    Section 10631.5 of the   Water
Code   is amended to read: 
   10631.5.  (a) (1) Beginning January 1, 2009, the terms of, and
eligibility for, a water management grant or loan made to an urban
water supplier and awarded or administered by the department, state
board, or California Bay-Delta Authority or its successor agency
shall be conditioned on the implementation of the water demand
management measures described in Section 10631, as determined by the
department pursuant to subdivision (b).
   (2) For the purposes of this section, water management grants and
loans include funding for programs and projects for surface water or
groundwater storage, recycling, desalination, water conservation,
water supply reliability, and water supply augmentation. This section
does not apply to water management projects funded by the 
federal  American Recovery and Reinvestment Act of 2009 (Public
Law 111-5).
   (3) Notwithstanding paragraph (1), the department shall determine
that an urban water supplier is eligible for a water management grant
or loan even though the supplier is not implementing all of the
water demand management measures described in Section 10631, if the
urban water supplier has submitted to the department for approval a
schedule, financing plan, and budget, to be included in the grant or
loan agreement, for implementation of the water demand management
measures. The supplier may request grant or loan funds to implement
the water demand management measures to the extent the request is
consistent with the eligibility requirements applicable to the water
management funds.
   (4) (A) Notwithstanding paragraph (1), the department shall
determine that an urban water supplier is eligible for a water
management grant or loan even though the supplier is not implementing
all of the water demand management measures described in Section
10631, if an urban water supplier submits to the department for
approval documentation demonstrating that a water demand management
measure is not locally cost effective. If the department determines
that the documentation submitted by the urban water supplier fails to
demonstrate that a water demand management measure is not locally
cost effective, the department shall notify the urban water supplier
and the agency administering the grant or loan program within 120
days that the documentation does not satisfy the requirements for an
exemption, and include in that notification a detailed statement to
support the determination.
   (B) For purposes of this paragraph, "not locally cost effective"
means that the present value of the local benefits of implementing a
water demand management measure is less than the present value of the
local costs of implementing that measure.
   (b) (1) The department, in consultation with the state board and
the California Bay-Delta Authority or its successor agency, and after
soliciting public comment regarding eligibility requirements, shall
develop eligibility requirements to implement the requirement of
paragraph (1) of subdivision (a). In establishing these eligibility
requirements, the department shall do both of the following:
   (A) Consider the conservation measures described in the Memorandum
of Understanding Regarding Urban Water Conservation in California,
and alternative conservation approaches that provide equal or greater
water savings.
   (B) Recognize the different legal, technical, fiscal, and
practical roles and responsibilities of wholesale water suppliers and
retail water suppliers.
   (2) (A) For the purposes of this section, the department shall
determine whether an urban water supplier is implementing all of the
water demand management measures described in Section 10631 based on
either, or a combination, of the following:
   (i) Compliance on an individual basis.
   (ii) Compliance on a regional basis. Regional compliance shall
require participation in a regional conservation program consisting
of two or more urban water suppliers that achieves the level of
conservation or water efficiency savings equivalent to the amount of
conservation or savings achieved if each of the participating urban
water suppliers implemented the water demand management measures. The
urban water supplier administering the regional program shall
provide participating urban water suppliers and the department with
data to demonstrate that the regional program is consistent with this
clause. The department shall review the data to determine whether
the urban water suppliers in the regional program are meeting the
eligibility requirements.
   (B) The department may require additional information for any
determination pursuant to this section.
   (3) The department shall not deny eligibility to an urban water
supplier in compliance with the requirements of this section that is
participating in a multiagency water project, or an integrated
regional water management plan, developed pursuant to Section 75026
of the Public Resources Code, solely on the basis that one or more of
the agencies participating in the project or plan is not
implementing all of the water demand management measures described in
Section 10631.
   (c) In establishing guidelines pursuant to the specific funding
authorization for any water management grant or loan program subject
to this section, the agency administering the grant or loan program
shall include in the guidelines the eligibility requirements
developed by the department pursuant to subdivision (b).
   (d) Upon receipt of a water management grant or loan application
by an agency administering a grant and loan program subject to this
section, the agency shall request an eligibility determination from
the department with respect to the requirements of this section. The
department shall respond to the request within 60 days of the
request.
   (e) The urban water supplier may submit to the department copies
of its annual reports and other relevant documents to assist the
department in determining whether the urban water supplier is
implementing or scheduling the implementation of water demand
management activities. In addition, for urban water suppliers that
are signatories to the Memorandum of Understanding Regarding Urban
Water Conservation in California and submit biennial reports to the
California Urban Water Conservation Council in accordance with the
memorandum, the department may use these reports to assist in
tracking the implementation of water demand management measures. 

   (f) This section shall remain in effect only until July 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before July 1, 2016, deletes or extends that date. 
   SEC. 2.   SEC. 3.   Part 2.8 (commencing
with Section 10800) of Division 6 of the Water Code is repealed.
   SEC. 3.   SEC. 4.   Part 2.8 (commencing
with Section 10800) is added to Division 6 of the Water Code, to
read:

      PART 2.8.  AGRICULTURAL WATER MANAGEMENT PLANNING


      CHAPTER 1.  GENERAL DECLARATIONS AND POLICY


   10800.  This part shall be known and may be cited as the
Agricultural Water Management Planning Act.
   10801.  The Legislature finds and declares all of the following:
   (a) The waters of the state are a limited and renewable resource.
   (b) The California Constitution requires that water in the state
be used in a reasonable and beneficial manner.
   (c) Urban water districts are required to adopt water management
plans.
   (d) The conservation of agricultural water supplies is of great
statewide concern.
   (e) There is a great amount of reuse of delivered water, both
inside and outside the water service areas.
   (f) Significant noncrop beneficial uses are associated with
agricultural water use, including streamflows and wildlife habitat.
   (g) Significant opportunities exist in some areas, through
improved irrigation water management, to conserve water or to reduce
the quantity of highly saline or toxic drainage water.
   (h) Changes in water management practices should be carefully
planned and implemented to minimize adverse effects on other
beneficial uses currently being served.
   (i) Agricultural water suppliers that receive water from the
Central Valley Project are required by federal law to prepare and
implement water conservation plans.
   (j) Agricultural water users applying for a permit to appropriate
water from the board are required to prepare and implement water
conservation plans.
   10802.  The Legislature finds and declares that all of the
following are the policies of the state:
   (a) The conservation of water shall be pursued actively to protect
both the people of the state and the state's water resources.
   (b) The conservation of agricultural water supplies shall be an
important criterion in public decisions with regard to water.
   (c) Agricultural water suppliers shall be required to prepare
water management plans to achieve conservation of water.
      CHAPTER 2.  DEFINITIONS


   10810.  Unless the context otherwise requires, the definitions set
forth in this chapter govern the construction of this part.
   10811.  "Agricultural water management plan" or "plan" means an
agricultural water management plan prepared pursuant to this part.
   10812.  "Agricultural water supplier" has the same meaning as
defined in Section 10608.12.
   10813.  "Customer" means a purchaser of water from a water
supplier who uses water for agricultural purposes.
   10814.  "Person" means any individual, firm, association,
organization, partnership, business, trust, corporation, company,
public agency, or any agency of that entity.
   10815.  "Public agency" means any city, county, city and county,
special district, or other public entity.
   10816.  "Urban water supplier" has the same meaning as set forth
in Section 10617.
   10817.  "Water conservation" means the efficient management of
water resources for beneficial uses, preventing waste, or
accomplishing additional benefits with the same amount of water.
      CHAPTER 3.  AGRICULTURAL WATER MANAGEMENT PLANS



      Article 1.  General Provisions


   10820.  (a) An agricultural water supplier shall prepare and adopt
an agricultural water management plan in the manner set forth in
this chapter on or before December 31,  2011, and
 2012, and updated on  December 31, 2015, and on or before
December 31 every five years thereafter.
   (b) Every supplier that becomes an agricultural water supplier
after December 31, 2012, shall prepare and adopt an agricultural
water management plan within one year after the date it has become an
agricultural water supplier.
   (c) A water supplier that indirectly provides water to customers
for agricultural purposes shall not prepare a plan pursuant to this
part without the consent of each agricultural water supplier that
directly provides that water to its customers.
   10821.  (a) An agricultural water supplier shall update its plan
at least once every five years on or before December 31, in years
ending in zero and five.
   (b) An agricultural water supplier required to prepare a plan
pursuant to this part shall notify each city or county within which
the supplier provides water supplies that the agricultural water
supplier will be preparing the plan or reviewing the plan and
considering amendments or changes to the plan. The agricultural water
supplier may consult with, and obtain comments from, each city or
county that receives notice pursuant to this subdivision.
   (c) The amendments to, or changes in, the plan shall be adopted
and submitted in the manner set forth in Article 3 (commencing with
Section 10840).

      Article 2.  Contents of Plans


   10825.  (a) It is the intent of the Legislature in enacting this
part to allow levels of water management planning commensurate with
the numbers of customers served and the volume of water supplied.
   (b) This part does not require the implementation of water
conservation programs or practices that are not locally cost
effective.
   10826.  An agricultural water management plan shall be adopted in
accordance with this chapter. The plan shall do all of the following:

   (a) Describe the agricultural water supplier and the service area,
including all of the following:
   (1) Size of the service area.
   (2) Location of the service area and its water management
facilities.
   (3) Terrain and soils.
   (4) Climate.
   (5) Operating rules and regulations.
   (6) Water delivery measurements or calculations.
   (7) Water rate schedules and billing.
   (8) Water shortage allocation policies.
   (b) Describe the quantity and quality of water resources of the
agricultural water supplier, including all of the following:
   (1) Surface water supply.
   (2) Groundwater supply.
   (3) Other water supplies.
   (4) Source water quality monitoring practices.
   (5) Water uses within the agricultural water supplier's service
area, including all of the following:
   (A) Agricultural.
   (B) Environmental.
   (C) Recreational.
   (D) Municipal and industrial.
   (E) Groundwater recharge.
   (F) Transfers and exchanges.
   (G) Other water uses.
   (6) Drainage from the water supplier's service area.
   (7) Water accounting, including all of the following:
   (A) Quantifying the water supplier's water supplies.
   (B) Tabulating water uses.
   (C) Overall water budget.
   (8) Water supply reliability.
   (c) Include an analysis, based on available information, of the
effect of climate change on future water supplies.
   (d) Describe previous water management activities.
   (e) Include in the plan the water use efficiency information
required pursuant to Section 10608.48.
   10827.  Agricultural water suppliers that are members of the
Agricultural Water Management Council, and that submit water
management plans to that council in accordance with the "Memorandum
of Understanding Regarding Efficient Water Management Practices By
Agricultural Water Suppliers In California," dated January 1, 1999,
may submit the water management plans identifying water demand
management measures currently being implemented, or scheduled for
implementation, to satisfy the requirements of Section 10826.
   10828.  (a) Agricultural water suppliers that are required to
submit water conservation plans to the United States Bureau of
Reclamation pursuant to either the Central Valley Project Improvement
Act (Public Law 102-575) or the Reclamation Reform Act of 1982, or
both, may submit those water conservation plans to satisfy the
requirements of Section 10826, if both of the following apply:
   (1) The agricultural water supplier has adopted and submitted the
water conservation plan to the United States Bureau of Reclamation
within the previous four years.
   (2) The United States Bureau of Reclamation has accepted the water
conservation plan as adequate.
   (b) This part does not require agricultural water suppliers that
are required to submit water conservation plans to the United States
Bureau of Reclamation pursuant to either the Central Valley Project
Improvement Act (Public Law 102-575) or the Reclamation Reform Act of
1982, or both, to prepare and adopt water conservation plans
according to a schedule that is different from that required by the
United States Bureau of Reclamation.
   10829.  An agricultural water supplier may satisfy the
requirements of this part by adopting an urban water management plan
pursuant to Part 2.6 (commencing with Section 10610) or by
participation in areawide, regional, watershed, or basinwide water
management planning if those plans meet or exceed the requirements of
this part.

      Article 3.  Adoption and Implementation of Plans


   10840.  Every agricultural water supplier shall prepare its plan
pursuant to Article 2 (commencing with Section 10825).
   10841.  Prior to adopting a plan, the agricultural water supplier
shall make the proposed plan available for public inspection, and
shall hold a public hearing on the plan. Prior to the hearing, notice
of the time and place of hearing shall be published within the
jurisdiction of the publicly owned agricultural water supplier
pursuant to Section 6066 of the Government Code. A privately owned
agricultural water supplier shall provide an equivalent notice within
its service area. After the hearing, the plan shall be adopted as
prepared or as modified during or after the hearing.
   10842.  An agricultural water supplier shall implement the plan
adopted pursuant to this chapter in accordance with the schedule set
forth in its plan, as determined by the governing body of the
agricultural water supplier.
   10843.  (a) An agricultural water supplier shall submit to the
entities identified in subdivision (b) a copy of its plan no later
than 30 days after the adoption of the plan. Copies of amendments or
changes to the plans shall be submitted to the entities identified in
subdivision (b) within 30 days after the adoption of the amendments
or changes.
   (b) An agricultural water supplier shall submit a copy of its plan
and amendments or changes to the plan to each of the following
entities:
   (1) The department.
   (2) Any city, county, or city and county within which the
agricultural water supplier provides water supplies.
   (3) Any groundwater management entity within which jurisdiction
the agricultural water supplier extracts or provides water supplies.
   (4) Any urban water supplier within which jurisdiction the
agricultural water supplier provides water supplies.
   (5) Any city or county library within which jurisdiction the
agricultural water supplier provides water supplies.
   (6) The California State Library.
   (7) Any local agency formation commission serving a county within
which the agricultural water supplier provides water supplies.
   10844.  (a) Not later than 30 days after the date of adopting its
plan, the agricultural water supplier shall make the plan available
for public review on the agricultural water supplier's Internet Web
site.
   (b) An agricultural water supplier that does not have an Internet
Web site shall submit to the department, not later than 30 days after
the date of adopting its plan, a copy of the adopted plan in an
electronic format. The department shall make the plan available for
public review on the department's Internet Web site.
   10845.  (a) The department shall prepare and submit to the
Legislature, on or before December 31,  2012  
2013  , and thereafter in the years ending in six and years
ending in one, a report summarizing the status of the plans adopted
pursuant to this part.
   (b) The report prepared by the department shall identify the
outstanding elements of any plan adopted pursuant to this part. The
report shall include an evaluation of the effectiveness of this part
in promoting efficient agricultural water management practices and
recommendations relating to proposed changes to this part, as
appropriate.
   (c) The department shall provide a copy of the report to each
agricultural water supplier that has submitted its plan to the
department. The department shall also prepare reports and provide
data for any legislative hearing designed to consider the
effectiveness of plans submitted pursuant to this part.
   (d) This section does not authorize the department, in preparing
the report, to approve, disapprove, or critique individual plans
submitted pursuant to this part.
      CHAPTER 4.  MISCELLANEOUS PROVISIONS


   10850.  (a) Any action or proceeding to attack, review, set aside,
void, or annul the acts or decisions of an agricultural water
supplier on the grounds of noncompliance with this part shall be
brought pursuant to Section 1085 of the Code of Civil Procedure, and
the court's review of compliance or noncompliance with this part
shall extend to whether the plan, or portion thereof, or revision
thereto, substantially complies with the requirements of this part.
   (b) An action or proceeding alleging failure to adopt a plan shall
be commenced within 18 months after that adoption is required by
this part.
   (c) Any action or proceeding alleging that a plan, or action taken
pursuant to the plan, does not comply with this part shall be
commenced within 120 days after submitting the plan or amendments to
the plan to entities in accordance with Section 10844 or the taking
of that action.
   (d) In an action or proceeding to attack, review, set aside, void,
or annul the acts or decisions of an agricultural water supplier
made pursuant to this part at a properly noticed public hearing, the
issues raised shall be limited to those raised in the public hearing,
or in written correspondence delivered to the agricultural water
supplier prior to, or at, the public hearing, except if the court
finds either of the following:
   (1) The issue could not have been raised at the public hearing by
a person exercising reasonable diligence.
   (2) The body conducting the public hearing prevented the issue
from being raised at the public hearing.
   10851.  The California Environmental Quality Act (Division 13
(commencing with Section 21000) of the Public Resources Code) does
not apply to the preparation and adoption of plans pursuant to this
part. This part does not exempt projects for implementation of the
plan or for expanded or additional water supplies from the California
Environmental Quality Act.
   10852.  An agricultural water supplier that does not prepare,
adopt, and submit its agricultural water management plan in
accordance with this part is ineligible to receive funds made
available pursuant to any program administered by the board, the
department, or the California Bay-Delta Authority, or participate in
any drought assistance program administered by the state, until the
agricultural water management plan is submitted pursuant to this
part.