BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2049
                                                                  Page  1

          Date of Hearing:   April 13, 2010

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                            Jared William Huffman, Chair
                AB 2049 (Arambula) - As Introduced:  February 18, 2010
           
          SUBJECT  :   State Water Resources Development System: Water  
          Delivery

           SUMMARY  :   Prohibits the long-term transfer or assignment of  
          State Water Project (SWP) water supply from an agricultural use  
          to a municipal use.  Specifically,  this bill  prohibits the  
          Department of Water Resources (DWR) from approving a transfer or  
          assignment of a contractual right to SWP water from an  
          agricultural use to another contractor for municipal use if the  
          assignment would be for more than 10 years.

           EXISTING LAW  :

          1)Establishes that DWR shall operate and manage the SWP on  
            behalf of the State of California.

          2)Allows DWR to approve SWP contractual modifications which  
            change apportionments of water between its contractors,  
            including modifications which allow water sales intended to  
            reduce the delivery to a SWP agricultural contractor in order  
            to increase deliveries to a SWP urban contractor.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   DWR uses its SWP authorities and contractual  
          flexibility to creatively transfer water between various water  
          users in times of need.  However, in August 2009, Sandridge  
          Partners, located in Kings County on the west side of the San  
          Joaquin Valley, agreed to permanently sell 14,000 acre feet (af)  
          of its annual State Water Project entitlement to the Mojave  
          Water Agency for $77 million dollars.  Sandridge Partners is a  
          member of the Dudley Ridge Water District, which has a SWP  
          contractual entitlement to 57,343 (af) of water.  Mojave Water  
          Agency is also a SWP contractor.  Its previous annual  
          entitlement was 75,800 (af) of water.

          In news articles Sandridge Partners was quoted as saying it  
          intended to use part of the funding from its surface water sale  
          to expand groundwater pumping as a substitute supply.  








                                                                  AB 2049
                                                                  Page  2


          Although the State Water Resources Control Board has authority  
          over changes in the place of use or point of diversion of  
          permitted water rights, changes between SWP members fall outside  
          of that regulatory oversight because the points of diversion for  
          SWP export supplies remains the same and the SWP place of use is  
          so broad.  This means that transfers of SWP surface water  
          supplies do not fall within the purview of existing statutes  
          that govern, for example, limitations on groundwater pumping  
          when surface water supplies are transferred.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file.

           Opposition 
           
          American Council of Engineering Companies
          American Society of Civil Engineers - Region 9
          Association of California Water Agencies
          Calif. Apartment Assoc.
          Calif. Building Industry Assoc.
          Calif. Business Properties Assoc.
          Calif. Chamber of Commerce
          Calif. Forestry Assoc.
          Calif. League of Food Processors
          Calif. Manufacturing and Tech. Assoc.
          Calif. Municipal Utilities Assoc.
          Calif. Special Districts Assoc.
          Desert Water Agency
          Kern County Water Agency
          Metropolitan Water District of Southern Calif.
          Northern California Water Association
          San Diego County Water Authority
          Valley Ag Water Coalition
          Western Growers Association

           Analysis Prepared by  :    Tina Cannon Leahy / W., P. & W. / (916)  
          319-2096