BILL ANALYSIS                                                                                                                                                                                                    





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2009-2010 Regular Session                    |
          |                                                                 |
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          BILL NO: AB 2483                   HEARING DATE: June 29, 2010  
          AUTHOR: Coto                       URGENCY: No  
          VERSION: June 28, 2010             CONSULTANT: Dennis O'Connor  
          DUAL REFERRAL: Local Government    FISCAL: Yes  
          SUBJECT: Santa Clara Valley Water District. 
          
          BACKGROUND AND EXISTING LAW

          The Santa Clara Valley Water District (district) provides  
          wholesale water supply and flood management services to Santa  
          Clara County.  Increasingly, it is also undertaking  
          environmental restoration and management programs and projects.   
          The district serves approximately 1.8 million people and 200,000  
          commuters in the 15 cities and unincorporated areas of the 1,300  
          square mile county in the southern San Francisco Bay Area.

          The district is authorized and operates under the Santa Clara  
          Valley Water District Act (Act), enacted by the Legislature in  
          1951.  The Act has been amended numerous times over the years as  
          the district merged with other entities, assumed additional  
          duties, and adapted to new conditions and issues.  There has not  
          been a comprehensive revision of the Act since it was originally  
          enacted in 1951.

          PROPOSED LAW
          
          This bill would amend the Santa Clara Valley Water District Act  
          as follows:

          1.Expand and clarify the districts powers and authorities  
            regarding water conservation and demand management, protecting  
            natural resources, and responding to climate change,  
            including:

             a.   Authorizing the district to:
                     Integrate management of all water resources  
                 available in the district, in order to improve long-term  
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                 water management sustainability, provide flexibility to  
                 address the impacts of anticipated extreme hydrological  
                 events, and respond to climate change impacts. 
                     Participate in the market of credits or other  
                 benefits related to the reduction of environmental  
                 impacts or improved comprehensive water management.
                     Implement the water conservation measures authorized  
                 in SBX7 6.
                     Provide incentives for water conservation and  
                 otherwise promote efficient water use.
                     Integrate district energy and water policies and  
                 practices to provide energy and environmental benefits.
                     Protect, restore or improve water quality for all  
                 beneficial uses.
                     Reduce greenhouse emissions from district operations  
                 or sources within the district.

             a.   Clarifying that nothing in the Act shall be construed  
               to: 
                     Authorize the district to impose measures on others  
                 to mitigate climate impacts or to increase the production  
                 of renewable or alternative energy.
                     Authorize the district to require or impose specific  
                 rate structures on water retailers.

          1.Revise the current assessment of groundwater charges from  
            being newly imposed each year to being permanent until the  
            board takes action to change the rates.

          1.Make other conforming changes to the Act.

          ARGUMENTS IN SUPPORT

          According to the district, "Increasing pressures on the  
          Bay-Delta system, the source of half of Santa Clara County's  
          water supplies, make it imperative that the District have the  
          clear authority to promote water conservation and protect local  
          groundwater supplies."

          "Historically, the role of the District was to secure  
          appropriate water supplies as needed to meet demand.  Today,  
          there are increasing limitations on the ability to acquire  
          additional water and the state has enacted new water  
          conservation goals.  The revisions to the District Act contained  
          in AB 2483 are needed to align the Act with the state's water  
          conservation and management goals; help ensure the long-term  
          reliability of local water supplies; and bring the act into sync  
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          with current state policy on climate change and renewable energy  
          generation."

          ARGUMENTS IN OPPOSITION:  None on the 6/28/10 version of bill

          COMMENTS 
          
           Addresses Immediate Issue.   The current Act is poorly organized,  
          archaic in its language, and does not reflect much of the  
          evolution of water law over the past 50+ years.  In particular,  
          the procedures for levying groundwater charges don't appear to  
          reflect current constitutional or statutory requirements; there  
          are no mailed notice to property owners, no procedure for  
          counting protests, and no majority-protest provision that stops  
          new or increased charges.  Consequently, the district's current  
          practices are subject to much controversy, including pending  
          legal action.  This bill attempts to address at least some of  
          those issues by allowing the District's board to levy  
          groundwater charges that last longer than just one year.

           Sets Stage For Further Improvements  .  This bill begins to expand  
          the district's legal authority to address pressing water  
          resources problems in the Santa Clara Valley.  The new and  
          expanded powers proposed in this bill reflect the recent trend  
          towards more fully integrating planning and management of water  
          resources, flood management, and groundwater management.  The  
          bill would further provide the district with authorities  
          intended to help it to respond to the challenges climate change  
          presents to managing water and natural resources.

           Still Work To Be Done.   While this bill begins the process to  
          modernize the district's authorities, it does not integrate  
          these new authorities into the management processes established  
          under the existing Act.  Further, to modernize the language and  
          increase readability, the entire Act would still benefit from a  
          thorough revision.  

           Talks Are Continuing.   Proponents and opponents of the previous  
          version of the bill are continuing to discuss potential changes.  
           Such discussions might result in amendments that substantively  
          change the bill.  The committee may wish to seek assurances from  
          the author that should he substantively amend the bill, he would  
          willingly bring the bill back to this committee for further  
          consideration.

           Refer to Senate Local Government.   Because AB 2483 affects not  
          only the District's water supply and conservation programs, but  
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          its procedures for levying groundwater charges as well, the  
          Senate Rules Committee referred the bill to two policy  
          committees.  If the bill passes this Committee, the Senate Local  
          Government Committee will hear the bill on June 30.

          SUGGESTED AMENDMENTS: None

          SUPPORT (6/16/10 version)
          Santa Clara Valley Water District (Sponsor)
          American Federation of State, County and Municipal Employees  
          (AFSCME)
          Association of California Water Agencies (ACWA)
          California Special Districts Association
          Professional and Technical Engineers, IFPTE Local 21
          Sierra Club California 
          Private Citizen (1)

          OPPOSITION (6/16/10 version)
          California Cattlemen's Association
          California Chamber of Commerce
          California Farm Bureau Federation
          California Water Service Company
          Great Oaks Water Company
          San Jose Water Company
          Silicon Valley Taxpayers' Association
          Western Growers





















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