BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
2776 (Huffman)
Hearing Date: 08/02/2010 Amended: 07/15/2010
Consultant: Brendan McCarthy Policy Vote: NR&W 5-4
AB 2776 (Huffman), Page 2
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BILL SUMMARY: AB 2776 prohibits the State Water Resources
Control Board or the Department of Water Resources from
approving a transfer of water lasting more than twenty years
from agricultural to urban use, unless the proponents of the
transfer prepare an analysis of the economic, social, and
environmental impacts of the transfer upon the service area from
which the water is to be transferred.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Water Board review of $130 $65 $65 Special
*
studies
Department of Water $100 $100 $100 General
**
Resources review of
studies
Department of Water Potentially up to $1,000 per yearGeneral
**
Resources groundwater
monitoring
* Water Rights Fund. Reimbursed by fees.
** Reimbursed by fees.
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STAFF COMMENTS:
Under current law, a transfer or exchange of water or water
rights requires approval from the State Water Resources Control
Board to in order to change the point of diversion, place of
use, or purpose of the water associated with the existing water
right. However, transfers or exchanges of water within the State
Water Project do not need approval from the State Water Board
because the Department of Water Resources has already received
approval for all the points of diversion, places of use, and
purposes of use within the system. A water transfer or exchange
within the State Water Project system does require the approval
AB 2776 (Huffman), Page 2
of the Department.
If a proposed water transfer will have a significant impact on
the environment, an environmental impact report must be prepared
analyzing any potential impacts, including social or economic
impacts that, in turn, may impact the environment.
The State Water Board estimates that about ten non-state water
project water transfers occur per year (not all of which are
agricultue to urban transfers). Since 1990, sixteen agricultural
to urban water transfers within the State Water Project have
been agreed to. Depending on the duration and purpose of those
transfers, some number of those transfers will fall under the
requirements of this bill.
SB x7 6 (Steinberg, Chapter 1, Statutes of the 2009-10 Seventh
Extraordinary Session) requires groundwater elevations in all
groundwater basins to be monitored by January 1, 2012. If no
local entity is willing to undertake the monitoring, the
Department may undertake the monitoring, but is prohibited from
charging fees to recovery its costs.
AB 2776 prohibits the State Water Board (for non-State Water
Project water transfers) or the Department of Water Resources
(for State Water Project water transfers) from approving a water
transfer lasting longer than twenty years, from an agricultural
use to an urban use, unless an evaluation is performed of the
economic, social, and environmental impacts of the transfer on
the service area from which the water is to be transferred.
The State Water Board or the Department is required to charge a
fee to water users to recoup any costs under the bill.
The bill prohibits a water user from replacing transferred water
with groundwater, unless the groundwater basin from which the
water is transferred is being monitored, consistent with
existing law. The bill requires the Department to charge a water
user a reasonable fee to enforce this requirement, including any
necessary monitoring of groundwater levels by the Department.
Staff estimates that the State Water Board and the Department
will each need about one additional position to review any
required analyses under the bill. In addition, the Department
may need additional staff to perform any groundwater monitoring
not already being performed by local agencies under existing
law. All of these costs would be recovered from water users
AB 2776 (Huffman), Page 2
proposing water transfers.