BILL ANALYSIS                                                                                                                                                                                                    





           ----------------------------------------------------------------- 
          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2009-2010 Regular Session                    |
          |                                                                 |
           ----------------------------------------------------------------- 

          BILL NO: SB 681                    HEARING DATE: April 28, 2009   

          AUTHOR: Pavley                     URGENCY: No  
          VERSION: April 20, 2009            CONSULTANT: Dennis O'Connor  
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Water diversion and use.  
          
          BACKGROUND AND EXISTING LAW

          During its 2005-2006 Regular Session, the Legislature passed and  
          the Governor signed Assembly Bill 1200 (Laird), Senate Bill 1574  
          (Kuehl), and Assembly Bill 1803 (Committee on Budget).   
          Together, these bills required an assessment of the potential  
          impacts on water supplies of catastrophic failures in the Delta,  
          identification and evaluation of options to protect water  
          supplies and the ecosystem of the Delta, the development of a  
          vision for a sustainable Delta, and a strategic plan to achieve  
          a sustainable Sacramento-San Joaquin Delta.  

          Specifically, SB 1574 created a Delta Vision Committee to  
          develop the vision and strategic plan.  The Committee is  
          composed of the Secretary of the Resources Agency as chair, and  
          the Secretaries of the Business, Transportation and Housing  
          Agency, Department of Food and Agriculture, and the California  
          Environmental Protection Agency, and the President of the Public  
          Utilities Commission.

          On September 28, 2006, the Governor issued an Executive Order  
          that, among other things, established a Blue Ribbon Task Force  
          and directed the Task Force to:
           Develop a vision for the sustainable management of the Delta, 
           Report to the to the Delta Vision Committee and Governor its  
            findings and recommendations on its vision for the Delta by  
            January 1, 2008, and 
           Develop a strategic plan to implement the delta vision by  
            October 31, 2008.  

                                                                      1







          The Executive Order further directed the Delta Vision Committee  
          to report to the Governor and the Legislature by December 31,  
          2008 with recommendations for implementing the Delta Vision and  
          Strategic Plan.

          In October, 2008, the Blue Ribbon Task Force published its Delta  
          Vision Strategic Plan and on January 5, 2009, the Delta Vision  
          Committee submitted its final Implementation Plan to Gov. Arnold  
          Schwarzenegger.   The implementation plan recommended management  
          actions in the California Delta to fulfill the report's  
          recommended two co-equal goals of water supply reliability and  
          ecosystem restoration.  The implementation plan sets priorities  
          based on the Delta Vision Strategic Plan developed by the  
          Governor's Delta Vision Blue Ribbon Task Force.

          Among the recommended actions requiring new authority were the  
          following:

           Water Rights Accountability  - Enact legislation in 2010 to  
          enhance and expand the State Water Resources Control Board's  
          water rights administrative accountability. These  
          recommendations are not intended to adversely affect the current  
          water right priority system, including area-of-origin priorities  
          but rather to strengthen the current administrative system.  
          Appropriate enforcement will protect existing water rights. 
           The State Water Resources Control Board needs authority to  
            collect and disseminate accurate information on all surface  
            water diversions in the state. Consequently, all statutory  
            exemptions from water diversion and use reporting should be  
            repealed and enforcement authority extended, and a streamlined  
            process implemented requiring complete, timely, and accurate  
            information from all diverters. The gathering and submittal of  
            this information should be as easy as possible, as described  
            below. 
           The Water Board needs authority to require interim remedies,  
            after opportunity for hearing, to prevent irreparable harm to  
            the environment and other water right holders, while  
            underlying proceedings continue. Interim remedies could  
            include requiring the diverter to take appropriate action to  
            mitigate potential harm or to provide necessary information.  
            As with courts, Water Board evidentiary proceedings can take  
            many years. Unlike courts, however, the Water Board currently  
            has no authority to issue interim orders designed to prevent  
            irreparable harm. 
           Further, the Water Board needs to clarify existing water  
            rights in many parts of the State in light of poorly defined  
            or unreported riparian and appropriative water right claims  
                                                                      2







            and the unquantified needs of fish and wildlife. The Board  
            needs the authority to initiate stream adjudications and  
            collect adjudication costs from the parties diverting water.  
            This process will respect area of origin rights. 
           Many existing water right permit terms and conditions are not  
            directly enforceable, and the law should be amended to correct  
            this problem. 

           Water Use Reporting  - Ensure the sustainability of water  
          supplies by improving water diversion and use reporting,  
          strengthening water rights accountability, and increasing water  
          use efficiency. Enact legislation to streamline and simplify  
          water diversion and use reporting requirements to reduce the  
          reporting burden on local agencies and improve the quantity and  
          quality of water diversion and use data. The legislation should  
          mandate electronic submission of water diversion and use data to  
          a central database. In addition, a pilot project should be  
          mandated to install real-time telemetered monitoring devices on  
          surface water diversions in the Delta and its tributaries.  The  
          pilot project should be extended to all diversions above a  
          specified size upon successful completion of the pilot. 

          PROPOSED LAW
          
          This bill would enact the recommendations of the Delta Vision  
          Committee on water rights and water use reporting.  It would:
           Streamline the State Water Board's waste and unreasonable use  
            authority and improve enforcement for failure to meet water  
            conservation requirements, resulting in water conservation  
            improvements. 
            Improve monitoring and reporting, including authority to  
            collect and disseminate information on all surface water  
            diversions in the state, eliminate exemptions from  
            requirements for filing of statements of diversion and use,  
            and establish enforcement authority for monitoring and  
            reporting violations.  
           Establish a pilot program for real-time telemetered monitoring  
            of Delta diversions, although it does not specify whether the  
            State Water Board or the Department of Water Resources is  
            responsible for the program.
           Improved enforcement, including authority to directly enforce  
            water right terms and conditions, interim relief authority,  
            and increased administrative penalties.
           Authority to initiate stream system adjudications and collect  
            adjudication costs.

          ARGUMENTS IN SUPPORT
                                                                      3








          According to the author, "At our recent hearing on Delta vision,  
          I was shocked to find out that the State Water Resources Control  
          Board had concluded that water users have been promised 8.4  
          times the average annual unimpaired flows in the Delta  
          watershed! Not only that, the face value of these permits is 3.4  
          times more than the highest annual unimpaired flows!  Then, at  
          our subsequent hearing on California Water Rights law, we found  
          out that pending water right applications would divert an  
          additional 4.2 million acre-feet of water within the Delta  
          watershed.   The author also stated that, "We learned that the  
          Blue Ribbon Task Force, led by Phil Isenberg, and the Delta  
          Vision Committee, led by Secretary Mike Chrisman, have done the  
          state a great service in both identifying critical problems with  
          our state's water rights system and recommending solutions to  
          those problems."

          ARGUMENTS IN OPPOSITION

          Responding to the previous version of this bill, that dealt only  
          with statutory adjudication, the Association of California Water  
          Agencies wrote, "SB 681 would authorize the SWRCB to undertake  
          such investigations and determinations of water rights on its  
          own motion.  The SWRCB would be able to initiate adjudications  
          of any streams it found interesting and then charge water users  
          for the full costs of them - including salaries - under Water  
          Code sections 2851-2852.  This bill would open the door for the  
          SWRCB to fund the Division of Water rights through charges on  
          water-users without working on any applications or petitions  
          that water users themselves have filed."

          COMMENTS 
          
           Needs Vetting.   This is a technically complicated bill that was  
          only recently amended to include its full provisions.  In  
          addition to the important policy issues raised by this bill,  
          there are likely to be important technical legal issues as well.  
           Should this bill move forward, the author has committed to  
          engage interested parties in a more robust discussion of the  
          legal issues posed by this bill.

           Interim Relief.   While the policy implications of the other  
          provisions of this bill might be somewhat clear, those regarding  
          interim relief might not.  In a July 31, 2008 letter to the  
          Delta Vision Blue Ribbon Task Force, the State Water Board  
          explained "why interim relief authority would be helpful to the  
          Board in water right matters and why the Board believes that its  
                                                                      4







          existing water right authority is insufficient to impose interim  
          relief. For purposes of this discussion, interim relief refers  
          to expedited procedures, similar to those followed by a court in  
          issuing a preliminary injunction, for issuance of an order  
          providing protection on an interim basis pending completion of  
          administrative proceedings applying and enforcing water right  
          law."

          The letter continued: "The State Water Board is responsible for  
          establishing and maintaining a stable system of water rights in  
          California to best develop, conserve and utilize in the public  
          interest the water resources of the State, while protecting  
          vested rights, water quality and the public trust. Effective  
          water right administration depends, in part, on adequate and  
          timely enforcement. The State Water Board and the courts have  
          concurrent jurisdiction over actions to enforce water right law,  
          including proceedings brought in response to violations of water  
          right permits and licenses, violations of the public trust  
          doctrine, or waste or unreasonable use of water. But only the  
          courts can take immediate relief action, typically in the form  
          of a temporary restraining order or a preliminary injunction,  
          without opportunity for a full evidentiary hearing. In addition,  
          unlike the Board, the courts are not required to comply with the  
          California Environmental Quality Act (CEQA) before taking  
          action."

          "In some cases it is necessary to take prompt action to prevent  
          irreparable harm to water right holders or instream uses.  
          Without the capacity to impose interim relief, activities that  
          damage the environment can continue during the length of an  
          adjudicative proceeding, without any requirement that the  
          violator take steps to avoid or reduce the damage. The ability  
          to provide for interim relief pending the completion of an  
          evidentiary hearing would allow urgent decisions to be made in a  
          timely manner, eliminate the need for duplicative proceedings in  
          court, and better protect the state's water resources."

          SUGGESTED AMENDMENTS: None

          SUPPORT
          None Received

          OPPOSITION
          Association of California Water Agencies



                                                                      5






















































                                                                      6