BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1386
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          SENATE THIRD READING
          SB 1386 (Alan Lowenthal)
          As Amended  July 3, 2012
          Majority vote 

           SENATE VOTE  :31-4  
           
           WATER, PARKS & WILDLIFE   8-1                                   
           
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          |Ayes:|Huffman, Blumenfield,     |     |                          |
          |     |Campos, Fong, Beth        |     |                          |
          |     |Gaines,                   |     |                          |
          |     |Roger Hern�ndez, Hueso,   |     |                          |
          |     |Jones                     |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Halderman                 |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Prohibits the Central Basin Municipal Water District 
          (Central Basin MWD) from storing or managing water in the Central 
          Groundwater Basin unless by a contract with another entity or 
          pursuant to a court issued order and, by default, leaves the Water 
          Replenishment District of Southern California (WRD) as the 
          principal entity authorized to do so.  

           EXISTING LAW  :

          1)Creates water replenishment districts for the purposes of 
            replenishing groundwater supplies within their boundaries.  

          2)States that a water replenishment district may store, transport, 
            recapture, recycle, purify, treat or otherwise manage and 
            control water for the beneficial use of persons or property 
            within its boundaries.

          3)Creates municipal water districts (MWDs).  Water Code Section 
            71610 states that a MWD may acquire, control, distribute, store, 
            spread, sink, treat, purify, recycle, recapture, and salvage any 
            water including sewage and storm waters, for the beneficial use 
            or uses of the MWD, its inhabitants, or the owners of rights to 
            water in the MWD.

           FISCAL EFFECT  :  Unknown.  This bill is keyed non-fiscal by the 







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          Legislative Counsel.

           COMMENTS  :  This bill seeks to prohibit Central Basin MWD from 
          asserting a right to store or manage groundwater in the Central 
          Groundwater Basin.  A 1965 consent judgment declared and 
          established water rights in the Central Groundwater Basin and 
          enjoined extractions in excess of specified quantities.  The 1965 
          judgment also reserved jurisdiction to the superior court with 
          respect to future matters that were not contemplated at the time.  
          Consistent with the 1965 judgment as amended (Amended Judgment), 
          the WRD has the right to replenish the Central Groundwater Basin 
          and enjoin extractions.  But the Amended Judgment was silent as to 
          who has the right to store water in the basin.  

          In 2001, several parties sought an adjudication of the rights to 
          use underground storage space in the Central Groundwater Basin and 
          argued that the total useable storage space should be divided 
          among those with existing water extraction rights.  The court 
          however rejected the theory that the right to extract water 
          conveys an automatic right to store water.  In 2009 a new proposal 
          was submitted to the court by another group of pumpers with 
          extraction rights. That proposal sought to utilize 330,000 
          acre-feet of dewatered space in the Central Basin to store water 
          for later use (Storage Proposal).  The Storage Proposal included 
          multiple provisions governing the storage and extraction of stored 
          water and proposed significant revisions to the Amended Judgment.  


          Initially, the superior court ruled that it lacked the 
          jurisdiction to consider the Storage Proposal since it was outside 
          the boundaries of the original 1965 judgment.  But in January of 
          2012, an appellate court sent the matter back to the superior 
          court stating that the lower court not only had the power but the 
          duty to work out a solution consistent with the state's policy to 
          beneficially use water.  The matter currently rests with the trial 
          court for a determination, on the merits, of the Storage Proposal. 
           

          The author of this bill states it is necessary in order to clarify 
          that the Central Basin MWD does not have the authority to manage 
          or control the storage of groundwater because there is already a 
          water rights judgment in place and a water replenishment district 
          that has authority to deal with groundwater supplies.  The author 
          states that the duplicate authorities of the WRD and Central Basin 
          MWD result in uncertainty and create a barrier to an increased use 







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          of groundwater storage that could also help relieve pressure on 
          imported water supplies from Northern California.  Supporters of 
          this bill state it is necessary because the Central Basin MWD has 
          recently inserted itself into the groundwater arena by purchasing 
          groundwater extraction rights, preparing a groundwater management 
          plan, and intervening as a party in the groundwater litigation.

          In contrast, the Central Basin MWD criticizes this bill as 
          premature stating that the pending litigation in Los Angeles 
          Superior Court will directly address the issue of groundwater 
          storage rights.  Central Basin MWD also defends its groundwater 
          storage plan as collaborative and states that the plan would 
          utilize Central Groundwater Basin storage capacity, secure an 
          affordable supply of water, establish emergency supplies, and 
          prepare against future reductions in imported supplies.  Central 
          Basin MWD asserts that without its groundwater plan WRD and others 
          could continue to detrimentally and permanently damage the Central 
          Groundwater Basin and southeast Los Angeles communities could be 
          subject to higher priced water.  Other opponents cite a March 2012 
          Joint Legislative Audit Committee audit as evidence that the 
          proper roles of water suppliers in Southeast Los Angeles County 
          are yet to be determined.

          Several prior pieces of legislation concerned the conflict over 
          groundwater authorities and charges in the Central and West 
          Groundwater Basins, which are interconnected with the WRD 
          overlying both.  AB 640 (De La Torre) of 2007, would have required 
          the Department of Water Resources to conduct a study to determine 
          basin specific charges for each basin within the district.  AB 640 
          was placed on the Senate Appropriations Committee suspense file 
          and failed passage.  SB 701 (Ron Calderon) of 2011, would have 
          established, among other provisions, that the Central Basin MWD 
          has primary oversight responsibility with respect to protecting 
          the public's interest in the Central Groundwater Basin.  SB 701 
          was referred to the Senate Natural Resources and Water Committee 
          but was never heard.  AB 954 (Charles Calderon) of 2011, would 
          have required engineering surveys and reports for the West Basin 
          and the Central Basin, separately, and then specified that the 
          charges for replenishing each groundwater basin, removing 
          contaminants from each groundwater basin, and administering each 
          groundwater would be calculated on actual costs.  AB 954 was 
          referred to the Assembly Local Government Committee but was never 
          heard.   









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           Analysis Prepared by  :    Tina Cannon Leahy / W., P. & W. / (916) 
          319-2096                                               FN: 0004407