BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1739
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 1739 (Dickinson) - As Amended:  April 22, 2014 

          Policy Committee:                              Water, Parks and  
          Wildlife     Vote:                            9-5

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:  Yes

           SUMMARY  

          This bill requires sustainable groundwater management plans in  
          all groundwater subbasins the Department of Water Resources  
          (DWR) determines to be at medium or high risk for significant  
          economic, social and environmental impacts due to unsustainable  
          and chronic groundwater extractions.  Specifically, this bill: 

          1)Requires a groundwater management agency to adopt a  
            sustainable groundwater management plan on or before January  
            1, 2020 as specified and update the plan every five years.

          2)Requires the plan to be submitted to DWR for technical review,  
            evaluation and approval.

          3)Prohibits groundwater extraction in a basin unless there is a  
            sustainable groundwater management plan by an unspecified  
            date, or the date the plan is adopted, whichever is earlier.

          4)Requires a city or county to reference any adopted sustainable  
            groundwater management plan as a source document when adopting  
            or revising its general plan.

          5)Authorizes local agency formation commissions (LAFCOs) to  
            provide special technical assistance on an expedited timeline  
            if there is no local or regional groundwater management agency  
            in a groundwater basin, as defined.

           FISCAL EFFECT  

          1)Increased costs to DWR in the range of $250,000 to $313,000 to  
            provide technical assistance and approve groundwater plans  








                                                                  AB 1739
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            every five years.  This bill likely will require between 100  
            and 125 plans to be developed.  The cost of review and  
            approval is estimated to be about $2,500 per plan.

            This bill specifies that any costs are eligible for funding  
            under the Local Groundwater Assistance Fund.  However, there  
            is currently no balance in this fund.

          2)Unknown, potentially significant, reimbursable local  
            government costs.  


           

          COMMENTS  

           1)Purpose.   According to the author, in many areas, including  
            parts of the San Joaquin Valley, the overdraft of groundwater  
            has become a serious problem.  While a number of groundwater  
            basins and subbasins are under local and regional management,  
            others are not.  

            This bill seeks to improve local and regional groundwater  
            management efforts to achieve sustainable groundwater levels,  
            especially in high and medium risk overdraft basins and  
            subbasins.

           2)Background.   Grroundwater is either a subterranean stream  
            flowing through a known and definite channel or percolating  
            groundwater. Groundwater that is a subterranean stream is  
            subject to the same State Water Resources Control Board  
            (SWRCB) water right permitting requirements as surface water.  
            There is no statewide permitting requirement for percolating  
            groundwater, which is the majority of groundwater in the  
            state.

            The Department of Water Resources (DWR) is required to  
            prioritize  groundwater basins based on multiple factors  
            including, but not limited to, the level of population and  
            irrigated acreage relying on the groundwater basin as a  
            primary source of water and the current impacts on the  
            groundwater basin from overdraft, subsidence, saline intrusion  
            and other water quality degradation.

            The groundwater basins identified in DWR's Groundwater Report,  








                                                                  AB 1739
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            Bulletin 118, are required to be regularly and systematically  
            monitored locally and the information to be readily and widely  
            available.  DWR is required to perform the groundwater  
            elevation monitoring function if no local entity will do so  
            but then bars the county and other entities eligible to  
            monitor that basin from receiving state water grants or loans.

          3)Governor's Draft Framework.   On March 7, 2014 the Governor's  
            Office released a draft framework soliciting input on actions  
            that can be taken to assure local groundwater managers have  
            the tools and authority to sustainably manage groundwater.    
            The draft framework advises that in developing ideas it may be  
            helpful to consider whether local agencies need enhanced local  
            agency authority, and how the state should structure state  
            backstop authority when local action has not occurred or has  
            been insufficient. 
             
           
           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081