BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1739
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          ASSEMBLY THIRD READING
          AB 1739 (Dickinson)
          As Amended  April 22, 2014
          Majority Vote 

           WATER, PARKS & WILDLIFE    9-5  APPROPRIATIONS      12-5        
           
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          |Ayes:|Rendon, Bocanegra, Fong,  |Ayes:|Gatto, Bocanegra,         |
          |     |Frazier, Gatto, Gomez,    |     |Bradford,                 |
          |     |Gonzalez, Rodriguez,      |     |Ian Calderon, Campos,     |
          |     |Yamada                    |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Bigelow, Allen, Beth      |Nays:|Bigelow, Donnelly, Jones, |
          |     |Gaines, Gray, Patterson   |     |Linder, Wagner            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY :  Requires sustainable groundwater management in all  
          groundwater subbasins determined by the Department of Water  
          Resources (DWR) to be at medium to high risk of significant  
          economic, social and environmental impacts due to an  
          unsustainable and chronic pattern of groundwater extractions  
          exceeding the ability of the surface water supplies to replenish  
          the subbasin.  Specifically, this bill:  

          1)Requires, by January 1, 2020, that in each groundwater basin  
            identified by DWR as high or medium priority (Priority Basins)  
            under the California Statewide Groundwater Elevation  
            Monitoring Program (CASGEM) that an overlying groundwater  
            management agency (GMA) adopt a sustainable groundwater  
            management plan (SGMP) and update it every five years. 

          2)Requires that SGMPs for Priority Basins (which include both  
            basins and subbasins) must include, in addition to the minimum  
            current components for voluntary groundwater management plans  
            (GMPs), the following:

             a)   Sustainable groundwater management objectives, including  
               an analysis of demonstrating how the objectives will  
               achieve sustainable groundwater management within 20 years  
               of the implementation of the plan, and an identification of  








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               the parties responsible for achieving the objectives;

             b)   A minimum 50 year planning and implementation horizon;

             c)   Provisions for the annual submission of performance  
               reports; and,

             d)   Procedures for the regular submission of monitoring data  
               to DWR for CASGEM and locally to stakeholders.

          3)Exempts from SGMP requirements any groundwater basin, or  
            portion of a groundwater basin, that is subject to groundwater  
            management pursuant to other provisions of law or a court  
            order,  judgment, or decree.

          4)Requires SGMPs covering different portions of a groundwater  
            basin not to conflict or impede each other.




          5)Empowers a GMA to:

             a)   Incorporate other areas overlying the groundwater basin  
               that are not covered by another SGMP; 

             b)   Request an adjustment of a groundwater basin boundary to  
               address hydrologic conditions and other features and other  
               features based upon a technical analysis;

             c)   Enter into different types of legal agreements to  
               facilitate participation among entities;

             d)   Raise funds for the purposes of sustainable groundwater  
               management;

             e)   Regulate the pumping of groundwater;

             f)   Establish, assume, or cooperatively manage well  
               permitting programs; and,

             g)   Enforce the GMA's SGMP.

          6)Prohibits new extractions from the groundwater as of a  








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            not-yet-specified date, or the date adopted by the GMA,  
            whichever is earlier, unless the groundwater basin has a SGMP.  
             Excludes single-family domestic wells from that prohibition. 

          7)Allows money in the existing Local Groundwater Assistance  
            Fund, which is used for planning and implementation of GMPs to  
            also be used for SGMP planning and implementation.

          8)Allows Local Agency Formation Commissions to provide special  
            technical assistance and an expedited timeline to facilitation  
            the formation of local and regional GMAs.

          9)Requires cities and counties, upon the adoption or revision of  
            a general plan, to utilize GMPs and SGMPs as source documents.  


           EXISTING LAW  :

          1)Provides the State Water Resources Control Board (State Water  
            Board) with broad powers to regulate the waste and  
            unreasonable use of water, including groundwater.  But there  
            is no statewide permitting requirement for percolating  
            groundwater, which is the majority of groundwater.

          2)Encourages local agencies to work cooperatively to manage  
            groundwater resources within their jurisdictions and, if not  
            otherwise required by law, to voluntarily adopt GMPs.

          3)Requires that a GMP contain components related to funding,  
            management, and monitoring in order for a local agency to be  
            eligible for groundwater project funds administered by DWR.

          4)Requires, under CASGEM, that groundwater basins identified in  
            DWR's Groundwater Report, Bulletin 118, to be regularly and  
            systematically monitored locally and the information to be  
            readily and widely available.  Requires DWR 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.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee:









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          1)Increase costs to DWR in the range of $250,000 to $313,000 to  
            provide technical assistance and approve groundwater plans  
            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)Create unknown, potentially significant, reimbursable local  
            government costs.  

           COMMENTS  :  California uses more groundwater than any other State  
          in the Nation and yet there are no required statewide standards  
          for sustainable groundwater management. 

          On March 11, 2014 the Assembly Water, Parks & Wildlife Committee  
          held an informational hearing on Management of California's  
          Groundwater Resources. Discussions during that hearing  
          acknowledged that while some overdraft reverses temporarily  
          during wet periods there are areas of the State where pumping  
          over the long term exceeds recharge leading to declining  
          groundwater levels and adverse overdraft-related environmental,  
          social, or economic effects.  Examples of those effects can  
          include land subsidence that causes infrastructure to buckle and  
          impairs flood control, the drying up of shallow wells requiring  
          deeper and more expensive wells, including in communities that  
          can least afford them, and the leaching of surface water streams  
          thus impairing surface water rights and affecting ecosystems.  
          One DWR estimate pegged the current level of chronic long-term  
          overdraft at a rate of 1.5 million acre-feet per year.  However,  
          National Aeronautics and Space Administration satellite data  
          shows the rate may be closer to 4.4 million acre-feet per year  
          statewide.

          The California Water Action Plan, released by Governor Brown's  
          administration last December highlighted the need for better  
          groundwater management at the local level but also advised the  
          State Water Board, under its current authorities, could "act as  
          a backstop when local or regional agencies are unable or  
          unwilling to sustainably manage groundwater basins."  The  
          Governor's January budget then proposed $2.9 million to DWR to  
          collect and update groundwater data and $1.9 million and 10  
          positions for the State Water Board for the backstop.  The  








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          Governor's May revision of the budget includes an increase of  
          $2.5 million in General Fund and in 2014-15 and $5 million  
          annually for four additional years to support local groundwater  
          management efforts.  That was followed by the Governor's Office  
          releasing, on May 22, 2014 a 32-page proposal detailing a draft  
          statewide sustainable groundwater management program and  
          including suggested statutory language.  

          The Legislature is also moving forward with proposals to develop  
          a statutory framework for sustainable groundwater management.  
          This bill represents the Assembly's effort.  A parallel process  
          is occurring in the Senate through SB 1168 (Pavley) of the  
          current legislative session.  Both bills present initial  
          sustainable groundwater management concepts that will continue  
          to be developed, refined, and in some cases re-defined, with  
          extensive stakeholder involvement.  

          The author states that in many areas, including parts of the San  
          Joaquin Valley, overdraft of groundwater has become a serious  
          problem and while a number of groundwater basins and subbasins  
          are under sound local and regional management, others are not.   
          The author adds that while existing authorities and requirements  
          for managing groundwater provide a strong foundation, managing  
          to a sustainable level of groundwater requires additional tools  
          that build upon that foundation.  The author advises that this  
          bill seeks to address several critical policy objectives that  
          are central to improving local and regional groundwater  
          management efforts and achieving sustainable groundwater levels,  
          especially in high and medium risk overdraft basins and  
          subbasins.

           Analysis Prepared by :    Tina Cannon Leahy / W., P. & W. / (916)  
          319-2096                                               FN:  
          0003784