BILL ANALYSIS                                                                                                                                                                                                    �





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2013-2014 Regular Session                    |
          |                                                                 |
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          BILL NO: AB 2453                   HEARING DATE: June 24, 2014
          AUTHOR: Achadjian                  URGENCY: No
          VERSION: March 28, 2014            CONSULTANT: Dennis O'Connor
          DUAL REFERRAL: No                  FISCAL: No
          SUBJECT: Paso Robles Basin Water District.
          
          BACKGROUND AND EXISTING LAW
           Paso Robles Area Subbasin.
           The Paso Robles Area Subbasin is located in northern San Luis  
          Obispo County and southern Monterey County.  According to the  
          Department of Water Resources, it is a subbasin of the Salinas  
          Valley Groundwater Basin. 

          The subbasin supplies water for 29 percent of the County's  
          population and an estimated 40 percent of the agricultural  
          production of the County. The municipal and industrial (M&I),  
          domestic, and agricultural demands in the Basin currently rely  
          exclusively on groundwater (including the underflow of streams).  
          The M&I water demands include the cities of Paso Robles and  
          Atascadero, the communities of Templeton, Shandon, Creston, San  
          Miguel, Bradley, Camp Roberts, and the small community systems  
          in Whitley Gardens and Garden Farms. Individual domestic  
          groundwater users and isolated subdivisions are located  
          throughout the Basin, often in the more rural areas dispersed  
          among the agricultural areas. Agricultural water users  
          constitute an estimated 67 percent of the pumpage in the Basin  
          and are concentrated on the alluvial valleys of the streams and  
          rivers and along the Highway 46 corridor.

           Groundwater Management.  
          California does not currently require active management of  
          groundwater on a statewide basis.  In 1992 the legislature  
          passed and the governor signed AB 3030 (Costa).  That bill  
          provided a mechanism for local agencies to voluntarily create  
          Groundwater Management Plans (GMP), also known as AB 3030 plans.  
           Those statutes were later amended by SB 1938 (Machado) to  
          require any public agency seeking State funds administered  
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          through DWR for the construction of any groundwater projects or  
          groundwater quality projects to prepare and implement a GMP with  
          certain specified components. New requirements included  
          establishing Basin Management Objectives, preparing a plan to  
          involve other local agencies in a cooperative planning effort,  
          and adopting monitoring protocols that promote efficient and  
          effective groundwater management.  

          A local agency that adopts a groundwater management plan under  
          the provisions of AB 3030 (as amended) has the authority of a  
          water replenishment district, including the authority to fix and  
          collect fees and assessments for groundwater management.   
          However it appears that no agency with an AB 3030 plan has opted  
          to use those replenishment district authorities.

          In 2011, the San Luis Obispo County Flood Control and Water  
          Conservation District (District) and the City of Paso Robles  
          completed developing a groundwater management plan, funded in  
          part by state grants, that appears to meet the SB 1938  
          standards.

          Groundwater management is also achieved through local  
          groundwater ordinances. Ordinances are laws adopted by local  
          agencies such as cities or counties. More than twenty counties  
          have adopted groundwater ordinances, and others are being  
          considered. The authority of counties to regulate groundwater  
          has been challenged, but in 1995 the California Supreme Court  
          declined to review a lower court decision (Baldwin vs. Tehama  
          County) that holds that state law does not occupy the field of  
          groundwater management and does not prevent cities and counties  
          from adopting ordinances to manage groundwater under their  
          police powers. However, the precise nature and extent of the  
          police power of cities and counties to regulate groundwater is  
          uncertain. 

          On February 25th 2014, the County of San Luis Obispo Board of  
          Supervisors approved a resolution adopting the New Development  
          Water Conservation Program. The program implements the Paso  
          Robles Groundwater Basin Urgency Ordinance (Ordinance No.3246),  
          which requires all new development in the Paso Robles  
          Groundwater Basin Area to offset new water use through  
          verifiable evidence or participation in an Approved County Water  
          Conservation Program.

          More than 20 types of local agencies are authorized by statute  
          to provide water for various beneficial purposes. Many of these  
          agencies also have statutory authority to institute some form of  
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          groundwater management. Most of these agencies are identified in  
          the Water Code, but their specific authority related to  
          groundwater management varies.  Local agencies with authority to  
          deliver water for beneficial uses and may have authority to  
          institute some groundwater management include:

          Community Services District
          County Sanitation District
          County Service Area
          County Water Authority
          County Water District
          County Water Works District
          Flood Control & Water Conservation District
          Irrigation District
          Metropolitan Water District
          Municipal Utility District
          Municipal Water District
          Public Utility District
          Reclamation District
          Recreation and Park District
          Resort Improvement District
          Resource Conservation District
          Water Conservation District
          Water District
          Water Replenishment District
          Water Storage District

          The San Luis Obispo County Flood Control and Water Conservation  
          District has, to date, taken the lead on groundwater management  
          efforts in the County.

          Greater authority to manage groundwater has been granted to a  
          small number of local agencies or districts created through a  
          special act of the Legislature. Currently, 13 local agencies  
          have specific groundwater management authority as a result of  
          the creation of special act districts. The specific authority of  
          each agency varies, but they can generally be grouped into two  
          general categories: 1) the agency has authority to limit export  
          and extraction (upon evidence of overdraft or threat of  
          overdraft) or 2) the agency does not have authority to limit  
          extraction but the users in the basin are required to report  
          extractions to the agency (who can levy fees from groundwater  
          management or water supply replenishment).

           Change in Groundwater Levels.
           Groundwater levels in the western portion of the Paso Robles  
          Area Subbasin have declined in excess of 70 feet since 1997  
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          during a period when precipitation was just slightly less than  
          the long-term average annual precipitation.  The area with the  
          greatest change in groundwater elevation is near where highway  
          46 enters the City of Paso Robles, and has been shown to have  
          the greatest and most consistent decline of water levels since  
          1980. While there is no perennial yield estimate for this area,  
          the sustained groundwater level decline represents a stressing  
          of the groundwater resource and has resulted in water quality  
          problems or has required wells to be deepened.

          PROPOSED LAW
          This bill would authorize, under the California Water District  
          Law, the governing board structure and powers of the Paso Robles  
          Basin Water District in San Luis Obispo County, with the  
          district's boundaries to be established by the San Luis Obispo  
          County Local Agency Formation Commission.

          The bill would authorize the Paso Robles Basin Water District to  
          exercise the authorities provide under AB 3030 (as amended) and  
          declares that the creation of the district shall not modify the  
          powers of the County of San Luis Obispo or the San Luis Obispo  
          County Flood and Water Conservation District.

          The bill would also establish the governing and voting structure  
          for the district.

          ARGUMENTS IN SUPPORT
          According to the Paso Robles Agricultural Alliance for  
          Groundwater Solutions (PRAAGS) and the California Association of  
          Winegrape Growers (CAWG), "The latest update to the county's  
          Paso Robles Groundwater Basin Model indicates groundwater has  
          been in decline for a number of years.  A conventional  
          California Water District model, among others, was considered  
          and found not to meet the diverse needs of the various local  
          interests."

          "AB 2453 proposes to create a unique governing structure for the  
          Paso Robles Basin Water District should it be established by the  
          San Luis Obispo County Local Agency Formation Commission.  The  
          governance structure propose in the measure is a nine-member  
          board of directors, comprised of three at-large members elected  
          by registered voters in the district and six members elected on  
          the basis of acreage - two each from small, medium, and large  
          landowners, respectively."

          ARGUMENTS IN OPPOSITION
          A coalition of environmental organizations write, "While we  
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          support local management of groundwater supply, the candidate  
          qualification and voting process to form and determine Paso  
          Robles Basin Water District directors proposed in AB 2453 are  
          unfair to local residents who do not own large acreage of land.  
          As written, AB 2453 incorporates an acreage-based voting model  
          to form and elect 6 out of the 9 water district directors and  
          requires that those running for the position of director be  
          landowners themselves. There would be nine directors elected to  
          the board: two elected by large landowners, two elected by  
          medium landowners, two elected by small landowners, and three  
          members at large elected by all registered voters. The vote to  
          decide whether or not to form this type of water district is  
          strictly acreage-based. This type of voting system and  
          landownership requirements for water district directors will  
          send a signal to local residents that their votes and opinions  
          do not have the same weight as their neighbors who own land or  
          more land. We would like to see a system where residents are  
          treated equally regardless of the amount of lands owned. This  
          could be done by putting in place a one-voter-one-vote system  
          and removing the landownership requirement for eligibility to be  
          a director."



          COMMENTS 
           Most of the Debate is Outside Our Jurisdiction.   Most of the  
          debate on this bill has been regarding the election process for  
          the board and the membership of the board - issues not in our  
          jurisdiction.  Our focus is on whether or not the district would  
          have sufficient powers and authorities to manage its share of  
          the groundwater subbasin.  The Senate Committee on Governance  
          and Finance, which heard this bill on June 18, 2014, addressed  
          the election process and membership of the board.

           Actions in Previous Committees.   The Senate Governance and  
          Finance Committee heard AB 2453 on June 18.  The committee  
          analysis and the ensuing debate in committee focused largely on  
          the issues of the election process for the board and the  
          membership of the board.  The bill passed out of committee 6-0,  
          with a commitment from the author to take amendments on the  
          governance components of the bill in the Senate Natural  
          Resources and Water Committee.  The amendments do the following:
           Specify that three members of the district's governing board  
            who are to be elected at large, on a one-voter/one-vote basis,  
            to be elected from among all eligible voters from within the  
            district.  
           Specify that the formation process used to establish the Paso  
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            Robles Basin Water District, including both the petition and  
            election, shall be done on a one-landowner/one-vote basis and  
            not weighted voting based on property holdings. 
           Address technical amendments raised in the Governance and  
            Finance Committee's analysis.

           What About Managing The Subbasin?   Very few letters addressed  
          issues regarding the powers and authorities necessary to manage  
          the groundwater subbasin.  Those that did tended to oppose the  
          bill and argued that one of the reasons the bill was unnecessary  
          was because there had already been much work towards groundwater  
          management, and that existing institutions were sufficient.

           What Management Powers Would It Have?   The bill proposes to  
          organize the district under the California Water Districts Act.   
          That Act allows districts, subject to LAFCo authorization, to  
          have fairly broad powers for the acquisition and distribution of  
          water.  However, none of those powers are specific to managing  
          groundwater.

          This bill proposes to address the lack of groundwater specific  
          authorities by granting the district the authority afforded to  
          local agencies as provided in the AB 3030 statutes, as those  
          statutes may be amended.  The AB 3030 statutes are focused  
          largely on the development and implementation of AB 3030 plans.   
          As noted above, an agency that complies with those statutes,  
          which would include developing its own groundwater management  
          plan, would also have the authority of a water replenishment  
          district, including the authority to fix and collect fees and  
          assessments for groundwater management.  However, replenishment  
          districts are largely focused on acquiring water and recharging  
          the subbasin.  It is not clear whether or not the ultimate  
          solution to the Paso Robles Area Subbasin is to recharge the  
          subbasin with imported water.

           Must LAFCo Accept All Powers Granted Under AB 3030?   As noted in  
          the Senate Governance and Finance Committee analysis of this  
          bill, "AB 2453 specifies that, if formed under the California  
          Water District Code principal act, the Paso Robles Basin Water  
          District would have the authorities specified [through AB 3030].  
           The language in the bill suggests that the district also would  
          have the authorities authorized under the principal act, which  
          would be subject to LAFCO review.  In effect, the district would  
          be subject to LAFCO review for some powers, but not those  
          granted statutorily by the bill.  The Committee may wish to  
          clarify that if formed, the district's authority granted under  
          AB 2453 also would be subject to LAFCO review."  See Amendment  
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          1.

           What Powers Do Other Groundwater Management Agencies Have?   As  
          noted above, the Legislature has created 13 special act  
          districts, with powers and authorities specifically designed for  
          groundwater management agencies.  For example, the Fox Canyon  
          Groundwater Management Agency Act grants that agency authorities  
          such as (not an exhaustive list):
           Collect data and conduct technical and other investigations of  
            all kinds in order to carry out the provisions of this act. 
           Recommend and encourage waste water reuse and other water  
            development projects.
           By ordinance, exercise any of the following powers:
                 Require conservation practices and measures within the  
               affected portion of its territory.
                 Control groundwater extractions by regulating, limiting,  
               or suspending extractions from extraction facilities, the  
               construction of new extraction facilities, the enlarging of  
               existing extraction facilities, and the reactivation of  
               abandoned extraction facilities.
                 Commence and prosecute legal actions to enjoin  
               unreasonable uses or methods of use of water-within the  
               agency or outside the territory of the agency to the extent  
               those uses or methods of use adversely affect the  
               groundwater supply within the agency.
                 Impose spacing requirements on new extraction facility  
               construction to minimize well interference.
                 Impose reasonable operating regulations on extraction  
               facilities to minimize well interference, including  
               requiring pumpers to operate on a rotation basis.
           By ordinance, require extraction facilities to be registered  
            with the agency within 30 days of notice being given to the  
            operator of the extraction facility.
           By ordinance, require that the operator of a registered  
            extraction facility provide the agency annually with the  
            following information regarding the extraction facility:
                 The name and address of the operator of the extraction  
               facility.
                 The name and address of the owner of the land upon which  
               the extraction facility is located.
                 A description of the equipment associated with the  
               extraction facility.
                 The location of the water extraction facility.
           By ordinance, require extraction facilities to be equipped  
            with waterflow measuring devices installed and calibrated by  
            the agency or, at the agency's option, by the extraction  
            facility operator.
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          The committee may wish to allow the local LAFCo, when  
          establishing the Paso Robles Basin Water District, to also  
          incorporate any powers and authorities granted to the Fox Canyon  
          Groundwater Management Agency Act that the LAFCo deems  
          appropriate. See Amendment 2.

          SUGGESTED AMENDMENTS 

               AMENDMENT 1:  Clarify that if formed, the district's  
               authority granted under AB 3030 also would be subject to  
               LAFCO review.

               AMENDMENT 2:  Allow the local LAFCo, when establishing the  
               Paso Robles Basin Water District, to also incorporate any  
               powers and authorities granted to the Fox Canyon  
               Groundwater Management Agency Act that the LAFCo deems  
               appropriate.



          SUPPORT
          California Association of Winegrape Growers
          City of El Paso de Robles
          Family Winemakers of California
          Frank. R. Mecham, Supervisor, San Luis Obispo County
          Mesa Vinyard Management Inc.
          Paso Robles Agricultural Alliance for Groundwater Solutions  
          (PRAAGS) 
          Paso Robles Groundwater Basin Blue Ribbon Commission
          Pro Water Equity
          Road Runner Farm
          San Luis Obispo County Board of Supervisors
          Vino Farms, LLC
          Wine Institute
          Individuals (86)

          OPPOSITION
          Debbie Arnold, Supervisor, San Luis Obispo County
          California Coastal Protection Network
          California Labor Federation
          California Rural Legal Assistance Foundation
          California Teamsters Public Affairs Council
          California Water Impact Network
          Center for biological diversity
          Clean Water Action California
          Community Water Center
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          Defenders of Wildlife
          Desal Response Group
          Food & Water Watch
          Moonrise Ranch
          North Country Water
          Planning and Conservation League
          San Luis Obispo County Cattlemen's Association
          Sierra Club California
          Southern California Watershed Alliance
          United Farm Workers
          Individuals (54)




































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