BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1168
                                                                  Page  1

          Date of Hearing:   August 13, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 1168 (Pavley) - As Amended:  August 6, 2014 

          Policy Committee:                             Water, Parks and  
          Wildlife     Vote:                            9-4

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

           SUMMARY  

          This bill requires sustainable groundwater management plans in  
          all groundwater basins the Department of Water Resources (DWR)  
          determines to be of medium or high priority.  This bill  
          establishes it is the policy of the state to sustainably manage  
          groundwater resources for long term water reliability and  
          multiple economic, social and environmental benefits for current  
          and future beneficial uses.  Specifically, this bill: 

          1)Requires the Department of Water Resources (DWR) to develop  
            guidelines for evaluating groundwater plans and programs by  
            June 1, 2016.  

          2)Requires local agencies to identify or form a groundwater  
            sustainability agency by January 1, 2017.  Counties are  
            presumed to be the default agency if no other agency  
            identifies itself.  Specifies the agency's duties, powers and  
            authorities.

          3)Requires a groundwater sustainability agency to adopt a  
            sustainable groundwater management plan on or before January  
            1, 2020 as specified and update the plan every five years.  A  
            basin's boundaries are those identified in Bulletin 118 unless  
            otherwise specified.

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

          5)Requires each high and medium priority basin to achieve its  
            goals by January 1, 2040.  DWR may grant two five-year  
            extensions.








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          6)Requires a city or county to review and consider any adopted  
            sustainable groundwater management plan before adopting or  
            substantially amending its general plan.

          7)Authorizes the State Water Resources Control Board to  
            designate a basin as a probationary basin under specified  
            circumstances and to develop an interim management plan in  
            consultation with DWR under specified conditions.

          8)Expressly exempts adjudicated basins and low and very low  
            priority basins as specified.  Allows local agencies in high  
            and medium priority groundwater basins to demonstrate current  
            management or operations comply with the provisions of the  
            bill as functional equivalents.

           


          FISCAL EFFECT

              1)   Increased annual GF costs to DWR of approximately $4  
               million beginning in FY 2019-20 to collect and manage data,  
               complete evaluations and assist SWRCB in developing interim  
               plans.  

            DWR received $22.5 million in the 2014-15 Budget ($2.5 million  
            for FY14-15 and $5 million each year from FY15-16 through  
            FY18-19 which will fund Bulletin 118 updates and technical  
            assistance.

             2)   Increased annual GF costs of between $200,000 and  
               $600,000 for two years for SWRCB to adopt a fee schedule  
               and develop evaluations guidelines.  Increased out-year  
               costs of between $1 million and $2.5 million (special fund)  
               including state interim plans to be covered by fee  
               revenues.

          1)Minor, if any, reimbursable local government costs.  

           COMMENTS  

           1)Purpose.   According to the author, in many areas of the state,  
            the overdraft of groundwater has become a serious problem.   
            While a number of groundwater basins and subbasins are under  








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            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 priority 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,  
            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. 

            In addition to the funding provided in the budget, the  
            Administration supports this bill moving forward.









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           4)Other Legislation.   AB 1739 (Dickinson) is identical to this  
            bill and is currently pending in the Senate Appropriations  
            Committee.  

          5)Authors Amendments.   The author has agreed to take amendments  
            to exempt groundwater basins that are sustainably managed  
            through contractual agreements.  
           
           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081