BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1168
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          Date of Hearing:   August 28, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     SB 1168 (Pavley) As Amended: August 22, 2014

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

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

           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 and are experiencing  
          critical conditions of overdraft by January 31, 2020.  This bill  
          requires sustainable groundwater management plans for all other  
          medium or high priority basins by January 31, 2022 unless the  
          basin is legally adjudicated or the local agency establishes it  
          is otherwise sustainably managed.    Specifically, this bill: 

          1)Establishes it is the policy of the state that all groundwater  
            basins are sustainably managed in a manner best achieved  
            locally based on the best available science. 

          2)Requires the Department of Water Resources (DWR) to develop  
            regulations identifying required plan components, guiding the  
            coordination of multiple pans within a basin, and providing  
            for alternative compliance.  

          3)Requires local agencies to identify or form a groundwater  
            sustainability agency (GSA) by January 1, 2017.  Counties are  
            presumed to be the default agency if no other agency  
            identifies itself but may opt out.  Specifies the agency's  
            duties, powers and authorities.  Allows water corporations  
            regulated by the PUC to participate in the GSA if other  
            agencies approve.

          4)Makes various legislative findings and declarations.

          5)Provides the enactment of this bill is contingent upon the  
            enactment of AB 1739 (Dickinson) and SB 1319 (Pavley). 








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          FISCAL EFFECT

           Increased annual GF costs to DWR of approximately $4 million  
          beginning in FY 2019-20 to develop regulations, collect and  
          manage data, and complete evaluations.  

          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.

           



          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  
            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.   Groundwater 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.









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            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. 

           4)Related Legislation.   AB 1739 (Dickinson), among other  
            provisions, authorizes SWRCB 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.  This bill is currently pending in  
            the Assembly for concurrence in Senate amendments.  

             SB 1319 (Pavley), as proposed to be amended,  narrows the  
            provisions of AB 1739 to require SWRCB to exclude from  
            probationary status any portion of a basin for which a GSA  
            demonstrates compliance with the sustainability goal.    
            Proposed amendments also require SWRCB to include any portion  
            of a groundwater management plan in the interim management  
            plan if it complies with existing requirements and would help  
            meet the sustainability goal of the basin.   Lastly, the  
            proposed amendments delay when SWRCB may designate a basin on  
            probationary status when groundwater extractions result in  
            significant depletions of interconnected surface waters by  
            three additional years.  This bill will be heard in the  
            Assembly Appropriations Committee on August 28, 2014.

           5)Proposed Amendments.   The amendments proposed by the  
            committee make the enactment of this bill contingent upon the  
            enactment of SB 1319 (Pavley).  
           
           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081 








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