BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 617


                                                                    Page  1





          Date of Hearing:  May 6, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          617 (Perea) - As Amended April 23, 2015


           ----------------------------------------------------------------- 
          |Policy       |Water, Parks and Wildlife      |Vote:|14 - 0       |
          |Committee:   |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
           ----------------------------------------------------------------- 


          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill makes numerous revisions to last year's Sustainable  
          Groundwater Management Act (SGMA).  Specifically, this bill: 










                                                                     AB 617


                                                                    Page  2





          1)Modifies the current SGMA prohibition against counting any  
            increase in groundwater pumping during the period that a  
            Groundwater Sustainability Plan (GSP) is under development as  
            the basis for a later groundwater claim. 


          2)Revises the definition of groundwater recharge to include in  
            lieu use (the use of surface water by persons that may  
            otherwise extract groundwater). 


          3)Allows a private mutual water company to join Groundwater  
            Sustainability Agencies (GSAs) formed by one or more public  
            agencies pursuant to a Joint Powers Agreement (JPA) and  
            exercise the GSA powers provided by SGMA.


          4)Allows GSAs to enter into public/private partnerships to  
            facilitate the implementation of GSPs.


          5)Creates a remedy for state agency noncompliance with the GSP  
            by allowing a GSA to file notice with the State Water  
            Resources Control Board (SWRCB) and authorizing SWRCB to  
            direct a state entity to cooperate.


          6)Modifies the requirement that multiple GSAs in the same  
            groundwater basin must utilize the same data and methodologies  
            and instead states that they must use consistent data and  
            methodologies.


          7)Specifies that the California Environmental Quality Act (CEQA)  
            does not apply to the formation or election of a GSA.


          8)Deletes the requirement for GSPs to coordinate so that the  
            entire basin is covered and instead allows coordinated  








                                                                     AB 617


                                                                    Page  3





            implementation among a subgroup or groups in a basin.


          9)Allows the Department of Water Resources (DWR) to consider  
            whether a GSA has failed to meet SGMA requirements because it  
            is in litigation when granting five-year extensions.


          10)Prohibits the SWRCB from placing any portion of a basin in  
            probationary status if there is an adopted GSP that is being  
            implemented in accordance with the sustainability goals.


          FISCAL EFFECT:


          Increased costs for DWR potentially in the millions of dollars  
          (GF or special fund) to investigate groundwater basins and  
          assist the State Water Resources Control Board (SWRCB) in the  
          determination of sustainable use.


          According to DWR, this bill eliminates the requirement to submit  
          a groundwater sustainability plan to DWR where a basin has  
          multiple plans and multiple entities.   DWR would likely have to  
          step in and provide the planning and data to SWRCB for  
          enforcement purposes.


          COMMENTS:


          1)Purpose.  According to the author, this bill clarifies and  
            harmonizes various SGMA provisions by addressing some  
            fundamental policy questions including, but not limited to,  
            the application of deadlines during litigation, the  
            application of CEQA to GSA formation, whether state agencies  
            should comply with GSPs, and whether GSAs can enter into  
            public/private partnerships. 








                                                                     AB 617


                                                                    Page  4







          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.

            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 is required 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)The Sustainable Groundwater Management Act (SGMA).  Last year,  
            AB 1739 (Dickinson, Chapter 347, Statutes of 2014) and SB 1168  
            (Pavley, Chapter 346, Statutes of 2014), established landmark  
            state policy and requirements for groundwater sustainability  
            and management. By January 31, 2020, SGMA requires groundwater  
            sustainability plans (GSPs) in all groundwater basins  
            experiencing critical conditions of overdraft that DWR  
            determines to be of medium or high priority.  SGMA requires  
            sustainable groundwater management plans for all other medium  
            or high priority basins by January 31, 2022, unless the basin  








                                                                     AB 617


                                                                    Page  5





            is legally adjudicated or the local agency establishes it is  
            otherwise sustainably managed.    

            SGMA 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.  Water corporations regulated by the PUC  
            are able to participate in the GSA if other agencies approve.

             4)   Related Legislation.  In addition to this bill, the  
               following 14 bills propose to modify SGMA and its related  
               statutes:

               a)     AB 452 (Bigelow) prohibits the SWRCB from using the  
                 revenue from water rights fees for SGMA enforcement.   
                 This bill failed in Assembly Water, Parks and Wildlife  
                 Committee.

               b)     AB 453 (Bigelow) allows an existing groundwater  
                 management plant to be amended prior to the adoption of  
                 GSP as required by SGMA.  This bill is pending in the  
                 Senate.



               c)     AB 454 (Bigelow) extends the deadline for forming a  
                 Groundwater Sustainability Agency from June 30, 2017 to  
                 June 30, 2016.  This bill also extends the compliance  
                 deadline for adopting a Groundwater Sustainability Plan  
                 from January 31, 2022, to January 31, 2023 and from  
                 January 31, 2025, to January 31, 2026, depending on the  
                 priority status and condition of the basin.   This  
                 two-year bill is pending in the Assembly Appropriations  
                 Committee.



               d)     AB 455 (Bigelow) requires the Judicial Council to  
                 adopt a rule of court by July1, 2016, to ensure CEQA  








                                                                     AB 617


                                                                    Page  6





                 challenges to SGMA projects are resolved within 9 months.  
                  Projects may proceed during the challenge period.  This  
                 bill is pending in the Water, Parks and Wildlife  
                 Committee.



               e)     AB 647 (Eggman) revises the definition of the  
                 beneficial use of water to include water stored in the  
                 ground as specified.  This bill is pending on the  
                 Assembly Floor.



               f)     AB 936 (Salas) expands state funding eligibility for  
                 groundwater projects and programs located in  
                 disadvantaged communities if the grants or loans are used  
                 to address noncompliance.  This bill is in the Assembly  
                 Appropriations Committee on suspense. 



               g)     AB 938 (Salas) clarifies all local agencies  
                 overlaying a groundwater basin that is reclassified by  
                 DWR as a basin subject to SGMA are entitled to additional  
                 time for compliance.  This bill is pending in the Senate.  


               h)     AB 939 (Salas) extends the time a groundwater  
                 sustainability agency is required to make the data  
                 supporting a proposed fee available to the public from 10  
                 to 20 days prior to the public meeting to consider  
                 adoption of the fee.  This bill is pending in the Senate.

               i)     AB 1242 (Gray) requires the SWRCB to implement  
                 mitigation measure for groundwater basins who increase  
                 groundwater pumping in response to a state regulatory  
                 action.  This bill is pending in the Assembly  
                 Appropriation Committee.








                                                                     AB 617


                                                                    Page  7








               j)     AB 1243 (Gray) requires 50% of the fines collected  
                 by SWRCB for SMGA violations are used to fund local  
                 groundwater recharge projects.  This bill is in the  
                 Assembly Water, Parks and Wildlife Committee.
          


               aa)    AB 1390 (Alejo) provides an expedited groundwater  
                 basin adjudication process in lieu of SGMA requirements.   
                  This bill is pending in the Assembly Appropriations  
                 Committee.



               bb)    SB 13 (Pavley) provides technical revisions to SGMA.  
                  This bill is in the Assembly.



               cc)    SB 226 (Pavley) adds a streamlined groundwater  
                 adjudication section to SGMA.  This bill is pending in  
                 the Senate Appropriations Committee.



               dd)    SB 487 (Nielsen) exempts SGMA projects from the  
                 California Environmental Quality Act (CEQA).  This bill  
          is in the Senate Environmental Quality Committee.
          
                 Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081













                                                                     AB 617


                                                                    Page  8