BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 617


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          ASSEMBLY THIRD READING


          AB  
          617 (Perea)


          As Amended  May 28, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                 |Noes                 |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Water           |14-0  |Levine, Bigelow,     |                     |
          |                |      |Dababneh, Dahle,     |                     |
          |                |      |Dodd, Beth Gaines,   |                     |
          |                |      |Cristina Garcia,     |                     |
          |                |      |Gomez, Harper,       |                     |
          |                |      |Lopez, Mathis,       |                     |
          |                |      |Medina, Rendon,      |                     |
          |                |      |Salas                |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Appropriations  |17-0  |Gomez, Bigelow,      |                     |
          |                |      |Bonta, Calderon,     |                     |
          |                |      |Chang, Daly, Eggman, |                     |
          |                |      |Gallagher,           |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |                |      |Eduardo Garcia,      |                     |
          |                |      |Gordon, Holden,      |                     |
          |                |      |Jones, Quirk,        |                     |
          |                |      |Rendon, Wagner,      |                     |
          |                |      |Weber, Wood          |                     |








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          |                |      |                     |                     |
          |                |      |                     |                     |
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          SUMMARY:  Modifies multiple portions of last year's Sustainable  
          Groundwater Management Act (SGMA).  Specifically, this bill: 


          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.  Instead, this bill,  
            modifies the prohibition when a local agency takes "a regulatory  
            action to control groundwater extractions," even if it occurs  
            before a GSP is adopted.  Makes other technical changes to the  
            scope of the prohibition.


          2)Merges "in lieu use" into the definition of groundwater recharge  
            such that a person who uses surface water that could otherwise  
            extract groundwater may be able to claim that a deferral of  
            groundwater pumping occurred that should count as recharge for  
            the purposes of SGMA, whether or not the action was part of a  
            GSP.


          3)Strikes all existing separate SGMA references to in lieu use.


          4)Allows a private mutual water company to:


             a)   Join GSAs formed by one or more public agencies pursuant  
               to a Joint Powers Agreement (JPA); 


             b)   Exercise the GSA power to include or exclude a water  
               corporation regulated by the Public Utilities Commission;








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             c)   Hold in common the GSA powers provided by SGMA in order  
               for the GSA to exercise those powers.


          5)Allows Groundwater Sustainability Agencies (GSAs) to enter into  
            public/private partnerships to facilitate the implementation of  
            GSPs or elements of GSPs.


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


          7)Allows the Department of Water Resources (DWR) to consider  
            whether a GSA has failed to meet SGMA requirements because it is  
            in litigation when determining whether or not to grant up to two  
            five-year extensions to the requirement to meet sustainability  
            within the 20 years,.


          8)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.


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


          10)Prohibits the State Water Board 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.










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          EXISTING LAW:  


          1)Allows a private mutual water company to join with a public  
            agency using a JPA, but limits the powers of the JPA to only  
            those already held in common by all of the parties.  


          2)Mandates that local public agencies meet all "government in the  
            sunshine" requirements including, but not limited to, making  
            decisions during public meetings, making records publicly  
            available, and disclosing conflicts of interest.


          3)Mandates that private mutual water companies meet limited  
            "government in the sunshine" requirements related to notices of  
            meetings, public agendas, public testimony and public access to  
            records.


          4)Requires DWR to evaluate groundwater basins and designate them  
            as high, medium, low or very low, according to various factors  
            including, but not limited to, level of dependence upon the  
            basin by municipal and agricultural users.


          5)Requires that local agencies in high- and medium-priority basins  
            or subbasins subject to SGMA form one or more GSAs by June 30,  
            2017.


          6)For basins or subbasins subject to SGMA, requires a GSP to fully  
            cover the basin or subbasin but allows multiple GSPs as long as  
            they do the following:


             a)   Cover the entire basin or subbasin.










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             b)   Adopt a single agreement that explains how multiple  
               planning efforts overlying the same groundwater resource will  
               be coordinated.


             c)   Agree upon and use the same data, methodologies, and  
               assumptions when developing their plans.


             d)   Submit the coordinated plans to DWR together by the  
               appropriate deadline.


          7)Requires that GSAs in basins with chronic overdraft develop and  
            adopt GSPs for their basin or subbasin by January 31, 2020 and  
            that GSAs in all other high and medium priority basins subject  
            to SGMA develop and adopt GSPs by January 31, 2022.


          8)Prohibits a pumper who increases pumping during the time the GSP  
            is under development from using that pumping increase as the  
            basis of an expanded claim to groundwater against other users'  
            rights.


          9)Requires that adopted GSPs utilize a 50-year planning horizon  
            that will achieve sustainability in a basin or subbasin within  
            20 years and include identified milestones at five-year  
            intervals.


          10)Defines groundwater recharge to mean augmentation of  
            groundwater, by natural or artificial means.


          11)Defines sustainable groundwater management in a GSP as avoiding  
            undesirable results in the basin or subbasin from groundwater  
            pumping such as significant and unreasonable:  lowering of  
            groundwater levels:  reduction of groundwater storage; seawater  








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            intrusion; degraded water quality; land subsidence; and,  
            depletions of interconnected surface waters.


          12)Provides GSAs with optional tools for reaching sustainability  
            including, but not limited to, the ability to conduct  
            investigations, collect fees, limit pumping, require measurement  
            and reporting of groundwater extractions, monitor compliance,  
            charge civil penalties for violations, and implement plans and  
            programs to recharge a basin or subbasin. 


          13)Requires state agencies to pay the same groundwater extraction  
            fees as local agencies but does not otherwise require state  
            agencies to comply with local GSPs.


          14)Authorizes the State Water Board to declare a basin in  
            probationary status and adopt an interim plan for a basin,  
            subbasin, or portion of a basin or subbasin if:  there is no GSA  
            formed by June 30, 2017; there is no GSP by the relevant  
            deadline; or, a submitted GSP is deemed inadequate by DWR and  
            the basin is in chronic overdraft or groundwater pumping is  
            causing a significant depletion of interconnected surface  
            waters.


          15)Requires the State Water Board to exempt "good actors" from  
            enforcement provisions and to model interim plans on good  
            actors' plans.


          16)Allows the State Water Board, in an area that has no GSA by  
            June 30, 2017, to require direct reporting of groundwater  
            extractions and to charge fees to administer that program. 


          17)Allows the State Water Board, when a basin is deemed  
            probationary, to charge fees for interim management and fines  








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            for enforcement, including fines for material misstatements in  
            reports of groundwater extraction or measurement. 


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, absorbable costs.


          COMMENTS:  This bill makes multiple changes to SGMA, a law which  
          took effect on January 1, 2015.  


          The author maintains that this bill clarifies and harmonizes  
          various SGMA provisions.  In addition, the author states that this  
          bill proposes to address some fundamental policy questions  
          including, but not limited to affects upon SGMA deadlines due to  
          litigation, CEQA application to GSA formation, whether state  
          agencies should comply with GSPs, and whether GSAs can enter into  
          public/private partnerships. 


          SGMA and its related statutory provisions were developed as a  
          three-bill package of legislation:  AB 1739 (Dickinson), Chapter  
          347, Statutes of 2014, SB 1168 (Pavley), Chapter 346, Statutes of  
          2014, and SB 1319 (Pavley), Chapter 348, Statutes of 2014.  This  
          bill language was the result of intensive stakeholder input and  
          involvement including, in addition to the policy committee  
          hearings in the Assembly and Senate, five  
          professionally-facilitated public meetings that included  
          representatives from Assembly Member Dickinson's office, Senator  
          Pavley's office, and Governor Jerry Brown's administration.


          The need for SGMA was also informed by two informational hearings,  
          one in the Assembly Water, Parks and Wildlife Committee and one in  
          the Senate Natural Resources and Water Committee.  During those  
          hearings it was revealed that while groundwater constitutes  
          approximately 40% of the overall water supply during times of  
          normal precipitation in California, during times of drought  








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          groundwater dependence can top 60% of the overall California water  
          supply.  The Legislative informational hearings on groundwater  
          also revealed that dropping groundwater levels were wreaking havoc  
          across an ever widening swath of farms and communities; land  
          subsidence was buckling infrastructure, cracking irrigation  
          canals, and depositing threatening levels of sediment into flood  
          control structures; streams were being dewatered, depriving both  
          senior water rights holders and wildlife of crucial surface flows;  
          and, coastal zones were suffering saline water intrusion.  In  
          addition, the lower the water tables fell the greater the cost to  
          drill new wells and pump water, for those that could afford to do  
          so in the first place.  Some poor communities with shallow wells  
          simply went dry.


          Supporters state this bill will allow GSAs to efficiently and  
          effectively implement SGMA.  Supporters add that this bill will  
          add much needed clarification to the timing and means by which the  
          State Water Board may declare a subbasin as being in probationary  
          status, and will help to harmonize key provisions of SGMA.  In  
          particular, supporters emphasize the importance of provisions in  
          this bill that:  1) establish a process for requesting state  
          agencies to comply with the same groundwater requirements as other  
          pumpers; 2) exempt GSA formations from CEQA; 3) authorize GSA's to  
          enter into public/private partnerships and for mutual water  
          companies to be members of GSA JPAs; and 4) include "in lieu"  
          recharge as part of groundwater recharge.  


          Opponents acknowledge the progress the author has made in certain  
          areas of this bill but state that this bill makes many substantive  
          and problematic changes to SGMA.  For example, opponents are  
          concerned with allowing local regulatory action to change the  
          tolling provision for prescriptive groundwater claims as this  
          could have the effect of allowing increased groundwater  
          withdrawals.  Opponents also state that deleting the problematic  
          definition of "in-lieu use" and folding it into the definition of  
          "groundwater recharge" would allow any user of surface water to  
          assert he is recharging groundwater.  Opponents maintain that only  








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          such activities that are part of an adopted GSP should count as  
          "in-lieu" use.  Opponents are also concerned with the ability of  
          mutual water companies to join GSAs using JPAs.  Opponents state  
          that mutual water companies are not subject to sufficient  
          transparency requirements and should be subject to the same  
          disclosure as public agencies for GSA activities.  Opponents also  
          reject allowing DWR to grant five-year extensions of the 20-year  
          sustainability goal based on litigation and are concerned with  
          this bill's CEQA exemption for agency formation.  


          In addition to this bill, there are several other measures  
          proposing changes to SGMA.  The most relevant is SB 13 (Pavley) of  
          the current legislative session.  As referenced above, Senator  
          Pavley is one of SGMA's authors and SB 13 is a SGMA cleanup bill.   
          Importantly, like this bill, SB 13 also addresses mutual water  
          company participation in a GSA but does so by stating that a water  
          corporation regulated by the Public Utilities Commission or a  
          mutual water company may participate in a GSA through a memorandum  
          of agreement or other legal agreement with the public water agency  
          members but that such agreement does not confer any additional  
          powers to a nongovernmental entity.




          Analysis Prepared by:                                               
                          Tina Leahy / W., P., & W. / (916) 319-2096  FN:  
          0000809


















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