BILL ANALYSIS Ó AB 617 Page 1 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 | | AB 617 Page 2 | | | | | | | | | | ------------------------------------------------------------------- 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; AB 617 Page 3 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. AB 617 Page 4 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. AB 617 Page 5 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 AB 617 Page 6 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 AB 617 Page 7 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 AB 617 Page 8 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 AB 617 Page 9 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 AB 617 Page 10