BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 617


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          617 (Perea)


          As Amended  September 4, 2015


          Majority vote


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          |ASSEMBLY:  | 77-1 | (June 2,      |SENATE: | 40-0 | (September 9,   |
          |           |      |2015)          |        |      |2015)            |
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          |           |      |               |        |      |                 |
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          Original Committee Reference:  W., P., & W.


          SUMMARY:  Modifies last year's Sustainable Groundwater  
          Management Act (SGMA) to incorporate groundwater planning into  
          regional planning, allow public-private partnerships, provide  
          recourse for Groundwater Sustainability Agencies (GSAs) if state  
          agencies are acting inconsistent to an adopted Groundwater  
          Sustainability Plan (GSP), add the Public Utilities Commission  
          (PUC) to the list of entities receiving notice, as specified,  
          and make other clarifying and technical changes.


          The Senate amendments:  


          1)Add groundwater planning under SGMA to the list of actions  
            that a regional water management group may choose to address  
            or incorporate into its integrated regional water management  
            planning.









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          2)Delete language that would have modified the period during  
            which additional groundwater pumping is prohibited from  
            creating new prescriptive groundwater rights.


          3)Delete the definition of in-lieu use as groundwater recharge  
            and instead define in-lieu use, separately, as the use of  
            surface water instead of groundwater in order to leave  
            groundwater in the basin.  


          4)Move, to a separate section, a provision allowing a GSA to  
            appeal to the State Water Resources Control Board (State Water  
            Board) if a state entity is not cooperating in the  
            implementation of the GSP.


          5)Clarify that a GSA may implement its GSP while awaiting  
            evaluation and assessment of the GSP by the Department of  
            Water Resources (DWR).


          6)Delete language allowing a mutual water company to join a GSA  
            using a Joint Powers Agreement.


          7)Delete language that provided a GSA with SGMA powers and  
            authorities upon adoption of a GSP even if that GSP had not  
            yet been submitted to DWR for review and reverts back to  
            current law, which requires both adoption and submission.


          8)Delete language that would have allowed DWR to extend the  
            deadline for achieving sustainable management from 20 years to  
            30 years if litigation prevented a plan or program from being  
            implemented.  


          9)Delete language that would have allowed multiple GSAs within  
            the same basin to use consistent data and methodologies and  
            instead reverts back to current law, which requires the same  








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            data and methodologies.


          10)Add the PUC to the list of entities that a GSA must notify  
            regarding how it is going to incorporate the participation of  
            interested parties in GSP development but only when the  
            geographic area covered by the GSP includes a PUC-regulated  
            public water system.  


          11)Delete language that would have exempted the formation or  
            election of GSAs from the California Environmental Quality Act  
            (CEQA).  Depending on how a GSA is formed, CEQA may or may not  
            apply under current law.


          12)Address chaptering issues with SB 13 (Pavley), Chapter 255,  
            Statutes of 2015.


          13)Make other technical conforming changes.


          EXISTING LAW:  


          1)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.


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


          3)Requires that GSAs in basins with chronic overdraft develop  
            and adopt GSPs for their basin or subbasin by January 31,  
            2020.










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          4)Requires that GSAs in all other high and medium priority  
            basins subject to SGMA develop and adopt GSPs by January 31,  
            2022.


          5)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.


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


          7)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. 


          8)Requires state agencies to pay the same groundwater extraction  
            fees as local agencies but does not otherwise subject  
            sovereign state agencies to local rule.


          9)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, under three  
            circumstances: if there is no GSA for all or a portion of a  
            basin or subbasin by June 30, 2017; there is no GSP for all or  
            a portion of a basin or subbasin by the relevant deadline; or,  
            a submitted GSP is deemed inadequate by DWR and is either in  
            chronic overdraft or groundwater pumping is causing a  
            significant depletion of interconnected surface waters.









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          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, there are unknown costs, likely in the mid-tens of  
          thousands of dollars per notice, to the Water Rights Fund  
          (special) for the State Water Board to investigate notices that  
          a state entity is not cooperating in the implementation of a  
          groundwater sustainability plan.


          COMMENTS:  SGMA and its related statutory provisions were  
          developed in 2014 as a three-bill package of legislation after  
          intensive stakeholder input and involvement, including public  
          meetings facilitated by Governor Jerry Brown's administration.   
          SGMA took effect on January 1, 2014.  Following SGMA's passage  
          it was recognized that there might need to be cleanup  
          legislation. Senator Pavley, one of the original authors of  
          SGMA, introduced SB 13 as legislation that would amend SGMA with  
          consensus technical changes. The author states that this bill  
          was introduced to amend SGMA to address some fundamental policy  
          questions.


          The author engaged in significant stakeholder discussions to  
          refine this bill as it moved through both the Assembly and the  
          Senate.  In addition, the author worked to remove any  
          duplication or conflict between this bill and SB 13.  This bill  
          now makes six primary changes to SGMA:


          1)Ensures that a regional water management group may coordinate  
            and incorporate SGMA planning in its regional water management  
            plan.


          2)Clarifies the definition of surface water use in lieu of  
            groundwater pumping.


          3)Authorizes GSAs to enter into public-private partnerships to  
            facilitate the implementation of GSPs.










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          4)Provides local agencies with a notice process and State Water  
            Board remedy if there is a state entity that is not  
            cooperating in the implementation of the GSP and that action  
            or inaction is compromising the ability of the GSA to  
            implement the GSP.


          5)Clarifies that GSAs don't have to wait for DWR to approve  
            their adopted GSPs before the GSPs can be implemented.  Under  
            the existing deadlines applicable to all GSPs there could be  
            many complex plans submitted at the same time.  Waiting for  
            all of the GSPs to be evaluated by DWR prior to implementation  
            could significantly affect attainment of the sustainability  
            goal in the 20 year time frame and leave the basin in  
            uncertainty.


          6)Requires GSA's to notify the PUC as to how they will  
            incorporate interested parties in the development of the GSP,  
            if the geographic area covered by the GSP includes a  
            PUC-regulated water system.  SGMA currently lists  
            PUC-regulated public water systems as interested parties.   
            Notifying the PUC as to how the GSA will consider and address  
            the interests of the public water system could help alert the  
            PUC if it needs to become involved with GSP development on  
            behalf of its regulated entity.  In addition, as the PUC must  
            approve any charges to customers of a public water system that  
            it regulates, early notice could prevent later obstacles to  
            financing and implementing the GSP.


          Following amendment of this bill on September 4, 2015, all  
          former opposition moved to neutral and there is now no known  
          opposition to this bill.


          Analysis Prepared by:                                             
                          Tina Leahy / W., P., & W. / (916) 319-2096  FN:  
          0002240











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