BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1587


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          Date of Hearing:  April 12, 2016


                  ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE


                                 Marc Levine, Chair


          AB 1587  
          (Mathis) - As Amended March 15, 2016


          SUBJECT:  Groundwater


          SUMMARY:  Expands the ability in a drought or flood to extract  
          and recharge groundwater without oversight.  Appropriates $50  
          million of Proposition 1 funds for groundwater sustainability  
          plans and projects, and requires that special consideration be  
          given to recharge basins in areas of fallow farmland.  
          Specifically, this bill:  


          1)Makes findings and declarations about the increasing rate and  
            impact of subsidence around the state.  


          2)Prohibits a city or county in a Sustainable Groundwater  
            Management Act (SGMA) basin from limiting groundwater  
            extraction in a time of drought or flood, unless the state has  
            provided a safe, reliable, and permanent alternative source of  
            water.


          3)Eliminates the need for a permit to recharge groundwater in  
            times of drought or flood when there is no injury or effect on  
            beneficial uses of water.









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          4)Appropriates $50 million of Proposition 1 funds for  
            groundwater sustainability plans and projects, and requires  
            that special consideration be given to recharge basins in  
            areas of fallow farmland.


          EXISTING LAW:  


          1)Expresses the state's regulatory and supervisory authority  
            over all waters in the state, surface and underground, by  
            declaring that all waters in the state are property of the  
            people of the State, while recognizing that rights may be  
            acquired to the use of water.

          2)Establishes background principles that apply to all water  
            diversion and use, including the Constitutional prohibition  
            against waste, unreasonable use, unreasonable method of  
            diversion or unreasonable method of use.

          3)Requires the State Water Resources Control Board (State Water  
            Board) administer the water rights system to permit the  
            acquisition of water rights for beneficial use while  
            preventing harm to other lawful water users.  

          4)Establishes the Sustainable Groundwater Management Act (SGMA).  
             Among other things, SGMA requires that each high- and  
            medium-priority groundwater basins be managed pursuant to a  
            groundwater sustainability plan by January 31, 2020, if in  
            critical overdraft, or by January 31, 2022, with the goal of  
            achieving sustainability within 20 years.

          5)Requires the Department of Water Resources (DWR) to prioritize  
            California's groundwater basins in order to focus state  
            resources.  The basins are prioritized as either high, medium,  
            low, or very low based on a combination of factors including,  
            but not limited to, overlying population, level of dependence  
            for urban and agricultural water supplies, and impacts on the  








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            groundwater from overdraft, subsidence, saline water  
            intrusion, and water quality degradation.



          FISCAL EFFECT:  Unknown.


          COMMENTS:  Expands the ability in a drought or flood to extract  
          and recharge groundwater without oversight.


          1)Author's statement: Many areas of the state are  
            disproportionately impacted by the drought because they are  
            heavily dependent or completely reliant on groundwater.  A  
            critical number of these groundwater basins are in a state of  
            overdraft.  NASA and USDA estimate that more than 1 million  
            acres of farms and ranches in California have gone fallow due  
            to drought conditions.  This bill will provide an opportunity  
            to create "water farms" which will help people save their  
            farms and create additional water storage.


          2)Background: 


            Pumping in a time of Drought or Flood


            Subsidence is a significant and growing problem in the state.   
            In most parts of the state subsidence is typically caused by  
            depleting the groundwater table through groundwater pumping.   
            In times of drought when there is greater reliance on  
            groundwater because surface water is not available subsidence  
            can occur.  Often times when subsidence occurs the future  
            availability of groundwater basin to store water is diminished  
            permanently.     










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            One of the driving forces behind the passage of SGMA was the  
            need to combat subsidence and ensure that groundwater basins  
            were available for use into the future by requiring that they  
            are managed sustainably.  SGMA has laid out a long time frame  
            before a basin must be sustainable because it recognized that  
            long-term changes to long standing practices cannot happen  
            overnight.  


            In each SGMA basin defined as a high or medium priority basin  
            at least one Groundwater Sustainability Agency (GSA) must form  
            or the State Water Resources Control Board will become the  
            GSA.  It is not clear if a city or county will become a GSA,  
            but all GSA's will have to develop a Groundwater  
            Sustainability Plan (GSP).  It is not clear if a GSP will  
            restrict pumping in times of drought or flood, but over the  
            long term the GSP will dictate how groundwater is managed in  
            the basin.


            The committee may wish to consider if this bill would  
            undermine the ability of SGMA to provide for long-term  
            groundwater sustainability.


            Permits for Groundwater Recharge


            In November 2015 the Governor issued an Executive Order  
            directing the State Water Board to issue temporary permits  
            that enhance the ability for state or local agencies to  
            capture stormwater.  In December 2015 the State Water Board  
            adopted an emergency regulation that reduced the fees for  
            permits and exempted the permits from CEQA pursuant to the  
            Governor's Executive Order.  The State Water Board has  
            received and approved two temporary permits under this action.


            This bill would eliminate the need for a permit to divert  








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            water for groundwater recharge in times of flood or drought.   
            In doing so it would remove the oversight of the State Water  
            Board and replace that oversight with a prohibition on the  
            diverter causing injury to other lawful users or having an  
            unreasonable effect on other beneficial users.  It is the  
            State Water Board that is responsible for and has the  
            information to make an evaluation on the potential of a  
            diversion to cause injury or have an unreasonable effect.  It  
            is hard to envision an individual diverter who would have the  
            information necessary to make this kind of determination and  
            harder to see their incentive to make a determination that  
            would limit their ability to divert.    


            Funding for Groundwater Recharge


            Proposition 1 included $100 million for implementing  
            groundwater plans.  The 2015 budget appropriated all of those  
            funds for DWR to implement a competitive grant program.  DWR  
            is currently developing guidelines for these grant programs.   
            This bill would prioritize funding for recharge of basins in  
            areas of fallow farmland and appropriate $50 million of funds  
            that appear to have already been appropriated. 



            The State Water Board has an existing policy to prioritize the  
            issuance of water permits.  That policy includes prioritizing  
            projects of regional or statewide significance, and projects  
            designed to minimize or avoid impacts to the environment.


            The committee may wish to consider if prioritizing areas of  
            fallow farmland will undermine the existing policy.   
            Alternatively, the committee may wish to consider defining the  
            extent of fallow farmland for consideration in prioritization.  










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          3)Prior and Related Legislation:


               a)     The following pieces of legislation created the  
                 Sustainable Groundwater Management Act.


                                  AB 1739 (Dickinson), Chapter 347,  
                       Statutes of 2014
                                  SB 1168 (Pavely), Chapter 346, Statutes  
                       of 2014


                                  SB 1319(Pavely), Chapter 348, Statutes  
                       of 2014





               b)     AB 1471 (Rendon), Chapter 188, Statutes of 2014,  
                 placed Proposition 1, a $7.545 billion general obligation  
                 bond for water-related projects and programs on the  
                 November 4, 2014 ballot, where it passed with 67% of the  
                 vote.  


          1)Opposing Arguments: This bill makes a substantial and  
            inappropriate amendment to SGMA and reappropriates Proposition  
            1 funding that is intended to assist local agencies in the  
            implementation of the Act.  Moreover, it removes permitting  
            requirements for surface water diversions to groundwater  
            recharge.


            The proposal to revoke local authority could impair local  
            ability to sustainably manage the basin over time to achieve  
            sustainability, leading to state takeover of the basin.  While  
            we support groundwater recharge, particularly through the  








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            capture of flood flows, the State Water Board needs to make a  
            finding that the water is not already appropriated to a more  
            senior water rights holder.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          None on File




          Opposition


          Clean Water Action


          Community Water Center


          Leadership Counsel for Justice and Accountability


          Sierra Club California




          Analysis Prepared by:Ryan Ojakian / W., P., & W. / (916)  
          319-2096










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