BILL ANALYSIS Ó SENATE COMMITTEE ON NATURAL RESOURCES AND WATER Senator Fran Pavley, Chair 2015 - 2016 Regular Bill No: SB 1262 Hearing Date: March 29, 2016 ----------------------------------------------------------------- |Author: |Pavley | | | ----------------------------------------------------------------- ----------------------------------------------------------------- |Version: |February 18, 2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Dennis O'Connor | | | | ----------------------------------------------------------------- Subject: Water supply planning BACKGROUND AND EXISTING LAW California has a number of interconnecting laws that together attempt to ensure that water supply availability is given proper consideration when making land use decisions, and increasingly vice versa. 1.Under California's Planning and Zoning Law: Before a city or county adopts or substantially amends a general plan, the planning agency must refer the proposed action to a number of entities, including: A public water system with 3,000 or more service connections that serves water to customers within the area covered by the proposal. The public water system shall have at least 45 days to comment on the proposed plan, in accordance with subdivision (b), and to provide the planning agency with the information set forth in Section 65352.5. Any groundwater sustainability agency (GSA) that has adopted a groundwater sustainability plan (GSP) under the Sustainable Groundwater Management Act (SGMA) or local agency that otherwise manages groundwater pursuant to other provisions of law or a court order, judgment, or decree within the planning area of the proposed general plan. SB 1262 (Pavley) Page 2 of ? The State Water Resources Control Board (SWRCB), if it has adopted an interim plan pursuant to Chapter 11 (commencing with Section 10735) of Part 2.74 of Division 6 of the Water Code that includes territory within the planning area of the proposed general plan. Upon receipt of such a proposed action: A public water system is to provide the planning agency with information relevant to determining the adequacy of existing and planned future water supplies to meet existing and planned future demands on these water supplies, including such things as: o The current version of its urban water management plan (UWMP). o The current version of its capital improvement program or plan. o A description of the source or sources of the total water supply currently available to the water supplier by water right or contract, taking into account historical data concerning wet, normal, and dry runoff years. o A description of all proposed additional sources of water supplies for the water supplier. A GSA is to provide the planning agency with a report on the anticipated effect of the proposed action on implementation of a groundwater sustainability plan, along with a GSP or alternative plan, and information regarding any adjudication of groundwater rights in the basin. The SWRCB is not required to provide any information. 1.Under what are often called California's "Show Me the Water Bills" [aka SBs 610 & 221, (Ch.s 643 & 642, Stat. 2001)]: a. A project is defined, generally, as: A residential development of 500 or more units, or a project that would demand an equivalent amount of water as a 500 unit residential development. If a public water system that would serve the project has fewer than 5,000 service connections, then a project means a proposed development that would account for an increase of 10 percent or more of the number of the public water system's existing service connections. SB 1262 (Pavley) Page 3 of ? a. A city or county, at the time that it determines that a project is subject to the California Environmental Quality Act (CEQA), must identify any water system that that may supply water for the project. (This is typically at the time of a general plan amendment.) If the city or county is not able to identify any public water system that may supply water for the project, the city or county must prepare a water assessment after consulting with any entity serving domestic water supplies whose service area includes the project site, the local agency formation commission, and any public water system adjacent to the project site. b. The city or county, at the time it determines a project is subject to CEQA, must ask each and any of the public water system identified (above) to determine whether the projected water demand associated with a proposed project was included as part of the most recently adopted UWMP. If the projected water demand was accounted for in the most recently adopted UWMP, the public water system may incorporate information from the UWMP in preparing the elements of a water supply assessment (described below). If the projected water demand was not accounted for in the most recently adopted UWMP, or the public water system has no UWMP, the water supply assessment is required to include a discussion regarding whether the public water system's total projected water supplies available during normal, single dry, and multiple dry water years during a 20-year projection will meet the projected water demand associated with the proposed project, in addition to the public water system's existing and planned future uses. If the city or county must prepare the water assessment, the water supply assessment for the project must include a discussion regarding whether the total projected water supplies, determined to be available by the city or county for the project during normal, single dry, and multiple dry water years during a 20-year projection, will meet the projected water demand associated with the proposed project, in addition to existing and planned future uses, including agricultural SB 1262 (Pavley) Page 4 of ? and manufacturing uses. a. The water supply assessment must identify any existing water supply entitlements, water rights, or water service contracts relevant to the identified water supply for the proposed project, and describe the quantities of water received in prior years by the public water system, or the city or county, under the existing water supply entitlements, water rights, or water service contracts. b. If a water supply for a proposed project includes groundwater, the following additional information must be included in the water supply assessment: A review of any information contained in the UWMP relevant to the identified water supply for the proposed project. A description of any groundwater basin or basins from which the proposed project will be supplied. For those basins for which a court or the board has adjudicated the rights to pump groundwater, the assessment must include a copy of the order or decree adopted by the court or the board and a description of the amount of groundwater the public water system, or the city or county, has the legal right to pump under the order or decree. For basins that have not been adjudicated, the assessment must include information regarding whether DWR has identified the basin or basins as overdrafted or has projected that the basin will become overdrafted if present management conditions continue and a detailed description by the public water system, or the city or county, of the efforts being undertaken in the basin or basins to eliminate the long-term overdraft condition. A detailed description and analysis of the amount and location of groundwater pumped by the public water system, or the city or county, for the past five years from any groundwater basin from which the proposed project will be supplied. The description and analysis shall be based on information that is reasonably available, including, but not limited to, historic use records. If the city or county was unable to identify a public water service that may provide water to the project, a detailed description and analysis of the SB 1262 (Pavley) Page 5 of ? amount and location of groundwater that is projected to be pumped by the public water system, or the city or county. The description and analysis shall be based on information that is reasonably available, including, but not limited to, historic use records. An analysis of the sufficiency of the groundwater from the basin or basins from which the proposed project will be supplied to meet the projected water demand associated with the proposed project. a. When the project proponent submits a tentative map for approval by the city or county, the city or county must include as a condition in any tentative map that includes a subdivision a requirement that a "sufficient water supply" shall be available. Proof of the availability of a sufficient water supply must be requested by the subdivision applicant or local agency, and shall be based on written verification from the applicable public water system. "Sufficient water supply" means the total water supplies available during normal, single-dry, and multiple-dry years within a 20-year projection that will meet the projected demand associated with the proposed subdivision, in addition to existing and planned future uses, including, but not limited to, agricultural and industrial uses. In determining "sufficient water supply," all of the following factors shall be considered: o The availability of water supplies over a historical record of at least 20 years. o The applicability of an urban water shortage contingency analysis that includes actions to be undertaken by the public water system in response to water supply shortages. o The reduction in water supply allocated to a specific water use sector under a water shortage emergency. o The amount of water that the water supplier can reasonably rely on receiving from other water supply projects, such as conjunctive use, reclaimed water, water conservation, and water transfer, including programs identified under federal, state, and local water initiatives. The applicable public water system's written SB 1262 (Pavley) Page 6 of ? verification of its ability or inability to provide a sufficient water supply that will meet the projected demand associated with the proposed subdivision must be supported by substantial evidence. The substantial evidence may include, but is not limited to, any of the following: o The public water system's most recently adopted UWMP. o A water supply assessment that was completed pursuant to Part 2.10 (commencing with Section 10910) of Division 6 of the Water Code. o Other information relating to the sufficiency of the water supply that contains analytical information that is substantially similar to the water service reliability assessment required by the Urban Water Management Planning Act. Where a water supply for a proposed subdivision includes groundwater, the public water system serving the proposed subdivision shall evaluate, based on substantial evidence, the extent to which it or the landowner has the right to extract the additional groundwater needed to supply the proposed subdivision. 1.Under CEQA, whenever a city or county determines that a project, as defined under the "Show Me the Water Bills," is subject to CEQA, it must comply with the water supply assessment requirements of the "Show Me the Water Bills," triggered by that determination. 2.Under the Sustainable Groundwater Management Act (SGMA): A GSP must take into account the most recent planning assumptions stated in local general plans of jurisdictions overlying the basin. A GSP must include, among other things, a description of the consideration given to the applicable county and city general plans and a description of the various adopted water resources-related plans and programs within the basin and an assessment of how the groundwater sustainability plan may affect those plans. Before initiating the development of a GSP, the GSA must make available to the public and the Department of Water SB 1262 (Pavley) Page 7 of ? Resources (DWR) a written statement describing the manner in which interested parties may participate in the development and implementation of the groundwater sustainability plan. Additionally, the GSA must provide the written statement to the legislative body of any city, county, or city and county located within the geographic area to be covered by the plan. PROPOSED LAW This bill would: 1.Amend the requirements for a water supply assessment triggered by a city or county determination that a project is subject CEQA as follows: a. Changes the procedures for when a water system is not identified by a city or county or none of the identified water systems are willing to supply the water, to the following: Requires the city or county to prepare a technical report that includes all of the following: o The name of each public water system that has a service area boundary within five miles of any boundary of the applicant's proposed service area. o An analysis of the feasibility of a water system annexing, connecting, or otherwise supplying domestic water to the project. o An analysis of the long-term feasibility of creating a new water system to serve the project, including, but not limited to, projecting the capacity of anticipated ratepayers to sustain a water system if there is the potential that water treatment will be required in the foreseeable future. o A description of all actions taken by the city or county to secure a supply of domestic water from an existing public water system for the project. o A description of all actions taken by the project proponent to pursue a contract for managerial or operational oversight from an existing public water system. If the city or county concludes, based on the SB 1262 (Pavley) Page 8 of ? technical report, that it is feasible for a water system to provide water to the project, the city or county shall submit their technical report to the local agency formation commission with jurisdiction over the project. If the local agency formation commission (LAFCo) declines to approve an annexation or extension of service, the city or county shall develop a water supply assessment for the project that includes a discussion on whether the total projected water supplies, determined to be available by the city or county for the project during normal, single dry, or multiple dry water years during a 20-year projection, will meet the projected water demand associated with the proposed project, in addition to existing and planned future uses, including agricultural and manufacturing uses. a. Changes the information requirements for when a water supply for a proposed project includes groundwater from a non-adjudicated basin to the following: For a basin that has not been adjudicated and is designated as high- or medium-priority under SGMA, information regarding the following: o Whether DWR has identified the basin as being subject to critical conditions of overdraft. o Whether the SWRCB has designated the basin as a probationary basin. o If a GSA has adopted a GSP or submitted an alternative plan, a copy of that plan. For a basin that has not been adjudicated and is designated as low- or very-low priority pursuant SIGMA, Information regarding: o Whether DWR has identified the basin or basins as overdrafted or has projected that the basin will become overdrafted if present management conditions continue; and if so, o A detailed description by the public water system, or the city or of the efforts being undertaken in the basin or basins to eliminate the long-term overdraft condition. a. Prohibits the following from being considered a source of water: Hauled water. Groundwater from a basin designated by the board as SB 1262 (Pavley) Page 9 of ? a probationary basin under SGMA. a. Adds a requirement to the water supply assessment that if a water supply for a proposed project includes water of a quality not sufficient to meet all primary and secondary drinking water standards, the following additional information needs to also be included: A detailed description of the concentration of contaminants. The proposed method for treating, blending, or otherwise ensuring that the water will meet drinking water quality standards. The project cost to achieve drinking water quality. An analysis of the affordability of water for the project's anticipated residents. 1.Amend the requirements for a determination of sufficient water supply triggered by project proponent submitting a tentative map for approval by the city or county as follows: a. If a proposed subdivision relies in whole or in part on groundwater, add the following to the list of factors to be considered in determining sufficient water supply: For a basin for which a court or the SWRCB has adjudicated the rights to pump groundwater, the order or decree adopted by the court or the SWRCB. For a basin that has not been adjudicated, as follows: o For a basin designated as high- or medium-priority pursuant to Section 10722.4 of the Water Code, the most recently adopted or revised adopted groundwater sustainability plan. o For a basin designated as low- or very-low priority pursuant to Section 10722.4 of the Water Code, information as to whether the Department of Water Resources has identified the basin or basins as overdrafted or has projected that the basin will become overdrafted if present management conditions continue. a. Adds to the list of items to be considered as substantial evidence in support of a determination of sufficient water supply a groundwater sustainability plan adopted under SGMA. SB 1262 (Pavley) Page 10 of ? b. When a water supply for a proposed subdivision includes groundwater, groundwater from a basin designated by the SWRCB as a probationary basin under SGMA cannot considered as a water supply. 1.Make other technical amendments. ARGUMENTS IN SUPPORT According to the author, "California has a number of interconnecting laws that together attempt to ensure that water supply availability is given proper consideration when making land use decisions, and vice versa. Among those laws are 2002's SBs 610 (Costa) and 221 (Kuehl), also known as the "show me the water bills." When we passed the Sustainable Groundwater Management Act (SGMA) in 2014, we updated some water and land use planning laws to reflect SGMA, but not the show me the water bills." "SB 1262 (Pavley/Wieckowski), in conjunction with SB 1263 (Wieckowski/Pavley), builds on the administration's Affordable Safe Drinking Water Initiative to update the show me the water bills as follows: Integrates groundwater sustainability agencies and consideration of groundwater sustainability plans into water supply and land use planning. Prohibits use of groundwater to supply new development if the groundwater basin has been deemed out of compliance with SGMA (i.e., is "probationary") Prohibits the use of hauled water to comply with show me the water bills. Creates a process to discourage creation of new water systems when it is geographically and economically feasible to connect to an existing system." ARGUMENTS IN OPPOSITION A coalition of building, real estate, and other business interests write, "The bill significantly expands the California Environmental Quality Act (CEQA) and complicates the Subdivision Map Act in ways that make adherence to those processes by project applicants substantially more difficult to achieve." "In the spirit of finding workable solutions to the issues you have identified, we respectfully offer the following SB 1262 (Pavley) Page 11 of ? approaches." They then describe three suggestions which can be described as Shift from a project based to programmatic based water/landuse planning approach. Revise the proposed procedures for a "technical report" to one that more realistically encourages public water systems to provide water. Resolve some "circular" provisions regarding CEQA and LAFCo reviews. They conclude: "We believe that the problems we have touched on in the introduced version of the bill are serious but can be remedied. Therefore, we must oppose the measure but we appreciate your consideration of our suggested changes and are ready to assist in seeking solutions." COMMENTS Harmonizing Water/Land Use Planning. This bill, among other things, attempts to ensure all water and land use planning laws properly reflect the changes in groundwater planning brought on by SGMA. As noted in the discussion of current planning and zoning law, (see background and existing law 1a & 1b) before a city or county adopts or substantially amends a general plan, the planning agency must refer the proposed action to a number of entities, including the SWRCB. However, unlike other notified agencies, the SWRCB is not required to provide any information to the city or county, even if the SWRCB has adopted an interim plan for the basin. (See suggested amendment). Provisions Regarding LAFCos Need Work. In addition to the issues regarding LAFCos raised by business coalition, the California Association of Local Agency Formation Commissions (CALAFCo) and League of California Cities have raised concerns of their own. CALAFCo writes "The proposed process pertaining to the timing of the required water supply assessment after the LAFCo has denied the application for annexation or extension of service is out of place." The League similarly is concerned about the "additional burdensome requirements on local governments to identify and determine the capacity and feasibility of another water agency/system annexing or extending its services into the area in which the large project is located when the water supplier in the area cannot sufficiently supply SB 1262 (Pavley) Page 12 of ? water." The LAFCo issues will likely be addressed in the Governance and Finance Committee, should this committee pass this bill. (See below). Definition of a Project. Neither this bill or SB 1263 (see below) change the definition of a project subject to the show me the water bills. However, there seems to be interest in exploring that option. A coalition of environmental justice groups write "Unfortunately, this legislation lets stand the definition of a subdivision (500 or more connections) which effectively precludes most development from this sensible review process. We urge the authors and the committee to consider a substantial reduction in this number in order to protect new communities and ensure that the state will not have to share the burden of supporting them in future droughts." CALAFCo similarly write "While we have no magic bullet number to offer in terms of what is the "right size" for a project, we believe a threshold of 500 units for projects at the zoning level (water supply assessment pursuant to SB 610) probably captures less than half of the growth, and therefore, less than half of the demand. The 500 unit threshold for subdivisions (written verification pursuant to SB 221) probably captures a very small percentage of subdivision activity. Most projects are considerably smaller. ? We do feel it is best that thresholds should change." Moreover, "We believe if there was a lower trigger number for a project, the concern regarding phased development and the demand for water required to adequately supply those new phases will be addressed." The authors have indicated that they are willing to explore a different definition as this bill moves forward. Related Bills: SB 1263 (Wieckowski/Pavley), strengthens the permitting process for new public water systems to create greater environmental, public health, and financial sustainability of drinking water supplies. Double-Referral. The Rules Committee referred this bill to both the Committee on Natural Resources and Water and to the SB 1262 (Pavley) Page 13 of ? Committee on Governance and Finance. Therefore, if this bill passes this committee, it will be referred to the Committee on Governance and Finance, which will consider the issues within their jurisdiction. SUGGESTED AMENDMENTS: Note. To ensure there is sufficient time to amend and hear this bill before the policy bill deadline, the amendments should be taken in the Governance and Finance Committee. AMENDMENT 1 Amend GC §106352.5 to require the SWRCB, when notified by city or county of a substantive amendment or adoption of a general plan, and when the SWRCB has adopted an interim plan for the relevant groundwater basin, to require the SWRCB provide the city or county a copy of the interim plan and other relevant information. SUPPORT Clean Water Action Community Water Center Leadership Counsel for Justice and Accountability Planning and Conservation League Sierra Club California OPPOSITION California Apartment Association California Association of Relators California Building Industry Association California Business Properties Association California Chamber of Commerce California Independent Petroleum Association -- END --