BILL ANALYSIS                                                                                                                                                                                                    

                                                                    SB 1262

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          Date of Hearing:  June 28, 2016


                                 Marc Levine, Chair

          1262 (Pavley) - As Amended June 15, 2016

          SENATE VOTE:  22-13

          SUBJECT:  Water supply planning

          SUMMARY:  Revises requirements that new developments must meet  
          in order to demonstrate that its water supplies are sufficient  
          to include consideration of provisions of the Sustainable  
          Groundwater Management Act (SGMA).  Specifically, this bill:  

          1)Adds information about the reliance on and management of  
            groundwater supplies in factors considered in determining if  
            there are sufficient water supplies for residential  
            development of more than 500 units.

          2)Specifies that a Groundwater Sustainability Plan (GSP) may be  
            included as substantial evidence in a public water system's  
            written verification of its ability or inability to provide  
            sufficient water supply as part of approval of a residential  
            development of more than 500 units.  

          3)Includes an identification of water systems that are adjacent  
            to large-scale projects subject to the California  
            Environmental Quality Act (CEQA) that trigger a water supply  


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          4)Adds SGMA compliance status to required information in a water  
            supply assessment for projects that receive water supply from  

          5)Excludes hauled water from consideration as a source of water  
            under a water supply assessment.     

          EXISTING LAW:    

          1)Requires every large-scale development project of 500 new  
            residential connections or an equivalent size to have a water  
            supply assessment prepared according to the following:

             a)   A city or county, at the time that it determines that a  
               development is subject to CEQA, must identify any water  
               system that may supply water for the project.

             b)   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, through its  
               water rights or other sources. 

             c)   If the project relies in whole or in part on  
               groundwater, requires additional information, including a  
               description of any groundwater basins that will supply the  
               project; the court or State Water Resources Control Board  
               (SWRCB) order if the basin is adjudicated; and an analysis  
               of the sufficiency of the groundwater from the basin or  

          1)Requires that, under CEQA, whenever a city or county  
            determines that a large-scale project is subject to CEQA, it  
            must comply with the water supply assessment requirements  
            triggered by that determination.


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          2)Requires, under the Subdivision Map Act, cities and counties  
            to demonstrate that a sufficient water supply is available as  
            a condition of their approval of a tentative map for a  
            subdivision with more than 500 dwelling units.  Specifically  

             a)   Sufficient water supply is defined as 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  

             b)   Proof of sufficient water must be based on a written  
               verification from the applicable public water system. In  
               order to be sufficient, the water supply must be able to  
               meet the demands of existing and future planned uses in  
               addition to the subdivision's demand over the next 20  

             c)   The public water system's written verification of its  
               ability or inability to provide a sufficient water supply  
               to meet the projected demand associated with the proposed  
               subdivision must be supported by substantial evidence.
          3)Specifies that SGMA, among other provisions, directs the  
            Department of Water Resources (DWR) to categorize the state's  
            groundwater basins into high, medium, low, and very low  
            priorities, based on factors such as the population overlying  
            the basin, number of wells in the basin, and overlying  
            irrigated acreage.  The DWR must also identify basins subject  
            to critical overdraft.  Under SGMA:

             a)   Basins designated as high or medium priority must be  
               managed by a groundwater sustainability agency (GSA).   
               GSA's must develop a GSP to ensure that by 2040, the basin  
               is in a sustainable condition.


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             b)   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 GSP may affect those  

          FISCAL EFFECT:  Unknown.

          COMMENTS:  Revises requirements that new developments must meet  
          in order to demonstrate that its water supplies are sufficient  
          to include consideration of provisions of the SGMA.

          1)Author's Statement: 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 SGMA in 2014, we updated some  
            water and land use planning laws to reflect SGMA, but not the  
            "show me the water bills." This bill, updates the "show me the  
            water bills" to integrate GSA's and consideration of GSP's  
            into water supply and land use planning.  In addition, it  
            prohibits the use of hauled water to comply with "show me the  
            water bills."

          2)Background: In 2001, in response to local land use decisions  
            that adversely affected local water supplies, the Legislature  
            enacted a package of bills that linked land use planning with  


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            water use planning.  That pack of bills is often referred to  
            as the "show me the water" legislation.

            In 2014, the Legislature passed SGMA which made significant  
            changes to local land use planning laws pertaining to  
            groundwater.  SGMA did not make conforming changes to the  
            "show me the water" legislation. This bill addresses that  
            oversight and integrates SGMA into the requirements of the  
            "show me the water" legislation. 

            Double Referal: Should this bill pass this committee it will  
            be re-referred to Assembly Local Government Committee.

          3)Prior and Related Legislation:
             a)   SB 221 (Kuehl), Chapter 642, Statutes of 2001, required  
               cities and counties to demonstrate a sufficient water  
               supply as part of the subdivision map act.
             b)   SB 610 (Costa), Chapter 643, Statutes of 2001, required  
               large-scale development to have a water supply assessment.

             c)   SB 1168 (Pavley), Chapter 346, Statutes of 2014, enacted  

             d)   AB 1738 (Dickinson), Chapter 347, Statutes of 2014,  
               enacted SGMA.

          1)Supporting Arguments: This bill will strengthen the existing  
            link between land use and water supply planning by  
            incorporating changes in groundwater planning and management  
            as a result of SGMA.  This will help ensure that new  
            development is not approved in areas that lack groundwater  
            necessary to provide sufficient supplies.  These are common  
            sense changes to the water supply assessment process to ensure  
            that water sources cited are in fact reliable, and that land  
            use planning agencies take the status of their groundwater  
            basins and other water sources into account when planning or  
            approving new development.  This will update statue to  
            harmonize approvals of new development with the requirements  


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            of SGMA.

          2)Support if Amended: Two entities write in support if amended  
            requesting specific changes that they believe will ensure  
            greater workability for local governments.



          Clean Water Action

          Community Water Center

          Desert Water Agency (if amended)

          East Bay Municipal Utility District

          Leadership Counsel for Justice and Accountability

          Planning and Conservation League

          Sierra Club California

          Valley Ag Water Coalition (if amended)


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          None on File

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