BILL ANALYSIS Ó SB 1262 Page 1 Date of Hearing: June 28, 2016 ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE Marc Levine, Chair SB 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 SB 1262 Page 2 assessment. 4)Adds SGMA compliance status to required information in a water supply assessment for projects that receive water supply from groundwater. 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 basins. 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. SB 1262 Page 3 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 requires: 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 uses. 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 years. 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. SB 1262 Page 4 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 plans. 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 SB 1262 Page 5 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 SGMA. 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 SB 1262 Page 6 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. REGISTERED SUPPORT / OPPOSITION: Support 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) SB 1262 Page 7 Opposition None on File Analysis Prepared by:Ryan Ojakian / W., P., & W. / (916) 319-2096