BILL ANALYSIS                                                                                                                                                                                                    

                                                                    SB 1262

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          Date of Hearing:   June 29, 2016


                           Susan Talamantes Eggman, Chair

          1262 (Pavley and Wieckowski) - 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  
          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 the approval of a  
            residential development of more than 
          500 units.  

          3)Includes an identification of water systems that are adjacent  


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            to large-scale projects subject to the California  
            Environmental Quality Act (CEQA) that trigger a water supply  

          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.  

          6)States that no reimbursement is required because a local  
            agency has the authority to levy service charges, fees, or  
            assessments sufficient to pay for the program or level of  
          as specified.

          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; and,

             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  


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               (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.

          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  


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            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.

             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:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.



          1)Background and Prior Legislation. The Legislature passed SGMA  
            [SB 1168 (Pavley), 
          AB 1739 (Dickinson) and SB 1319 (Pavley), Statutes of 2014],  
            creating a statewide requirement to sustainably manage  
            groundwater resources.  The package of bills was signed by  
            Governor Brown with the objective to ensure the long-term  
            reliability of groundwater resources and connected surface  
            water resources by requiring sustainable management. GSAs must  
            by formed by 2017; GSPs, for critically overdrafted basins,  
            must be written by 2020; and, sustainability must be reached  
            by 2040.  Prior to 2014, there was no statutory mandate to  


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            manage groundwater in California.

            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.   
            SB 610 (Costa), Chapter 643, Statutes of 2001, required  
            large-scale development to have a water supply assessment.

          2)Bill Summary and Author's Statement.  This bill 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.  This bill is an  
            author-sponsored measure.  

            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 and Wieckowski), updates the show me the  
            water bills to integrate groundwater sustainability agencies  
            and consideration of groundwater sustainability plans into  
            water supply and land use planning.  In addition, it prohibits  
            the use of hauled water to comply with show me the water  


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          3)Arguments in Support.  Supporters argue that this bill makes  
            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.

          4)Arguments in Opposition.  None on file.  

          5)Double-Referral.  This bill is double-referred to the Water,  
            Parks and Wildlife Committee.



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          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:Debbie Michel / L. GOV. / (916)