AB 936 Page 1 Date of Hearing: April 14, 2015 ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE Marc Levine, Chair AB 936 (Salas) – As Introduced February 26, 2015 SUBJECT: Groundwater monitoring: eligibility for public funds SUMMARY: Allows groundwater projects and programs that are currently ineligible for state funding due to noncompliance with groundwater basin monitoring requirements to become eligible if the grant or loan project for which funding is requested includes actions to cure the noncompliance. EXISTING LAW: 1) Requires all groundwater basins to be monitored locally and systematically for their groundwater elevations. 2) Requires reporting of groundwater basin elevation information to the Department of Water Resources (DWR) California Statewide Groundwater Elevation Monitoring Program (CASGEM). 3) Requires DWR to assume groundwater elevation monitoring functions if no local agency is able or willing to and prohibits DWR from charging for the cost of monitoring. 4) Prohibits basins where DWR has assumed monitoring functions from being eligible for state water grants and loans unless an entity can prove that its entire service area qualifies as a disadvantaged community. 5) Requires DWR to evaluate groundwater basins and designate them as high, medium, low or very low, according to various factors including, but not limited to, level of dependence upon the basin by municipal and agricultural users. 6) Provides the Governor broad powers during a state of emergency. FISCAL EFFECT: Unknown COMMENTS: This bill requires DWR to determine that an entity is eligible for a water grant or loan as long as the entity proposes a project for State funding that would remedy its own CASGEM noncompliance. On January 17, 2014, as California entered its fourth consecutive year of extremely dry conditions, Governor Brown proclaimed a drought State of Emergency. That was followed on April 25, 2014 by a continued State of Emergency and on April 3, 2015 by a seven-page Executive Order, B-29-15, with 31 directives to address the drought crisis. Directive 15 states that local agencies in all high and medium priority groundwater basins are to immediately implement all CASGEM requirements or be referred to the State Water Resources Control Board for possible enforcement action. AB 936 Page 2 There are currently 127 high and medium priority basins in California. Those groundwater basins account for 96% of all groundwater use. Of the high and medium priority basins, DWR has determined that 9 are fully unmonitored and 16 are partially unmonitored. In other words, 102 are currently CASGEM compliant and 25 are noncompliant. In the 25 non-compliant basins, local agencies can still be eligible for a water grant or loan if their whole area is a disadvantaged community. That is because it is assumed that the bar to compliance is that the entity's customers are financially incapable of supporting a monitoring program. SB 6 X7 and the CASGEM compromise SB 6 (Steinberg), Chapter 1, Seventh Extraordinary Session 2009-10, created the CASGEM program and mandated a systematic local approach to measuring groundwater basin levels. SB 6 incorporated the language from an earlier bill, SB 122 (Pavley/2009), which would have allowed DWR to charge fees if the state was required to take over CASGEM monitoring duties for the locals. SB 6 was negotiated during the Extraordinary Session and the final compromise was that DWR would be expressly prohibited from charging fees but, in return, if the state was required to perform monitoring duties in a basin, other than an area that is disadvantaged, then the locals would be ineligible for state funding for groundwater projects and programs. Supporting arguments. The author states this bill is needed because the policy of denying CASGEM noncompliant basins state funding is having the negative consequence of preventing local agencies from receiving much needed water grants and loans in order to set up groundwater monitoring programs. Other supporters state that many small and rural counties have limited staff and resources to implement new and ongoing programs proscribed by the State and that this bill would ensure necessary funding is available to bring more entities into compliance with the CASGEM program. Suggested Committee Amendments Committee staff suggests narrowing this bill to allow DWR discretion to fund a project for a currently ineligible basin if there are special circumstances justifying the entity's noncompliance, such as a significant portion of the entity's service area qualifies as a disadvantaged community. REGISTERED SUPPORT / OPPOSITION: Support Association of California Water Agencies Rural County Representatives of California Valley Ag Water Coalition Opposition None on file Analysis Prepared by: Tina Cannon Leahy / W., P., & W. / (916) 319-2096