SENATE COMMITTEE ON NATURAL RESOURCES AND WATER Senator Fran Pavley, Chair 2015 - 2016 Regular Bill No: Author: Version: Urgency: Consultant: AB 1135 Perea June 29, 2015 No Angee Doerr Hearing Date: July 14, 2015 Fiscal: Yes Subject: Kings River East Groundwater Sustainability Agency Act BACKGROUND AND EXISTING LAW Background: The Sustainable Groundwater Management Act of 2014 (SGMA) provides a framework for long-term sustainable groundwater management across California. Under the roadmap laid out by the legislation, local and regional authorities in medium and high priority groundwater basins are required to form Groundwater Sustainability Agencies (GSAs) that oversee the preparation and implementation of a local Groundwater Sustainability Plan (GSP) to meet the sustainability goal of the basin or subbasin to ensure that it is operated within its sustainable yield, without causing undesirable results. The Department of Water Resources (DWR) is required to develop and adopt emergency regulations for evaluating and implementing GSPs to achieve the legislative intent of the SGMA. California’s Groundwater, otherwise known as Bulletin 118 – Update 2003, is published by DWR. Bulletin 118 includes guidance and tools to assist local agencies in effectively managing groundwater as a sustainable part of their water supplies. It also includes descriptions of current groundwater management efforts by local water agencies, required and recommended components of effective groundwater management plans, and a model ordinance that can be used by local governments. Online technical descriptions and GIS compatible maps of 515 groundwater basins and subbasins were part of the effort to publish the Bulletin. The basin/subbasin descriptions include information about the geology, groundwater quantity and quality, and current groundwater management practices in the basins. Existing law: 1) Creates SGMA (Water Code (WAT) Section 10720). SGMA requires all basins designated as high- or medium-priority basins by DWR, and which are subject to critical conditions of overdraft, to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2020. In addition, SGMA requires all other basins designated as high- or medium-priority basins by DWR to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2022 (WAT Section 10720.7) 2) Specifies that SGMA is designed to provide for the sustainable management of groundwater basins, while enhancing local management of groundwater consistent with current Constitutional rights (WAT Section 10720.1). AB 1135 (Perea) Page 2 of 5 3) Allows any local agency or combination of local agencies overlying a groundwater basin to elect to be a groundwater sustainability agency for that basin (WAT Section 10723(a)). 4) Allows for special act agencies, created by statute to manage groundwater, to act as the exclusive local agency within their statutory boundary to comply with SGMA (WAT Section 10723(c)). 5) Specifies that a combination of local agencies may form a groundwater sustainability agency by using a joint powers agreement (JPA) or a memorandum of agreement (MOA) or other legal agreement (WAT Section 10723.6). 6) Specifies that a groundwater sustainability plan may be any of the following (WAT Section 10727): a) A single plan covering the entire basin developed and implemented by one groundwater sustainability agency. b) A single plan covering the entire basin developed and implemented by multiple groundwater sustainability agencies. c) Multiple plans implemented by multiple groundwater sustainability agencies and coordinated pursuant to a single coordination agreement that covers the entire basin, subject to WAT Section 10727.6. 7) Requires groundwater sustainability agencies pursuing multiple groundwater sustainability plans within a basin to create a coordination agreement that identifies specific data and methodologies for determining (WAT Section 10727.6): a) Groundwater elevation data. b) Groundwater extraction data. c) Surface water supply. d) Total water use. e) Change in groundwater storage. f) Water budget. g) Sustainable yield. 8) Defines “basin” as a groundwater basin or subbasin identified and defined in Bulletin 118 or as modified pursuant to Chapter 3 (commencing with Section 10722 (WAT Section 10721). 9) Defines “groundwater” as water beneath the surface of the earth within the zone below the water table in which the soil is completely saturated with water, but does not include water that flows in known and definite channels (WAT Section 10721). 10) Permits a groundwater sustainability agency to impose fees, including, but not limited to, permit fees and fees on groundwater extraction or other regulated activity, to fund the costs of a groundwater sustainability program, including, but not limited to, preparation, adoption, and amendment of a groundwater sustainability plan, and investigations, inspections, compliance assistance, enforcement, and program administration, including a prudent reserve (WAT Section 10730). 11) Requires the state to reimburse local agencies and school districts for certain costs mandated by the state, and provides statutory provisions with procedures for completing the reimbursement (Government Code Title 2, Division 4, Part 7). PROPOSED LAW This bill: 1) Finds and declares that the creation of the Kings River East Groundwater Sustainability Agency (agency) is in the best interest of all interests and resource users within the territory of the agency. AB 1135 (Perea) Page 3 of 5 2) Creates the agency and defines its purpose as groundwater management within the boundaries of the agency, pursuant to SGMA. 3) Sets the boundaries of the agency as all land within the exterior perimeter of the Alta Irrigation District, within the Counties of Fresno and Tulare, the Orange Cove Irrigation District, the Hills Valley Irrigation District, and the Tri-Valley Water District overlying the San Joaquin Valley Basin Kings Subbasin, as described in DWR’s Bulletin 118 (updated 2003). [See Comments for general boundaries] a) Specifies that the specific boundaries of the agency will be established by the board of supervisors of the Counties of Tulare and Fresno after a noticed public hearing, and allows the boundaries to be adjusted as necessary, following the same procedures, if the boundaries of the basin are revised. 4) Provides definitions for all terms used within the bill. 5) Sets a number of general provisions for the agency, including: a) Defining the governing board as seven voting members, with specific election rules for each member. The seven members will consist of one member from each of the following groups: i) Alta Irrigation District ii) County of Fresno iii) County of Tulare iv) The cities that overly the territory of the agency v) Water and irrigation districts within the region (Hills Valley and Orange Cove Irrigation Districts, Tri-Valley Water District) vi) Utility and Community Services districts that provide drinking water within the territory of the agency vii) Agriculture b) Setting term limits of four years for each member, allowing for multiple terms for members i-vi, as long as the member remains an eligible official of the member agency. c) Providing for compensation of the board members of no more than $100 per day, and no more than ten days per month. d) Allowing the board to adopt ordinances for the purposes of regulating, conserving, managing, and controlling the use and extraction of groundwater within the territory of the agency. e) Allowing for the hiring of contractors and consultants. f) Permitting the agency to enter into a coordination agreement with other local agencies in order to coordinate groundwater sustainability plans within the basin. g) Allowing the agency to exclude de minimis extractors, as defined by the board, from the requirements set forth by the agency. 6) Permits the agency to collect data, conduct studies, and make water management recommendations necessary to carry out the provisions of the bill. 7) Requires the agency to develop and implement a groundwater sustainability plan pursuant to WAT Chapter 6 (commencing with Section 10727). 8) Permits the agency to impose fees on groundwater extraction and other regulated activity in order to fund the cost of the groundwater sustainability plan, pursuant to WAT Chapter 6 (commencing with Section 10730). a) Specifies that if the Commission on State Mandates determines this bill results in costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made according to Government Code Title 2, Division 4, Part 7. AB 1135 (Perea) Page 4 of 5 ARGUMENTS IN SUPPORT In supporting AB1135, the City of Dinuba writes “it is the intent of all the interested parties to willingly work cooperatively to solve groundwater issues in our region and to develop the governance structure that will facilitate implementing a groundwater sustainability plan.” The Community Water Center states that the current structure of the agency allows for the “active and meaningful participation of disadvantaged communities and small rural drinking water systems in the formation of GSAs and the development of” the local GSP. ARGUMENTS IN OPPOSITION Writing in opposition, Kings River Water Association and Kings River Conservation District state that it is “far too premature to conclude that a new special act agency is needed to achieve sustainability of groundwater resources within the East Kings area. Creation of this agency may compromise the interests of other local agencies and key stakeholders in the area. And it may stymie efforts to develop and implement groundwater sustainability plans in a timely and holistic fashion as anticipated by SGMA.” COMMENTS Why is a special act necessary? The Kings River East Groundwater Sustainability Agency will be formed via a special act, rather than through a JPA or MOU. While special act agencies exist for a variety of reasons, they are not explicitly addressed as a method for creating a groundwater sustainability agency in SGMA. In this case, the agency believes that a special act is necessary in order to provide an increased level of flexibility and certainty with the agency’s governance structure. In this case, creating the agency via special act enables the governance board to include a production agriculture representative as an allotted board member. Is there precedent for a special act groundwater management agency? The Fox Canyon Groundwater Management Agency (FCGMA) was created by the legislature in 1982 (Chapter 1023 of the Statutes of 1982). This special act created FCGMA, and designated the administration and the governmental powers. Unlike Kings River East, which will have seven board members, FCGMA has a five member governing board; however, it also includes a board member that represents production agriculture. This bill has been closely modeled after the FCGMA Act. Exemptions for special act agencies. Current statute (WAT Section 10723(c)(1)) allows for certain agencies, created by statute to manage groundwater, to act as the exclusive local GSA within their respective statutory boundaries. Amendment 1 is suggested to add Kings River East Groundwater Sustainability Agency to this list. Double-Referral. The Rules Committee referred this bill to both the Committee on Natural Resources and Water and to the 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. Additionally, the suggested amendment will be taken in Governance and Finance to ensure the bill can be heard before the policy committee deadline. AB 1135 (Perea) Page 5 of 5 SUGGESTED AMENDMENTS AMENDMENT 1 If AB1135 passes, the Kings River East Groundwater Sustainability Agency should be added to WAT Section 10723(c)(1) as subparagraph (F). Existing subparagraphs (F) through (O) will become (G) through (P). SUPPORT Alta Irrigation District (sponsor) California Citrus Mutual City of Dinuba City of Orange Grove City of Reedley Community Water Center Orange Cove Irrigation District Tulare County Farm Bureau OPPOSITION Kings River Conservation District (KRCD) Kings River Water Association (KRWA) -- END --