=
                                                                         =
               BILL ANALYSIS                                             =
                                                                         =
                                                                         =
     =0C



                                                                      =20



           ------------------------------------------------------------=20
          |SENATE RULES COMMITTEE            |                   SB 178|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------=20
          =20
                                        =20
                                 THIRD READING


          Bill No:  SB 178
          Author:   Steinberg (D) and Kuehl (D)
          Amended:  As introduced
          Vote:     21

          =20
           SENATE NATURAL RES. & WATER COMMITTEE  :  6-1, =
3/27/07
          AYES:  Steinberg, Margett, Kehoe, Kuehl, Machado, Migden
          NOES:  Hollingsworth
          NO VOTE RECORDED:  Cogdill

           SENATE APPROPRIATIONS COMMITTEE  :  10-6, 5/31/07
          AYES:  Torlakson, Cedillo, Corbett, Florez, Kuehl, Oropeza, =20
            Ridley-Thomas, Simitian, Steinberg, Yee
          NOES:  Cox, Aanestad, Ashburn, Dutton, Runner, Wyland
          NO VOTE RECORDED:  Battin


           SUBJECT  :    Groundwater

           SOURCE  :     Author


           DIGEST  :    This bill establishes a statewide =
groundwater =20
          elevation monitoring program.

           ANALYSIS  :    California does not have any statewide =
laws =20
          governing groundwater supplies.

          California does have statewide laws governing groundwater =20
          quality.  In particular, the Porter Cologne Act, among =20
          other things, directs the State Water Resources Control =20
          Board (SWRCB) and the regional water quality control boards =20
                                                           CONTINUED

=0C



                                                                SB =
178
                                                                Page =
=20
          2

          to promulgate and enforce statewide regulations governing =20
          groundwater quality.

          California does have laws governing groundwater supplies in =20
          some parts of the state.  For example, in the counties of =20
          Riverside, San Bernardino, Los Angeles and Ventura, current =20
          law requires any person who extracts groundwater in excess =20
          of 25 acre-feet in any year to file an annual notice of =20
          extraction with the SWRCB.  This requirement, with certain =20
          exceptions, applies to any groundwater extracted after =20
          1955.  Moreover, after 1959, failure to file a notice for =20
          any calendar within six months after the end of that =20
          calendar year is deemed equal to nonuse of the groundwater.

          The Legislature has created 13 special act districts to =20
          manage groundwater supplies.  Included in these districts =20
          are Orange County Water District, Santa Clara Valley Water =20
          District, Monterey Peninsula Water Management District and =20
          Long Valley Groundwater Management District.

          Current law requires the Department of Water Resources =20
          (DWR) to report on groundwater conditions.  Current law =20
          only requires DWR to reports its findings to the Governor =20
          and the Legislature no later than January 1, 1980.  DWR has =20
          updated this report infrequently and only upon =20
          appropriation of funds for that purpose.

          This bill establishes a statewide groundwater elevation =20
          monitoring program as follows:

          1.Local groundwater management interests will notify DWR as =20
            to who will conduct the monitoring of groundwater =20
            elevations, what area they will monitor, their =20
            qualifications for conducting the monitoring, etc.

          2.If more than one party seeks to become the monitoring =20
            entity for the same portion of a basin or subbasin, DWR =20
            will consult with the interested parties to determine who =20
            will perform the monitoring functions.  In determining =20
            which party will conduct the monitoring, DWR will be =20
            required to adhere to the following order:

             A.    A watermaster or water management engineer who was =20
                appointed by a court as a part of an adjudication =20



=0C



                                                                SB =
178
                                                                Page =
=20
          3

                proceeding.

             B.    A groundwater management agency with statutory =20
                authority to manage groundwater pursuant to its =20
                principal act or a water replenishment district.

             C.    A local agency that is managing all or part of a =20
                groundwater basin or subbasin under what is known as =20
                an AB 3030 plan (Water Code Section 10750 et seq.), =20
                or a local agency or county that is managing all or =20
                part of a groundwater basin pursuant to any other =20
                legally enforceable groundwater management plan with =20
                provisions that are substantively similar to AB 3030.

             D.    A local agency that is managing all or part of a =20
                groundwater basin or subbasin pursuant to an =20
                integrated regional water management plan that =20
                includes a groundwater management component that =20
                complies with the requirements of SB 1938 (Water Code =20
                Section 10753.7).

             E.    A county that is not currently managing all or =20
                part of a groundwater basin.

             F.    A voluntary cooperative groundwater monitoring =20
                association formed pursuant to this bill.

          3.Monitoring entities will be required to begin monitoring =20
            and reporting groundwater elevations by January 1, 2010.  =20
            The groundwater elevation data will be made readily =20
            available to DWR, interested parties and the public.

          4.By January 1, 2010, DWR will begin to identify the extent =20
            of monitoring of groundwater elevations that is being =20
            undertaken within each basin and subbasin.  If DWR =20
            determines that no one is monitoring all or part of a =20
            basin or subbasin, DWR will be required to determine if =20
            there was a local party willing to conduct the =20
            monitoring.

          5.If DWR determines there is no local interest in =20
            conducting the monitoring and the existing monitoring =20
            network is insufficient to demonstrate seasonal and long =20
            term trends in groundwater elevations, and the Board of =20



=0C



                                                               SB 178
                                                                Page =
=20
          4

            Mining and Geology concurs with that determination, then =20
            DWR will be authorized to monitor groundwater elevations =20
            and to assess a fee to well owners within the DWR =20
            monitored area to recover its direct costs.

          This bill also requires DWR to update the groundwater =20
          report by January 1, 2010, and thereafter in years ending =20
          in five and zero.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  =
Yes   =20
          Local:  No

                          Fiscal Impact (in thousands)

           Major Provisions             2007-08           =
 2008-09         =20
              2009-10             Fund

           Develop/maintain           $1,000             $2,000      =
  =20
                $2,000           GF/SF*
          data management
          systems=20

           SUPPORT  :   (Verified  6/1/07)

          Groundwater Resources Association
          Sierra Club California

           OPPOSITION  :    (Verified  6/1/07)

          Department of Finance
          Western Growers Association
          Regional Council of Rural Counties

           ARGUMENTS IN SUPPORT  :    According to the author's =
office, =20
          "California's don't ask - don't tell" policy for =20
          groundwater is not working.  While the state has over 500 =20
          distinct groundwater basins and subbasins, no one has =20
          oversight or management responsibilities over all or even =20
          part of any of these groundwater basins or subbasins unless =20
          a court has ordered it, the Legislature has established a =20
          special district to do it, or a voluntary group of =20
          groundwater users chose to do it.  For much of the state, =20
          this means that no one is looking out for groundwater."




=0C



                                                                SB =
178
                                                                Page =
=20
          5

          According to the Sierra Club, "Currently, more than nine =20
          million Californians rely on groundwater as their sole =20
          source of supply.  And, while demands on groundwater are =20
          growing, information about the condition of the state's =20
          groundwater is lacking.  The #1 finding of DWR's latest =20
          Groundwater Bulletin stated: "Groundwater provides about =20
          30% of the State's water supply in an average year, yet in =20
          many basins the amount of groundwater extracted annually is =20
          not accurately known."

          According to the Groundwater Resources Association (GRA), =20
          "GRA strongly believes that the requirements outlined in SB =20
          178 will help the State manage its water needs.  The =20
          monitoring and information required in SB 178 is essential =20
          to planning for the State's water needs and should be taken =20
          into consideration now, as funding decisions are considered =20
          by the Legislature."

           ARGUMENTS IN OPPOSITION  :    According to Western =
Growers =20
          Association, "Under the bill's current structure, the =20
          Department of Water Resources (Department) is authorized to =20
          select which local entity will be responsible for local =20
          monitoring activities and does not allow for any entity or =20
          individual who can meet the technical requirements to =20
          submit data.  It is our organization's view that no entity =20
          should be given control in producing and submitting such =20
          data.

          "Additionally, the Department already has a widespread =20
          system of groundwater monitoring wells that generate data =20
          and many areas of the state employ successful local =20
          groundwater management strategies.  Rather than place a =20
          state mandate on local entities, it would be more =20
          appropriate for the state to use the current information =20
          from its existing wells and use general fund monies to =20
          fully fund operation of its existing groundwater monitoring =20
          system.

          "Fundamentally, the members of Western Growers consider =20
          groundwater resources as a local, rather than state, =20
          resource.  The use of underlying groundwater is a real =20
          property right in California and published California case =20
          law has determined that groundwater is not a public trust =20
          resource.  The correlative overlying right to use =20



=0C



                                                                SB =
178
                                                                Page =
=20
          6

          groundwater is an affair between overlying water users of =20
          any given basin and should not become an affair between =20
          landowners and the state." =20
          =20

          CTW:cm  6/1/07   Senate Floor Analyses=20

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****