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AB-2649 State Water Project: water supply contracts.(2017-2018)

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Date Published: 08/28/2018 02:00 PM
AB2649:v92#DOCUMENT

Amended  IN  Senate  August 28, 2018
Amended  IN  Senate  June 28, 2018
Amended  IN  Senate  June 18, 2018
Amended  IN  Assembly  May 25, 2018
Amended  IN  Assembly  April 25, 2018
Amended  IN  Assembly  April 04, 2018
Amended  IN  Assembly  March 22, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill
No. 2649

Introduced by Assembly Member Arambula Bloom

February 15, 2018

An act to amend Sections 1242, 1348, 1425, 1430, 1431, 1435, 1440, 1441, 1442, and 1704.4 of, to amend the heading of Chapter 6.6 (commencing with Section 1435) of Part 2 of Division 2 of, to add the heading of Article 1 (commencing with Section 1425) to Chapter 6.5 of Part 2 of Division 2 of, to add the heading of Article 1 (commencing with Section 1435) to Chapter 6.6 of Part 2 of Division 2 of, to add Article 2 (commencing with Section 1433) to Chapter 6.5 of Part 2 of Division 2 of, and to add Article 2 (commencing with Section 1443) to Chapter 6.6 of Part 2 of Division 2 of, the Water Code, relating to water. An act to add Section 147.6 to, and to repeal and add Section 147.5 of, the Water Code, relating to water.


LEGISLATIVE COUNSEL'S DIGEST


AB 2649, as amended, Arambula Bloom. Water rights: water management. State Water Project: water supply contracts.
Under existing law, the Department of Water Resources operates the State Water Resources Development System, known as the State Water Project, in accordance with the California Water Resources Development Bond Act to supply water to persons and entities in the state. Existing law requires the department to present to the Joint Legislative Budget Committee and relevant policy and fiscal committees of both houses of the Legislature the details of the terms and conditions of a long-term water supply contract between the department and a state water project contractor and to submit a copy of one long-term contract, as prescribed.
This bill would instead require the department to provide at least 10 days’ notice to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature before holding public sessions to negotiate any potential amendment of a long-term water supply contract that is of projectwide significance with substantially similar terms intended to be offered to all contractors, or that would permanently transfer a contractual water amount between contractors. The bill would require the department, before the execution of a specified proposed amendment to a long-term water supply contract and not later than 60 days before final approval of such a proposed amendment, to submit to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature certain information regarding the terms and conditions of a proposed amendment of a long-term water supply contract and to submit a copy of the long-term contract as it is proposed to be amended.

Under existing law, the State Water Resources Control Board administers a water rights program pursuant to which the board grants permits and licenses to appropriate water. Existing law allows a person who has an urgent need to divert and use water to apply for, and the board to issue, a temporary permit, as prescribed. Existing law requires an applicant to pay an application fee and a permit fee, if a temporary permit is issued, both computed as specified.

Existing law, the Sustainable Groundwater Management Act, requires all groundwater basins designated as high- or medium-priority basins by the Department of Water Resources that are designated as basins subject to critical conditions of overdraft to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2020, and requires all other groundwater basins designated as high- or medium-priority basins to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2022, except as specified. Existing law requires a groundwater sustainability plan to be developed and implemented to meet the sustainability goal, established as prescribed.

This bill would authorize a groundwater sustainability agency or local agency to apply for, and the board to issue, a conditional temporary permit for diversion of surface water to underground storage for beneficial use that advances the sustainability goal of a groundwater basin, as specified.

Existing law allows a permittee or licensee who has an urgent need to change a point of diversion, place of use, or purpose of use to petition for, and the board to issue, a temporary change order, subject to certain restrictions.

This bill would authorize a groundwater sustainability agency or local agency to petition for, and the board to issue, a conditional temporary change order that authorizes the diversion of surface water to underground storage for beneficial use that advances the sustainability goal of a groundwater basin, as specified.

The California Constitution requires that the water resources of the state be put to beneficial use to the fullest extent of which they are capable and that the waste or unreasonable use or unreasonable method of use of water be prevented.Under existing law, the right to water or to the use of water is limited to that amount of water that may be reasonably required for the beneficial use to be served. Existing law provides for the reversion of water rights to which a person is entitled when the person fails to beneficially use the water for a period of 5 years. Existing law provides that the storing of water underground, including the diversion of streams and the flowing of water on lands necessary to the accomplishment of the storage, constitutes a beneficial use of water if the stored water is thereafter applied to the beneficial purposes for which the appropriation for storage was made.

This bill would instead provide that, consistent with the applicable permit or license, any diversion of water to underground storage constitutes a diversion of water for beneficial use if the diverted water is put to beneficial use, as specified.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 147.5 of the Water Code is repealed.
147.5.

At least 60 days prior to the final approval of the renewal or extension of a long-term water supply contract between the department and a state water project contractor, the department shall present at an informational hearing before the Legislature the details of the terms and conditions of the contract and how they serve as a template for the remaining long-term water supply contracts. This presentation shall be made to the Joint Legislative Budget Committee and relevant policy and fiscal committees of both houses, as determined by the Speaker of the Assembly and the Senate Committee on Rules. The department shall submit a copy of one long-term contract to the Joint Legislative Budget Committee no less than 30 days prior to the scheduled hearing.

SEC. 2.

 Section 147.5 is added to the Water Code, to read:

147.5.
 The department shall provide at least 10 days’ notice to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature before holding public sessions to negotiate any potential amendment of a long-term water supply contract that is of projectwide significance with substantially similar terms intended to be offered to all contractors, or that would permanently transfer a contractual water amount between contractors.

SEC. 3.

 Section 147.6 is added to the Water Code, to read:

147.6.
 (a) Before the execution of an amendment to a long-term water supply contract described in subdivision (c) and not later than 60 days before final approval of such an amendment, the department shall submit to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature information regarding the terms and conditions of a proposed amendment of a long-term water supply contract.
(b) The department shall submit the following information in compliance with subdivision (a):
(1) A summary of the provisions of the proposed amendment.
(2) The estimated costs associated with the proposed amendment, along with an estimate of the allocation of the costs borne by each contractor.
(3) A copy of the long-term contract as it is proposed to be amended.
(c) (1) This section applies to a proposed amendment by the department to a long-term water supply contract that is of projectwide significance with substantially similar terms intended to be offered to all contractors, and to a proposed contract amendment that would permanently transfer a contractual water amount between contractors.
(2) This section does not apply to an amendment for which a copy of the long-term water supply contract as it was proposed to be amended was submitted by the department to the Joint Legislative Budget Committee in May 2018.