BILL NUMBER: AB 2776	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 15, 2010
	AMENDED IN SENATE  JUNE 28, 2010
	AMENDED IN SENATE  JUNE 16, 2010
	AMENDED IN ASSEMBLY  APRIL 6, 2010

INTRODUCED BY   Assembly Members Huffman and Arambula
   (Principal coauthor: Senator Pavley)
    (   Coauthor:   Senator   Wolk
  ) 

                        MARCH 1, 2010

   An act to add Article 5 (commencing with Section 1746) to Chapter
10.5 of Part 2 of Division 2 of the Water Code, relating to the State
Water Resources Development System.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2776, as amended, Huffman. Transfers of water: agricultural use
to municipal use.
   Existing law authorizes the transfer or exchange of certain water
or water rights upon approval by the State Water Resources Control
Board of a petition to transfer the water or water rights.
   Under existing law, the Department of Water Resources administers
water supply contracts pursuant to which water suppliers
(contractors) are supplied water from the State Water Resources
Development System (State Water Project), in accordance with the
California Water Resources Development Bond Act and other provisions
of law.
   This bill would prohibit the department, with respect to a
contractual entitlement to water from the State Water Project, and
the state board, with respect to any other transfer of water or water
rights, from approving the transfer of surface water or water
rights, or a portion of a contractual entitlement to water from the
State Water Project, from agricultural use to municipal use for a
period of 20 years or more, unless the water user provides to the
department or the state board, as applicable, a written evaluation of
the economic, social, and environmental effects of the transfer upon
the service area from which the water is to be transferred. The bill
would prohibit a water user from replacing specified surface water
that is transferred from agricultural use to municipal use with
groundwater, unless the groundwater basin of the service area from
which the water is to be transferred is monitored  and managed
 in accordance with specified requirements. The bill would
require the department and the state board to charge specified fees
to a water user that is subject to these provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Article 5 (commencing with Section 1746) is added to
Chapter 10.5 of Part 2 of Division 2 of the Water Code, to read:

      Article 5.  Transfers From Agricultural Use to Municipal Use


   1746.  (a) This article applies only to a transfer of surface
water or water rights, including any portion of a contractual
entitlement to water from the State Water Resources Development
System, from agricultural use to municipal use for a period of 20
years or more.
   (b) (1) A transfer described in subdivision (a), except a transfer
of any portion of a contractual entitlement to water from the State
Water Resources Development System, is subject to petition and
approval by the board pursuant to Article 2 (commencing with Section
1735).
   (2) A transfer described in subdivision (a) is subject to approval
by the department, if the transfer involves any portion of a
contractual entitlement to water from the State Water Resources
Development System.
   1746.5.  (a) (1) The board or the department, whichever is
applicable pursuant to subdivision (b) of Section 1746, shall not
approve a transfer of surface water or water rights subject to this
article from agricultural use to municipal use, unless the water user
prepares, or contracts for the preparation of, and provides to the
board or the department, as applicable, a written evaluation of the
economic, social, and environmental effects of the transfer upon the
service area from which the water is to be transferred.
   (2) The board or the department, as applicable, shall charge a
water user that is subject to this section a reasonable fee to cover
the agency's costs associated with the implementation of this
subdivision, including costs incurred for reviewing the evaluation
described in paragraph (1).
   (b) (1) A water user shall not replace transferred surface water
that is subject to this article with groundwater, unless the
groundwater basin of the service area from which the water is to be
transferred is regularly, systematically, and logically monitored in
accordance with Part 2.11 (commencing with Section 10920) of Division
6  , and is managed in accordance with an adopted groundwater
management plan that meets the requirements of Section 10753.7 
.
   (2) The department shall charge a water user that is subject to
this subdivision a reasonable fee to cover the department's costs
associated with the implementation of this subdivision, including
costs incurred by the department if the department is required to
perform groundwater monitoring functions pursuant to Section 10933.5
for purposes of this subdivision.