HomeMy WebLinkAboutEmail - SGMA Fees ................... .................
Menchaca, Clarissa
Subject: FW: SGMA fees
Attachments: State Water Board Draft Fee ER Fact Sheet 03172017,pdf
From: Clerk of the Board
Sent: Monday, March 27, 2017 9:58 AM
To: BOS<B4OS@buttecounty.net>
Cc: Menchaca, Clarissa <cmenchaca@buttecounty.net>
Subject: FW:SGMA fees
Please see the below correspondence and attached document.
AsKeU N. _SvLUdei
Assistant Clerk of the Board
Butte County Administration
25 County Center D.rive,Suite 200, Oroville, CA 95965
T: 530.538.2867 1 F: 530-538.7120
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From: BCWater
Sent:Tuesday, March 21, 2017 1:25 PM
To: BCWater<BCWater@buttecounty.net>
Subject:SGMA fees
Hi All,
We have been discussing potential fees for non-compliance with SGMA at the GSA-Eligible meeting. Here is a fact sheet
describing these fees and their implementation which was discussed at the State Water Board meeting this
morning. Please remember that these fees only go into effect if a sub-basin is in non-compliance with SGMA. Another
good reason to work together to develop solid, defensible plans.
Thanks,
Vickie
Vickie Newlin, Assistunt Director
Water and Resource Conservotion
(530)538-2179
(530)592-8950
"Hope is not a strategy" Vince Lombardi
.........�fto Fact Sheet:
Water Boards
Draft Emergency Regulation for
State Intervention Fees
The Sustainable Groundwater Management Act(SGMA) requires the State Water Resources Control
Board (State Water Board or Board)to adopt, by emergency regulation, a schedule of fees to cover the
costs associated with state intervention. A draft Emergency Regulation for State Intervention Fees is
available for public comment until April 7, 2017.
SGMA and State Intervention
In 2014, Governor Edmund G. Brown Jr.signed SGMA,which creates a framework for sustainable, local
groundwater management for the first time in California history. SGMA requires the formation of local
groundwater sustainability agencies (GSAs)in California's high-or medium-priority groundwater basins.'
GSAs are required to develop groundwater sustainability plans that make basins sustainable within 20
years of implementation. If locals are unable or unwilling to sustainably manage their basin,the State
Water Board is authorized to intervene. State intervention is triggered by one of the following events:
• July 1, 2017 No GSA for entire basin
• February 1, 2020 Basin is in critical overdraft and there is no plan or DWR fails plan
• February 1, 2022 No plan or DWR fails plan and basin is in long-term overdraft
• February 1,2025 DWR fails plan and basin has significant surface water depletions
Beginning July 1,2017, portions of basins not within the service area of a GSA are considered
unmanaged. Any person that extracts groundwater from an unmanaged area must submit annual
reports to the State Water Board.' If locals fail to form a GSA,fail to develop an adequate sustainability
plan, or fail to implement the plan successfully,the Board may designate the basin probationary and
directly manage groundwater extractions.3 Any person who extracts groundwater from a probationary
basin must submit annual reports to the State Water Board,although the Board has discretion to
exclude certain extractors from reporting.4
Annual reports are due to the Board by December 15 of each year for extractions made during the
previous water year(October 1-September 30). A report must be submitted for each well and must
identify well owner information,well location,well capacity, monthly extraction volumes,and place(s)
and purpose(s)of use. Extraction volumes must be measured by a method satisfactory to the Board.5
State Water Board Fee Authority
Any person that files an extraction report must pay a filing fee to cover the Board's SGMA-related costs.6
The Board must adopt an emergency regulation specifying the fees.' The emergency regulation allows
STATE WATER RESOURCES CONTROL BOARD
i60i I Street,Sacramento,CA 95814•Mailing Address:P.O.Box 100,Sacramento,CA 95812-9100•Wr .waterhoards.ca.gov N,'«.����„�•
NbwtA Fact Shee.
Water Boards
the Board to update the fee schedule as necessary to reflect changing conditions and programmatic
costs. These fees will not apply in basins where local implementation of SGMA is successful.
Early Input
In 2016,the State Water Board held outreach meetings and presented fee schedule proposals at local
events to get a better understanding of stakeholder concerns and solicit feedback on how to best
structure the annual fees. The draft emergency regulation incorporates input provided by a range of
stakeholders including local governments,water suppliers, businesses,and individuals.
Levels of State Intervention
The proposed schedule of fees is tied to the "level' of state intervention occurring in a basin. Each level
is associated with particular types of activities increasing staff workloads and other costs.
1. Unmanaged Area: An unmanaged area is a portion of a basin not within the service area of a GSA.
Extractors in unmanaged areas must submit annual reports to the Board.' Board staff will have to
identify unmanaged extractors,collect and review reports,verify extraction data,and evaluate the
impact of unmanaged extractors on groundwater conditions in a basin.
2. Probationary Basin: If local failure triggers state intervention,the Board may designate the basin
"Probationary."' Extractors in probationary basins are required to submit annual extraction reports
to the Board.10 In addition to the workload associated with locating extractors in a basin and
managing reports, Board staff will have to evaluate basin conditions and investigate potential
solutions for unsustainable conditions.
3. Interim Plan: in certain cases,the Board will need to directly manage extractions in a basin. In those
instances,the Board must develop an interim plan that contains corrective actions, a timeline to
make the basin sustainable, and a monitoring plan to ensure corrective actions are working."
Interim plan activities will significantly increase Board staff workloads.
Proposed Schedule of Fees
Fee Category ' Annual IFee Amount AppLcable Parties
Base Filing Fee $300 per well All extractors required to report
$10 per acre foot,
Unmanaged Rrea if metered
Extract
ors,'tn unmanaged:areas
Ratep
$25 eracre foot,
if unmetered '.
Probationary Basin
rs $4fl per acrekfaot r Extractors;En probationary basins
7,73
Rate
Extractors`E'n'probationary basins where the$Baard
InterimPfan Rate a$55 per acre
determines an rnterlm plan is required
Parties that extract,for domestic purposes,two acre-
De minimis Fee $100 per well feet or less per year from a probationary basin, if the
Board decides the extractions will likely be significant.
!_ate Fee 25%of total fee Extractors that do not file reports by the due date.
amount per month late
Page 2 of 5
Fact She f�Water s
In addition to the annual filing fees detailed on the previous page,the Board has the authority to order
extractors in a probationary basin to prepare and submit technical or monitoring program
reports. Therefore,the costs associated with these reports are not currently included in the proposed
fee schedule.1z
Metered Extraction Discount
To be eligible for the$10 per acre-foot unmanaged area rate,extractors must measure groundwater
extraction volumes with a meter that meets the following requirements:
• The meter must be equipped with a totalizer and permanently attached to the well.
• No water use can occur between the point of extraction and the meter.
• The meter must be calibrated by a qualified individual to be accurate to within ±five (5) percent by
volume upon installation and at least once every five years.
• The meter must be accessible for reading, inspection,testing, repair and replacement.
• The meter must be available for inspection by the State Water Board.
Extractors are responsible for the installation and maintenance of meters and all related costs.
Fee Examples
1. The following table highlights how the different levels of state intervention would impact the
annual fees required of a hypothetical 50-acre farm that extracts 175 acre-feet of groundwater
(3.5 acre-feet per acre)each year from a single well:
fntervention Leel Rate per acre foot „ Totaf fie Cost per acre
Unmanaged Area (metered) $10 $2,050 $41
Unmanaged Area (unmetered) $25 $4,675 $94
Probationary Basin $40 $7,300 $146
Interim Plan $55 $9,925 $199
2. The following table highlights how the different levels of state intervention would impact the annual
fees required of a hypothetical municipal water supplier or industrial user extracting 5,000 acre-feet
per year from a single well:
Interuention Le�ely' hate per acre:=foot Total#ee
Unmanaged Area (metered) $10 $50,300
Unmanaged Area (unmetered) $25 $125,300
Probationary Basin $40 $200,300
Interim Plan 1 $55 $275,300
Simplified Fees for the 2097 Water Year
In an effort to prioritize GSA formation and well registration,and to avoid undue burden to unmanaged
extractors,State Water Board staff is proposing simplified fees for the 2017 Water Year,as detailed on
the following page:
Page 3 of 5
Fact SheetWatcr Boards
• The annual fee for reports due by December 15, 2017 will be a flat fee of$300.
• The late fee for reports due by December 15, 2017 will be$100 for each month late up to a
maximum of$1200 (this is in addition to the$300 annual fee).
• If a GSA forms between July 1,2017 and September 30, 2017, extractors within the GSA service area
are considered unmanaged for the 2017 water year and must report to the Board by December 15,
2017, but the annual fee will be waived.
Based on Board assumptions,the simplified fees would recuperate between $750,000 and $1.9 million.
Annual Fees when a GSA Forms or Dissolves after September 30, 2017
Typically,annual fees will be based on the volume of groundwater extracted during the entire previous
water year. There is an exception for extractors in areas where a GSA forms after September 30, 2017.
These extractors will be required to report for the entire water year, but the annual fee will be limited to
extractions made during the months the extractors were unmanaged. For example, if a GSA forms on
March 15, 2018,extractors in that area will only be charged for extractions made during the entire
months of October 2017 through March 2018. On the other hand, if a GSA rescinds its formation notice
and an extractor is no longer within the management of a GSA after September 30,2017,the fee will be
based on extractions made during the entire previous water year.
De minimis Extractors
SGMA defines a de minimis extractor as"a person who extracts,for domestic purposes,two-acre feet or
less per year."'13 A person who extracts two acre-feet or less per year for a non-domestic purpose is not
considered a de minimis extractor. Domestic purposes do not include commercial activities. A person
who extracts more than two acre-feet per year from a parcel is not a de minimis user. De minimis users
are exempt from reporting in unmanaged areas. However,the State Water Board may require de
minimis extractors to report in a probationary basin if necessary.14
Interim Plans and Groundwater Sustainability Plans
State intervention is intended to temporarily protect groundwater resources until local authorities can
demonstrate their ability and willingness to manage groundwater sustainably.An interim plan is not
intended for permanent management of a basin. Local efforts to address the deficiencies that caused
state intervention will need to be funded by local agencies while groundwater extractors also pay State
Water Board fees;this will likely result in a scenario of extractors paying both local and state fees.
State Water Board Flexibility
SGMA provides the State Water Board with three means of flexibility in the intervention process.
The provisions described below will affect the applicability of the state intervention fees.
1. Areas in compliance with the sustainability goal will be excluded from probation."
2. Extractors maybe excluded from probationary reporting and related fees.16
3. Successful elements of a local sustainability plan will be incorporated into an interim plan.17
Page 4 of 5
Fact. Sheei:Water Boards.
Fee Development Timeline
Event Schedule*
Release draft emergency regulation for public review and comment March 8,2017
State Water Board Workshop on draft emergency regulation March 21, 2017
Public comment period for draft emergency regulation ends April 7, 2017
Public release of proposed emergency regulation May 6, 2017
State Water Board meeting to adopt proposed emergency regulation May 16,2017
Submission of adopted Emergency regulation to Office of Administrative Law June 2017
Emergency regulation effective July 1,2017
*All dates are subject to change.
SGNIA Information and Resources
State Water Board:waterboards.ca.pov/gmp
Department of Water Resources: water.ca.eov/groundwater/sgm
Contact
Jessica Bean, Groundwater Management Program
Email:Jessica.bean@wa"terboards.ca.gov
Phone: 916-341-5334
References
1 Basin prioritization information available at water.ca.gov/groundwater/sgm/SGM Basin Priority•cfm
Z Water Code Section 5202(a)(2)
3 Water Code Sections 10735.2 and 10735.8
°Water Code Section 10735.2(c)
s Water Code Sections 5202 and 5203
6 Water Code Section 5202(f)
7 Water Code Section 1530
s Water Code Section 5202(a)(2)
s Water Code Section 10735 et. seq.
10 Water Code Section 5202(a)(1)
11 Water Code Section 10735.8
12 Water Code Section 10736.6
13 Water Code Section 10721(e)
1a Water Code Section 10735.2(c)(2)
1s Water Code Section 10735.2(e)
16 Water Code Section 10735.2(c)
17 Water Code Section 10735.8(e)
Page 5 of 5