Butte County Board of Supervisors Agenda Transmittal

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1 Butte County Board of Supervisors Agenda Transmittal Clerk of the Board Use Only Agenda Item: 3.38 Subject: Resolution to Establish the Butte County Groundwater Sustainability Agency in the West Butte Subbasin Department: Water and Resource Conservation Meeting Date Requested: May 23, 2017 Contact: Paul Gosselin Phone: (530) Regular Agenda Consent Agenda Department Summary: (Information provided in this section will be included on the agenda. Attach explanatory memorandum and other background information as necessary). The Sustainable Groundwater Management Act (SGMA) went into effect on January 1, High and medium subbasins are subject to SGMA compliance. In Butte County, there are four subbasins subject to SGMA (Vina, West Butte, East Butte and Wyandotte Creek). By June 30, 2017, subbasins subject to SGMA must have one or more Groundwater Sustainability Agencies (GSAs) established for all portions of the subbasin. If areas of a subbasin are not covered by one or more GSAs by June 30, 2017, the State Water Resources Control Board (SWRCB) will intervene in the groundwater basin and impose mandatory fees, groundwater reporting and limit groundwater pumping (Water Code 10735). Butte County, Glenn County, Colusa County, the City of Chico, Western Canal Water District, Reclamation District 2106, Durham Irrigation District, and Reclamation District 1004 have elected to become GSAs in the West Butte subbasin. Butte County GSA area covers the entire portion of the West Butte subbasin in Butte County and overlies GSA areas of the City of Chico, Reclamation District 2106, Durham Irrigation District, and Western Canal Water District. Butte County GSA area does not overlap GSAs in the Glenn or Colusa County portion of the West Butte subbasin. In 2016, SGMA was amended to require that if the proposed GSA management areas of two or more entities overlap, then none of the entities would be recognized as GSAs until the overlap was resolved or eliminated. The department recommends that the Board of Supervisors authorizes resolving the overlap by modifying the Butte County GSA boundary to only include the areas outside of the Chico city limits and the service boundary of the Reclamation District 2106, Durham Irrigation District, and Western Canal Water District. Failure to resolve the overlap prior to June 30, 2017 would result in SWRCB intervention. This action would not be a material change from original GSA filings and not require a new notice of intent. Fiscal Impact: Does not apply. Personnel Impact: Does not apply. Action Requested: Adopt resolution and authorize the Chair to sign Administrative Office Review: Casey Hatcher, Economic and Community Development Manager

2 WATER AND RESOURCE CONSERVATION 308 Nelson Avenue, Oroville, CA Telephone: (530) Fax: (530) Paul Gosselin, Director May 23, 2017 To: Butte County Board of Supervisors From: Paul Gosselin, Director Re: Groundwater Sustainability Agency (GSA) Formation in the West Butte Subbasin The Sustainable Groundwater Management Act (SGMA) requires that groundwater sustainability agencies (GSA) be formed in high and medium priority subbasins by June 30, Butte County, Glenn County, Colusa County, the City of Chico, Western Canal Water District, Reclamation District 2106, Durham Irrigation District, and Reclamation District 1004 have elected to become GSAs in the West Butte subbasin. The Butte County GSA area covers the entire Butte County portion of the West Butte subbasin, including GSA areas covered by the City of Chico, Western Canal Water District, and Reclamation District The Butte County GSA area does not overlap area covered by Glenn County, Colusa County, or Reclamation District In 2016, SGMA was amended to not allow the boundaries of one GSA to overlap with another GSA. To be in compliance, Butte County must take action to resolve their overlapping boundaries prior to June 30, Butte County can resolve the overlap with the City of Chico, Western Canal Water District, and the Reclamation District 2106 by modifying its GSA area to only include areas outside of the city limits or district service boundary. To advance the SGMA planning process, agencies in the West Butte subbasin have submitted letters in support of the County s effort to obtain grant funding for the development of the GSP, share data, and cooperate on the development of the GSP for the West Butte subbasin. The California Department of Water Resources is expected to release a grant program in 2017 for the development of GSPs. The cooperation among local agencies will strengthen the chances of obtaining grant funding and GSP development. Background SGMA went into effect on January 1, High and medium priority subbasins are subject to SGMA compliance. In Butte County, there are four subbasins subject to SGMA (Vina, West Butte, East Butte and Wyandotte Creek). By June 30, 2017, subbasins subject to SGMA must be covered by one or more GSAs for all portions of the subbasin. If areas of a subbasin are not covered by one or more GSAs by June 30, 2017, the State Water Resources Control Board (SWRCB) will intervene in the groundwater basin and impose mandatory fees, groundwater reporting and limit groundwater pumping (Water Code 10735). A GSA can be formed by a single local public agency or a combination of agencies. Local public agencies eligible to be a GSA must have either water supply, water management, or land use responsibilities. Counties are presumed to be the GSA for areas that do not have any other local agency. On October 13, 2015, Butte County elected to become a GSA for all the Butte County

3 portions of the West Butte subbasin. Other counties, cities, and water districts elected to become GSAs as well. On November 17, 2015, the City of Chico elected to become a GSA within its city boundaries. On June 16, 2015 Colusa County adopted Resolution electing to be a GSA for the portion of the West Butte subbasin in Colusa County. On July 7, 2015, Glenn County adopted Resolution electing to become a GSA the portion of the West Butte subbasin in Glenn County. On July 2, 2015, Reclamation District 1004 elected be a GSA. On September 15, 2015, Western Canal Water District adopted Resolution to be a GSA for their portion of the West Butte subbasin. On October 25, 2016, Durham Irrigation District adopted Resolution electing to be a GSA. The Butte County GSA areas submitted through Resolution No overlap the GSA areas of the City of Chico, Western Canal Water District, Durham Irrigation District, and Reclamation District Butte County does not overlap the boundaries of Colusa County, Glenn County or Reclamation District On January 1, 2016, legislation known as Senate Bill 13 took effect which among other things requires that if the proposed GSA management areas of two or more entities overlap, then none of the entities would be recognized as GSAs until the overlap was resolved or eliminated (Water Code (c)). The overlapping GSA boundaries have prevented the California Department of Water Resources from accepting the agencies as GSAs. Failure to resolve the overlap in the West Butte subbasin by June 30, 2017, will put the West Butte subbasin out of compliance with SGMA and result in SWRCB intervention. To achieve compliance, GSAs are allowed to modify their GSA notice in order to eliminate the overlap (Water Code (c)). Modifications do not require a new notice of intent unless the modification would effect a material change to the previously submitted notice of intent. The City of Chico, Colusa County, Glenn County, Reclamation District 1004, Durham Irrigation District, and Reclamation District 2106 as well as other agencies have agreed to cooperate on developing a GSP for the West Butte subbasin. Resolving the GSA Boundary Overlaps Butte County can resolve the overlap with the City of Chico, Western Canal Water District, Durham Irrigation District, and Reclamation District 2106 by modifying its proposed GSA boundary to only include the areas outside of the city limits or jurisdictional boundaries. If authorized by the Board of Supervisors, the department will administratively file an amended GSA notification to the California Department of Water Resources. This action would fulfill the requirements to have one or more GSAs formed in the West Butte subbasin without boundary overlaps. This action would not be a material change from original GSA filings. Recommended Action Adopt the resolution and authorize the Chair to sign.

4 Resolution No. RESOLUTION TO ESTABLISH THE BUTTE COUNTY GROUNDWATER SUSTAINABILITY AGENCY IN THE WEST BUTTE SUBBASIN WHEREAS, the Sustainable Groundwater Management Act of 2014 went into effect on January 1, 2015; and WHEREAS, the Sustainable Groundwater Management Act of 2014 enables the State Water Resources Control Board to intervene in groundwater basins unless a local public agency or combination of local public agencies form a Groundwater Sustainability Agency or Agencies (GSA) by June 30, 2017 (Water Code 10735); and WHEREAS, retaining local jurisdiction over water management and land use is essential to sustainably manage groundwater and to the vitality of Butte County s economy, communities and environment; and WHEREAS, any local public agency that has water supply, water management or land use responsibilities within a subbasin may elect to be a Groundwater Sustainability Agency (Water Code and 10723(a)); and WHEREAS, counties are presumed to be the Groundwater Sustainability Agency for areas within a basin that is not within the management area of another Groundwater Sustainability Agency (Water Code 10724); and WHEREAS, Butte County is eligible and presumed to be a Groundwater Sustainability Agency for the portions of the Vina, West Butte, East Butte and Wyandotte Creek (formally North Yuba) subbasins in Butte County not managed by another agency; and WHEREAS, on October 13, 2015, after holding a public hearing and publication of notice pursuant to Government Code section 6066, the Butte County Board of Supervisors adopted Resolution No , electing to become a GSA for all portions of Butte County that overlie the Vina, West Butte, East Butte and Wyandotte Creek (formally the North Yuba) subbasins; and WHEREAS, on November 17, 2015, Chico held a public hearing to determine whether to become a GSA and on November 17, 2015, Chico adopted Resolution No , electing to become a GSA; and

5 WHEREAS, on June 16, 2015, Colusa County held a public hearing to determine whether to become a GSA and on June 16, 2015, Colusa County adopted Resolution , electing to become a GSA; and WHEREAS, on July 7, 2015, Glenn County held a public hearing to determine whether to become a GSA and on July 7, 2015, Glenn County adopted Resolution , electing to become a GSA; and WHEREAS, on September 15, 2015, Western Canal Water District held a public hearing to determine whether to become a GSA and on September 15, 2015, Western Canal Water District adopted Resolution , electing to become a GSA; and WHEREAS, on June 16, 2015, Reclamation District 1004 held a public hearing to determine whether to become a GSA and on July 2, 2015, Reclamation District 1004 adopted Resolution , electing to become a GSA; and WHEREAS, on October 6, 2016, Durham Irrigation District held a public hearing to determine whether to become a GSA and on October 25, 2016, Durham Irrigation District adopted Resolution , electing to become a GSA; and WHEREAS, on June 16, 2015, Reclamation District 2106 held public hearings on January 18 and 19, 2017 to determine whether to become a GSA and on February 1, 2017, Reclamation District 2106 adopted Resolution , electing to become a GSA; and WHEREAS, on January 1, 2016, legislation known as Senate Bill 13 took effect which among other things requires that if the proposed GSA management areas of two or more entities overlap, then none of the entities would be recognized as GSAs until the overlap was resolved or eliminated (Water Code (c)); and WHEREAS, the Butte County GSA area submitted through Resolution No overlap the GSA areas of the City of Chico, Reclamation District 2106, Durham Irrigation District and Western Canal Water District and has prevented the establishment of GSAs as required by SGMA; and WHEREAS, failing to eliminate the GSA overlaps and establish GSAs by June 30, 2017 will subject the respective basin to State Water Resources Control Board intervention that will result in the imposition of fees and the loss of local land use and water management authority; and WHEREAS, pursuant Water Code (c), entities whose proposed GSA management areas overlap may modify their proposed management areas in order to eliminate overlaps, and such modification does not require a new notice of intent unless the modification would effect a material change to the previously submitted notice of intent; and

6 WHEREAS, Butte County, the City of Chico, Glenn County, Colusa County, Reclamation District 2106, Reclamation District 1004, and Durham Irrigation District support a cooperative and ongoing working relationship that will allow compliance with SGMA through eliminating GSA boundary overlaps and establish multi GSA partnerships; and WHEREAS, Butte County can resolve the overlap with the City of Chico, Reclamation District 2106, Durham Irrigation District, and Western Canal Water District by modifying its GSA notice with a revised GSA map which reflects that the Butte County GSA area will be the portions of the West Butte subbasin not covered by the City of Chico, Reclamation District 2106, Durham Irrigation District, and Western Canal Water District; and WHEREAS, the modified GSA filing would resolve the overlaps in the West Butte subbasin and does not involve a material change requiring a new notice of intent; and WHEREAS, Butte County, Colusa County, Glenn County, the City of Chico Reclamation District 2106, Durham Irrigation District, Reclamation District 1004 intend to advance SGMA compliance for the West Butte subbasin through cooperation and partnership; and NOW, THEREFORE, BE IT RESOLVED that the Board of Supervisors of the County of Butte hereby modifies its proposed GSA management areas in the West Butte ( ) subbasin as depicted in the map attached as Exhibit A; and BE IT FURTHER RESOLVED that the Butte County Department of Water and Resource Conservation is authorized to submit a modified GSA boundary and other related documents for the West Butte subbasin. PASSED AND ADOPTED by the Butte County Board of Supervisors this 23 rd day of May, 2017 by the following vote: AYES: NOES: ABSENT: NOT VOTING: Bill Connelly, Chair Butte County Board of Supervisors ATTEST: Paul Hahn, Chief Administrative Officer and Clerk of the Board of Supervisors By: Deputy

7 Exhibit A: Butte County Groundwater Sustainability Agency In the West Butte Subbasin

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