Bill Restricting Transfers Fails in Senate Committee

ACWA-opposed legislation on water transfers failed to clear the Senate Appropriations Committee on a 5-5 vote on Monday, marking the third time the language has been rejected this year.

AB 2776 (Huffman), which would impose unnecessary and costly restrictions on voluntary water transfers, passed the Senate Natural Resources and Water Committee on June 29 on a 5-4 vote. The bill includes language nearly identical to AB 2049 (Arambula), which failed passage on the Assembly floor on June 2 and again on June 3. The language was amended into AB 2776 the day of the June 29 hearing.

As amended, the bill would limit long-term voluntary water transfers even if the parties agree the transfers are beneficial to the state. It would apply to any long-term water transfer of 20 years or more.

AB 2776 was granted reconsideration, which means the measure could be taken up in committee again before the session official ends Aug. 31.

ACWA thanks its members for sending letters to their legislators on AB 2776 to raise awareness of the issues in a short period of time. The letters ultimately made the difference in defeating the legislation.

On another topic related to water transfers, ACWA’s Board of Directors has directed staff to launch an initiative to identify the strengths and weaknesses of California’s existing system for voluntary water transfers and make recommendations for improving it.

Over the next decade, regulatory restrictions are expected to seriously affect water deliveries to California water agencies. Identifying and implementing methods to assure a highly effective system for voluntary water transfers can help maintain water supply reliability.

The initiative is expected to result in a white paper that would serve as the basis for briefing state and federal lawmakers and officials in the state and federal administrations regarding the advantages and disadvantages of possible changes in the water transfer system in California.