On January 1, 2017, California Senate Bill 1262 (SB 1262) became effective. SB 1262 amends California Water Code § 10910 and California Government Code § 66473.7 in an initial attempt to incorporate requirements under California's Sustainable Groundwater Management Act (SGMA).

The SGMA was adopted in 2014 and establishes statewide requirements for the sustainable management of groundwater in California. The Sustainable Groundwater Management Act (SGMA) requires groundwater to be managed sustainably in California’s groundwater basins by local public agencies and groundwater sustainability agencies (GSAs).

SB 1262 amends two existing statutes that both require as part of the approvals for certain types of projects specific analysis of whether there is a sufficient water supply available to serve the project:

SB 610 applies to any proposed development that is both:

If SB 610 applies to the proposed development, a water supply assessment (SB 610 assessment) is required. The assessment is prepared by either the water supplier or the lead agency for the project. For a discussion on lead agencies under CEQA, see Practice Note, California Environmental Quality Act: Overview (CA).

SB 1262 amends SB 610 to require that certain information related to the SGMA be included in the water supply assessment that is being prepared for a project under CEQA if the water supply for a proposed project includes groundwater from a basin designated as medium- or high-priority.

SB 221 applies to any proposed development of a residential subdivision that will have either:

If SB 221 applies to the proposed subdivision, then written verification that sufficient water supply is available for the project is required as part of the subdivision approvals.

If the water supply for the proposed subdivision includes groundwater, then in addition to determining whether the landowner can extract additional groundwater to supply the proposed subdivision, SB 1962 amends SB 211 to require the written verification also include an evaluation of additional factors related to the SGMA.

SB 1962 represents an attempt by the California legislators to integrate the SGMA with the state's existing water supply statutes. While SB 1962 represents a positive step in the process of integrating the SGMA with other water laws, there is some uncertainty that still remains and will likely result in future additional legislative efforts.

Counsel engaged in development in California should be aware of these additional factors may be considered when determining whether the water supply will be sufficient for a project that will rely on groundwater.

For more information on CEQA generally, see: