BILL ANALYSIS AB 25 Page 1 Date of Hearing: January 21, 2010 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 25 (Gilmore) - As Amended: January 13, 2010 Policy Committee: Environmental Safety Vote: 7-0 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill increases the size of the population that can be served by "publicly owned treatment works serving a small community" and provides alternative penalties to public school districts for their waste water discharge violations. Specifically, this bill: 1)Changes the definition of a publicly owned treatment works (POTW) serving a small community, for which there are alternative water discharge violation penalty provisions, from one that serves 10,000 persons or fewer to one that servers 20,000 persons or fewer. 2)Provides the water boards the authority to require a public school district to apply all or part of the penalty amount for a "serious waste discharge violations" to projects that remedy the violation, provided the following conditions are met: the compliance project is designed to correct the violations within five years and is in accordance with the enforcement policy of the State Water Resources Control Board (SWRCB), and the school district has prepared a financing plan to complete the compliance project. FISCAL EFFECT Minor absorbable costs to SWRCB. COMMENTS 1)Rationale. The author contends this bill better aligns water quality control laws concerning "small communities" with AB 25 Page 2 similar statutes, as well as the rational behind those statutes. Additionally, the author believes the bill provides flexibility in water quality enforcement that will allow public school districts to remedy water discharge violations without extreme financial hardship, flexibility existing law provides to POTWs serving small communities. 2)Background. a) California's Water Boards. The state's nine Regional Water Quality Control Boards (regional water boards) develop and enforce water quality objectives and implementation plans to protect the beneficial uses of the state's waters. Each regional board has nine part-time members appointed by the governor and confirmed by the Senate. The regional water boards develop "basin plans" for their respective hydrologic areas, issue waste discharge permits, enforce water violations, and monitor water quality. The SWRCB was created by the Legislature in 1967. It consists of five full-time members, each appointed to a four-year term by the governor and confirmed by the Senate. SWRCB sets statewide policy, coordinates and supports the actions of the regional water boards, and reviews challenges to regional water board actions. SWRCB also allocates surface water rights. b) Waste Discharge Requirements and Penalties. The Porter-Cologne Water Quality Act authorizes SWRCB and regional water boards to set waste discharge requirements. Current law also establishes mandatory minimum penalties of $3,000 for each serious waste discharge violation. Current law additionally provides that a POTW serving a small or low-income rural community may apply the amount of penalty to completion of a compliance project that remedies the waste discharge violation. c) Differing Definitions of Small . Different sections of existing law provide differing definitions of a "small community." Water Code Section 13193.9, which concerns the SWRCB's allocation of funds on behalf of a wastewater collection, treatment, or disposal project, defines a AB 25 Page 3 "small disadvantaged community" as a municipality with a population of 20,000 persons or less, or a reasonably isolated and divisible segment of a larger municipality encompassing 20,000 persons or less, with an annual median household income that is less than 80 percent of the statewide median. Public Resources Code Section 30925, which deals with the board's awarding of grants for water pollution control projects, defines a "small community" as a municipality with a population of 20,000 persons or less, a rural county, or a reasonably isolated and divisible segment of a larger municipality where the segment of the population is 20,000 persons or less, with a financial hardship, as determined by the State Water Board. Conversely, Water Code Section 13385, which this bill attempts to modify, defines a "publicly owned treatment works serving a small community" as one that serves 10,0000 persons or fewer or that serves a rural county with a financial hardship, as determined by the state board. 1)Why Stop at Public School Districts ? According to the author, public school districts are like POTWs serving small communities, in that both can be financially devastated by imposition of mandatory minimum penalties for waste discharge violations, the dollar amounts of which can accrue for years before imposition by the water board. In passing this bill, the policy committees have accepted the parallel drawn by the author between these two types of public entities. However, it can be argued that community colleges and public universities, too, can be severely harmed by waste water discharge penalties. It is unclear why the author proposes alternative compliance mechanisms for public school districts but not for other public education institutions. 2)Related Legislation. AB 914 (Logue) would have expanded the definition of a publicly owned treatment works serving a small community, and provides an additional alternative to imposition of mandatory minimum civil penalties for water code violations on these treatment works. AB 914 passed the Assembly 77-3. The governor vetoed the bill, citing the adequacy of the water boards' existing authority to achieve the bill's goals and a lack of clarity in the bill that may have led to costly litigation. AB 25 Page 4 3)Support. This bill is supported by both the League of California Cities and the California State Association of Counties. There is no registered opposition. Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081