BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 153|
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                                 THIRD READING


          Bill No:  AB 153
          Author:   Hernandez (D), et al
          Amended:  8/30/10 in Senate
          Vote:     27 - Urgency

           
           SENATE NATURAL RES. & WATER COMMITTEE  :  6-1, 8/18/10
          AYES:  Pavley, Cogdill, Hollingsworth, Huff, Kehoe, Padilla
          NOES:  Wolk
          NO VOTE RECORDED:  Lowenthal, Simitian

           SENATE APPROPRIATIONS COMMITTEE  :  8-3, 8/27/10
          AYES:  Kehoe, Ashburn, Alquist, Emmerson, Leno, Price,  
            Walters, Wyland
          NOES:  Corbett, Wolk, Yee


           SUBJECT  :    Safe, Clean, and Reliable Drinking Water Supply  
               Act of 
                      2012:  groundwater contamination

           SOURCE  :     San Gabriel Valley Water Quality Authority 


           DIGEST  :    This bill changes the criteria for spending $100  
          million from a proposed water bonds.  Specifically, this  
          bill expands the allowed uses of bond funds for groundwater  
          cleanup to include non-construction costs.

           ANALYSIS  :    Existing law creates the Safe, Clean, and  
          Reliable Drinking Water Supply Act of 2012, which, if  
          approved by the voters, authorize the issuance of bonds in  
          the amount of $11.140 billion pursuant to the State General  
                                                           CONTINUED





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          Obligation Bond Law to finance a safe drinking water and  
          water supply reliability program.

          The bond act, among other things, make $1 billion available  
          upon appropriation by the Legislature, for expenditures,  
          grants, and loans for projects to prevent or reduce the  
          contamination of groundwater that serves as a source of  
          drinking water, and requires funds appropriated pursuant to  
          that authority to be available to the Department of Public  
          Health (DPH) for groundwater contamination projects.  Of  
          that amount, the bond act requires not less than $100  
          million to be available for projects that meets prescribed  
          requirements and criteria, including addressing  
          contamination at a site on a specified list maintained by  
          the Department of Toxic Substances control or a site listed  
          on the National Priorities List.

          This bill changes the provisions governing Section 79770(d)  
          of the water bond.  It removes the restriction that the  
          funds be used for "projects" authorized by funding by that  
          subdivision, and instead allow the funds to be used for  
          "costs associated with projects, programs, or activities,  
          authorized for funding by that subdivision.

           Background

          A part of the water package passed in the 2009-10 7th  
          Extraordinary Session was SBX7 2 (Cogdill).  That bill  
          enacted the Safe, Clean and Reliable Drinking Water supply  
          Act of 2010, which, if approved by the voters in November  
          2010, authorizes $11.4 billion in general obligation bonds  
          to fund various water resources programs and projects.

          Chapter 10 of the water bond provides $1 billion for  
          expenditures, grants, and loans for projects to prevent or  
          reduce the contamination of groundwater that serves as a  
          source of drinking water.  The Department of Health  
          Services is to prioritize projects based upon the following  
          criteria:

          A. The threat posed by groundwater contamination to the  
             affected community's overall drinking water supplies.

          B. The potential for groundwater contamination to spread  







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             and reduce drinking water supply and water storage for  
             nearby population areas.

          C. The potential of the project, if fully implemented, to  
             enhance local water supply reliability.
           
           D. The potential of the project to increase opportunities  
             for groundwater recharge and optimization of groundwater  
             supplies.
           
           DPH is to give additional consideration to projects that  
          meet any of the following criteria:

          A. The project is implemented pursuant to a comprehensive  
             basinwide groundwater quality management and remediation  
             plan or is necessary to develop a comprehensive  
             groundwater plan.

          B. Affected groundwater provides a local supply that, if  
             contaminated and not remediated, will require import of  
             additional water from outside the region.

          C. The project will serve an economically disadvantaged  
             community or an economically distressed area.

          D. The project addresses contamination at a site where the  
             responsible parties have not been identified, or where  
             the responsible parties are willing or unable to pay for  
             cleanup.  

          Additionally, Section 79770(d) provides that at least $100  
          million of the funds provided by Chapter 10 be made  
          available for projects that meet the requirements of this  
          bill and both of the following criteria:

          A. The project is part of a basinwide management and  
             remediation plan for which federal funds have been  
             allocated.

          B. The project addresses contamination at a site on the  
             list maintained by DTSC pursuant to Section 25356 of the  
             Health and Safety code or a site listed on the National  
             Priorities List pursuant to the Comprehensive  
             Environmental Response, Compensation, and Liability Act  







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             of 1980 (42 U.S.C. Sec. 9601 et seq.).

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

                          Fiscal Impact (in thousands)

           Major Provisions             2010-11             2011-12          
              2012-13             Fund

           Cost pressure on            Likely in the millions           
                                      Bond*
          bond funds

          *Proposed water bond

           SUPPORT  :   (Verified  8/27/10)

          San Gabriel Valley Water Quality Authority (source)
          California Water Association

           ARGUMENTS IN SUPPORT  :    Supporters assert that the  
          amendments will "alleviate some of the rate pressure on San  
          Gabriel area residents as they seek to maximize the use of  
          their local water supplies, thus relieving pressure on the  
          Sacramento-San Joaquin Delta, the Colorado River, and other  
          imported water sources."


          CTW:cm  8/30/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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