BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 301
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2009-2010 Regular Session
                                           
           BILL NO:    AB 301
           AUTHOR:     Fuentes
           AMENDED:    April 1, 2009
           FISCAL:     Yes               HEARING DATE:     June 22, 2009
           URGENCY:    No                CONSULTANT:       Rachel Machi  
           Wagoner
            
           SUBJECT  :    VENDED WATER

            SUMMARY  :    
           
            Existing law  :      
            
           1) Under the Sherman Food, Drug, and Cosmetics Law prescribes  
              various quality, reporting and labeling standards for  
              bottled water and private water sources.

           2) Authorizes the state to assume responsibility for managing  
              the safety of its drinking water quality if the state is  
              certified as having a program at least as stringent as the  
              federal program pursuant to the federal Safe Drinking Water  
              Act (SDWA), which establishes the framework for regulating  
              drinking water quality in the United States by the  
              Environmental Protection Agency (EPA).

           3) Requires the State Department of Public Health (DPH) to  
              enforce the SDWA and to charge and collect a fee for each  
              license application submitted, in an amount reasonably  
              necessary to produce sufficient revenue for DPH enforcement  
              efforts and in accordance with a prescribed fee schedule.

           4) Requires a water-bottling plant to annually prepare a  
              bottled water report as a condition of licensure and to  
              make the report available to each customer.

           5) Requires each label on bottled water sold at retail or  
              wholesale in California to report stipulated information,  
              including the source of the bottled water, effective  
              January 1, 2009.









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            This bill  :

           1) Requires each applicant for a license as a water-bottling  
              plant or a private water source to provide the DPH with  
              specified information, as follows:

              a)    The total volume of water bottled or sold either for  
                 wholesale or retail use as specified, including best  
                 estimates of information for new applicants.

              b)    Whether the source of the water bottled or sold is a  
                 public or private water agency or an artesian well,  
                 lake, river, spring, or well, as appropriate.

              c)    The county in which the source is located and whether  
                 the location is privately or publicly held.

           2) Requires DPH to annually compile specified information,  
              make it available to the public and to ensure that the  
              compilation of information reported does not contain  
              duplicative data as to applicants applying for both a  
              water-bottling plant and private water source license.

           COMMENTS:

            1) Purpose of Bill  .  According to the author, there is  
              currently no information available regarding the amount of  
              water pulled from groundwater aquifers or surface water  
              supplies by water bottlers and vending operations.  The  
              author states that simple reporting requirements disclosing  
              the amount of water extracted as well as the source of the  
              water would help provide clear and important information on  
              how our state's limited water supplies are put to use.  In  
              a time of ongoing state drought and calls for water  
              rationing, it is important that we know how much of our  
              state's most precious resource is bottled and shipped each  
              year.

            2) What bottled water companies operate in California and  
              where are they located  ?  By 2006, the DPH licensed an  
              estimated 181 bottling plants to sell water in California.   
              Of these plants, 112 are located within California, 43  









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              plants are in other US states, and 26 plants are located  
              outside of the US.
           Approximately 119 different "companies" operate the 181 plants  
              licensed by DPH.  Eighty-six companies operate the bottling  
              plants located in California. Some of these are  
              subsidiaries of larger corporations, so the total number of  
              independent bottlers may be substantially lower.

           Bottling plants are located in 33 counties throughout  
              California.  Bottling plants are concentrated in several  
              counties in Southern California.  The number of bottling  
              plants within a single county provides neither an  
              indication of the total quantity of water extracted nor the  
              source or type of water bottled.  Because the impact of  
              groundwater extraction depends on site-specific  
              characteristics of the groundwater aquifer, one cannot make  
              any inference on which regions are most heavily impacted.

            3) Potential Impacts of Extracted Water  .  Bottling plants can  
              deplete local groundwater aquifers and associated surface  
              water resources.  If the rate of groundwater extraction  
              exceeds the rate of natural replenishment, then groundwater  
              levels decline, posing serious problems for those dependent  
              of wells for their water supply.  Continued depletion of  
              groundwater can cause some aquifers to collapse, resulting  
              in permanent loss of the aquifer and land subsidence.  In  
              addition, groundwater provides water for local streams,  
              particularly in the summer.  As groundwater levels decline,  
              water in local streams can also decline or even run dry.

            4) What regions or populations are potentially impacted by the  
              industry  ?  The bottled water industry claims that they  
              account for less than 0.02% of the United States' total  
              fresh groundwater withdrawals.  Yet, many of the concerns  
              about groundwater withdrawals may be local in nature,  
              especially in situations where a bottled water plant may be  
              responsible for a substantial fraction of local groundwater  
              use.  The actual impacts will be site-specific and thus  
              using national level data is inaccurate.

           Bottled water plants are located throughout the state and thus  
              all residents of California are potentially impacted by the  
              bottled water industry.  Farmers, fisheries, and rural  









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              communities, however, tend to suffer the greatest impacts.   
              As groundwater levels decline, farmers and municipalities  
              dependent on groundwater are forced to pump water from  
              deeper depths, thereby increasing energy costs.  Declining  
              groundwater levels can deplete local streams, thereby  
              placing fish and those dependent on fish at risk.

            5) Related Legislation  .  

            AB 2275 (Fuentes) of 2008 is substantially similar to AB 301,  
              and required each applicant for a license as a  
              water-bottling plant or a private water source to provide  
              specified information to DPH and required DPH to annually  
              compile a listing of this information and make it available  
              to the public, as provided. Governor Schwarzenegger vetoed  
              AB 2275, with a generic veto message he uniformly applied  
              to several bills that reached his desk in 2008.  
            
              AB 2186 (Salas) of 2008 required each water-vending  
              machine, retail water facility, and private water source  
              that sells water at retail to display the identity of the  
              source from which the water was last obtained prior to  
              being bottled.  The bill was held in Assembly Environmental  
              Safety and Toxic Materials Committee at the request of the  
              author. 

              AB 1521 (Salas) of 2007 required each container of bottled  
              water sold in this state to include on its label the  
              identity of the source from which the water was last  
              obtained prior to being bottled, in compliance with  
              applicable federal regulations.  Also required, as a  
              condition of licensure, a water-bottling plant to annually  
              prepare and submit to the department a consumer confidence  
              report.  Governor Schwarzenegger vetoed AB 1521. 

              SB 220 (Corbett) Chapter 575, Statutes of 2007, requires a  
              water-bottling plant to annually prepare a bottled water  
              report, including information about the source of the  
              bottled water, (i.e. a spring, drilled well, or municipal  
              water supply), as a condition of licensure.  The report  
              must also include a brief description of the treatment  
              process used for producing the bottled water.  This bill  
              also enhanced the DPH regulatory process governing water  









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              dispensed from water vending machines and the labeling  
              requirements for bottled water. 

              AB 2644 (Montanez) of 2006 increased the annual license fee  
              for a water-vending machine to $40, and required  
              water-vending machines to be cleaned and serviced at least  
              once every 31 days.  The bill would have required that  
              maintenance and complaint records be kept for a minimum of  
              two years and be made available to the department upon  
              request.  AB 2644 was held on Senate Appropriations  
              Committee suspense file.

              SB 1772 (Ashburn) of 2006 required the Department of Health  
              Services to ensure that samples of water-vending machines  
              are inspected annually and would set forth the inspection  
              criteria.  This bill also increased the license fee per  
              vending machine from $10.25 to $25, adjusted annually.  SB  
              1772 was held in the Assembly Environmental Safety and  
              Toxic Materials committee without hearing. 

              SB 1302 (Alarcon) of 2004 required the Department of Health  
              Services to conduct annual random inspections of  
              water-vending machines and retail water vendors through  
              visual inspections and the collection and testing of water  
              samples.  The bill required the department to make all  
              information collected in the random inspections available  
              to the public, conduct a consumer education program and  
              assess a fee sufficient to pay the costs of the random  
              inspections and the education program.  SB 1302 was held on  
              the Assembly Appropriations Committee suspense file.

              SB 1589 (Denham) of 2004 required that bottled water may  
              not exceed 10 parts per billion of total triahalomethanes  
              or 5 parts per billion of lead, unless the department  
              establishes a lower level by regulation, and vended water  
              may not exceed 10 parts per billion of total  
              triahalomethanes, on average, or 5 parts per billion of  
              lead for public drinking water.  The bill was held in the  
              Senate Health and Human Services Committee at the request  
              of the author.

              AB 83 (Corbett) of 2003 transferred the provisions relating  
              to the licensure and regulation of persons engaged in the  









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              bottled water activities from the Sherman Food, Drug, and  
              Cosmetic Law to the California Safe Drinking Water Act.  It  
              required specified information on labeling and in  
              advertising bottled water products; required bottled water  
              licensees to comply with provisions similar to those  
              imposed on public water systems regarding emergency  
              notification plans, consumer confidence reports, and  
              inspections and revised the annual license fee schedule.   
              AB 83 failed passage on the Senate Floor. 

            6) Arguments in support  .  Supporters contend that credible and  
              transparent information would help both the public and  
              decision makers to understand more accurately the impacts  
              of proposed bottled-water facilities in California. Without  
              this information, local communities and decision makers may  
              not know exactly how much of their local water supply is  
              sold and transported out of the local area. 

            7) Arguments in opposition  .  DPH does not believe that this  
              bill will provide any improvement in public health  
              protection to California consumers.  DPH feels that the  
              information they already collect regarding the identity of  
              source water from bottlers is sufficient to ensure quality.  
               DPH also believes the information they are being asked to  
              collect may be considered proprietary, because it can act  
              as an indicator of a company's financial health.  DPH also  
              states that this bill places an unfunded mandate on the  
              department.

            SOURCE  :        Food and Water Watch  

           SUPPORT  :       Alliance for Democracy
                          American Federation of State, County and  
                          Municipal 
           Amigos de los Rios
           Employees, AFL-CIO
                          Breast Cancer Fund
                          California Apollo Alliance
                          California Coastkeeper Alliance
                          Center on Policy Initiatives
                          Clean Water Action
                          Concerned Citizen's Coalition of Stockton
                          Concerned McCloud Citizens









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                          East Bay Municipal Utility District
                          Ella Baker Center for Human Rights
                          Environmental Working Group
                          Friends of the Los Angeles River
                          McCloud Watershed Council
                          Movement Generation
                          Planning and Conservation League
                          San Diego Area Municipal Employees Union
                          San Diego Bay Council
                          Santa Clarita Organization for Planning and the  
                          Environment
                          Santa Monica Bay Keeper
                          Southern California Watershed Alliance
                          TreePeople
                          Tuolumne River Trust
                          Urban Semillas
                          Wildcoast
                          1 resident
            
           OPPOSITION  :    California Department of Public Health