BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 403| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 403 Author: Alejo (D) Amended: 8/29/12 in Senate Vote: 27 Urgency ALL PRIOR VOTES NOT RELEVANT SUBJECT : Water quality: Greater Monterey County Regional Water Management Group SOURCE : Author DIGEST : This bill appropriates $2 million from the Waste Discharge Permit Fund to the Greater Monterey County Regional Water Management Group for assessment and feasibility studies needed to develop a plan addressing drinking water and wastewater issues in disadvantaged communities located in the Salinas Valley. Senate Floor Amendments of 8/24/12 delete the previous version of the bill relating to public drinking water standards, and replace it with the above language. ANALYSIS : Existing law requires the assessment of penalties for violations of water quality laws and requires the money generated by these civil penalties to be deposited into the fund, to be expended by the State Water Resources Control Board upon appropriation of the Legislature for the purpose of pollution abatement in the CONTINUED AB 403 Page 2 state's waters. The author's office states that the Salinas Valley is one of the regions in the country with the largest agricultural production. However, years of intensive fertilizer and pesticide use have left a legacy of water pollution in the region's surface and groundwater. Nitrate groundwater contamination not only imposes serious health risks but it also results in mayor costs for small rural communities like the ones in the Salinas Valley. The purpose of this bill is to identify affordable and efficient ways in which the Salinas Valley water quality can be improved and communities can have access to safe drinking water. Background In 2008, SB 1 X2 (Perata) was signed into law to require the State Water Board, in consultation with other agencies, to prepare a report to the Legislature to better understand the sources of nitrate contamination and identify solutions for nitrate contamination of groundwater used for drinking. Earlier this year, as required by statute, UC Davis published a report commissioned by the State Water Resources Control Board. The study, "Addressing Nitrate in California's Drinking Water," found that 10 percent of the 2.6 million people in the Tulare Lake Basin and the Salinas Valley rely on groundwater that may exceed the nitrate standard of 45 milligrams per liter set by the California Department of Public Health for public water systems. In light of the report, the Governor's office convened a Drinking Water Stakeholder Group with member from agricultural groups, water agencies, environmental justice groups and local governments to address the concerns highlighted by the UC Davis nitrate report on drinking water. The Drinking Water Stakeholder Group released the recommendations on August 20, 2012. One of the recommendations was to allocate money to the Greater Monterey County Regional Water Management for a pilot project in the Salinas Valley. The Salinas Valley plan would mirror the Tulare Lake Basin plan approved in 2008 (SB1 X2 (Perata)). That plan, while still in development, has successfully brought together CONTINUED AB 403 Page 3 elected officials, impacted communities, regulatory agencies and technical assistance organizations and, to date has identified over 500 small unincorporated communities in the Basin, of which nearly 200 are not served by a public water system. The development of sustainable solutions that address the needs of these communities is underway. The Salinas Valley pilot plan would be required to include recommendations for planning, infrastructure, and other water management actions that could achieve affordable and sustainable safe water drinking solutions for disadvantaged communities in the Salinas Valley. This bill appropriates $2 million from the Waste Discharge Permit Fund to the Greater Monterey County Regional Water Management Group for purposes of developing a plan addressing contaminated water issues affecting disadvantaged communities in the Salinas Valley. The Greater Monterey County Regional Water Management Group is required to submit a plan to the Legislature by January 1, 2016. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: No Appropriates $2 million from the Waste Discharge Permit Fund. SUPPORT : (Verified 8/30/12) California Bean Shippers Association California Cotton Ginners Association California Cotton Growers Association California Farm Bureau Federation California Grain and Feed Association California Grape and Tree Fruit League California Pear Growers Association California Rice Commission California Rural Legal Assistance Foundation California Seed Association California Water Service Company Clean Water Action Community Water Center Environmental Justice Coalition for Water CONTINUED AB 403 Page 4 Greater Monterey County Regional Water Management Group Monterey County Board of Supervisors Nilsen and Associates Pacific Egg and Poultry Association Safe Water Alliance San Jerardo Cooperative. Western Agricultural Processors Association Western Growers Association Western United Dairymen ARGUMENTS IN SUPPORT : The Monterey County Board of Supervisors states, "? AB 403 implements a key consensus recommendation of the Governor's Drinking Water Stakeholder Group, of which Monterey County is a participant. The Stakeholder Group, representing communities, environmental groups, water agencies and agricultural interests, was convened by the Governor's office in June to assist the administration in the development of recommendations to address the challenge of communities with nitrate contamination of drinking water supplies in the Tulare Lake Basin and Salinas Valley (as identified in a report commissioned by the State Water Board and released by UC Davis in March of this year). The Stakeholder Group met weekly from late June through August 1, and, with the assistance of several state agencies including EPA, CDFA and CDPH, intensively studied and discussed the problem, identifying a number of challenges and promising solutions. The Stakeholder Group's consensus findings and recommendations have been submitted to the Governor, and we plan to continue to develop additional solutions in the coming months. Assembly Bill 403 is intended to address an immediate need identified by the Stakeholder Group; to develop promising affordable and sustainable solutions for disadvantaged communities in the Salinas Valley without safe drinking water. If passed, this bill will appropriate $2 million of fines and penalties from the State Water Board's Waste Discharge Permit Fund to the Greater Monterey County Regional Water Management Group to conduct this process in the Salinas Valley. This appropriation mirrors one made in 2008 (SBX2 1 (Perata)) to address the water needs of disadvantaged communities in the Tulare Lake Basin. That plan, while still in development, has successfully brought together elected officials, impacted communities, regulatory agencies and technical assistance CONTINUED AB 403 Page 5 organizations and, to date, has identified over 500 small unincorporated communities in the Basin, of which nearly 200 are not served by a public water system. The water quality crisis Ýin] our rural areas demands our attention. That is why our organizations are working in collaboration to support this bill, which we hope is just the first opportunity to develop long-term sustainable solutions for hundreds of thousands of Californians who lack access to safe drinking water." DLW:n 8/31/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED