BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 403|
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                                 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 
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          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 

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          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

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          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 

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          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

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