BILL ANALYSIS Ó
AB 403
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator S. Joseph Simitian, Chairman
2011-2012 Regular Session
BILL NO: AB 403
AUTHOR: Alejo
AMENDED: August 29, 2012
FISCAL: Yes HEARING DATE: August 31,
2012
URGENCY: Yes CONSULTANT: Randy Pestor
SUBJECT : SALINAS VALLEY INTEGRATED PLAN
SUMMARY :
Existing law :
1) Requires the State Water Resources Control Board (SWRCB),
to develop pilot projects in the Tulare Lake Basin and the
Salinas Valley to study nitrate contamination, and identify
remedial solutions and funding options to recover costs
associated with cleanup or treatment of groundwater and to
report to the Legislature within two years (by 2011).
SWRCB must create an interagency task force as needed, to
oversee the pilot projects and develop recommendations for
the Legislature. SWRCB, in consultation with other
specified agencies, must develop pilot projects in the
Salinas Valley and Tulare Lake Basin that focus on nitrate
contamination. (Public Resources Code §83002.5).
2) Under the Portor-Cologne Water Quality Control Act, sets
penalties for certain violations of the Act, and requires
funds generated through these penalties to be deposited
into the Waste Discharge Permit Fund. Moneys in the fund
must be expended by SWRCB, upon appropriation by the
Legislature: a) to assist regional water quality control
boards (RWQCBs) to clean up waste or abate the effects of
the waste; b) to a RWQCB, upon application by a RWQCB, to
assist in responding to certain problems; and c) for
certain other purposes. (Water Code §13550).
This bill as approved by the Senate Environmental Quality
Committee (July 12, 2011 version of the bill) specifies that
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the primary drinking water standard for hexavalent chromium
(chromium 6) is included in an expedited review process and
requires the Department of Public Health to post a report on
its progress in developing a drinking water standard for
chromium 6 on its Internet Web site.
Amendments taken on the Senate Floor (August 24, 2012 version
of the bill) and subsequently referred back to the Committee
on Environmental Quality pursuant to Senate Rule 29.10 :
1) Appropriates $2 million from the Waste Discharge Permit
Fund to the Greater Monterey County Regional Water
Management Group (Monterey Group) to develop an integrated
plan, in consultation with certain entities, addressing
drinking water and wastewater needs of disadvantaged
communities in the Salinas Valley whose waters have been
affected by waste discharges.
2) Requires the above funds to be available for "assessment
and feasibility studies necessary to develop the plan."
3) Requires the Monterey Group to identify disadvantaged
communities without safe drinking water and make
recommendations for planning, infrastructure, and other
water management actions that achieve affordable,
sustainable solutions for disadvantaged communities,
including communities without public water systems.
4) Requires the Monterey Group to submit a plan to the
Legislature by January 1, 2016.
COMMENTS :
1) Purpose of Bill . According to the author, "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 Ýmajor] costs for small
rural communities like the ones in the Salinas Valley. The
purpose of this bill is to identify affordable and
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efficient ways in which the Salinas Valley water quality
can be improved and communities can have access to safe
drinking water."
2) Background . SB 1XX (Perata), Chapter 1, Statutes of 2008,
among other things, required the SWRCB to develop pilot
projects in the Tulare Lake Basin and the Salinas Valley
that focus on nitrate contamination that includes certain
matters (e.g., sources of groundwater contamination due to
nitrates in the pilot project basins, proportionate
contributions to groundwater contamination by source and
category of discharger; options to reduce current nitrate
levels). SWRCB must: a) create an interagency task force
to oversee the pilot projects and develop recommendations
to the Legislature; b) submit a report to the Legislature
on the scope and findings of the pilot projects within two
years of receiving funding; and c) implement
recommendations with RWQCBs within two years of submitting
the report.
"Addressing Nitrate in California's Drinking Water, With a
Focus on Tulare Lake Basin and Salinas Valley Groundwater,"
a January 1, 2012, report to the Legislature by SWRCB in
response to SB 1XX, contains several actions relating to:
a) safe drinking water (e.g., small water system task
force, creating new regional safe drinking water solutions
for groups of small water systems where cost-effective,
domestic well testing, stable small system funds), b)
reduction actions (e.g., education and outreach to help
farmers improve efficiency in nitrogen use, fertilizer
excise fee, higher fertilizer fee in risk areas), c)
monitoring and assessment (e.g., RWQCB designating drinking
water areas at risk, monitoring at-risk populations,
groundwater data task force), and d) funding (e.g., mill
fee, local compensation agreements, fertilizer excise fee,
water use fee).
Supporters of AB 403 believe that this bill implements a safe
drinking water action relating to regional safe drinking
water solutions for groups of small water systems.
However, AB 403 does not reference regional solutions.
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3) Why so late ? Some staffers in the governor's office
created a "Governor's Drinking Water Stakeholder Group,"
which submitted an eight-page "Report of the Drinking Water
Stakeholder Group," dated August 20, 2012, and assert that
AB 403 is based on a recommendation by the Group.
According to the report, the Group "was challenged with an
aggressive timeline to coincide with the Water Board's
development of their report and the remaining 2011-12
Legislative calendar. The Group was convened in mid-June
and met regularly together and through workshops on key
issues."
Apparently those who created the Group believe the Legislative
session in 2012 reconvenes in late August rather than
January 1, 2012. This leaves little time for legislative
staff to analyze, and for the Legislature and the public to
adequately review, the legislation and more effective
alternatives in a thoughtful and transparent way.
4) Waste Discharge Permit Fund . According to SWRCB, as of
June 30, 2012, there is a balance of $3.35 million in fines
and penalties in the special penalty account in the Waste
Discharge Permit Fund. The 2012-13 Budget includes an
appropriation of $700,000 for support of SB 918 (Pavley)
Chapter 700, Statutes of 2010 (relating to water
recycling), and as a result, this would leave a balance of
$2.65 million. SWRCB also notes that there are new penalty
revenues going into the account from enforcement actions,
and on average, these range roughly $500,000-$600,000
annually, although they have been as low as $170,000 and as
high as approximately $1.8 million.
The $2 million appropriation in AB 403 could therefore have a
major impact on the Fund.
5) Greater Monterey County Regional Water Management Group
(Monterey Group) . According to the Monterey Group Bylaws,
the Monterey Group is composed of 20 entities, and its
primary purpose "is to develop an Ýintegrated regional
water management plan (IRWMP)] for the Greater Monterey
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County region, which will include a list of prioritized
water resource-related projects for potential consideration
by the State's IRWM Grant Program." According to SWRCB,
this grant program is intended to "promote and practice
integrated regional water management to ensure sustainable
water uses, reliable water supplies, better water quality,
environmental stewardship, efficient urban development,
protection of agriculture, and a strong economy."
Under AB 403, the Monterey Group is responsible for developing
the integrated plan required by this bill.
6) More detail needed . AB 403 requires the Group to "develop
an integrated plan to address the drinking water and
wastewater needs of disadvantaged communities in the
Salinas Valley whose waters have been affected by waste
discharges" and requires the plan to "include
identification of disadvantaged communities without safe
drinking water and recommendations for planning,
infrastructure, and other water management actions that
achieve affordable, sustainable, solutions for
disadvantaged communities, including communities without
public water systems."
This is scarce detail for expenditure of $2 million.
Also, it is possible that some of this information has already
been developed by Monterey County, cities in Monterey
County, Monterey County Water Resources Agency, Monterey
County local agency formation commission, Association of
Monterey Bay Area Governments, water districts, and the
Monterey Group. For example, a 182-page Salinas Valley
Integrated Regional Water Management Functionally
Equivalent Plan Update has already been prepared.
Unfortunately, since AB 403 was recently gutted and amended,
and referred to the Senate Environmental Quality Committee
last night, there is not sufficient time for Committee
staff to: a) review reports by these agencies, and b)
specify the necessary detailed requirements for the
"integrated report" required by this bill.
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SOURCE : Assemblymember Alejo
SUPPORT : California Bean Shippers Association,
California Cotton Ginners Association,
California Cotton Growers Association,
California Farm Bureau Federation, California
Grain and Feed Association, California Pear
Growers Association, California Rice
Commission, California Seed Association,
California Water Service Company, Greater
Monterey County Regional Water Management
Group, Monterey County Board of Supervisors,
Nilsen & Associates, Pacific Egg and Poultry
Association, Safe Water Alliance, Western
Agricultural Processors Association, Western
Growers Association, Western United Dairymen
OPPOSITION : None on file