BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1221
                                                                  Page  1

          Date of Hearing:   May 11, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 1221 (Alejo) - As Amended:  April 13, 2011 

          Policy Committee:                              Environmental 
          Safety and Toxic Materials                    Vote: 8-1

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill expands eligibility for funding from the State Water 
          Pollution Cleanup and Abatement Account (CAA). Specifically this 
          bill:
           
          1)Adds the following types of entities to those eligible to 
            receive CAA monies from the State Water Resources Control 
            Board (SWRCB).

             a)   A California Native American tribe. 
             b)   A not-for-profit organization serving a disadvantaged 
               community with authority to clean up or abate waste.

          2)Defines a not-for-profit organization as one controlled by a 
            local public agency or, in the case of a private corporation, 
            having a broadly-based ownership or membership of the people 
            of the local community.

           FISCAL EFFECT  

          1)Negligible costs to SWRCB to accept and process a potentially 
            greater number of applications for funding from the CAA.

          2)Potential significant shift in CAA funding of an unknown 
            amount away from public agencies and to tribes or 
            not-for-profit organizations.

           COMMENTS  

           1)Rationale.   The author notes that many California communities 
            lack both clean drinking water and the resources to remedy the 








                                                                  AB 1221
                                                                  Page  2

            situation.  The author contends that, in many cases, public 
            agencies uniquely eligible to receive CAA funding to clean up 
            drinking water in these communities have failed to do so.  The 
            author further contends allowing tribes and not-for-profits to 
            compete with public agencies for CAA funding will better allow 
            communities to improve their drinking water supplies.  

          2)Background  .  The Cleanup and Abatement Account was created by 
            statute to provide public agencies with grants for the cleanup 
            or abatement of a condition of pollution when there are no 
            viable responsible parties available to undertake the work. 
            The account is supported by court judgments and administrative 
            civil liabilities assessed by the SWRCB and the Regional Water 
            Quality Control Boards. Only public agencies with authority to 
            cleanup or abate a waste are eligible to receive funding.  In 
            2010, SWRCB awarded $9.3 million in CAA funds.  
                 
            3)Support  .  This bill is supported by the California Rural Legal 
            Assistance Foundation (sponsor), the Natural Resources Defense 
            Counsel and others.  
                 
            4)Opposition.   The bill is opposed by the Association of 
            California Water Agencies (ACWA), whose membership includes 
            public agencies that, under current law, are uniquely eligible 
            for CAA funding.  
           
           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081