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