BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                               SB 1306
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2007-2008 Regular Session
                                           
           BILL NO:    SB 1306
           AUTHOR:     Blakeslee
           AMENDED:    March 26, 2012
           FISCAL:     Yes               HEARING DATE:     April 23, 2012
           URGENCY:    No                CONSULTANT:       Rachel Wagoner
         
        SUBJECT  :    STATE WATER RESOURCES CONTROL BOARD: SCIENTIFIC PEER 
                       REVIEW

            SUMMARY  :    
           
            Existing law  :

              1)   Under the federal Clean Water Act (CWA), establishes 
                the structure for regulating discharges of pollutants 
                into the waters of the United States and regulating 
                quality standards for surface waters.  The CWA makes it 
                unlawful to discharge any pollutant from a point source 
                into navigable waters, unless a permit was obtained.  
                U.S. Environmental Protection Agency's (USEPA) National 
                Pollutant Discharge Elimination System (NPDES) permit 
                program controls discharges.  Industrial, municipal, and 
                other facilities must obtain permits if their discharges 
                go directly to surface waters.

              2)   Under the California Porter-Cologne Water Quality 
                Control Act (Porter-Cologne), the State Water Resources 
                Control Board (SWRCB) has the authority over State water 
                rights and water quality policy.  Porter-Cologne also 
                establishes nine Regional Water Quality Control Boards 
                (regional boards) to oversee water quality at the 
                local/regional level.  Under the auspices of the U.S. 
                EPA, the State Board and nine Regional Boards also have 
                the responsibility of granting NPDES permits, for certain 
                point-source discharges. 

              3)   Establishes external scientific peer review 
                requirements for all boards, departments and offices in 
                the California Environmental Protection Agency (CalEPA).  









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                (Health and Safety Code §57004).

            This bill  : 

           1) For the specific purpose of requiring a scientific peer 
              review under the Health and Safety Code, adds to the 
              definition of "rule" the adoption of general permit 
              application requirements for stormwater discharges and 
              conditional waivers of waste discharge requirements from 
              irrigated lands adopted by a regional board, thereby 
              expanding the types of actions taken by the water boards 
              requiring scientific peer review.

           2) Makes various findings:

              a)    That regulations intended to attain the highest water 
                 quality within reason are most likely to be successful 
                 when developed in collaboration with entities subject to 
                 those regulations.

              b)    That compliance and the intended water quality 
                 objectives will be more readily achieved when regulated 
                 entities have ample opportunity to participate in the 
                 development and promulgation of programs and 
                 regulations.

              c)    That failure to consider the compliance challenges of 
                 regulated entities and to provide a cost-effective and 
                 technologically feasible compliance pathway will likely 
                 result in the inability of regulated entities to satisfy 
                 programmatic requirements and will significantly 
                 diminish the efficacy of the program or regulation. 

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, in the early 
              1990's there was a bi-partisan concern about the quality 
              and consistency of the science underpinning major 
              environmental protection regulations.  

              The author argues that one of the more significant reforms 
              from this time was the requirement for an external peer 
              review of all proposed regulations by a CalEPA board, 









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              department or office prior to adoption.  SB 1320 (Sher) 
              Chapter 295, Statutes of 1997, included peer review 
              provisions, which were recommended by a report commissioned 
              by the Office of Environmental Health Hazard Assessment in 
              response to Governor Wilson's Executive Order W-137-96.

              The author states, in 1998 following the passage of SB 
              1320, CalEPA issued a "Policy and Guiding Principles for 
              External Scientific Peer Review."  The guidance document 
              noted that peer review is an important and effective 
              mechanism for evaluating the accuracy or validity of 
              technical data, observations, and scientific aspects of 
              regulatory decisions and initiatives.  In providing 
              guidance, the document differentiated between actions that 
              require an external peer review - such as "products that 
              address emerging or controversial issues, have significant 
              cross-media implications, or establish a significant 
              precedent" - and those actions that do not require an 
              external peer review - such as "permit, variance standards, 
              and conditions set by Cal/EPA BDOs, unless they are applied 
              through regulation."

              The author states that while issuance of an individual 
              permit or variance to a specific individual arguably does 
              not require an external scientific peer review, the 
              adoption of general permit requirements that apply across a 
              broad sector arguably do, especially if the proposed 
              general requirements "address emerging or controversial 
              issues, have significant cross-media implications, or 
              establish a significant precedent."

            2) Arguments in support.   Supporters argue that, for regulated 
              entities, ensuring the quality and consistency of any 
              scientific rationale underpinning a regulation is 
              important.   Supporters argue that SB 1306 recognizes that 
              the most effective way to achieve a desired water quality 
              is through the collaboration with stakeholders to develop 
              fair programs and objectives backed by solid science.  
              Supporters believe, through such inclusive regulatory 
              proceedings, it is more likely that programs will receive 
              the support required for widespread success.

            3) Arguments in opposition.   Opponents state that SB 1306 









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              requires both stormwater and irrigated lands discharge 
              requirements to undergo scientific peer review, and argue 
              that these water board programs have historically been 
              exempt from this peer review requirement because of the 
              extensive review already built into the programs.  
              Opponents further believe the development of discharge 
              requirements is the final step in a long process that 
              includes the development of water quality objectives, 
              assignment of load allocations, environmental review, and, 
              in the case of agricultural requirements, economic 
              analysis.  Opponents note that it is not clear what purpose 
              is served by requiring additional scientific review of 
              these particular board functions, other than to delay 
              program implementation.  Opponents also note that 
              unfortunately, delayed implementation comes at a very high 
              cost, citing the UC Davis Center for Watershed Sciences 
              study which identified a quarter of a million residents of 
              the Salinas Valley and Tulare Lake Basin that are already 
              impacted by nitrate contamination - warning that 80% of the 
              population of these areas could be impacted by 2050, if 
              action is not taken to address agricultural inputs.

            4) General Permits and conditional waiver of irrigated land 
              discharge requirements are not rules  .  General permits and 
              conditional waivers are not themselves rules or regulations 
              but rather implement adopted rules and regulations, which 
              is why they were not included in requirements of SB 1320 
              (Sher) Chapter 295, Statutes of 1997.  For the most part 
              the science and independent scientific peer review that is 
              the basis of the permit or conditional waiver is required 
              to be conducted as part of the regulatory process that the 
              permit or waiver is implementing.  There is a very small 
              portion of a permit or conditional waiver that would 
              qualify for scientific peer review under this bill and the 
              work would likely be duplicative of work that was done 
              earlier in the process.  This would result in a further 
              delay in implementation and an additional cost in the 
              adoption of the permit or conditional waiver that may be 
              borne by fee payers in some cases, but in other cases such 
              as the conditional waiver for timber harvest where there is 
              not an industry fee, it would be paid by the General Fund.

              It is unclear if the concern by the regulated community is 









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              that the decisions made by water boards on general permits 
              and conditional waivers of waste discharge requirements 
              from irrigated lands are based on incomplete or unsound 
              science or if the concern is that the scientific basis for 
              the permit or conditional waiver is not well justified as 
              part of the permit or conditional waiver process.

              An amendment is needed to address the specific concern of 
              the regulated community that would not be duplicative or 
              result in further delay and cost for the permit and 
              conditional waiver process.  If the concern is that the 
              board does not fully explain the scientific basis of the 
              decision on the permit or conditional waiver, the bill 
              should be amended to require the board to more fully 
              outline the scientific basis of the permit or conditional 
              waiver as part of the permit or conditional waiver 
              documents and board proceedings.

            5) Legislative intent of the bill should be consistent with 
              the statutory requirements of the measure  .  These findings 
              do not speak to the need for greater scientific scrutiny 
              and should be either stricken or amended to reflect the 
              intent of the legislation.

            SOURCE  :        Senator Blakeslee  

           SUPPORT  :  California Building Industry Association
                          California Chamber of Commerce
                          California League of Food Processors
                          California Manufacturers & Technology 
                     Association
                          California State Association of Counties
                          Chemical Industry Council of California
                          City of Salinas 
                          Lumber Association of California & Nevada
                          National Federation of Independent Business
                          Regional Council of Rural Counties           
                          Salinas Mayor Dennis Donohue
                          Western Growers
                          Western Wood Preservers' Institute
                          Wine Institute
            
           OPPOSITION  :    California Coastkeeper Alliance









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                          Clean Water Action
                          Environment California  
                          Sierra Club California
                          Seventh Generation Advisors