BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1306|
          |Office of Senate Floor Analyses   |                         |
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                                 THIRD READING


          Bill No:  SB 1306
          Author:   Blakeslee (R)
          Amended:  5/22/12
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  5-1, 4/23/12
          AYES:  Simitian, Strickland, Blakeslee, Kehoe, Lowenthal
          NOES:  Hancock
          NO VOTE RECORDED:  Pavley

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 5/21/12
          AYES:  Kehoe, Walters, Alquist, Dutton, Lieu, Price, 
            Steinberg


           SUBJECT  :    State Water Resources Control Board

           SOURCE  :     Author


           DIGEST  :    This bill expands the requirement for the State 
          Water Resources Control Board to conduct an external 
          scientific peer review to include general permit 
          application requirements for stormwater discharges and a 
          conditional waiver of waste discharge requirements from 
          irrigated lands except under some conditions.
          
          ANALYSIS  :    

          Existing law:  

          1. Under the federal Clean Water Act (CWA), establishes the 
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             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.  The 
             United States Environmental Protection Agency's (EPA) 
             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 
             (RWQCBs) to oversee water quality at the local/regional 
             level.  Under the auspices of the EPA, the SWRCB and 
             nine RWQCBs 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).  
             (Health and Safety Code Section 57004)

          This bill, 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 an RWQCB, thereby expanding 
          the types of actions taken by the water boards requiring 
          scientific peer review.  It provides that the lack of 
          sufficient fees to cover the cost of a peer review only 
          exempts the peer review requirement in the case of a 
          general permit application for stormwater discharges or a 
          conditional waiver of waste discharge requirements.  This 
          bill also deems the SWRCB or a RWQCB to have complied with 
          the provisions of the bill, if a scientific peer review has 
          been done on the scientific basis or scientific portion of 
          an adopted rule.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   

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          Local:  No

          According to the Senate Appropriations Committee, on-going 
          costs of $30,000 to $60,000 from the Waste Discharge Permit 
          Fund (special fund) for additional peer review.  Existing 
          annual fees are likely sufficient to cover these costs.

           SUPPORT  :   (Verified  5/23/12)

          California Building Industry Association
          California Chamber of Commerce
          California League of Food Processors
          California Manufacturers & Technology Association
          California Metals Coalition
          California Precast Concrete Association
          California State Association of Counties
          Chemical Industry Council of California
          City of Salinas 
          League of California Cities
          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  :    (Verified  5/23/12)

          California Coastkeeper Alliance
          Clean Water Action
          Environment California 
          Sierra Club California
          Seventh Generation Advisors

           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 this bill 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 

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          the support required for widespread success.

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

           ARGUMENTS IN OPPOSITION  :    Opponents state that this bill 
          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.  

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          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.  
           

          DLW:mw  5/23/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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