BILL ANALYSIS                                                                                                                                                                                                    Ó




                                                                  SB 1306
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          Date of Hearing:   June 19, 2012

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                Bob Wieckowski, Chair
                   SB 1306 (Blakeslee) - As Amended:  May 22, 2012

           SENATE VOTE  :   27-4
           
          SUBJECT  :   Water Quality:  scientific peer review.

           SUMMARY  :  Requires independent peer review of the scientific 
          basis for stormwater waste and agricultural waste discharges 
          standards.  Specifically,  this bill  :  

          1)Requires an independent peer review the scientific basis for 
            the following actions by the State Water Resources Control 
            Board (SWRCB) and Regional Water Quality Control Boards 
            (RWQCBs):

             a)   The adoption of general permit application requirements 
               for stormwater discharges, and;

             b)   The adoption of conditional waivers of waste discharge 
               requirements from irrigated lands.

          2)Provides that the lack of sufficient fees to cover the cost of 
            a peer review exempts the peer review requirement in the case 
            of a general permit application for stormwater discharges or a 
            conditional waiver of waste discharge requirements.

          3)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.

           EXISTING FEDERAL LAW:  

          1)Establishes, pursuant to the federal Clean Water Act (CWA), 
            the National Pollutant Discharge Elimination System (NPDES) to 
            regulate point source discharges of pollutants into U.S. 
            waters.  An NPDES permit to set specific discharge limits for 
            point sources discharging pollutants into U.S. waters and to 
            establish monitoring and reporting requirements as well as 
            special conditions.










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          2)Authorizes individual states to implement the NPDES program, 
            allowing states to impose more stringent requirements or 
            expand the scope of its NPDES program to meet State 
            priorities.

           EXISTING STATE LAW  :

          1)Requires independent peer review of scientific issues related 
            to regulations proposed by departments, boards and offices of 
            the California Environmental Protection Agency (Cal-EPA).

          2)Under the Porter-Cologne Water Quality Control Act, requires 
            anyone who discharges waste anywhere in the state, except to a 
            community sewer system, to:

             a)   Report the discharge to the RWQCB if the discharge could 
               affect the waters of the state; and,

             b)   Obtain waste discharge requirements (i.e., a water 
               quality permit) from the RWQCB to ensure that the 
               requirements of the basin water quality control plan are 
               met, that water quality objectives are achieved, and that 
               the beneficial uses of water are not impaired by the 
               discharge.

          1)Authorizes RWQCBs to waive certain waste discharge 
            requirements for specific discharges or specific types of 
            discharges if the wavier:

             a)   Is in the public interest; and, 

             b)   Is consistent with any applicable state or regional 
               water quality control plan.

          1)Regulates discharges of pollutants in stormwater and urban 
            runoff by regulating, through the NPDES, industrial 
            discharges, discharges through the municipal storm drain 
            systems and from industrial activity.

           FISCAL EFFECT  :   According to the Senate Appropriations 
          Committee enactment of this bill would result in 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.










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           COMMENTS  :

              1.   Need for the bill.  According to the author, 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."

               The author argues, "The proposed Updated Agricultural Order 
               adopted by the Central Coast Regional Water Quality Control 
               Board on March 15, 2012, clearly qualified as both 
               controversial and establishing a significant precedent; 
               yet, the Order did not benefit from an external peer 
               review.  Additionally, the various (commercial, industrial, 
               municipal) storm water permit discharge requirements have 
               raised concerns amongst a broad array of stakeholders 
               including school districts, universities, cities, counties, 
               port authorities, branches of the military, electric 
               utilities, natural gas utilities, grocery stores, 
               restaurants, retail stores, general contractors, 
               engineering firms, architecture firms, landscape services, 
               realtors, business property owners, aerospace, biotech, 
               manufacturers, forestry, trucking, and others."

              2.   Scientific peer review for Cal-EPA regulations  .  The 
               current scientific peer review requirement provided in 
               Health and Safety Code Section 57004 requires all Cal EPA 
               organizations to submit for external scientific review the 
               scientific basis and scientific portion of all proposed 
               policies, plans and regulations.  The peer reviewer's 
               responsibility is to determine whether the scientific 
               findings, conclusions, and assumptions are based upon sound 
               scientific knowledge, methods, and practices.

               According to the Cal-EPA<1>  There are several 
               circumstances when work products do not require scientific 
               peer review requirements.  These work products that have 
               been peer reviewed by a recognized expert or expert body.  
               Additional review is not required if a new application of 

               -------------------------
          <1> Cal-EPA, "Unified California Environmental Protection Agency 
          Policy and Guiding Principles For External Scientific Peer 
          Review", March 13, 1998.








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               an adequately peer reviewed work product does not depart 
               significantly from its scientific approach.  These types of 
               work projects would include standards developed by the 
               United States Environmental Protection Agency (U.S. EPA), 
               which Cal/EPA adopts.  These U.S.EPA standards are presumed 
               to have been sufficiently peer reviewed unless additional 
               peer review is required by law.

              3.   The adoption of conditional waivers of waste discharge 
               requirements from irrigated lands  .  Under the 
               Porter-Cologne Water Quality Control Act and the federal 
               Clean Water Act, SWRCB and regional water quality control 
               boards (RWQCB) are the lead agencies with the authority to 
               regulate water quality in California.  RWQCBs develop 
               "basin plans" for their hydrologic areas, issue waste 
               discharge requirements, take enforcement action against 
               violators, and monitor water quality.

               In 1999, the Legislature passed SB 390 (Alpert, Chapter 
               686, Statutes of 1999), requiring the RWQCBs to review 
               their existing waivers and to renew them or replace them 
               with waste discharge requirements (WDR).  To comply with SB 
               390, RWQCBs adopted revised waivers.  The most 
               controversial waivers were those for discharges from 
               irrigated agriculture.  Discharges from agricultural lands 
               include irrigation return flow, flows from tile drains, and 
               storm water runoff and can affect water quality by 
               transporting pollutants, including pesticides, sediment, 
               nutrients, salts, pathogens, and heavy metals, from 
               cultivated fields into surface waters.  According to SWRCB, 
               many surface water bodies are impaired because of 
               pollutants from agricultural sources.

              4.   Regulation of stormwater discharge  .  Water runoff from 
               cities, highways, industrial facilities and construction 
               sites can carry pollutants that harm water quality and 
               impair the beneficial uses of California waters.  The SWRCB 
               and the US EPA regulate the runoff and treatment of storm 
               water in industrial, municipal and residential areas of 
               California.

               Most stormwater discharges are considered point sources and 
               require coverage by an NPDES permit.  The CWA, as amended, 
               relies primarily on a different approach for regulating 
               storm water discharges than for traditional point sources.









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              5.   State Implementation of the Federal Clean Water Act 
               (CWA)  .  The scientific peer review proposed by SB 1306 is 
               directed exclusively at SWRCB and RWQCB actions to 
               implement the provisions of the CWA.  In those cases where 
               the federal law established the standards or in those cases 
               where the U.S. EPA has adopted a regulation, standard, 
               guidance, or permit terms, and then the new state managed 
               scientific peer review would not affect the outcome of 
               those federal standards, thereby raising a question about 
               the usefulness of the state scientific peer review.

              6.   SWRCB and RWQCB implementation of a basin plan  .  
               Discharge waivers or permits are adopted in accordance with 
               the broader basin plan or a basin plan amendment.  The 
               general permit that is designed to address water quality 
               problems is based on the scientific data used in the basin 
               plan amendment and is subject to scientific peer review 
               under excising law.  The provisions of SB 1306 would 
               continue the basin plan scientific peer review and thereby 
               make additional peer review under either the stormwater 
               permits or agricultural waiver duplicative and ultimately 
               exempt from the new requirements of AB 1306.

              7.   Support arguments  :  A coalition of building, 
               manufacturing, chemical and food processors and other 
               supporters of this bill assert that "SB 1306 which seeks to 
               clarify that the Sate Waste Board conducts an external peer 
               review for proposed storm water discharge permit 
               requirements and that the regional boards conduct an 
               external peer review for proposed Agricultural Orders.  We 
               believe that peer review is an important and effective 
               mechanism for evaluating the accuracy and validity of 
               technical data, observations, and interpretation, and 
               scientific aspects of regulatory decisions and 
               initiatives."

               According to the Western Growers, "the clear need for SB 
               1306 was evident in the recent adoption of the Agricultural 
               Order by the Central Coast RWQCB.  This order was extremely 
               controversial as well as establishing a significant 
               precedent, yet it will not benefit from an external peer 
               review as required by Section 57004 of the Health and 
               Safety Code."










                                                                  SB 1306
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              8.   Opposition arguments  :  Opponents of the bill, including 
               the California Coastkeeper Alliance, assert that the "Water 
               board programs have historically been exempt from this 
               process because of the extensive review already built into 
               the programs.  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.  The public 
               process and scientific review involved in developing 
               general permits for stormwater discharges and irrigated 
               agriculture waivers is extensive.  For example, the Central 
               Coast Regional Board's Conditional Waiver of Waste 
               Discharge Requirements for Discharges from Irrigated Lands 
               (Order No. R3-2012-0011) provided over four years of 
               stakeholder expertise to develop the science behind the 
               Waiver.  The process included a 69-page scientific report 
               (with enough references to independent scientific reports 
               to fill an additional 31-pages), over 60 meetings with 
               experts and stakeholders, an agricultural advisory panel, 
               and a 62-page report on cost considerations.  California's 
               Water Boards provide similar scientific review for each and 
               every general permit and agricultural waiver."

               "It is not clear what purpose is served by requiring 
               additional scientific review of just these particular water 
               board functions, other than to delay program 
               implementation. Delay in program implementation of general 
               permits and agricultural waivers are already extensive.  
               The Statewide Industrial Storm Water Permit has not been 
               updated since 1997.  The Cal Trans Statewide Storm Water 
               Permit was adopted in 1997 (last updated in 1999) currently 
               ten years overdue.  The State Water Board often cites lack 
               of resources as the cause for these extensive delays."

           Related current legislation:
           
          AB 2117 (Gorell), requires development of a stormwater 
          regulatory plan by the SWRDB including the examination of cost 
          effective alternative regulations.  Status:  held in the 
          Assembly Appropriations Committee.

          SB 964 (Wright), adds SWRCB or RWQCB general permits or waivers 
          issued under state law, or federally authorized permits pursuant 
          to Section 402(p) of the federal Clean Water Act, to the 









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          requirements of the California Administrative Practice Act.  
          Status:  held in the Senate Environmental Quality Committee.

           REGISTERED SUPPORT / OPPOSITION  :

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


           Analysis Prepared by  :    Bob Fredenburg / E.S. & T.M. / (916) 
          319-3965