Amended in Senate June 19, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 69

Introduced by Assembly Member Perea

January 10, 2013

An act to begin delete add Section 13444 to end delete begin insert amend Section 14611 of, and to add Article 13 (commencing with Section 14690) to Chapter 5 of Division 7 of, the Food and Agricultural Code, and to add Section 13169.5 to, and to add and repeal Article 4 (commencing with Section 13444) of Chapter 6 of Division 7 of, end insert the Water Code, relating to water begin insert , and making an appropriation therefor end insert .

LEGISLATIVE COUNSEL’S DIGEST

AB 69, as amended, Perea. Groundwater: begin insert drinking water: end insert Nitrate at Risk begin delete Area end delete Fund.

begin delete

Existing

end delete

begin insert (1) end insert begin insert   end insert begin insert Existing end insert law establishes the State Water Resources Control Board begin insert , or state board, and 9 California regional water quality control boards, end insert and authorizes the begin insert state end insert board to adopt regulations to carry out its powers and duties. Under existing law, the Porter-Cologne Water Quality Control Act, the begin insert state end insert board is required to formulate and adopt state policy for water quality control. begin insert Under existing law the state board is further authorized to develop and implement a groundwater protection program consistent with federal law. end insert

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This bill would require the state board, in collaboration with the regional boards, and state and local agencies that collect water quality data or information, to develop a public information program on matters involving groundwater quality monitoring and assessment, as specified, and would also require the state board to develop and maintain on its Internet Web site, in a format accessible to the general public, an information file with specific information on groundwater quality.

end insert begin insert

(2) Existing law requires a person who manufactures or distributes fertilizing materials to obtain a license from the Secretary of Food and Agriculture. Under existing law, a licensee whose name appears on the label who sells or distributes bulk fertilizing materials is required to pay specified fees for each dollar of sales, including an amount not to exceed $0.001 per dollar of sales for all sales of fertilizing materials, to provide funding for research and education regarding the use and handling of fertilizing material.

end insert begin insert

This bill would expand the assessment to all commercial or retail sales of fertilizing materials by any person. This bill would require a seller of fertilizing materials to remit the assessment to the Department of Food and Agriculture for deposit in the Fertilizer Research and Education Program Fund that this bill would create. This bill would continuously appropriate this fund, without regard to fiscal years, to the department to provide funding for research and education regarding the use and handling of fertilizing materials.

end insert begin delete

Existing

end delete

begin insert (3) end insert begin insert   end insert begin insert Existing end insert law, the California Safe Drinking Water Act, requires the State Department of Public Health to administer provisions relating to the regulation of drinking water to protect public health, including, but not limited to, conducting research, studies, and demonstration programs relating to the provision of a dependable, safe supply of drinking water, enforcing the federal Safe Drinking Water Act, adopting enforcement regulations, and conducting studies and investigations to assess the quality of water in domestic water supplies.

This bill would establish the Nitrate at Risk begin delete Area end delete Fund, to be administered by the begin delete board and, upon appropriation by the Legislature, moneys in the fund would be available for the purposes of developing and implementing sustainable and affordable solutions for disadvantaged communities in specified areas designated by the department, in conjunction with the board. end delete begin insert department. This bill would continuously appropriate, without regard to fiscal years, the fund to the department for the purposes of loans, principal forgiveness loans, or grants to certain water systems for specified purposes. This bill would require a person who purchases nitrogen fertilizer materials in California to pay a nitrogen fertilizer materials charge, until January 1, 2016, of $0.01 per dollar of materials, and on and after January 1, 2016, the department may increase the amount of the charge, as specified, to an amount no greater than $0.04 per dollar of materials if 80% of the moneys in the fund are committed. This bill would require a seller of nitrogen fertilizer materials to remit the nitrogen fertilizer materials charge to the department to be deposited in the fund. This bill would prohibit the fertilizer materials charge from being imposed when the department determines that the fund contains more than $100,000,000 and less than $50,000,000 of the moneys in the fund are committed. This bill would require the state board, on or before January 1, 2022, to submit a report to the Legislature that includes specified information relating to the fund and contaminated drinking water. This bill would repeal these provisions on January 1, 2024. end insert

Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 14611 of the end insert begin insert Food and Agricultural Code end insert
begin insert is amended to read: end insert

14611.  

begin delete (a) end delete begin delete   end delete A licensee whose name appears on the label who
sells or distributes bulk fertilizing materials, as defined in Sections
14517 and 14533, to unlicensed purchasers, shall pay to the
secretary an assessment not to exceed two mills ($0.002) per dollar
of sales for all fertilizing materials. A licensee whose name appears
on the label of packaged fertilizing materials, as defined in Sections
14533 and 14551, shall pay to the secretary an assessment not to
exceed two mills ($0.002) per dollar of sales. The secretary may,
based on the findings and recommendations of the board, reduce
the assessment rate to a lower rate that provides sufficient revenue
to carry out this chapter.

begin delete

(b) In addition to the assessment provided in subdivision (a),
the secretary may impose an assessment in an amount not to exceed
one mill ($0.001) per dollar of sales for all sales of fertilizing
materials, to provide funding for research and education regarding
the use and handling of fertilizing material, including, but not
limited to, support for University of California Cooperative
Extension, the California resource conservation districts, other
California institutions of postsecondary education, or other
qualified entities to develop programs in the following areas:

(1) Technical education for users of fertilizer materials in the
development and implementation of nutrient management projects
that result in more agronomically sound uses of fertilizer materials
and minimize the environmental impacts of fertilizer use, including,
but not limited to, nitrates in groundwater and emissions of
greenhouse gases resulting from fertilizer use.

(2) Research to improve nutrient management practices resulting
in more agronomically sound uses of fertilizer materials and to
minimize the environmental impacts of fertilizer use, including,
but not limited to, nitrates in groundwater and emissions of
greenhouse gases resulting from fertilizer use.

(3) Education to increase awareness of more agronomically
sound use of fertilizer products to reduce the environmental impacts
resulting from the overuse or inefficient use of fertilizing materials.

end delete

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Article 13 (commencing with Section 14690) is added
to Chapter 5 of Division 7 of the end insert begin insert Food and Agricultural Code end insert begin insert , to
read: end insert

begin insert

 

Article begin insert 13. end insert   Fertilizer Research and Education Program

 

begin insert 14690. end insert   

(a) The secretary may impose an assessment in an
amount not to exceed one mill ($0.001) per dollar of sales for all
commercial or retail sales of fertilizing materials by any person,
to provide funding for research and education regarding the use
and handling of fertilizing material, including, but not limited to,
support for the University of California Cooperative Extension,
the California resource conservation districts, other California
institutions of postsecondary education, or other qualified entities
to develop programs in the following areas:

(1) Technical education for users of fertilizing materials in the
development and implementation of nutrient management projects
that result in more agronomically sound uses of fertilizing
materials and minimize the environmental impacts of fertilizer
use, including, but not limited to, nitrates in groundwater and
emissions of greenhouse gases resulting from fertilizer use.

(2) Research to improve nutrient management practices
resulting in more agronomically sound uses of fertilizing materials
and to minimize the environmental impacts of fertilizer use,
including, but not limited to, nitrates in groundwater and emissions
of greenhouse gases resulting from fertilizer use.

(3) Education to increase awareness of more agronomically
sound use of fertilizer products to reduce the environmental
impacts resulting from the overuse or inefficient use of fertilizing
materials.

(b) Notwithstanding Section 14503, a seller of fertilizing
materials shall remit the assessment imposed pursuant to
subdivision (a) to the department for deposit in the Fertilizer
Research and Education Program Fund that is hereby established
in the State Treasury. Notwithstanding Section 13340 of the
Government Code, moneys in the Fertilizer Research and
Education Program Fund are continuously appropriated, without
regard to fiscal years, to the department for the purposes of this
section.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 13169.5 is added to the end insert begin insert Water Code end insert begin insert , to read: end insert

begin insert

begin insert 13169.5. end insert   

(a) The state board, in collaboration with the regional
boards, and state and local agencies that collect water quality
data or information, shall develop a public information program
on matters involving groundwater quality monitoring and
assessment throughout the state by utilizing existing data, including
groundwater ambient monitoring and assessment results, along
with the collection of new information as needed.

(b) The state board shall develop and maintain on its Internet
Web site, in a format accessible to the general public, an
information file on groundwater quality monitoring, assessment,
research, standards, regulation, enforcement, and other pertinent
matters.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Article 4 (commencing with Section 13444) is added
to Chapter 6 of Division 7 of the end insert begin insert Water Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 4. end insert   Nitrate at Risk Fund

 

begin insert 13444. end insert   

The Nitrate at Risk Fund is hereby established in the
State Treasury, to be administered by the State Department of
Public Health. Notwithstanding Section 13340 of the Government
Code, moneys in the Nitrate at Risk Fund are continuously
appropriated, without regard to fiscal years, to the State
Department of Public Health for the purposes described in Section
13446.

begin insert 13445. end insert   

(a) For purposes of this section, “fertilizer materials
charge” means the charge imposed pursuant to subdivision (b).

(b) (1) A person who purchases fertilizer materials in
California, including, but not limited to, all commercial or retail
sales of fertilizer materials for agricultural or urban uses, shall
pay a fertilizer materials charge as follows:

(A) Until January 1, 2016, a charge of $0.01 per dollar of
materials.

(B) On and after January 1, 2016, the State Department of
Public Health may increase the amount of the charge to an amount
no greater than $0.04 per dollar of materials if 80 percent of the
moneys in the Nitrate at Risk Fund are committed. In determining
the amount of the charge, the State Department of Public Health
shall consider the demand for the moneys in the Nitrate at Risk
Fund.

(2) A seller of fertilizer materials shall remit the fertilizer
materials charge to the State Department of Public Health to be
deposited in the Nitrate at Risk Fund.

(c) The fertilizer materials charge shall not be imposed when
the State Department of Public Health determines that the Nitrate
at Risk Fund contains more than one hundred million dollars
($100,000,000) and less than fifty million dollars ($50,000,000)
of the moneys in the Nitrate at Risk Fund are committed.

begin insert 13446. end insert   

(a) Moneys in the Nitrate at Risk Fund shall be used
for loans, principal forgiveness loans, or grants to a water system
that is either a small community water system serving a
disadvantaged community or an unregulated system of 2 to 15,
inclusive, service connections.

(b) Moneys in the Nitrate at Risk Fund may be used for any of
the following purposes:

(1) Preplanning drinking water projects.

(2) Planning drinking water projects.

(3) Interim water solutions.

(4) Constructing drinking water projects.

(5) Operating and maintaining drinking water systems. The
State Department of Public Health shall ensure that moneys used
for the purposes of this paragraph are for the operation and
maintenance of drinking water systems in communities that have
a substantial need and otherwise would not be able to afford to
operate or maintain their systems.

(c) Moneys in the Nitrate at Risk Fund shall not be used for
loans, principal forgiveness loans, or grants to a water system
that is a small community water system for the purposes of either
paragraph (2) or (4) of subdivision (b) unless no other funding
source is available to that system for that purpose.

begin insert 13447. end insert   

(a) On or before January 1, 2022, the state board, in
consultation with any other state entity or research institution as
appropriate, shall submit to the Legislature a report that includes
all of the following information:

(1) Communities that rely on contaminated drinking water as
a primary source of drinking water.

(2) The principal contaminants and other constituents of concern
affecting groundwater and contamination levels in the groundwater
sources for the communities described in paragraph (1).

(3) Potential solutions and funding sources to clean up or treat
groundwater or to provide alternative water supplies to ensure
the provision of safe drinking water to communities identified in
paragraph (1).

(4) The effect of the use of the moneys in the Nitrate at Risk
Fund for the purposes described in Section 13445 on nitrate
contaminated groundwater used as a source of drinking water.

(b) A report to be submitted pursuant to subdivision (a) shall
be submitted in compliance with Section 9795 of the Government
Code.

begin insert 13448. end insert   

If the responsibility for administering Chapter 4
(commencing with Section 116270) of Part 12 of Division 104 of
the Health and Safety Code is transferred to the state board, the
state board shall succeed to and is vested with all of the authority,
duties, powers, responsibilities, and jurisdiction of the State
Department of Public Health pursuant to this article.

begin insert 13449. end insert   

This article shall remain in effect only until January 1,
2024, and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2024, deletes or extends that
date.

end insert

begin delete

SECTION 1.  

Section 13444 is added to the Water Code, to
read:

13444.  

(a) The Nitrate at Risk Area Fund is hereby established
in the State Treasury, to be administered by the state board. Upon
appropriation by the Legislature, moneys in the fund shall be
available for the purposes of developing and implementing
sustainable and affordable solutions for disadvantaged communities
in areas designated pursuant to subdivision (b).

(b) The State Department of Public Health, in conjunction with
the state board, shall, using existing data on public water systems,
designate areas that are reliant on nitrate-contaminated groundwater
for their source of drinking water and that do not have reliable
access to safe, affordable drinking water.

end delete