BILL ANALYSIS Ó AB 69 Page 1 ASSEMBLY THIRD READING AB 69 (Perea) As Introduced January 10, 2013 Majority vote ENVIRONMENTAL SAFETY 5-2 APPROPRIATIONS 12-5 ----------------------------------------------------------------- |Ayes:|Alejo, Bloom, Perea, |Ayes:|Gatto, Bocanegra, | | |Stone, Ting | |Bradford, | | | | |Ian Calderon, Campos, | | | | |Eggman, Gomez, Hall, | | | | |Holden, Pan, Quirk, Weber | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Dahle, Donnelly |Nays:|Harkey, Bigelow, | | | | |Donnelly, Linder, Wagner | ----------------------------------------------------------------- SUMMARY : Establishes the Nitrate at Risk Area Fund to fund solutions for disadvantaged communities with nitrate-contaminated drinking water. Specifically, this bill : 1)Establishes the Nitrate at Risk Area Fund in the State Treasury, to be administered by the State Water Resources Control Board (SWRCB), to, upon appropriation by the Legislature, fund the development and implementation of sustainable and affordable solutions for disadvantaged communities with nitrate-contaminated drinking water. 2)Requires the California Department of Public Health (CDPH) in conjunction with the SWRCB, to, using existing data, designate areas that are reliant on nitrate-contaminated groundwater for drinking water and that do not have reliable access to safe, affordable drinking water. FISCAL EFFECT : According to the Assembly Appropriations Committee, enactment of this bill would result in no direct costs associated with the creation of the unfunded Nitrate at Risk Area Fund. Any expenditures to or from the fund would require a future appropriation. Enactment of this bill could result in minor, absorbable costs to CDPH for identifying disadvantaged communities. AB 69 Page 2 COMMENTS : Nitrates/nitrites and public health : Recent state studies show that nitrate is one of California's most prevalent groundwater contaminants. High concentrations of nitrate in groundwater are primarily caused by human activities, including fertilizer application (synthetic and manure), animal operations, industrial sources (wastewater treatment and food processing facilities), and septic systems. Agricultural fertilizers and animal wastes applied to cropland are by far the largest regional sources of nitrate in groundwater, although other sources can be locally important. Nitrite is a chemical similar to nitrate, and it comes from the same sources as nitrate. Once consumed, nitrate is converted into nitrite in the body. Nitrite can interfere with the ability of red blood cells to carry oxygen to the tissues of the body, producing a condition called methemoglobinemia. This is of greatest concern in infants, whose immature stomach environment enables the conversion of nitrate into nitrite that is absorbed into the blood stream. The effects of nitrite are often referred to as "blue baby syndrome." High nitrate levels may also affect the oxygen-carrying ability of the blood of pregnant women. Nitrate contamination in California : A recent University of California at Davis (UCD) report, Addressing Nitrate in California's Drinking Water, showed that nitrate loading to groundwater in the area is widespread and chronic, and is overwhelmingly the result of crop and animal agricultural activities. While the study only examined nitrate contamination in the four-county Tulare Lake Basin and the Monterey County portion of the Salinas Valley, its findings are helpful at informing the discussion about nitrate contamination statewide. The study indicated that about 2.6 million people in the study region rely on groundwater for drinking water, including those in some of the poorest communities in California. Nitrate contamination is increasing and currently poses public health concerns for about 254,000 people in the study area. In addition to the UCD report, a recent SWRCB report identified 682 communities (excluding systems not regulated by the state), serving more than 21 million people, which rely on groundwater AB 69 Page 3 contaminated with one or more principal contaminants. The report also identified areas with nitrate contamination. Following the UCD report, the SWRCB submitted its final report to the Legislature, Recommendations Addressing Nitrate in Groundwater, on February 20, 2013, which focused on specific solutions for addressing nitrate contamination in groundwater. According to the report, "The most critical recommendation in this report is that a new funding source be established to ensure that all Californians, including those in disadvantaged communities, have access to safe drinking water, consistent with AB 685 [Eng, 2012]. The Legislature should provide a stable, long-term funding source for provision of safe drinking water for small disadvantaged communities. Funding sources include a point-of-sale fee on agricultural commodities, a fee on nitrogen fertilizing materials, or a water use fee. In addition, the Legislature also should authorize CDPH to assess a fee in lieu of interest on Safe Drinking Water State Revolving Fund loans, or to assess other fees associated with these loans, to generate funds for expanded assistance to water systems." This bill creates a new fund, the Nitrate at Risk Area Fund, to specifically support disadvantaged communities facing nitrate contamination in their drinking water. Analysis Prepared by : Shannon McKinney / E.S. & T.M. / (916) 319-3965 FN: 0000138