BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 69
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          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.








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           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
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          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 


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