BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 147
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          Date of Hearing:   April 16, 2013

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                Anthony Rendon, Chair
                AB 147 (V. Manuel Pérez) - As Amended:  April 9, 2013
           
          SUBJECT  :   Salton Sea

           SUMMARY  :   Requires the State Natural Resources Agency, in  
          consultation with other specified entities, to develop a  
          strategic plan to mitigate dust pollution at the Salton Sea.   
          Specifically,  this bill  :

          1)Requires the Natural Resources Agency, upon execution of an  
            agreement with the Imperial Air Quality Management District  
            and the South Coast Air Quality Management District, and in  
            consultation with the State Air Resources Board and the Salton  
            Sea Authority (SSA), to develop a strategic plan to guide  
            implementation of the Salton Sea Dust Mitigation Project.  The  
            Salton Sea Dust Mitigation Project is defined to mean a  
            project to monitor and mitigate dust pollution created at the  
            Salton Sea as a result of the Quantification Settlement  
            Agreement (QSA).

          2)Requires the strategic plan to include specified elements,  
            including: quantification of current and exposed sea lake bed  
            arising from the QSA; quantification of exposed lake bed  
            arising from other factors; profile of Salton Sea lake bed  
            aerosols and other chemicals; prioritization of mitigation  
            measures that can be instituted at the Sea to meet air quality  
            standards for particulate matter in both air quality basins;  
            and identification and prioritization of funding streams to  
            pay for dust mitigation, including how best to monetize  
            renewable energy generating potential at the Salton Sea.

          3)Authorizes the Secretary of the Natural Resources Agency  
            (Secretary), to the extent permitted by law, to work with  
            other appropriate governmental and nongovernmental  
            organizations in California and Mexico in developing the  
            strategic plan.

          4)Authorizes the Secretary, in consultation with the state Air  
            Resources Board and the SSA, to establish a technical advisory  
            committee including representatives from impacted cities and  
            counties, other local, state and regional agencies and  








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            departments, nongovernmental organizations, and other  
            stakeholders as deemed necessary by the Secretary.  Requires  
            the Secretary, in consultation with the Air Resources Board  
            and the SSA, to appoint the committee chair. 

          5)Authorizes the Secretary to enter into an agreement with other  
            public agencies, including but not limited to the county, to  
            accept, manage and expend funds for implementation of the dust  
            mitigation program.

          6)States that this bill does not modify existing roles,  
            responsibilities or liabilities of the State of California,  
            the counties, or any other agency, under the QSA.

          7)Creates the Salton Sea Dust Mitigation Project Account in the  
            Salton Sea Restoration Fund to receive moneys for mitigation  
            of dust pollution arising from implementation of the QSA.

          8)States legislative findings and declarations regarding the  
            Salton Sea and the anticipated impacts of implementation of  
            the QSA on dust emissions, and states the Legislature's intent  
            to develop a strategic plan for dealing with air pollution at  
            the Sea.   

           EXISTING LAW  :

          1)The federal Clean Air Act regulates fine particulates in dust  
            (PM 10) and requires attainment of health based air quality  
            standards for particulates.  Requires use of best available  
            mitigation measures and development of a plan for attainment  
            of air quality standards.

          2)The Salton Sea Restoration Act states legislative intent that  
            the state undertake restoration of the Salton Sea and that the  
            maximum feasible attainment of specified environmental  
            objectives be achieved, including but not limited to,  
            elimination of air quality impacts from restoration projects.

          3)Under the terms of the QSA-JPA Agreement, the State agreed to  
            cover the costs of mitigation for the water transfers,  
            including air quality impacts, beyond the first $133 million  
            in mitigation costs.  The agreement states that "the state  
            obligation is an unconditional contractual obligation of the  
            State of California, and such obligation is not conditioned  
            upon an appropriation by the Legislature, nor shall the event  








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            of non-appropriation be a defense."  It should be noted a  
            recent ruling by the Third District Court of Appeal held that  
            although the State is contractually obligated to pay excess  
            mitigation costs associated with the QSA, the agreement does  
            not give the other QSA parties "or anyone else" the right to  
            enforce the obligation by taking money out of the State  
            Treasury.  Rather, it is solely up to the Legislature to  
            appropriate such funds.  

          Note: The California Supreme Court has denied all appeals for  
            review, but at the time of this writing, QSA litigation  
            continues at the Superior court level on remanded or  
            unadjudicated issues, including claims based upon the Brown  
            Act and the California Environmental Quality Act.  At the  
            federal level, a decision of the U.S. District Court for the  
            Southern District of California, dismissing legal challenges  
            to the QSA based upon the Clean Air Act and National  
            Environmental Policy Act, is currently on appeal before the  
            Ninth Circuit Court of Appeals. 

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   The Salton Sea is California's largest lake at  
          approximately 360 square miles in size and is roughly twice the  
          size of Lake Tahoe.  The Sea is located in the desert region of  
          southern California in Imperial and Riverside counties.  The Sea  
          currently is fed primarily by agricultural runoff and has no  
          natural outlet.  As a result in part of water transfer  
          agreements negotiated in 2003, known as the QSA, as well as  
          natural evaporation and other factors, the Sea  is shrinking in  
          size, and will be substantially reduced after 2017 when the  
          water transfers are fully implemented. As the Sea recedes, dry  
          lake bed areas or playa that are exposed to the air may create  
          airborne dust pollution which is hazardous to human health and  
          may also negatively impact agricultural resources and other  
          natural resources in the area.  Reduced water inflows to the Sea  
          are anticipated to result in exposure of over 26 square miles of  
          dry lake bed by the year 2018, and exposure of as much as 134  
          square miles over the next 20 to 25 years.  The author of this  
          bill notes that exposure of the dry lake bed to the desert's  
          strong winds is expected to increase airborne dust particulates  
          of 10 microns or less (PM10) by up to 33% in the basin.  The  
          Imperial and Coachella Valleys, which are home to over 400,000  
          people and already fail to meet state and federal ambient air  
          quality standards, could experience devastating impacts to  








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          public health, agricultural production, and the environment  
          unless adequate mitigation measures are taken to address the  
          problem.

          The author of this bill also notes by analogy the air quality  
          impacts caused by the draining of Owens Lake east of the  
          Sierras, which resulted in the exposure of over 100 square miles  
          of dry lake bed, creating the single largest known source of  
          fugitive dust in the United States.  To date the Los Angeles  
          Department of Water and Power (LADWP) has spent over $1.2  
          billion to mitigate the dust pollution.  LADWP has also been  
          ordered to undertake additional air quality mitigation actions  
          that are currently being appealed in court.  Whether dust  
          pollution impacts at the Salton Sea will be similar, greater or  
          less than those experienced at Owens Lake due to difference in  
          soil types and weather patterns is unknown at this time, but the  
          potential for significant dust pollution impacts at the Salton  
          Sea is well recognized. 

          As stated above, the State of California under the QSA-JPA  
          agreed to assume the costs of mitigating the effects of the QSA,  
          including air pollution impacts, beyond the first $133 million  
          (in 2003 dollars) paid for by the water agencies that are  
          parties to the agreement.  (The amount being paid by the water  
          agencies is actually closer to $300 million with inflation.)   
          However, the Third District Court of Appeal has ruled that while  
          the state is contractually liable for the excess mitigation  
          costs, neither the parties to the QSA nor anyone else can compel  
          the Legislature to appropriate funds to pay for the mitigation.   
          In other words, the state's contractual obligation under the QSA  
          to pay for air quality mitigation may be unenforceable.  

          Whether or not the State can be held legally liable for  
          mitigation of air quality impacts resulting from the shrinking  
          of the Salton Sea, the fact remains that over 400,000 people  
          live in close proximity to the Salton Sea and could be exposed  
          to harmful dust pollution if effective actions are not taken to  
          mitigate the air quality impacts.  Dust storms could also impact  
          a much larger area beyond those living in close proximity to the  
          Sea.  

          Testimony provided by air quality officials at an oversight  
          hearing of this committee on February 22, 2013 noted the South  
          Coast Air Basin, where the Salton Sea is located, is home to  
          about half the State's population and contains the largest air  








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          quality challenges in the nation.  Both the South Coast Air  
          Quality Management District and the Imperial County Air  
          Pollution Control District testified that early mitigation  
          strategies must be identified and implemented at the Salton Sea  
          to avoid a situation similar to Owens Lake, and the serious  
          public health impacts that could result from fugitive dust  
          produced from exposed playa as the lake recedes.  When asked  
          what the degree of certainty is that air quality impacts at the  
          Salton Sea will be similar to those at Owens Lake, the air  
          quality officials indicated that additional studies are needed  
          before conclusive findings can be made.   According to the air  
          quality officials, the greatest risks to public health stem from  
          PM10 exposure, and to a lesser extent PM2.5.  The dust may also  
          contain toxic components, both naturally occurring and from  
          agricultural pesticides.  Hydrogen sulfide gases given off by  
          the Sea as a result of eutrophication, which produces the  
          characteristic rotten egg smell and was the source of the  
          basin-wide odor incident experienced last September throughout  
          Southern California, can also be toxic to human health at acute  
          levels, in addition to being a public nuisance.

          Air quality officials testifying at the oversight hearing noted  
          that a strategic implementation plan for controlling the playa  
          dust will be necessary to achieve attainment of health-based  
          standards for PM10 fine dust particulates, as required by the  
          Clean Air Act.  Once the QSA is fully implemented, it is  
          estimated that 66,000 acres (103 square miles) of playa will be  
          exposed, an area roughly the size of the entire City of Burbank.  
           Already the declining Sea has resulted in air quality impacts,  
          with air quality monitors showing state standards for PM10 were  
          exceeded on 232 days between June 2010 and July 2012.  Air  
          quality officials also noted that if the State fails to achieve  
          the Clean Air Act standards, in addition to the public health  
          impacts and crop damage, the State could risk federal sanctions,  
          including potential loss of federal funding.   

           Double-Referral and Potential Amendments  :  This bill is  
          double-referred to the Assembly Natural Resource Committee which  
          will hear this bill next if it is approved by this committee.  
          The author notes that some work has already been done by the  
          parties to the QSA in designing dust mitigation and monitoring  
          plans for the Salton Sea.  However, it is unclear whether the  
          mitigation steps that have been planned thus far will be  
          sufficient to fully mitigate the dust pollution and meet state  
          and federal air quality standards.  To avoid duplication of  








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          effort, while also ensuring that appropriate actions are taken,  
          the author is working on proposed amendments to this bill that  
          would require the Air Resources Board or regional air quality  
          districts to certify whether the dust mitigation plans currently  
          proposed under the QSA are sufficient, instead of requiring the  
          Resources Agency to develop an entirely new plan.  These  
          amendments may be considered in the Assembly Natural Resources  
          Committee which has primary subject matter jurisdiction over air  
          quality issues.

           Support Arguments  :   Supporters urge that strategic mitigation  
          planning is important now to address potentially significant  
          increases in PM10 at the Salton Sea, and to avoid negative  
          public health consequences.  ACWA supports the effort to reduce  
          the impacts of dust on air quality surrounding the Salton Sea,  
          but raised concerns about some of the uncodified findings in  
          this bill.  The most recent author's amendments modified the  
          legislative findings and may have addressed these concerns.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Lung Association
          Association of California Water Agencies (support if amended)
          Coalition for Clean Air
          The Coachella Valley Economic Partnership
          Sierra Club California

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Diane Colborn / W., P. & W. / (916)  
          319-2096