BILL ANALYSIS Ó AB 467 SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator Jerry Hill, Chair 2013-2014 Regular Session BILL NO: AB 467 AUTHOR: Stone AMENDED: April 11, 2013 FISCAL: Yes HEARING DATE: July 3, 2013 URGENCY: No CONSULTANT: Rachel Machi Wagoner SUBJECT : FRESHWATER PROTECTION ACT SUMMARY : Existing law : 1) Pursuant to the California Safe Drinking Water Act (SDWA): a) Requires the California Department of Public Health (DPH) to regulate drinking water and to enforce the federal SDWA and other regulations. b) Establishes a state maximum contaminant level for nitrates in public water systems. c) Defines a public water system as a system for the provision of water for human consumption through pipes or other constructed conveyances that has 15 or more service connections or regularly serves at least 25 individuals daily at least 60 days out of the year. 2) Pursuant to the Porter-Cologne Water Quality Control Act, provides that the State Water Resources Control Board (SWRCB) and the California regional water quality control boards are the principal state agencies with authority over matters relating to water quality. 3) Authorizes the California Department of Food and Agriculture to impose an assessment in an amount not to exceed one mill ($0.001) per dollar of all sales of fertilizing materials to provide funding for research and AB 467 Page 2 education regarding the use and handling of fertilizing materials, including, but not limited to, any environmental effect. This bill creates the Freshwater Protection Fund (Fund) to receive moneys for funding various activities relating to drinking water solutions for disadvantaged and severely disadvantaged communities, fertilizer management and groundwater quality. Specifically: 1) Requires SWRCB to expend money from the Fund, upon appropriation by the Legislature, for the following purposes: direct assistance; indirect assistance; emergency response and removal of potential sources of contamination; natural resource protection; and administrative costs, not to exceed 20% of the annual appropriation from the Fund. 2) Requires SWRCB, in expending moneys from the Fund, to prioritize programs that provide drinking water solutions for disadvantaged and severely disadvantaged communities. 3) Defines "administrative costs" as including costs incurred during any of the following: a) Groundwater monitoring for fertilizers; b) Development and enforcement of natural resource protection rules; or, c) Coordination of programs funded by the Fund with the United States Environmental Protection Agency (US EPA) and state programs to protect human and environmental health and management of fertilizer sales information. 4) Defines "direct assistance" as including any of the following: a) Programs that provide sustainable, affordable, accessible drinking water solutions for disadvantaged and severely disadvantaged communities, including those communities served by AB 467 Page 3 drinking water systems between 2 and 14 connections and by private wells; b) Programs that provide for alternate drinking water supplies or treatment, including consolidation with an existing non-contaminated water system; c) Programs that provide for closure of wells that may impact groundwater, such as abandoned, improperly constructed, or drainage wells; d) Programs devoted to integrated natural resources conservation that encourage the judicious use of fertilizers and other agricultural inputs and practices that are protective of water quality; e) Programs that provide monitoring of private wells to detect fertilizers or fertilizers with other contaminants; f) Programs that enhance investment of private and federal funds in fertilizer management and remediation for freshwater protection; and, g) Other specified related programs. 5) Defines "indirect assistance" as including any of the following: a) Programs that provide education about fertilizers and fertilizer management; b) Programs that provide technical assistance on fertilizers and fertilizer management; c) Programs that provide for the promotion and implementation of onsite evaluation systems and freshwater protection practices; d) Research programs for the determination of the impacts of alternate management practices; and, e) Research programs for the determination of AB 467 Page 4 natural resources sensitivity and vulnerability to contamination. COMMENTS : 1) Purpose of Bill . According to the author, the intent of this bill is to respond to recent state studies chronicling the chronic need for safe drinking water in disadvantaged communities. Specifically, the author points out that in a February 2013 report (discussed in more detail later), SWRCB argues that "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 author believes that the Legislature should provide a stable, long-term funding source for provision of safe drinking water for small disadvantaged communities. The author states that this bill intends to establish such a funding source. 2) 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. 3) SBX2 1 (Perata). Chapter 1, Statutes of 2008 required SWRCB to prepare a report to the Legislature to "improve understanding of the causes of nitrate contamination, identify potential remediation solutions and funding sources to recover costs expended by the State...to clean up or treat groundwater, and ensure the provision of safe drinking water to all communities." AB 467 Page 5 The University of California at Davis (UCD) prepared this study on behalf of SWRCB. The UCD study, "Addressing Nitrate in California's Drinking Water," was submitted to SWRCB in January 2012. It showed that nitrate loading to groundwater in the Tulare Lake Basin and Salinas Valley is widespread and chronic, and is overwhelmingly the result of crop and animal agricultural activities, urban wastewater, and septic systems. The study indicated that about 2.6 million people in these regions rely on groundwater for drinking water, including those in some of the poorest communities in California. Groundwater data shows that 57% of the current population in the study area uses a community public water system with recorded raw (untreated) nitrate concentrations that have exceeded the MCL at least once between 2006 and 2010. Continued basinwide trends in nitrate groundwater concentration may raise the affected population to nearly 80% by 2050. Due to long transit times, the impact of nitrates on groundwater resources will likely worsen in scope and concentration for many decades. SWRCB completed and released its January 2013 report, "Recommendations Addressing Nitrate in Groundwater," based on the study done by UCD. The SWRCB report focused on specific solutions for addressing the nitrate contamination in groundwater. According to the SWRCB 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. 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 AB 467 Page 6 fee. In addition, the Legislature also should authorize DPH 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 intends to respond to SWRCB's recommendation by creating the Fund. The parameters of the Fund are modeled after those governing the Michigan Freshwater Protection Fund. While this bill creates a fund, it currently does not identify a funding source. While the provisions of this bill will fulfill an important recommendation to addressing nitrate contamination in groundwater, the author needs to identify how these activities are going to be funded. SOURCE : Author SUPPORT : Audubon California California Rural Legal Assistance Foundation Catholic Charities Diocese of Stockton Clean Water Action Community Water Center Environmental Justice Coalition for Water Forests Forever Leadership Counsel for Justice & Accountability Pesticide Action Network North America Planning and Conservation League PolicyLink Sierra Club California Unitarian Universalist Service Committee Wholly H20 OPPOSITION : None on file