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  









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                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  









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                     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  









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                     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."  










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                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  









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                     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