Amended in Senate May 19, 2014

Amended in Assembly April 16, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1043

Introduced by Assembly Member Chau

(Coauthor: Senator Hernandez)

February 22, 2013

An act to begin delete add Sections 75101.3 and 75101.4 to, and to repeal and add Section 75101 of, end delete begin insert amend Section 75101 of end insert the Public Resources Code, relating to groundwater.

LEGISLATIVE COUNSEL’S DIGEST

AB 1043, as amended, Chau. Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006: groundwater contamination.

The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006, an initiative statute approved by the voters as Proposition 84 at the November 7, 2006, statewide general election, makes approximately $5.4 billion in bond funds available for safe drinking water, water quality and supply, flood control, natural resource protection, and park improvements. The initiative bond act makes $60,000,000 available to the State Department of Public Health for the purpose of loans and grants for projects to prevent or reduce contamination of groundwater that serves as a source of drinking water and requires the department to require repayment for costs that are subsequently recovered from parties responsible for the contamination. Existing law requires the department, in collaboration with the Department of Toxic Substances Control, or DTSC, and the State Water Resources Control Board, to develop and adopt regulations governing the repayment of costs that are subsequently recovered from parties responsible for the contamination of groundwater.

This bill would eliminate the requirement to develop and adopt regulations and instead would require begin delete a grantee of certain initiative bond act funds to take specific actions to recover the costs of cleanup and to utilize those funds for certain groundwater contamination cleanup projects, as specified. The bill would require the grantee, before expending the funds recovered from a responsible party, as defined, to submit an expenditure plan to DTSC for its review. The bill would require that funds recovered from a responsible party by a grantee and used by the grantee for the costs of the specified groundwater contamination cleanup projects be deemed to be repaid by the grantee to the state. end delete begin insert that costs subsequently recovered from a party responsible for the contamination, as defined, be repaid to the State Department of Public Health and deposited, and separately accounted for, in the Groundwater Contamination Cleanup Project Fund, which this bill would create in the State Treasury. This bill would require moneys in the fund to be continuously appropriated, without regard to fiscal years, to the Department of Toxic Substances Control for a grant to the grantee that received a grant to prevent or reduce contamination of groundwater pursuant to Proposition 84 and subsequently recovered costs from a responsible party and repaid those costs to the state. This bill would require the Department of Toxic Substances Control to disburse the funds upon receipt of an expenditure plan from the grantee if the department reviews the plan and concurs that the proposed expenditures by the grantee are consistent with certain requirements. This bill would prohibit the total amount of a grant from the fund and a grant received to prevent or reduce contamination of groundwater pursuant to Proposition 84 from exceeding the grantee’s total costs to cleanup contaminated groundwater or prevent the contamination of groundwater. end insert

Existing law, the Carpenter-Presley-Tanner Hazardous Substance Account Act, creates in the General Fund the Site Remediation Account, and authorizes the money in that account to be expended by DTSC, upon appropriation by the Legislature, for direct site remediation costs.

The bill would require begin delete any funds end delete begin insert moneys end insert recovered from a responsible party in excess of the begin delete specified groundwater contamination cleanup projects costs to be remitted to DTSC and deposited into end delete begin insert amount that may be awarded as a grant to be transferred to end insert the Site Remediation Account, to be used for begin insert certain end insert orphan groundwater contamination cleanup begin delete projects, as specified. end delete begin insert projects. end insert

begin delete

The bill would make technical, nonsubstantive changes.

end delete

Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 75101 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

begin delete

75101.  

(a) For the purposes of implementing Section 75025,
the State Department of Public Health shall do all of the following:

(1) Develop guidelines pursuant to Section 75100 in
collaboration with the Department of Toxic Substances Control
and the state board.

(2) In collaboration with the Department of Toxic Substances
Control and the state board, develop and adopt regulations
governing the repayment of costs that are subsequently recovered
from parties responsible for the contamination.

end delete

begin insert

begin insert 75101. end insert   

end insert begin insert

(a) (1) Costs subsequently recovered from a party
responsible for the contamination pursuant to Section 75025 shall
be repaid to the State Department of Public Health and deposited
in the Groundwater Contamination Cleanup Project Fund, which
is hereby created in the State Treasury. Costs recovered shall be
separately accounted for within the Groundwater Contamination
Cleanup Project Fund.

end insert begin insert

(2) Notwithstanding Section 13340 of the Government Code,
moneys in the Groundwater Contamination Cleanup Project Fund
are continuously appropriated, without regard to fiscal years, to
the Department of Toxic Substances Control for the purpose of a
grant to the grantee that received funds and subsequently recovered
costs from a responsible party and repaid those costs to the state
in the following priority order:

end insert begin insert

(A) Projects and activities to clean up areas of groundwater
contamination within the grantee’s jurisdiction where the initial
grant awarded pursuant to Section 75025 is insufficient to pay for
the full costs of the cleanup.

end insert begin insert

(B) Projects and activities to clean up additional areas of
groundwater contamination within the grantee’s jurisdiction.

end insert begin insert

(3) (A) The total amount of the grant awarded pursuant to
Section 75025 and the amount awarded pursuant to this subdivision
shall not exceed the grantee’s total costs to clean up contaminated
groundwater or prevent the contamination of groundwater.

end insert begin insert

(B) If costs recovered by the grantee and deposited in the
Groundwater Contamination Cleanup Project Fund exceed the
amount that may be awarded as a grant pursuant to the limit in
subparagraph (A), the excess moneys shall be transferred to the
Site Remediation Account, established pursuant to Section 25337
of the Health and Safety Code. Recovered funds deposited into the
account shall be used by the Department of Toxic Substances
Control for orphan groundwater contamination cleanup projects
at sites that are on the list maintained by the Department of Toxic
Substances Control pursuant to Section 25356 of the Health and
Safety Code or on the National Priorities List pursuant to the
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. Sec. 9601 et seq.), as amended.

end insert begin insert

(4) The grantee shall use an amount awarded pursuant to this
subdivision for groundwater contamination cleanup activities for
groundwater that is a primary source of drinking water, including,
but not limited to, ongoing treatment and remediation activities
in accordance with the purposes of Section 75025.

end insert begin insert

(5) The Department of Toxic Substances Control shall disburse
the funds upon receipt of an expenditure plan from the grantee if
the Department of Toxic Substances Control reviews the plan and
concurs that the proposed expenditures by the grantee are
consistent with paragraphs (2) to (4), inclusive.

end insert begin insert

(6) Grants awarded pursuant to this subdivision may be used
for capital costs and treatment and remediation activities.

end insert begin insert

(7) Commencing no later than July 1, 2015, and annually
thereafter until the grantee’s funds are expended, a grantee of
funds awarded pursuant to this subdivision shall provide public
notice, by posting a list on the grantee’s Internet Web site, of
projects and activities that receive grant funds pursuant to this
subdivision and the amount of those funds.

end insert begin insert

(8) As used in this subdivision, “costs subsequently recovered
from a party responsible for the contamination” means the amount
of any judgment or settlement received by a grantee of funds
received pursuant to Section 75025 from a responsible party that
is attributable to costs funded by the grant received pursuant to
Section 75025, less all reasonable and necessary fees and expenses
incurred by the grantee of funds received pursuant to Section
75025 to recover these funds.

end insert

(b) For the purposes of implementing subdivision (a) of Section
75050, the Department of Fish and Game, when funding a natural
community conservation plan, shall fund only the development of
a natural community conservation plan that is consistent with the
Natural Community Conservation Planning Act (Chapter 10
(commencing with Section 2800) of Division 3 of the Fish and
Game Code).

(c) The San Francisco Bay Area Conservancy may use the funds
made available pursuant to subdivision (c) of Section 75060 to
restore the salt ponds in the south San Francisco Bay and to create
trails and visitor facilities for public use in that area.

begin delete

SECTION 1.  

Section 75101 of the Public Resources Code is
repealed.

SEC. 2.  

Section 75101 is added to the Public Resources Code,
to read:

75101.  

For purposes of implementing Section 75025, all of the
following shall apply:

(a) To the extent that the following projects are available, a
grantee of funds awarded pursuant to Section 75025 shall utilize
funds recovered from parties responsible for the contamination
pursuant to the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. Secs. 9601,
et seq.) or other federal or state law only for projects that meet
both of the following conditions:

(1) The total of the grant amount awarded to the grantee pursuant
to Section 75025 and the funds recovered from a responsible party
under this subdivision do not exceed the grantee’s total cost of the
project to clean up contaminated groundwater or prevent the
contamination of groundwater.

(2) The groundwater is a primary source of drinking water and
the grantee will use the funds recovered from a responsible party
for groundwater contamination cleanup activities, including, but
not limited to, ongoing treatment and remediation activities in
accordance with the purposes of Section 75025.

(b) Funds recovered from a responsible party shall be utilized
by the grantee only for projects that meet the requirements of
subdivision (a) and in the following priority order:

(1) Projects to clean up areas of groundwater contamination
within the grantee’s jurisdiction where the initial grant awarded
pursuant to Section 75025 is insufficient to pay for the full costs
of the cleanup.

(2) Projects to clean up additional areas of groundwater
contamination within the grantee’s jurisdiction.

(c) (1) Before expending funds recovered from a responsible
party on projects specified in subdivision (b), the grantee shall
submit an expenditure plan to the Department of Toxic Substances
Control for its review and concurrence that the proposed
expenditures are consistent with subdivisions (a) and (b).

(2) Funds recovered from a responsible party by the grantee
that are in excess of the costs to conduct a project or projects
authorized under subdivision (b) shall be remitted to the
Department of Toxic Substances Control for deposit into the Site
Remediation Account, established pursuant to Section 25337 of
the Health and Safety Code. Recovered funds deposited into the
account shall be used by the Department of Toxic Substances
Control for orphan groundwater contamination cleanup projects
at sites that are on the list maintained by the Department of Toxic
Substances Control pursuant to Section 25356 of the Health and
Safety Code or on the National Priorities List pursuant to the
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. Secs. 9601 et seq.), as amended.

(d) Funds recovered from a responsible party by a grantee
pursuant to subdivision (a) and used by the grantee for costs,
including capital costs and operation and maintenance costs, of a
project that complies with subdivisions (a) and (b), are deemed to
be repaid by the grantee to the state.

(e) Commencing no later than July 1, 2014, and annually
thereafter until the grantee’s funds are expended, a grantee of funds
awarded pursuant to Section 75025 shall provide public notice, by
posting a list on the grantee’s Internet Web site, of projects that
meet the requirements of subdivisions (a) and (b) and the amount
of funds recovered from a responsible party to be expended for
the projects.

(f) As used in this section, “funds recovered from a responsible
party” means the amount of any judgment or settlement received
by the grantee from a responsible party that is attributable to costs
funded by the grant, less all reasonable and necessary fees and
expenses incurred by the grantee to recover these funds.

SEC. 3.  

Section 75101.3 is added to the Public Resources Code,
to read:

75101.3.  

For the purposes of implementing subdivision (a) of

Section 75050, the Department of Fish and Wildlife, when
funding a natural community conservation plan, shall fund only
the development of a natural community conservation plan that is
consistent with the Natural Community Conservation Planning
Act (Chapter 10 (commencing with Section 2800) of Division 3
of the Fish and Game Code).

SEC. 4.  

Section 75101.4 is added to the Public Resources Code,
to read:

75101.4.  

The San Francisco Bay Area Conservancy may use
the funds made available pursuant to subdivision (c) of Section
75060 to restore the salt ponds in the south San Francisco Bay and
to create trails and visitor facilities for public use in that area.

end delete