BILL ANALYSIS Ó
AB 1043
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CONCURRENCE IN SENATE AMENDMENTS
AB 1043 (Chau)
As Amended August 22, 2014
Majority vote
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|ASSEMBLY: |78-0 |(May 29, 2013) |SENATE: |32-0 |(August 27, |
| | | | | |2014) |
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Original Committee Reference: E.S. & T.M.
SUMMARY : Modifies the disposition of Proposition 84 of 2006
funds collected from responsible parties for groundwater
contamination clean up. Specifically, this bill :
1)Allows local agencies receiving grants or loans from
Proposition 84 from the California Department Water Resources
Control Board (Water Board) for groundwater projects that are
able to subsequently recover costs from responsible parties,
to keep that money to fund additional groundwater cleanup
activities.
2)In order to be eligible to use Proposition 84 funds recovered
from responsible parties, the local agency must meet the
following requirements:
a) Sites eligible for cost recovery are those authorized by
Federal Superfund Comprehensive Environmental Response,
Compensation, and Liability Act, or other federal or state
law;
b) Requires an expenditure plan to the Water Board for
projects. The Water Board shall review the submitted
expenditure plan and consult with the Department of Toxic
Substances Control (DTSC) for projects where the DTSC is
the lead state agency.
c) Funds recovered from a responsible party that are in
excess of the costs to conduct a project shall be remitted
to DTSC for deposit into the Site Remediation Account for
orphan groundwater contamination cleanup projects at sites.
d) The Water Board may use moneys in the Groundwater
Contamination Cleanup Project Fund for the costs of
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administering the cost recovery for the local agencies
seeking these funds.
The Senate amendments provide the state Water Board is the lead
agency for the expenditure of funds recovered from groundwater
contamination clean up to reflect the reorganization of the
States Drinking water program from the California Department of
Public Health (CDPH) to the state Water Board. Further, the
amendments removed the continuous appropriation of these cost
recovery funds and allow the Water Board to use funds for
administrative purposes.
AS PASSED BY THE ASSEMBLY , this bill modified the disposition of
Proposition 84 funds collected from responsible parties for
groundwater contamination clean up to allow local agencies
receiving grants or loans to keep funds recovered from
responsible parties to fund additional groundwater cleanup
activities.
FISCAL EFFECT : According to the Senate Appropriations
Committee:
1)Unknown costs, but potentially in the millions of dollars, to
the General Fund by redirecting recovered funds for further
groundwater clean up.
2)Unknown costs to the State Water Board to receive recovered
funds. These costs would be recoverable from recovered funds.
COMMENTS :
Need for the bill: According to the author, this bill is needed
"to allow local agencies that have been awarded Proposition 84
funds from CDPH for groundwater projects that are able to
subsequently recover funds from responsible parties to keep the
money to fund additional groundwater cleanup activities. Should
local agencies be successful in recovering the costs from
responsible parties, this bill will save significant State
administrative costs and allow the local agencies to use all of
the recovered funds for groundwater cleanup."
San Gabriel Valley groundwater contamination: This bill is
supported by the Upper San Gabriel Valley Municipal Water
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District, which is involved in the clean up of the superfund
sites in the San Gabriel Valley. These sites include multiple
areas of contaminated groundwater in the 170-square mile San
Gabriel Valley. The contaminated areas underlie significant
portions of the Cities of Alhambra, Arcadia, Azusa, Baldwin
Park, Industry, Irwindale, El Monte, La Puente, Monrovia,
Rosemead, South El Monte, and West Covina.
Proposition 84: Approved by the voters in 2006, Proposition 84
authorized $60 million to the CDPH for loans and grants for
projects to prevent or reduce contamination of groundwater that
serves as a source of drinking water for the San Gabriel Valley.
The CDPH requires repayment for costs that are subsequently
recovered from parties responsible for the contamination.
Modification to Proposition 84: When the voters approved
Proposition 84, the initiative included specific language
requiring the repayment of funds from those persons or
businesses that caused the toxic contamination. The initiative
included Public Resources Code Section 75025, which mandates
that the CDPH require repayment of subject funds.
Analysis Prepared by : Bob Fredenburg/ E.S. & T.M. / (916)
319-3965
FN: 0005487