BILL ANALYSIS Ó AB 1249 Page 1 Date of Hearing: January 14, 2014 ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS Luis A. Alejo, Chair AB 1249 (Salas) - As Amended: January 6, 2014 SUBJECT : Integrated regional water management plans: nitrate contamination. SUMMARY : Requires integrated regional water management plans (IRWMPs) to include consideration of the impacts of drinking water contaminated by nitrates. Specifically, this bill : 1)Specifies that IRWMPs include a description of high-risk nitrate areas, as determined by the State Water Resources Control Board (State Board), and an explanation of how the IRWMP plans to address nitrate contamination. 2)Requires that the Department of Water Resources (DWR) give Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006 (Proposition 84) funding priority to safe drinking water and water quality projects that implement IRWMPs that address nitrate impacts in areas that have been identified by the State Board as nitrate high-risk areas, including projects that provide safe drinking water to small, disadvantaged communities. EXISTING LAW : 1)Pursuant to the California Safe Drinking Water Act, requires the California Department of Public Health to regulate drinking water, and to enforce the federal Safe Drinking Water Act and other regulation of nitrates in public drinking water systems. 2)Pursuant to the Porter-Cologne Water Quality Control Act, provides that the State Board and the California Regional Water Quality Control Boards are the principal state agencies with authority over matters relating to water quality. 3)Requires the State Board to prepare and submit a report to the Legislature that will improve understanding of the causes of nitrate groundwater contamination, identify potential remediation solutions and funding sources to recover costs expended by the state to clean up or treat groundwater, and AB 1249 Page 2 ensure the provision of safe drinking water to all communities. 4)Requires the State Board to submit a report to the Legislature that identifies communities in California that rely on contaminated groundwater as a primary source of drinking water, the principal contaminants and constituents of concern, and potential solutions and funding sources to clean up or treat groundwater or to provide alternative water supplies. 5)Pursuant to Proposition 84, provides funding for, among other things, the protection and reduction of contamination of groundwater and for small community drinking water system improvements. 6)Pursuant to Proposition 84, appropriates bond funds to DWR for IRWMP activities. Requires DWR to allocate not less than 10% of these funds to address the critical water supply needs of disadvantaged communities and to facilitate participation of those communities in integrated regional water management planning. FISCAL EFFECT : Not Known. COMMENTS : 1)Need for the bill: According to the author, "this bill is intended to provide direction to the California Department of Water Resources to give preference, in the Integrated Regional Water Management Grant program, to funding plans that address nitrate impacts for areas identified by the State Water Resources Control Board as nitrate high risk areas. If an area within the boundaries of a funding plan has been identified as a nitrate high-risk area by the State Water Resources Control Board, the plan must include an explanation of how the plan addresses the nitrate contamination. If the plan does not address the nitrate contamination, an explanation of why the plan does not address the contamination must be included. " 2)Nitrate contamination in California : While many contaminants are present in California's groundwater and drinking water, nitrate contamination has been the focus of recent study. Senate Bill SB X2 1 (Perata) Chapter 1, Statutes of 2008 AB 1249 Page 3 Second Extraordinary Session, required the State Board, in consultation with other agencies, to prepare a report to the Legislature focusing on nitrate groundwater contamination in the state and potential remediation solutions. In response, the State Board contracted with the University of California at Davis (UCD) to gather information for the report, which was released in January 2012. The study showed that nitrate loading to groundwater in the four-county Tulare Lake Basin and the Monterey County portion of the Salinas Valley is widespread and chronic, and is overwhelmingly the result of crop and animal agricultural activities. Due to long transit times, the impact of nitrates on groundwater resources will likely worsen in scope and concentration for several decades. According to the UCD study, infants who drink water containing nitrate in excess of the maximum contaminant level for drinking water may quickly become seriously ill and, if untreated, may die because high nitrate levels can decrease the capacity of an infant's blood to carry oxygen (methemoglobinemia, or "blue baby syndrome"). High nitrate levels may also affect pregnant women and susceptible adults. In addition, nitrate and nitrite ingestion in humans has been linked to goitrogenic (anti-thyroid) actions on the thyroid gland, fatigue, reduced cognitive functioning, maternal reproductive complications including spontaneous abortion, and a variety of carcinogenic outcomes. The fact that many of the affected communities are small and impoverished adds to the challenges of providing safe drinking water to these areas. Many of the community public water systems are small water systems, which often already face chronic financial problems. They have difficulty in applying for and meeting the eligibility requirements for receiving existing State funds because they lack economies of scale and often have inadequate technical, managerial, and financial capacity. Even when funding is provided, these systems often lack the capacity to manage operation and maintenance costs or make loan repayments. The UCD study proposed a range of actions that could be taken to address groundwater and drinking water contamination, including policy and regulatory changes and funding options. Following the UCD report, the State Board submitted its final Report to the Legislature, Recommendations Addressing Nitrate AB 1249 Page 4 in Groundwater , on February 20, 2013, which focused on specific solutions for addressing nitrate contamination in groundwater. The recommendations from that report included: a) A new stable, long-term funding source should be established to ensure that all Californians, including those in disadvantaged communities, have access to safe drinking water, consistent with AB 685 (Eng), 2012. b) DWR should give preference, in the Proposition 84 IRWM Grant Program, to proposals with IRWMPs that address access to safe drinking water for small disadvantaged communities that are in nitrate high-risk areas. 3)State Board - nitrate high-risk study areas : The State Board is currently developing maps identifying the nitrate high-risk areas. The State Board is consulting with the Department of Food and Agriculture in drafting these maps. According to the State Board, they expect to present a completed set of draft maps to members of the State Board in February, with the Board voting on adoption of the maps soon afterwards. Prior to final release, there will be a publicly-noticed informational item at a future State Board meeting, followed by a vote to adopt the maps by the Board at a subsequent meeting. 4)Integrated regional water management funding: The IRWM Grant Program operated by DWR manages General Obligation Bond funds from various sources, including Proposition 84. Proposition 84 amended the Public resources Code to authorize the Legislature to appropriate one billion dollars for IRWM projects that assist local public agencies in meeting long term water needs, including the delivery of safe drinking water and the protection of water quality and the environment. Of that one billion dollars, $900,000,000, referred to as "regional funding," was allocated to 11 hydrologic regions and sub-regions or "funding areas." The remaining $100,000,000, referred to as "inter-regional funding," was allocated to address multi-regional needs or issues of statewide significance. Proposition 84 authorizes DWR to either expend directly or grant the inter-regional funds. According to DWR, as of fiscal year 2013-2014, the State as appropriated approximately $490 million of Proposition 84 AB 1249 Page 5 funds for local projects and has a balance of $473 million. The Governor's proposed FY 2014-2015 budget includes the appropriation of the remaining balance of these Proposition 84 IRWM funds. 5)Integrated regional water management priorities: Current law provides a range of priorities for IRWMP funding. This bill will provide a new priority for areas at high risk of nitrate contamination. The current priorities, listed in Public Resources Code Section75026. (b) and Water Code Section10544, state that preference will be given to IRWMPs that: a) Include regional projects or programs; b) Effectively integrate water management programs and projects within a hydrologic region; c) Effectively resolve significant water-related conflicts within or between regions; d) Contribute to attainment of one or more of the objectives of the CALFED Bay-Delta Program; e) Address critical water supply or water quality needs of disadvantaged communities within the region; f) Effectively integrate water management with land use planning; g) Are not receiving State funding for flood control or flood prevention projects; h) Provide multiple benefits, including, water quality improvements, ecosystem benefits, reduction of in stream erosion and sedimentation, and groundwater recharge; and, i) Address additional statewide priorities. 6)Adequacy of the IRWMP process for disadvantaged communities : Current statutes generally require a commitment of 10% of IRWMP funds to disadvantaged communities with critical drinking water problems. However, nonprofits that serve the environment and disadvantaged communities have, with few exceptions, been unable to effectively participate in local planning and decision-making processes related to these programs. In addition to being an extremely complex bureaucratic model, the processes are not designed for the participation of groups with limited resources. The author may wish to consider measures to reduce their complexity and encourage local participation and input. 7)Prior legislation: AB 1249 Page 6 a) SB 790 (Pavley) Chapter 620, Statutes of 2009. Established grant criteria for stormwater funding through Proposition 84, and developed a local stormwater planning process for grants to public agencies and non-profit organizations for low-impact development projects for stormwater runoff. b) AB 626 (Eng) Chapter 367, Statutes of 2009. Required DWR to achieve 10% statewide allocation of IRWMP funding for disadvantaged communities within each region. 8)Related current legislation: a) AB 69 (Perea). Establishes the Nitrate at Risk Area Fund to fund solutions for disadvantaged communities with nitrate-contaminated drinking water. This bill is currently in the Senate Agriculture Committee. REGISTERED SUPPORT / OPPOSITION : Support: None Received Opposition: None Received Analysis Prepared by : Bob Fredenburg / E.S. & T.M. / (916) 319-3965