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