BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1249
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          ASSEMBLY THIRD READING
          AB 1249 (Salas)
          As Amended January 6, 2014
          Majority vote 

           ENVIRONMENTAL SAFETY      5-0   APPROPRIATIONS      13-3        
           
           ----------------------------------------------------------------- 
          |Ayes:|Alejo, Dahle, Bloom,      |Ayes:|Gatto, Bocanegra,         |
          |     |Stone, Ting               |     |Bradford                  |
          |     |                          |     |Ian Calderon, Campos,     |
          |     |                          |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Linder, Pan, Quirk,       |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Bigelow, Allen, Wagner    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires the Department of Water Resources (DWR)  
          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 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.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, cost pressures, likely in the millions of dollars, to  
          DWR to award grant monies to projects to address nitrate  
          contamination.  However, actual grant awards may not necessarily  
          differ from grant awards DWR would have made absent this bill  
          (Proposition 84).








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           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.  SB  
            1 X2 (Perata), Chapter 1, Statutes of 2008 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  








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            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 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  
            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), Chapter 524,  
               Statutes of 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 $1 billion for IRWM projects that  
            assist local public agencies in meeting long term water needs,  
            including the delivery of safe drinking water and the  








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            protection of water quality and the environment.  
           
            Of that $1 billion, $900 million, referred to as "regional  
            funding," was allocated to 11 hydrologic regions and  
            sub-regions or "funding areas."  The remaining $100 million,  
            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 (FY) 2013-2014, the State  
            has appropriated approximately $490 million of Proposition 84  
            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. 

           
          Analysis Prepared by  :    Bob Fredenburg / E.S. & T.M. / (916)  
          319-3965 
           
           
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