BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                               AB 1249
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Jerry Hill, Chair
                              2013-2014 Regular Session
                                           
           BILL NO:    AB 1249
           AUTHOR:     Salas
           AMENDED:    May 20, 2014
           FISCAL:     Yes               HEARING DATE:     June 18, 2014
           URGENCY:    No                CONSULTANT:       Karen Morrison
            
           SUBJECT  :    INTEGRATED REGIONAL WATER MANAGEMENT PLANS:  
                          NITRATE, ARSENIC, PERCHLORATE, OR HEXAVALENT  
                          CHROMIUM CONTAMINATION

            SUMMARY  :    
           
            Existing law  :

           1) Established the Integrated Regional Water Management  
              Planning Act of 2002 (Water Code §10530 et seq., SBX2 1,  
              Perata, Chapter 1, Statutes of 2008).  This act:

              a)    Authorizes a regional water management group to  
                 prepare and adopt an integrated regional water  
                 management (IRWM) plan.

              b)    Allows incorporation of other water management  
                 planning processes into the IRWM process, including  
                 groundwater management, urban water management, water  
                 supply assessments and land-use general plans. 

              c)    Sets minimum standards and priorities for IRWM plans,  
                 including water supply reliability, water quality,  
                 watershed resources, needs of disadvantaged communities,  
                 and the human right to water.

              d)    Funds IRWM through allocations from Proposition 84.

           2) Approved by voters, enacted the  Safe Drinking Water, Water  
              Quality and Supply, Flood Control, River and Coastal  
              Protection Act of 2006 (Proposition 84)  , which authorized  
              $5.388B in general obligation water bonds.  Proposition 84  
              provides $1B for projects to meet the long-term water needs  









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              of the state, including the delivery of safe drinking water  
              and the protection of water quality and the environment,  
              through the funding of IRWM plans and projects.

           3) Enacted the Drought Relief Bill (SB 104, Chapter 3,  
              Statutes of 2014), which provides water services related to  
              the drought and reallocates $250M from Proposition 84 funds  
              for future general IRWM funding.

            This bill  :

           1) Extends funding for IRWM plans to any future water bonds.

           2) Requires an IRWM plan to explain how the plan addresses any  
              identified nitrate, arsenic, perchlorate, or hexavalent  
              chromium contamination in the region, or to provide an  
              explanation as to why the plan does not address the  
              contamination.

           3) Requires the Department of Water Resources (DWR) to provide  
              a preference to projects that address nitrate impacts in  
              areas identified by the State Water Resources Control Board  
              (SWRCB) as nitrate high-risk areas, and to projects that  
              address arsenic, perchlorate, or hexavalent chromium  
              impacts.  This includes projects that provide safe drinking  
              water to small disadvantaged communities.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "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 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.

           "DWR should give preferences in the Proposition 84 IRWM Grant  
              Program, to proposals with IRWM plans that address access  
              to safe drinking water for small disadvantaged communities  









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              that are in nitrate high-risk areas.

           "There have been several concerns that disadvantaged  
              communities lack the resources to participate in local IRWM  
              plans.  Concerns have been raised that disadvantaged  
              communities do not have resources or technical assistance  
              to compete with financially resourced institutional  
              stakeholders.  Because disadvantaged communities cannot  
              participate and become part of local plans, they cannot  
              benefit from the Integrated Water Management Grant Program  
              funds.  [?]  Disadvantaged communities are not benefitting  
              from [IRWM] funds because their problems are not priorities  
              for organizations receiving the funds."

           This bill gives "preference ? to funding plans that address  
              nitrate impacts for areas identified by the SWRCB as  
              nitrate high-risk areas.  It would also give preference to  
              other contaminants: arsenic, perchlorate, and hexavalent  
              chromium."

            2) Background on groundwater contaminants  .  Although 98% of  
              Californians who draw from the public water supply receive  
              safe drinking water, contamination of groundwater occurs in  
              community water systems across California.

           In a study conducted on 2,584 community water systems by SWRCB  
              under AB 2222 (Caballero, Chapter 670, Statutes of 2008),  
              680 were identified that rely on a contaminated groundwater  
              source.  These systems serve nearly 21 million people, and  
              75% of those systems rely entirely on groundwater.  

           In addition, two million Californians rely on drinking water  
              from either a private well or a small unregulated water  
              system, and there is very little data on the quality of  
              this drinking water.

           The SWRCB study, released in January 2013, found that the ten  
              most frequently detected principal contaminants were found  
              in over 90% of the active contaminated groundwater sources  
              (wells) identified in this report.  In decreasing order of  
              detection, these contaminants are: arsenic, nitrate, gross  
              alpha activity, perchlorate, tetrachloroethylene,  
              trichloroethylene, uranium, 1,2-dibromo-3-chloropropane,  









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              fluoride, and carbontetrachloride.

           The report also identified nine constituents of concern  
              (COCs): hexavalent chromium (Chrom6),  
              1,2,3-trichloropropane, boron, manganese, vanadium, 1,  
              4-dioxane, N-nitroso-dimethylamine, lead, and tertiary  
              butyl alcohol.  COCs are chemicals that were detected by  
              the California Department of Public Health (CDPH) in  
              drinking water that lack or do not yet have a maximum  
              contaminant level (MCL).

            3) Background on Integrated Regional Water Management  .   
              Integrated Regional Water Management (IRWM) was first  
              introduced in California in 2002.  IRWM allows a region of  
              California to collaboratively manage all aspects of water  
              within that area.  Currently, there are 48 IRWM regions in  
              California; these regions cover 87% of the state's area and  
              99% of the population.

           DWR provides grants and loans to the IRWM regions to implement  
              water plans to meet various considerations, including water  
              quality.  
            
            4) Current access to funding to clean up drinking water  .  Of  
              the 680 community water systems that are identified as  
              relying on a contaminated groundwater source, 166 systems  
              were not receiving or actively seeking funding to address  
              their drinking water needs from IRWM programs or other  
              funding sources.

           Forty-two of these 166 systems have also received a notice of  
              an MCL violation during the most recent CDPH compliance  
              cycle. 

           According to the SWRCB, public funding sources to address  
              groundwater supply and contamination issues are limited.   
              Specifically, the funds from Proposition 84 for IRWM plans  
              was exhausted in the last round of project approvals,  
              although the Drought Relief Bill provided an additional  
              $250M for new projects.  However, $250M will likely only  
              fund one more round of IRWM project funding.

            5) Review process for IRWM projects  .  Under current law, DWR  









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              reviews proposed IRWM projects using a variety of criteria.  
               Among these criteria, DWR must provide a preference for  
              projects that address statewide priorities (such as surface  
              water and groundwater quality) or that address critical  
              water supply or water quality needs for disadvantaged  
              communities within the region.  In addition, 10% of the  
              funds must go to projects that benefit disadvantaged  
              communities.

           Although these priorities address water quality and  
              disadvantaged communities, in practice, the needs of small  
              disadvantaged communities are not always addressed in IRWM  
              plans.

            6) Target contaminants  .

               a)    Nitrate (NO3-)  . 96% of nitrate contamination in  
                 groundwater results from agricultural fertilizers and  
                 animal wastes applied to cropland.  The health impacts  
                 from nitrate exposure are primarily associated with  
                 acute, or short-term, exposure.  Acute exposure to high  
                 levels of nitrate in infants can cause shortness of  
                 breath and low oxygen levels in the blood, a potentially  
                 fatal condition known as blue baby syndrome.  

              The maximum contaminant level (MCL) for nitrate at 10 ppb N  
                 (45 ppb NO3-).  In 2007, 75% of cases where elevated  
                 levels of nitrate were detected were located in the San  
                 Joaquin Valley.

              In 2008, SBX2 1 (Perata, Chapter 1, Statutes of 2008)  
                 required the SWRCB to develop pilot projects on nitrate  
                 contaminations in the Tulare Lake Basin and the Salinas  
                 Valley.  Under the law, the SWRCB contracted with  
                 University of California, Davis to prepare a report.   
                 The final draft, released in 2013, found that nitrate  
                 contamination in groundwater poses a problem for about  
                 254,000 people in California's Tulare Lake Basin and  
                 Salinas Valley.  In general, nitrate contamination is  
                 most prominent in areas with extensive agriculture.

              In the SWRCB's final Report to the Legislature,  
                 Recommendations Addressing Nitrate in Groundwater, the  









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                 Board recommended that California "prioritize systems  
                 with contaminants with potential impacts, such as  
                 nitrates, as well as those systems that serve  
                 disadvantaged communities."  However, similar language  
                 could be used for any contaminant that affects systems  
                 that serve disadvantaged communities.

               b)    Arsenic (As)  .  Arsenic is a naturally occurring  
                 contaminant that typically enters drinking water  
                 supplies from natural deposits in the earth.  Chronic  
                 exposure to arsenic in drinking water can result in skin  
                 damage, problems with the circulatory system, and an  
                 increased risk of cancer.

              In 2001, the MCL for arsenic was lowered from 50 to 10 ppb.

              The 2013 groundwater study conducted by SWRCB demonstrated  
                 that 54% of surveyed wells had arsenic levels above the  
                 MCL, and the contaminated wells were distributed across  
                 California.

               c)    Perchlorate (ClO4-)  .  Perchlorate is an oxidizer  
                 commonly used in jet fuel and is known to cause adverse  
                 neurological development in fetuses and infants, to  
                 cause goiter in pregnant women, and to interfere with  
                 the endocrine system.  The Office of Environmental  
                 Health Hazard Assessment (OEHHA) established a public  
                 health goal of 6 ppb, which is equivalent to CDPH's MCL.  
                  The United States EPA is developing a proposed national  
                 primary drinking water regulation for perchlorate.

              In the groundwater study conducted by SWRCB in 2013, 179  
                 active community water system wells (57 community water  
                 systems) had levels of perchlorate above the MCL.

               d)    Hexavalent chromium (Cr6+, Chrom6)  .  Chrom6 is a  
                 widely detected water contaminant with primarily  
                 anthropogenic sources.  Naturally occurring Chrom3 is  
                 associated with certain geologic formations or  
                 chrome-iron ore deposits, but under certain conditions,  
                 it may occur as Chrom6 in drinking water.  Anthropogenic  
                 sources of Chrom6 include paint pigments, wood  
                 preservatives, and leaching from hazardous waste sites.   









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                 According to the SWRCB, the top four counties with  
                 Chrom6 in their public water wells are Los Angeles,  
                 Yolo, Riverside, and San Bernardino.  Chronic exposure  
                 to Chrom6 is linked to lung cancer in workers.

              Traditionally, chromium content in water has been measured  
                 as a function of total chromium (Chrom3 and Chrom6).   
                 Although Chrom3 is essentially inert, it interconverts  
                 with Chrom6 in the body.  CDPH had established an MCL of  
                 50 ppb for total chromium, but with the growing health  
                 concerns related to Chrom6, California reevaluated its  
                 drinking water standards.

              In 2011, OEHHA has assigned a public health goal for Chrom6  
                 of 0.02 ppb.  In 2013, CDPH released a draft MCL of 10  
                 ppb, and finalization of the MCL could occur later this  
                 year.

              In the 2013 SWRCB groundwater study (which was released  
                 prior to CDPH's announcement of the Chrom6 MCL), Chrom6  
                 was detected at levels above 1 ppb in 1,378 wells across  
                 314 community water systems.


            7) Suggested amendments  .

              a)    The bill currently relies on the identification of a  
                 "nitrate high-risk area by the state board."  The SWRCB  
                 is still in the process of developing a nitrate  
                 high-risk map, and it is unclear when the stakeholder  
                 process will be complete.  In addition, the bill is  
                 inconsistent in addressing nitrate high-risk areas while  
                 addressing contamination in general for arsenic,  
                 perchlorate, and Chrom6.

               An amendment is needed  to require IRWM plans to address  
                 areas with nitrate contamination without reference to  
                 "nitrate high-risk areas".

              b)    The bill currently uses the term "impacts," and this  
                 term is inconsistent with other usage in the bill.

               An amendment is needed  to change "impacts" to  









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                 "contamination."

              c)    The bill currently requires DWR to provide a  
                 preference for projects that implement IRWM plans that  
                 address various groundwater contaminants.  The current  
                 phrasing is unclear and could be interpreted to give any  
                 project a preference so long as the broader plan  
                 addresses nitrate, perchlorate, arsenic, or Chrom6  
                 contamination.

               An amendment is needed  to clarify this phrasing to ensure  
                 that the specific project addresses groundwater  
                 contamination.

              d)    The bill currently requires a preference to be given  
                 to projects that address certain contaminants,  
                 "including projects that provide safe drinking water to  
                 small disadvantaged communities."  This phrasing does  
                 not actually address the current discrepancies in  
                 funding for disadvantaged communities.

               An amendment is needed  to replace "including" with "giving  
                 particular priority to."

            8) Policy questions  .  
            
               a)    What about other contaminants?   The bill requires  
                 that DWR give four contaminants special consideration  
                 when reviewing IRWM projects.  However, there are other  
                 contaminants that are found in groundwater that can  
                 cause human disease.  These include bacteria, organic  
                 compounds, and other inorganic compounds (such as lead).  
                  What is the basis for giving priority to one  
                 contaminant over another?

               b)    Definition of small disadvantaged community  .  The  
                 2010 federal census did not collect the household  
                 economic data necessary for making this determination  
                 about small disadvantaged communities.  Therefore, many  
                 communities will have to conduct income surveys in order  
                 to show that they meet the definition in law.  These  
                 surveys are an added expense and can take time to  
                 conduct prior to submitting an application for funding.









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            9) Related legislation  .

           AB 69 (Perea, 2013) would establish the Nitrate at Risk Fund  
              to provide loans or grants to water systems operating in  
              high nitrate risk areas.  The bill is currently in the  
              Senate Agriculture Committee.

           AB 1630 (Alejo, 2013) would appropriate $500,000 to the State  
              Water Resources Control Board for use by the Greater  
              Monterey County Regional Water Management Group to develop  
              an integrated plan to address the drinking water and  
              wastewater needs of the disadvantaged communities in the  
              Salinas Valley.  This bill is currently in the Senate  
              awaiting referral.

           AB 2737 (Committee on Environmental Safety and Toxic  
              Materials, 2014) would require a pilot project requiring  
              the SWRCB to work with local communities to develop  
              solutions to address arsenic and nitrate contamination in  
              drinking water.  The bill was held in the Assembly  
              Appropriations Committee.

            SOURCE  :        Author  

           SUPPORT  :       California League of Conservation Voters
           California Rural Legal Assistance Foundation
                          Clean Water Action
                          Community Water Center
            
           OPPOSITION  :    San Diego County Water Authority