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 AB 1249 Page 2 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 AB 1249 Page 3 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, AB 1249 Page 4 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 AB 1249 Page 5 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 AB 1249 Page 6 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. AB 1249 Page 7 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 AB 1249 Page 8 "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. AB 1249 Page 9 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