BILL ANALYSIS Ó SB 429 SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator Jerry Hill, Chair 2013-2014 Regular Session BILL NO: SB 429 AUTHOR: Hernandez AMENDED: As Introduced FISCAL: Yes HEARING DATE: April 3, 2013 URGENCY: No CONSULTANT: Rachel Machi Wagoner SUBJECT : SAN GABRIEL BASIN WATER QUALITY AUTHORITY ACT SUMMARY : Existing law , under the San Gabriel Basin Water Quality Authority Act: 1)Provides that the Act sunsets July 1, 2017. 2)Requires the San Gabriel Basin Water Quality Authority (SGBWQA) to develop and adopt a groundwater quality management and remediation plan that includes certain components, such as characterization of basin contamination, development and implementation of a comprehensive basin cleanup plan, a financing plan, and a public information and participation plan. 3)Requires SGBWQA to provide a status report to the State Water Resources Control Board (SWRCB) and the Los Angeles Regional Water Quality Control Board (LARWQCB) every six months on activities undertaken pursuant to the basin groundwater quality management and remediation plan. The report must include certain information, such as an overview of contamination, coordination with other agencies, funding from potentially responsible parties and other sources, status of certain plans, and project activities information. 4)Requires SWRCB to provide a biennial report, in consultation with the LARWQCB, on the SGBWQA's progress in implementing the Act, including any recommendations for improving the SGBWQA's progress. SB 429 Page 2 This bill extends SGBWQA July 1, 2017 sunset to July 1, 2030. COMMENTS : 1) Purpose of Bill . According to the author, SGBWQA has an urgent and compelling need to extend its legislatively granted charter from the current sunset date of 2017 to 2030. The author states that this extension provides negotiating incentive to the Potentially Responsible Parties (PRPs), as well as the US Environmental Protection Agency (US EPA), to finish negotiating settlement agreements and project funding. According the author, the PRPs and federal agencies would otherwise be cautious to enter final terms and conditions with an entity that could disappear or change in three years. The author argues that all parties need to know they are negotiating with a long-term agency that possesses renewed authority and responsibility. In terms of dollars and impact, SGBWQA estimates the value of the operating agreement extension to be a minimum of $400-$500 million in funding from PRPs and others for cleanup projects over the life of the bill. 2) Background . AB 1010 (Hernandez) Chapter 404, Statutes of 2007, extended the sunset for the SGBWQA from 2010 to 2017; requires routine updates of the authority's Internet website, and requires routine reporting. SB 1679 (Russell) Chapter 776, Statutes of 1992, enacted the San Gabriel Basin Water Quality Authority Act. SWRCB and LARWQCB had investigated the groundwater conditions since 1979. The basin is the primary drinking water source for residents and the US EPA had placed four areas of the basin on its Superfund list in 1984. US EPA released a "San Gabriel Basin-Wide Technical Plan" in 1990, describing a strategy to remediate groundwater pollution. The above three entities prepared a "white paper" describing institutional and financial aspects of a comprehensive local groundwater management program and concluded that a local program must possess powers to construct and operate cleanup works, to coordinate and regulate groundwater SB 429 Page 3 extraction and cleanup, and to finance activities. The three water agencies in the basin formed a joint powers authority (JPA) and the watermaster (i.e., a judicially created association of private and public groundwater users) obtained authority to regulate pumping for water quality protection. However, because of concerns that the JPA was not effective, SB 1679 created the act with certain powers to address the contamination problems. In 1992, the Legislature was also considering SB 44 (Torres), a bill giving SGBWQA more power to address the problem. AB 2173 (Margett) Chapter 281, Statutes of 1996, extended a 1998 sunset to 2002, reduced the cap on the annual pumping right assessment from $35 to $20 per acre foot, and established a "limited function status" provision. AB 2544 (Calderon) Chapter 905, Statutes of 2000, increased the number of board members from five to seven and required two members to be producer members, reduced the annual pumping right assessment cap from $20 to $13, revised the board voting practices for certain actions, and made various other changes to the act. SB 334 (Romero) Chapter 192, Statutes of 2003, reduced the annual pumping right assessment cap from $13 to $10. SB 822 (Margett) Chapter 271, Statutes of 2005, authorized the SGBWQA to receive state funds for the purpose of meeting certain nonfederal matching fund requirements. SOURCE : San Gabriel Basin Water Quality Authority SUPPORT : Association of California Water Agencies California Water Association OPPOSITION : None on file