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.









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            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  









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              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