BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 429
                                                                  Page 1

          Date of Hearing:   June 18, 2013

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                  Luis Alejo, Chair
                    SB 429 (Hernandez) - As Amended:  June 6, 2013

           SENATE VOTE  :   36-0
           
          SUBJECT  :   San Gabriel Basin Water Quality Authority
          
           SUMMARY  :  Extends the San Gabriel Basin Water Quality Authority  
          (SGBWQA) from July 1, 2017 to July 1, 2030.

           EXISTING LAW  :

          Establishes the San Gabriel Basin Water Quality Authority Act  
          (Act), which provides the following:

          1)Requires the 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.

          2)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.

          3)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.

          4)The San Gabriel Basin Water Quality Authority Act sunsets on  
            July 1, 2017.

           FISCAL EFFECT  :  Undetermined.









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           COMMENTS  :

           1)Need for the bill  .  According to the sponsors of the bill, the  
            SGBWQA, this bill is needed "To continue protecting residents  
            and businesses in the communities of the San Gabriel Valley  
            through its ongoing efforts to cleanup the regional  
            groundwater supply, the SBGWQA 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 incentive to  
            the Potentially Responsible Parties (PRPs), as well as the US  
            Environmental Protection Agency (US EPA), to finish  
            negotiating settlement agreements and allocate project  
            funding.  The PRPs and federal agencies would otherwise be  
            cautious to enter into final terms and conditions with an  
            entity that could disappear or change in three years.  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.

            An extension gives sufficient time to achieve the dual goals  
            of cleaning-up groundwater and to replenish regional  
            groundwater supplies."


           2)The San Gabriel Valley Superfund site  .  According to the US  
            EPA, the San Gabriel Valley Area 1 Superfund Site was placed  
            on the National Priorities List in 1984 and overlays  
            approximately eight square miles of solvent-tainted  
            groundwater in the areas of South El Monte, El Monte and  
            Rosemead.  The San Gabriel Valley is a suburban,  
            largely-developed portion of Los Angeles County containing  
            more than one million residents and covering more than 170  
            square miles.

            Four areas of groundwater contamination in San Gabriel Valley  
            have been placed on US EPA's National Priorities List.  The  
            South El Monte cleanup project (Operable Unit) is part of the  
            San Gabriel Valley Area 1 Superfund Site, and addresses  
            contaminated groundwater under the cities of South El Monte,  
            El Monte, and Rosemead.  The groundwater contamination is the  








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            result of decades of poor chemical handling and disposal  
            practices by hundreds of industrial facilities.  The primary  
            chemical contaminants in the Site's groundwater are  
            tetrachloroethene (PERC) and trichloroethene (TCE), both  
            industrial solvents; 1, 4-dioxane, used as a stabilizer in  
            chlorinated industrial solvents; and perchlorate, used in  
            fireworks and rocket fuel.  EPA's ongoing remedy includes  
            extracting and treating contaminated groundwater.

            Groundwater continues to be an important source of drinking  
            water to residents and businesses in the San Gabriel Valley.   
            Local water utilities continue to pump water from clean areas  
            and in locations affected by the pollution have installed  
            water treatment equipment to remove the pollutants.


            US EPA signed an interim Record of Decision with the goal of  
            containing contaminated groundwater at the site in 2000 and  
            issued an Explanation of Significant Differences to address  
            new contaminants in 2005.  The San Gabriel Basin Water Quality  
            Authority implements the cleanup under a Cooperative Agreement  
            with US EPA.  The agreement funds groundwater extraction and  
            treatment systems operated by the City of Monterey Park, San  
            Gabriel Valley Water Company, and Golden State Water Company.


           3)Length of Sunset  .  The proposed extension of the San Gabriel  
            Basin Water Quality Authority to 2030 would be a 13 year  
            extension of the agency is authority.  The pervious extension  
            approved in 2007 was limited to 7 years.  The increased sunset  
            date by 13 years is based on the anticipated length of  
            contracts currently under negotiations for the recovery from  
            responsible parties for cleanup cost.




















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           4)Prior Legislation  :

            SB 1679 (Russell, Chapter 776, Statutes of 1992), enacted the  
            San Gabriel Basin Water Quality Authority Act.  The State  
            Water Resources Control Board and Los Angeles Regional Water  
            Quality Control Board had investigated the groundwater  
            conditions since 1979.

            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 Web site, and requires  
            routine reporting.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          San Gabriel Basin Water Quality Authority (Sponsor)
          Association of California Water Agencies
          California Water Association
          Central Basin Municipal Water District
          San Gabriel Valley Municipal Water District
          San Gabriel Valley Water Association
          Walnut Valley Water District
           
          Opposition 
           
          None received.


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