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. SB 429 Page 2 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 SB 429 Page 3 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. SB 429 Page 4 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