BILL ANALYSIS Ó AJR 44 Page 1 Date of Hearing: June 28, 2014 ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS Luis Alejo, Chair AJR 44 (Holden) - As Introduced June 9, 2016 PROPOSED CONSENT SUBJECT: Municipal separate storm sewer system stormwater permits: federal financial support SUMMARY: Urges the federal government to provide greater financial support for local agencies implementing a federal mandate to improve storm water quality, including, but not limited to, by passing legislation strengthening the Clean Water State Revolving Fund (CWSRF) and creating new grant programs to assist in funding storm water projects. EXISTING LAW: 1)Establishes the federal Clean Water Act to regulate discharges of pollutants into the waters of the United States and to regulate quality standards for surface waters. (33 United States Code (USC) § 1251 et seq.) 2)Establishes the National Pollutant Discharge Elimination System (NPDES) permit program requiring the State Water Board and the nine California regional water quality control boards AJR 44 Page 2 to prescribe waste discharge requirements which, among other things, regulate the discharge of pollutants in storm water, including municipal storm water systems. (33 USC § 1342) 3)Prohibits, pursuant to the Porter-Cologne Water Quality Control Act, the discharge of pollutants to surface waters unless the discharger obtains a permit from State Water Resources Control Board (Water Board). (Water Code (WC) § 13000, et seq.) Delegates to California's Regional Water Quality Control Boards (regional water boards) the ability to adopt water quality standards within their region of jurisdiction. (WC § 13240) 4)Requires the State Water Board to develop a comprehensive guidance document for evaluating and measuring the effectiveness of municipal storm water management programs and permits. (WC § 13383.7) FISCAL EFFECT: None. COMMENTS: Need for the resolution: According to the author, "In 2012 the California Regional Water Quality Control Board, Los Angeles, acting on delegated authority under the federal Clean Water Act, issued a new Municipal Separate Storm Sewer System Stormwater Permit (MS4 Permit) regulating discharges in Los Angeles County. The new permits provide for significant environmental benefits to Los Angeles County's rivers, streams and coastline. However, the environmental benefits come at a significant cost to the local ratepayers forced to pay for the significant infrastructure improvements required by the permit. At this point the state has allocated nearly $1 billion in funds to assist local governments and many municipalities plan ordinances to charge ratepayers to for infrastructure costs. However, the federal government has only provided $500 million to assist in implementing what is, in essence, a federal mandate. AJR 44 AJR 44 Page 3 requests the federal government provide its share of funds to help implement this important environmental mandate." Storm water: Storm water is runoff from rain or snow melt that runs off surfaces such as rooftops, paved streets, highways or parking lots and can carry with it pollutants such as oil, pesticides, herbicides, sediment, trash, bacteria and metals. The runoff can then drain directly into a local stream, lake or bay. Often, the runoff drains into storm drains which eventually drain untreated into a local body of water. Both the United States Environmental Protection Agency (US EPA) and the regional water boards have determined that storm water and urban runoff are significant sources of water pollution that can threaten aquatic life and public health. However, storm water may also act as a resource and recharge to groundwater when properly managed. Regulating storm water: For nearly two decades, the State Water Board has regulated runoff and treatment of storm water from industrial and municipal sources in California, including storm drains, rivers, streams, lakes, wetlands and the ocean. The federal Clean Water Act requires the State Water Board and regional water boards to regulate the discharge of storm water from a number of sources. Storm water discharges in California are regulated through NPDES permits. Municipal Storm Water Permitting Program: The Municipal Storm Water Permitting Program regulates storm water discharges from MS4 permits, which are issued in two phases. Under Phase I, NPDES storm water permits were issued for medium (serving between 100,000 and 250,000 people) and large (serving 250,000 people or more) municipalities. Most of these permits are issued to a group of co-permittees encompassing an entire metropolitan area. These permits are reissued as the permits AJR 44 Page 4 expire. The Phase I MS4 permits require the discharger to develop and implement a Storm Water Management Plan/Program with the goal of reducing the discharge of pollutants to the maximum extent practicable. The management programs specify what best management practices will be used to address certain program areas. The program areas include public education and outreach; illicit discharge detection and elimination; construction and post-construction; and, good housekeeping for municipal operations. In general, medium and large municipalities are required to conduct monitoring. Under Phase II, the State Water Board issues a General Permit for the Discharge of Storm Water from small MS4s to provide permit coverage for smaller municipalities (serving a population less than 100,000), including non-traditional small MS4s, which are facilities such as military bases, public campuses, prison and hospital complexes. Los Angeles Regional Water Quality Board: In 2012, the Los Angeles Regional Water Quality Control Board issued a new MS4 storm water permit in accordance with the NPDES permit pursuant to the federal Clean Water Act. That MS4 permit, according to the author, enacted some of the strictest permit standards with more than 30 pollutants being monitored. According to the author, the total cost of compliance with the MS4 permit for the County of Los Angeles exceeds $20 billion. Existing efforts to make resources available: In January 2014, in the midst of the state's ongoing four-year drought, Governor Jerry Brown released the California Water Action Plan that called for multiple-benefit storm water management solutions. To accomplish this, the state and regional water boards are working on multiple paths by providing financial assistance and working cooperatively with local agencies to encourage multiple benefit storm water projects for achieving regulatory compliance and AJR 44 Page 5 supplemental water supplies. The State Water Board has adopted the Storm Water Resource Plan Guidelines to provide guidance for entities preparing a Storm Water Resource Plan, and the Storm Water Grant Program Guidelines to assist interested applicants with obtaining grant funds for multiple-benefit storm water projects. At a minimum, the Storm Water Resource Plan Guidelines seek to: Maximize cooperation and collaboration among state, regional and local agencies, and nongovernmental organizations during the development and implementation of a Storm Water Resource Plan; Provide guidance for the identification and prioritization of storm water projects and actions based on quantitative analysis of multiple benefits; and, Provide the appropriate geographic scale of watersheds for storm water resource planning. Proposition 1 Water Bond: The Water Quality, Supply, and Infrastructure Improvement Act of 2014, also known as Proposition 1 (AB 1471, Rendon, Chapter 188, Statutes of 2014), approved by the voters on November 4, 2014, authorized $200 million to the State Water Board for providing matching grants to public agencies, nonprofit organizations, public utilities, state and federally recognized Indian tribes, and mutual water AJR 44 Page 6 companies for multi-benefit storm water projects. The State Water Board developed the Proposition 1 Storm Water Grant Program Guidelines to establish the process and criteria to solicit applications, evaluate and rank proposals, and award funding to recommended projects. Clean Water State Revolving Fund (CWSRF): The CWSRF program is a federal-state partnership that provides communities with a permanent, independent source of low-cost financing for a wide range of water quality infrastructure projects. Under the CWSRF, the US EPA provides grants to all 50 states to capitalize state CWSRF loan programs. The states contribute an additional 20 percent to match the federal grants. The CWSRF state programs function like environmental infrastructure banks by providing low interest loans to eligible recipients for water infrastructure projects. States have the flexibility to target financial resources to their specific community and environmental needs. Eligible projects include assistance to any public, private, or nonprofit entity for measures to manage, reduce, treat, or recapture storm water or subsurface drainage water. California's CWSRF program has significant financial assets, and is capable of financing projects from $1 million to $100 million. Why additional resources are still needed: Despite the Proposition 1 funding, local governments need more assistance to comply with storm water requirements. Many jurisdictions in Southern California are struggling to comply with new standards AJR 44 Page 7 and upcoming enforcement of MS4 permits. While Proposition 1 offered limited funds to help, the cost remains prohibitive. AJR 44 is asking the Legislature to urge Congress to provide greater financial support for local agencies implementing a federal mandate to improve storm water quality by strengthening the CWSRF and creating new grant programs to assist in funding storm water projects. Policy statement: AJR 44 includes a 'whereas' provision that states, "The State Water Resources Control Board should delay the 2017 compliance deadlines to enable local agencies to engage in a good faith, collaborative process that can lead to a more fiscally realistic and sustainable management ." While the operative language of the resolution is asking the Legislature to support asking the federal government for more funding, in approving this resolution, the Legislature would be supporting this policy statement as well. Related legislation: SB 1260 (Allen) would require the State Water Board to make information available online for compliance with municipal storm water permit requirements. It was heard in the Assembly Environmental Safety & Toxic Materials Committee on June 14, 2016, and was approved by a 7 - 0 vote. REGISTERED SUPPORT / OPPOSITION: Support None on file. AJR 44 Page 8 Opposition None on file. Analysis Prepared by:Paige Brokaw / E.S. & T.M. / (916) 319-3965