BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AJR 44


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          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  








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            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  








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          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  








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          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  








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          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  








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          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  








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          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. 









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          Opposition


          None on file. 




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