BILL ANALYSIS Ó AB 965 Page 1 Date of Hearing: April 14, 2015 ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS Luis Alejo, Chair AB 965 (Eduardo Garcia) - As Amended April 6, 2015 SUBJECT: California and Mexico border: water resources improvement SUMMARY: Requires the California-Mexico Border Relations Council (Border Relations Council) to establish the New River Water Quality, Public Health, and River Parkway Development Program (New River Program) to coordinate funding for, and the implementation of, the recommendations from the New River Strategic Plan. Provides the Border Relations Council with a consultative and coordinating role on the development, implementation and funding of specified border-related projects. Specifically, this bill: 1)Deletes the statutory reference to the California Border Environmental Cooperation Committee (Cal BECC). 2)Changes the definition of the California-Baja California border region from the region "described in Chapter IV of the US-Mexico Border XXI Program, Framework Document, published October 1996" to the region "to the north and south of the international border between California and Baja California described in Article 4 of the La Paz Agreement, signed August 14, 1983, between the United States and Mexico." 3)Clarifies that Proposition 1 funds may be deposited into the AB 965 Page 2 California Border Environmental and Public Health Protection Fund (Fund). 4)Requires the Secretary for Environmental Protection to consult with the Border Relations Council, instead of Cal BECC, when awarding grants to remediate environmental, public health, or natural resource concerns due to cross-border transmission of environmental pollutants or toxics. 5)Provides that the Secretary for Environmental Protection, on behalf of the Border Relations Council, instead of on behalf of Cal BECC, shall accept donations for distribution to governmental entities, community-based nonprofit organizations, and educational institutions located in the border region if the donations can be shown to contribute to the protection of the environment, public health, or natural resources of the California border region. 6)Requires the Border Relations Council to establish the New River Program to coordinate funding for, and the implementation of, the recommendations from the New River Strategic Plan and the projects identified pursuant to the statutory guidelines of the Fund. 7)Requires a state agency that funds the activities of the New River Program to make all necessary efforts to integrate and align its contractual and administrative requirements for grants, loans, and other forms of financial support to meet the goals of the Program. 8)Updates the definition of urban creek protection, restoration, and enhancement to include the reduction of water quality impairments and nonpoint source water pollution, and the establishment of parkways for public use that benefit flood control and water quality. 9)Requires the Department of Water Resources (DWR) to consult with the Border Relations Council to establish criteria to fund projects that improve conditions for cross-border urban AB 965 Page 3 creeks. 10)Requires responsible agencies to consult with the Border Relations Council when developing regulations or guidelines for the expenditure of funds pursuant to Proposition 1 for, and establishing criteria for, watershed restoration projects in the border region. EXISTING LAW: 1) Creates the Border Relations Council, consisting of the Secretaries of the Resources Agency; Environmental Protection; Health and Human Services; Business, Transportation and Housing; and, Food and Agriculture; and the Director of Emergency Services. Provides that the Secretary for Environmental Protection serves as the Council chair. (Government Code (GC) § 99522) 2) Requires the Border Relations Council to: Coordinate activities of state agencies that are related to cross-border programs; establish policies to coordinate the collection and sharing of data related to cross-border issues; identify and recommend to the Legislature changes in law needed to coordinate border activities; and, submit an annual report to the Legislature on border activities. (GC § 99523) 3) Creates the Fund in the State Treasury to receive funds appropriated in the annual Budget Act, and other sources, such as from North American Development Bank, Border Environment Cooperation Committee, United States Environmental Protection Agency, and private businesses or foundations. (Public Resources Code (PRC) § 71101 (a)) 4) Requires the money in the Fund to be available, upon appropriation, to the Secretary of Environmental Protection for allocation for projects that identify and resolve environmental and public health problems at the California AB 965 Page 4 border region. (PRC § 71101 (b) and 71102) 5) Provides the California Border Environmental Cooperation Committee (Cal BECC) when awarding grants from the Fund. (PRC § 71103 (b)) 6) Requires the Border Relations Council to develop a strategic plan to guide the implementation of the New River Improvement Project, as specified. (PRC § 71103.5 (c)) 7) Authorizes the Director of Water Resources to establish a program of flood damage reduction and urban creek restoration known as the Urban Streams Restoration Program. (Water Code (WC) § 7048 (a)) 8) Authorizes, pursuant to the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Proposition 1), $7,120,000,000 in bonds to be issued and sold to provide a fund for specified purposes to address the varied challenges facing California's water resources (WC § 79700, et seq.) FISCAL EFFECT: Unknown. COMMENTS: Need for the bill: According to the author, "California has developed a Strategic Plan to begin a comprehensive cleanup and restoration effort for the New River. Further statutory clarification is needed to define how the strategic plan will be implemented and funded by state agencies. Improved coordination and a strategic funding will help remediate the health and safety issues posed by the New River? The Colorado Basin Regional Water Quality Control Board is also moving forward on implementing several of the recommendations of the Strategic Plan. Despite these promising steps, there is AB 965 Page 5 still a need for better coordination of state agency involvement and funding for New River remediation. Current law does not provide for coordinated efforts to help improve the conditions to the river. " California - Mexico Border Relations: The issues affecting the U.S.- Mexico border region are complex and challenging. Communities on both sides of the border face rapid population growth, urbanization, industrial expansion, and increasing flows of international trade, which in turn create challenges related to the environment, public health, security, and land use. California has attempted to address these cross-border issues legislatively since the 1980s. Legislation enacted in 1982 established the Office of California-Mexico Affairs within the Technology, Trade, and Commerce Agency; however, in 2003, the agency was abolished through Assembly Bill (AB) 1757, (Committee on Budget, Chapter 229, Statutes of 2003), and the duties of the agency were reassigned to other state entities. In 2004, the California Research Bureau released a report listing California-Mexico programs operating in more than 100 state agencies (ISBN: 1-58703-195-7 in California Research Bureau-California State Library). Currently, most of these programs are defunct because no organizing entity existed to coordinate interagency cooperation. Border Relations Council: To improve statewide oversight and coordination of the state's involvement with Mexico, the Legislature enacted AB 3021 (Núñez, Chapter 621, Statutes of 2006), which created the Border Relations Council to serve as the central organizing body overseeing and collaborating on California-Mexico border issues. The Secretary for Environmental Protection serves as the Council Chair. Currently the Border Relations Council: coordinates cross-border programs, initiatives, projects, and partnerships within California state agencies; establishes California state agency policies for the collection and sharing of cross-border data; identifies and recommends changes in the law needed to achieve the goals of the council; and, provides an annual report of activities to the AB 965 Page 6 Legislature. The New River: The New River flows north from near Cerro Prieto, Mexico, through the city of Mexicali, into the United States through the city of Calexico, California, and discharges into the Salton Sea. The river does not flow from a natural source, but instead consists of urban runoff, untreated and partially treated municipal wastes, untreated and partially treated industrial wastes, and agricultural runoff. While strides have been made over the decades to improve the quality of the water in the New River, it is still often referred to as one of the most severely polluted rivers of its size in the United States. Strategic plan for the New River: AB 1079 (V. M. Perez, Chapter 382, Statutes of 2009), required the Border Relations Council to create a strategic plan to study, monitor, remediate, and enhance the New River's water quality to protect human health and to develop a river parkway suitable for public use and enjoyment. Pursuant to provisions in AB 1079, the Chair of the Council appointed the New River Technical Advisory Committee (TAC) to oversee the development of the strategic plan and ensure community involvement. The TAC began work in the summer of 2010 and continued with multiple internal and stakeholder interactions through the fall of 2011. The Border Relations Council released the Strategic Plan: New River Improvement Project (New River Strategic Plan) in December of 2011. The New River Strategic Plan includes more than a dozen specific recommended solutions to continue to clean up the New River. The Colorado Basin Regional Water Quality Control Board, the main entity responsible for New River water quality on the U.S. side of the border, has taken steps to comply with the recommendations laid out in the New River Strategic Plan, including working with dischargers on the American side to bring them into compliance. However, California entities face statutory authority, resource, and other limitations to AB 965 Page 7 achieving all of the recommendations, including that the water crosses the border in an impaired state and that cross-border issues are often federal in nature. California Border Environmental and Public Health Protection Fund (Fund): AB 2317 (Ducheny, Chapter 742, Statutes of 2000) created the Fund, the money in which would be available, upon appropriation, to assist local governments in implementing projects to identify and resolve environmental and public health problems that directly threaten California residents or sensitive natural resources of the California border region; to provide technical assistance and funds for equipment and labor costs associated with emergency abatement of environmental and public health problems imposed on residents of California due to cross-border impacts of pollutants originating from Baja California; and, to provide analytical and scientific equipment and services needed by border area public agencies to identify and monitor the sources of cross-border environmental pollutants and toxics. While the Budget Act of 2000 appropriated $2.8 million to address environmental pollution at the Mexican border, money was never allocated to the Fund. Current statute requires CalEPA to consult with Cal BECC when disbursing the funds from the Fund. Cal BECC was an international organization created in November of 1993 to promote environmental improvement in the U.S.-Mexico border region; however, it no longer exists. This bill deletes the requirement for CalEPA to consult with Cal BECC and instead requires it to coordinate with the Border Relations Council when awarding grants from the Fund to mitigate cross-border transmission of environmental pollutants or toxics. Additionally, it specifies that Proposition 1 funds may be deposited in the Fund. ESTM hearings on cross border river water quality: On March 19 and 20th, 2015, the California State Assembly Committee on Environmental Safety and Toxic Materials (ESTM) held a two-part series of hearings in Southern California focusing on AB 965 Page 8 California's role in managing binational river water quality issues and on ensuring that border communities, especially disadvantaged communities, are not left behind in water quality restoration efforts. The first hearing was held in Imperial Beach and focused on the progress and challenges facing the Tijuana River recovery strategy. The second hearing was held in Calexico and focused on the New River restoration efforts. Dozens of community members, local elected officials, members of international bodies and officials from the states of Baja California and California attended the hearings. Prioritization of cross border water quality issues, dedicated funds for water quality enhancement that can be used on both sides of the border, and delineating an entity to coordinate and collaborate on cross-border water quality issues were common themes of the testimony presented at the New River hearing. This bill incorporates the testimony that called for a coordinating body, designated by AB 965 as the Border Relations Council, to implement the New River Strategic Plan. In addition, the bill designates the Border Relations Council as a consultative body on the disbursement of funds from the Fund, requires DWR to consult with the Border Relations Council on cross-border urban creek projects, and requires responsible agencies to consult with the Border Relations Council when developing regulations and guidelines for the expenditure of Proposition 1 funds that will be used for watershed restoration in the border region. All of these provisions are designed to create a more coordinated effort for implementing and funding the improvement of the New River. Related bills: 1) AB 1059 (Garcia). Requires the Office of Environmental Health Hazard Assessment to update the California Communities Environmental Health Screening tool by using environmental data relating to known impacts on the environmental quality of the communities in the California-Mexico border region. This bill is scheduled to AB 965 Page 9 be heard in the Assembly Environmental Safety and Toxic Materials Committee on April 14, 2015. 2) AB 2317 (Ducheny), Chapter 742, Statutes of 2000. Created the Fund, the money in which would be available, upon appropriation, to assist with projects to mitigate environmental and public health problems on the border. 3) SB 387 (Ducheny), Chapter 112, Statutes of 2005. Authorized the City of Calexico to undertake a comprehensive project for the cleanup and encasement of the New River within its city limits as part of a pollution cleanup measure and to protect human health. 4) AB 3021 (Núñez), Chapter 621, Statutes of 2006. Created the Border Relations Council, consisting of specified state officials, and required the council to, among other things, coordinate activities of state agencies that are related to cross-border programs, initiatives, projects, and partnerships that exist within state government. 5) AB 1 (Evans), Chapter 1, Statutes of 2009-10 Fourth Extraordinary Session. Appropriated $800,000 for the City of Calexico for environmental review, engineering design, and associated planning necessary to develop a river parkway plan and river improvement project for the New River. 6) AB 1079 (Victor M. Perez ) Chapter 382, Statutes of 2009. Required the Border Relations Council to develop a strategic plan to guide the implementation of the New River Improvement Project. Created the New River Improvement Project Account in the Fund and denoted that moneys in the account, upon appropriation by the Legislature, would be expended for activities related to the New River. Double referral: This bill was double referred to the Assembly Committee on Water, Parks and Wildlife. AB 965 Page 10 REGISTERED SUPPORT / OPPOSITION: Support Calexico Chamber of Commerce Calexico New River Committee City of Brawley City of Calexico Comite Civico Del Valle County of Imperial Board of Supervisors Imperial County Democratic Central Committee Imperial Irrigation District LabelGMOs.org Neighborhood House of Calexico AB 965 Page 11 Opposition None received. Analysis Prepared by:Shannon McKinney / E.S. & T.M. / (916) 319-3965