BILL ANALYSIS Ó SENATE COMMITTEE ON GOVERNANCE AND FINANCE Senator Robert Hertzberg, Chair 2015 - 2016 Regular ------------------------------------------------------------------ |Bill No: |SB 485 |Hearing |5/6/15 | | | |Date: | | |----------+---------------------------------+-----------+---------| |Author: |Hernandez |Tax Levy: |No | |----------+---------------------------------+-----------+---------| |Version: |2/26/15 |Fiscal: |No | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant|Lewis | |: | | ----------------------------------------------------------------- County of Los Angeles: sanitation districts Authorizes the Los Angeles County Sanitation Districts to divert, manage, treat, and discharge stormwater and dry weather runoff, as well as make beneficial use of the water. Background and Ex ist ing Law Rainwater and runoff from manmade sources, such as irrigation, builds up on impermeable surfaces, picking up pollutants as it travels across urban landscapes, down rivers, and runs into lakes and the ocean. Left untreated, stormwater and (dry weather) urban runoff can create water quality issues. To protect rivers, lakes, and oceans, the federal Clean Water Act (CWA) requires the states to reduce pollution from stormwater and urban runoff. Under the CWA, municipalities that discharge water into rivers, lakes, and oceans must obtain and comply with a Municipal Separate Storm Sewer Systems (MS4) permit. In California, the federal government has delegated enforcement authority for the CWA to the State Water Resources Control Board (SWRCB). SWRCB and the nine Regional Water Quality Control Boards (RWQCBs) are increasingly pushing counties, cities, and special districts to reduce urban runoff and stormwater discharges under the MS4 permit requirements. Cities in the Los Angeles region, as well as Los Angeles County and the Los Angeles County Flood Control District, are subject SB 485 (Hernandez) 2/26/15 Page 2 of ? to especially heightened regulatory pressure under MS4 permit requirements. Los Angeles city officials estimate that compliance with these requirements could cost local governments billions of dollars. In response to these challenges, several Los Angeles area cities, Los Angeles County, and the Los Angeles County Flood Control District are looking for innovative, cost-effective ways to bring the storm sewer systems under their control into compliance with the MS4 permit. One such proposal is to partner with the Los Angeles County Sanitation Districts (LACSD) on a case-by-case basis to manage and treat stormwater and dry weather urban runoff. LACSD are a group of 24 special districts authorized to collect, treat, and dispose of wastewater and solid waste under the County Sanitation District Act. Because state law does not expressly authorize county sanitation districts to conduct stormwater management, LACSD now seeks explicit statutory authority to manage stormwater and urban runoff to help local governments in L.A. County comply with their MS4 requirements. In 2001 and 2002, respectively, the Legislature passed special legislation authorizing the Irvine Ranch Water District (AB 810, Campbell, 2001) and Orange County Sanitation District (AB 1892, Harman, 2002) to treat dry weather runoff for similar purposes. Proposed Law Senate Bill 485 authorizes specified sanitation districts in Los Angeles County to acquire, construct, operate, maintain, and furnish facilities for the purpose of: Diverting stormwater and dry weather runoff from the stormwater drainage system; Managing and treating stormwater and dry weather runoff; Discharging the water into the stormwater drainage system or rivers, lakes, oceans and other watercourses; and Beneficial use of the water. SB 485 specifies that its provisions must not be construed to interfere with an existing water right or existing water rights law. SB 485 (Hernandez) 2/26/15 Page 3 of ? The bill makes legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles. State Revenue Impact No estimate. Comments 1.Purpose of the bill. Urban runoff is a major contributor to pollution of California's lakes, rivers, and the ocean. Cities in Los Angeles County and L.A. County Flood Control District are under especially heightened pressure to clean up stormwater and urban runoff before it reaches the ocean, due to recent court decisions and regulatory developments. In order to meet these regulatory requirements under federal and state law, local governments in the Los Angeles region need access to innovative approaches to storwmater and urban runoff management. Empowering the Los Angeles County Sanitation Districts to assist cities and special districts in the Los Angeles region with urban runoff and stormwater management would result in cost savings and greater efficiency, while ensuring that local stormwater systems comply with evolving state and federal water quality regulations. 2.Troubled waters ahead? Opponents of SB 485 are concerned that granting Los Angeles County sanitation districts the authority to capture, treat, and reuse runoff will reduce the amount of water that percolates into groundwater basins in the area. As a result, groundwater users in the area would not be able to take as much water from the basin and would have to purchase costly water from other parts of the state. The author and the opponents have negotiated amendments that would address these concerns. Specifically, the amendments would: Prohibit interference with water rights established by a court, any water supply facility, judgment, court order, and action related to processes that establish water rights. Require a sanitation district to consult with the local entity in charge of managing the groundwater basin, such as a watermaster, before implementing a project that would SB 485 (Hernandez) 2/26/15 Page 4 of ? divert or use stormwater or urban runoff. Direct the managing entity to determine whether the project affects or creates "new" water that would not otherwise flow into the basin. Prohibit a sanitation district from diverting or using water that would reduce water flowing into the basin without the managing entity's approval. The Committee may wish amend SB 485 to include these provisions that address water manager's concerns about the bill. 1.A drop in the ocean . SB 485 would help alleviate pressures on local governments in the Los Angeles region to comply with MS4 requirements. However, stormwater and urban runoff financing remains a serious issue for local governments across California. On February 25, 2015, the Committee held an informational hearing to examine how local governments are currently financing stormwater and dry weather runoff projects and investigate the state's role in reducing obstacles to effective stormwater policies. Local governments have long relied on General Fund revenues to fund stormwater and dry weather runoff management, but regulatory burdens are rapidly evolving, stretching general fund budgets thin. The California Constitution also limits local governments' ability to impose special taxes and benefit assessments, charges to property owners for a special benefit to the owner's property, to fund water pollution prevention and stormwater management programs. For example, special taxes require 2/3 voter approval, while the benefit assessments must be directly related to the amount of benefit the property receives; local governments also have to obtain weighted-majority property owner approval before imposing a benefit assessment on real property. In light of these challenges, SB 485 is a creative solution to the Los Angeles region's unique challenges, but other local governments almost certainly will need to come up with more innovative stormwater financing options statewide. 2.LAFCO approval . SB 485 does not allow the Los Angeles County Sanitation District to unilaterally control urban runoff. The Cortese-Knox-Hertzberg Act requires special districts to get the approval of the local agency formation commission (LAFCO) before they can activate one of their latent powers. The Los Angeles County Sanitation District must apply to the Los Angeles County LAFCO before it can use the new latent power granted by SB 485. SB 485 (Hernandez) 2/26/15 Page 5 of ? Support and Opposition (4/30/15) Support : California Association of Sanitation Agencies; California Contract Cities Association; California Special Districts Association; Cities of: Alhambra, Arcadia, Carson, Cerritos, Claremont, Diamond Bar, Downey, Glendora, Industry, Lakewood, Lomita, Long Beach, Monterey Park, Norwalk, Palos Verdes Estates, Pasadena, Rancho Palos Verdes, Rosemead, San Dimas, Sierra Madre, Signal Hill, South El Monte, South Gate, Torrance, Walnut, West Covina, Whittier; El Monte/South El Monte Chamber of Commerce; Gateway Cities Council of Governments; Gateway Water Management Authority; League of California Cities, Los Angeles Division; San Gabriel Valley Council of Governments; San Gabriel Valley Economic Partnership; San Gabriel Valley Municipal Water District; South Bay Cities Council of Governments; Southern California Water Committee; Three Valleys Municipal Water District. Opposition : San Gabriel Valley Water Company; Suburban Water Systems; SouthWest Water Company. -- END --