BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON GOVERNANCE AND FINANCE
                           Senator Robert Hertzberg, Chair
                                2015 - 2016  Regular 

                              
          
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          |Bill No:  |SB 485                           |Hearing    |5/6/15   |
          |          |                                 |Date:      |         |
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          |Author:   |Hernandez                        |Tax Levy:  |No       |
          |----------+---------------------------------+-----------+---------|
          |Version:  |2/26/15                          |Fiscal:    |No       |
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          |Consultant|Lewis                                                 |
          |:         |                                                      |
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                     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  







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          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.









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          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  








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               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.








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           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.


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