BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 485


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          Date of Hearing:  July 1, 2015


                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT


                              Brian Maienschein, Chair


          SB  
          485 (Hernandez) - As Amended June 23, 2015


          SENATE VOTE:  36-0


          SUBJECT:  County of Los Angeles: sanitation districts.


          SUMMARY:  Authorizes the Los Angeles County Sanitation Districts  
          to acquire, construct, operate, maintain, and furnish facilities  
          to divert, manage, and treat stormwater and dry weather runoff.   
          Specifically, this bill:  


          1)Authorizes the Los Angeles County Sanitation Districts  
            (Districts) to acquire, construct, operate, maintain, and  
            furnish facilities for any of the following purposes: 


             a)   The diversion of stormwater and dry weather runoff from  
               the stormwater drainage system within the district;


             b)   The management and treatment of the stormwater and dry  
               weather runoff;


             c)   The discharge of the water to the stormwater drainage  








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               system or receiving waters; and,


             d)   The beneficial use of the water.  


          2)Requires a district, prior to initiating a stormwater or dry  
            weather runoff program or project within the boundaries of an  
            adjudicated groundwater basin, to consult with the relevant  
            watermaster.  


          3)States that this bill is not intended to alter or interfere  
            with any of the following:


             a)   Existing water rights to water from any source,  
               including any adjudicated rights allocated by a court  
               judgment or order, rights issued by the state or a state  
               agency, and rights acquired, pursuant to any federal or  
               state statute;


             b)   Existing water rights law; and,


             c)   Any rights, remedies, or obligations that may exist,  
               pursuant to specified sections in current law.  


          4)Specifies that nothing in the bill's provisions shall be  
            construed to establish a right for a district to alter or  
            interfere with either of the following:


             a)   The operation, maintenance, or ownership of a water  
               facility that is operated, maintained, or owned by a public  
               agency or an entity regulated by the Public Utilities  
               Commission; or,








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             b)   A judgment or court order, or an action by a watermaster  
               or public agency, pursuant to an adjudication, adjudicated  
               physical solution, or federal or state statute that affects  
               water, water rights, flood control, water management, or  
               water conservation.  


          5)Defines the following terms, pursuant to the Water Code:


             a)   "Stormwater" to mean "temporary surface water runoff and  
               drainage generated by immediately preceding storms".  


             b)   "Dry weather runoff" to mean "surface waterflow and  
               waterflow in storm drains, flood control channels, or other  
               means of runoff conveyance produced by nonstormwater  
               resulting from irrigation, residential, commercial, and  
               industrial activities".  


          6)Authorizes a district to exercise any of the powers otherwise  
            granted to a district under current law in order to carry out  
            the powers and purposes granted by this bill.  


          7)Specifies that the powers granted by this bill do not affect  
            any obligation of a district to obtain a permit that may be  
            required by law for the activities undertaken, pursuant to  
            this bill.  


          8)Prohibits this bill from being construed to require any local  
            agency to participate financially or otherwise, in a project  
            pursued under the authority granted by this bill.  










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          9)Makes findings and declarations.  


          10)Finds and declares that a special law is necessary and that a  
            general law cannot be made applicable within the meaning of  
            current law.


          FISCAL EFFECT:  None


          COMMENTS:  


          1)Background.  In 1948, Congress passed the first version of the  
            Federal Water Pollution Control Act, or the Clean Water Act.   
            The National Pollutant Discharge Elimination System (NPDES)  
            was amended into the Act in 1972, with a focus on point  
            sources of pollution, such as sewage treatment and wastewater  
            from industrial and manufacturing facilities.  After 1972,  
            studies began showing that non-point sources, including  
            stormwater runoff, were a major contributor to surface water  
            pollution.  This led to further amendments to the Act that  
            created a framework for regulating stormwater.  


            In California, the State Water Resource Board provides the  
            policy and regulatory oversight on behalf of the federal  
            government, including the regulation of Municipal Separate  
            Storm Water Systems (MS4s).  The MS4 permitting program  
            regulates storm water discharges from municipalities that  
            operate storm sewer systems.  In order to reduce urban dry  
            weather runoff and stormwater discharges, cities, counties,  
            and special districts are required to comply with the MS4  
            permit requirements and are responsible for the costs  
            associated with compliance.  


            Local governments face several barriers to funding for  








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            stormwater and dry weather runoff projects due to the  
            constitutional requirements for special taxes, benefit  
            assessments, and property-related fees.  Many of the local  
            governments that operate MS4 systems differ from water and  
            wastewater utilities that existed prior to the passage of  
            Proposition 218, which have in place service fees.  On the  
            other hand, many stormwater programs in cities and counties  
            are funded by the general fund, primarily through property and  
            local sales taxes.  


            As regulatory burdens continue to increase, financially  
            strapped local governments are forced to examine alternative  
            funding mechanisms and regional strategies to address MS4  
            costs which some cities in Los Angeles County are citing to be  
            in the millions of dollars.  
            The Districts are a group of 24 independent special districts  
            that work cooperatively under a Joint Administration Agreement  
            and share administrative staff.  The Districts provide solid  
            waste and wastewater management services.  The Districts  
            construct, operate, and maintain regional facilities to  
            collect, treat, recycle, and dispose of sewage and industrial  
            wastes.  


          2)Author's Statement.  According to the author, "This bill would  
            provide local jurisdictions within the Sanitation Districts of  
            Los Angeles County's [Districts] service area a unique tool to  
            help them comply with costly municipal separate stormwater  
            system (MS4) permits.  It has been estimated that compliance  
            with the new MS4 permits will cost billions of dollars and  
            cities are looking for any means to allay those costs.  This  
            bill would supplement [the District's] existing authority to  
            manage wastewater and solid waste to include stormwater and  
            dry weather runoff.  


            "This bill would allow [the Districts] to work with local  
            jurisdictions, in a voluntary, case-by-case basis, for the  








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            purposes of designing, constructing, operating, and  
            maintaining facilities for compliance with MS4 requirements.  
            In a time of exceptional drought, this bill seeks to promote  
            collaboration amongst the local agencies to develop  
            comprehensive approach to water supply and water quality."  


          3)Bill Summary.  This bill grants the Los Angeles County  
            Sanitation Districts the authority to acquire, construct,  
            operate, maintain, and furnish facilities for the beneficial  
            use of water and to divert, manage, treat, and discharge  
            stormwater and dry weather runoff.  Under this bill, a  
            district would have to consult with the relevant watermaster  
            prior to initiating a stormwater or dry weather runoff program  
            or project within the boundaries of an adjudicated groundwater  
            basin.  


            This bill also contains several provisions to ensure that the  
            authority granted by this bill is not construed to alter any  
            existing water rights.  Specifically, this bill states that  
            nothing in the bill's provisions shall be construed to alter  
            or interfere with existing water rights law, rights remedies,  
            or obligations, pursuant to specified sections in existing law  
            and water rights from any source, including adjudicated rights  
            allocated by a court judgment or order, rights issued by the  
            state or a state agency, and rights acquired, pursuant to any  
            federal or state statute.  


            In addition to these assurances, this bill also states that  
            nothing shall be construed to establish a right for a district  
            to alter or interfere with the operation, maintenance, or  
            ownership of a specified water facility or the judgment or  
            court order, or an action by a watermaster or public agency,  
            pursuant to an adjudication, adjudicated physical solution or  
            federal or state statute that affects water, water rights,  
            flood control, water management, or water conservation.  
            This bill is sponsored by the Los Angeles County Sanitation  








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            Districts.  


          4)Local Agency Formation Commission (LAFCO).  As special  
            districts, the sanitation districts would need to get the  
            approval of the local LAFCO in order to activate the powers  
            contained in this bill.  The Cortese-Knox-Hertzberg Act  
            establishes the process to activate a latent power, including  
            passing a resolution by the Board, holding a public hearing,  
            and submitting a petition to LAFCO, which includes a plan for  
            services and the estimated cost of the new service.  


          5)Prior Legislation.  AB 1892 (Harman), Chapter 79, Statutes of  
            2002, authorized the Orange County Sanitation District to  
            acquire, construct, operate, maintain and furnish facilities  
            for the diversion, treatment, and reuse of urban runoff.  


            AB 810 (Campbell), Chapter 209, Statutes of 2001, granted  
            authority to develop and operate urban runoff treatment  
            facilities to the Irvine Ranch Water District and the Santa  
            Margarita Water District.  


          6)Policy Considerations.  The Committee may wish to consider the  
            following:


             a)   To Alter or Interfere.  The most recent set of  
               amendments, per the request of the San Gabriel Valley Water  
               Company, added an additional provision (Section 2,  
               subdivision i) of the bill to state that nothing in this  
               bill's provisions shall be construed to establish a right  
               for a district to alter or interfere with a judgment or  
               court order, or an action by a watermaster or public agency  
               pursuant to an adjudication, adjudicated physical solution,  
               or federal or state statute that affects water, water  
               rights, flood control, water management, or water  








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               conservation.  This provision is in addition to a savings  
               clause (Section 2, subdivision h) that states that the bill  
               shall not be construed to alter or interfere with existing  
               water rights, including any adjudicated rights, and  
               existing water rights law.  The Committee may wish to ask  
               the author why that savings clause language is not  
               sufficient and to provide actual examples that warrant the  
               need for the additional language.  Absent specific answers  
               warranting the need for the additional language in  
               subdivision (i), the Committee may wish to ask the author  
               to strike that subdivision from the bill.  



             b)   Future sanitation districts.  Under this bill any new  
               county sanitation district formed in Los Angeles would be  
               granted the authority to acquire, construct, operate,  
               maintain, and furnish facilities to divert, manage, and  
               treat stormwater and dry weather runoff.  The Committee may  
               wish to consider if it is appropriate to grant additional  
               powers to districts that do not yet exist.  



          7)Arguments in Support.  Supporters argue that this bill will  
            provide another option or tool to assist cities in meeting the  
            requirements of the Los Angeles Region's municipal stormwater  
            permit.  Proponents of this bill argue that the districts can  
            use their civil engineering and water quality expertise to  
            help cities and the counties comply in an efficient and  
            effective manner which will allow for more water to be  
            collected for reuse.  


          8)Arguments in Opposition.  The Water Replenishment District of  
            Southern California argues that this bill grants much-needed  
            authority to the districts, however, they would like to  
            require districts to consult with the water replenishment  
            district prior to initiating stromwater or dry weather runoff  








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            program or project to avoid any potential conflicts with water  
            replenishment activities.  




















          REGISTERED SUPPORT / OPPOSITION:




          Support


          Los Angeles County Sanitation Districts [SPONSOR]


          California Contract Cities Association


          Cities of Alhambra, Arcadia, Azusa, Bell Gardens, Carson,  
          Cerritos, Claremont, Commerce, 









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            Culver City, Diamond Bar, Downey, Duarte, El Segundo,  
          Glendora, Hermosa Beach,                               Industry,  
          Lakewood, La Mirada, La Puente, Lomita, Long Beach, Monterey  
          Park, Norwalk, 


            Palos Verdes Estates, Pasadena, Rancho Palos Verdes, Rosemead,  
          San Dimas, Santa Fe 


            Springs, Sierra Madre, Signal Hill, South El Monte, South  
          Gate, Temple City, Torrance, 


            Walnut, West Covina, West Hollywood, and Whittier


          Council for Watershed Health


          El Monte/South El Monte Chamber of Commerce


          Gateway Cities Council of Governments


          Gateway Water Management Authority


          League of California Cities, Los Angeles County Division


          Los Angeles County Board of Supervisors


          Los Angeles County Business Federation










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          San Gabriel Valley Council of Governments


          San Gabriel Valley Municipal Water District (conceptual)


          San Gabriel Valley Water Association


          Sierra Club California


          South Bay Cities Council of Governments


          Southern California Water Committee


          Three Valleys Municipal Water District


          Westside Cities Council of Governments




          Concerns


          San Gabriel Valley Water Company


          Southwest Water Company


          Suburban Water Systems











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          Opposition


          Water Replenishment District of Southern California (unless  
          amended)




          Analysis Prepared by:Misa Lennox / L. GOV. / (916)  
          319-3958