BILL ANALYSIS
AB 153
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CONCURRENCE IN SENATE AMENDMENTS
AB 153 (Hernandez and Eng)
As Amended August 30, 2010
2/3 vote. Urgency
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|ASSEMBLY: | |(May 11, 2009) |SENATE: |28-6 |(August 30, |
| | | | | |2010) |
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(vote not relevant)
Original Committee Reference: TRANS.
SUMMARY : Amends the proposed the Safe, Clean, and Reliable
Drinking Water Supply Act of 2012 (Water Bond), to expand the
eligible uses of the $100 for groundwater cleanup projects
(Water Code Section 79770 (d)) so that funds would be available
for "costs associated with projects, programs, or activities"
rather than being limited to project costs.
The Senate amendments delete the Assembly version of this bill,
and instead:
1)Change the provisions governing Section 79770 (d) of the Water
Bond. It would remove the restriction that the funds be used
for projects authorized for funding by that subdivision, and
instead allow the funds to be used for costs associated with
projects, programs, or activities authorized for funding by
that subdivision.
2)Add an urgency clause, allowing this bill to take effective
immediately upon enactment.
EXISTING LAW :
1)Authorizes, under SB 2 X7 (Cogdill), Chapter 3, Statutes of
2009, an $11 billion general obligation Water Bond to be
placed on the general election ballot in November 2010. The
Water Bond authorizes expenditures for a variety of
water-related purposes. AB 1265 (Caballero), Chapter 126,
Statutes of 2010, delays the vote on this proposed Water Bond
measure until 2012.
2)States that funds authorized under the proposed Water Bond
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measure include $1 billion for groundwater protection, and of
the $1 billion for groundwater protection, Section 79770 (d)
provides not less than $100 million for groundwater cleanup
projects that meet certain criteria.
AS PASSED BY THE ASSEMBLY , this bill makes various technical
changes that clarify and update the governance of the California
High-Speed Rail Authority.
FISCAL EFFECT : According to the Senate Appropriations
Committee, by amending the proposed Water Bond to allow
non-capital costs to be funded, the bill creates cost pressures
on the proposed bond funds. By expanding the allowed uses to
non-capital costs, the bill may reduce the availability of funds
for other capital projects. The extent of this impact will
depend on the allocation of funding for non-capital costs and
whether there are other eligible capital projects for those bond
funds.
COMMENTS : This bill was substantially amended in the Senate and
the Assembly approved provisions of this bill were deleted.
San Gabriel Valley Groundwater Contamination . The Water Bond as
approved by the Legislature in 2010 provides that at least $100
million be made available for projects that meet the both of the
following criteria:
1) The project is part of a basin wide management and
remediation plan for which federal funds have been
allocated.
1) The project addresses contamination at a site on the
list maintained by the Department of Toxic Substances
Control pursuant to Health and Safety Code Section 25356 or
a site listed on the National Priorities List pursuant to
the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. Sec. 9601 et seq.).
According to the Senate Natural Resources Committee, the only
projects that meet the provisions of Section 79770 (d) of the
Water Bond are those associated with superfund sites in the San
Gabriel Valley, which include multiple areas of contaminated
groundwater in the 170-square-mile San Gabriel Valley. The
contaminated areas underlie significant portions of the cities
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of Alhambra, Arcadia, Azusa, Baldwin Park, Industry, Irwindale,
El Monte, La Puente, Monrovia, Rosemead, South El Monte, and
West Covina.
According to the Federal Environmental Protection Agency (EPA)
the groundwater contamination in the San Gabriel Valley was
first detected in 1979. Following this discovery, the California
Department of Health Services (DHS) initiated a well sampling
program to assess the extent of contamination. By 1984, when
EPA added four areas of contamination to the National Priorities
List (NPL), 59 wells were known to be contaminated with high
levels of volatile organic compounds (VOCs).
The San Gabriel Basin aquifer is a major source of drinking
water for Southern California. Despite the contamination, the
Valley's groundwater continues to provide approximately 90% of
the drinking water used by San Gabriel Valley businesses and
residents. EPA's Superfund projects are assisting in restoring
water supplies that have been affected by the contamination.
Additional projects have been funded by federal grants, local
assessments on water sales, and water rates.
The intent of AB 153 is to allow bond funds to be used for
ongoing treatment and remediation costs associated with the
groundwater clean-up rather than just the costs to construct
capital projects
Use of Bond Proceeds for on-going program cost. The State
General Obligation Bond (GO Bonds) Law provides the standards
for GO Bonds (California Government Code Section 16720-16727).
Proceeds from the sale of GO bonds shall be used only for costs
of construction or acquisition of capital assets. "Capital
assets" include:
1)Tangible physical property with an expected useful life of 15
years or more.
2)Major maintenance, reconstruction, demolition for purposes of
reconstruction of facilities, and retrofitting work that is
ordinarily done no more often than once every five to 15
years.
3)Expenditures that continue or enhance the useful life of the
capital asset.
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4)Equipment with an expected useful life of two years or more.
5)Costs incidentally, but directly related to, construction or
acquisition, including, but not limited to, planning,
engineering, construction management, architectural, and other
design work, environmental impact reports and assessments,
required mitigation expenses, appraisals, legal expenses, site
acquisitions, and necessary easements.
Despite the requirements of the Government Code, because GO bond
measures are approved by a vote of the people, a bond measure
itself may override these statutory requirements.
Analysis Prepared by : Bob Fredenburg / E.S. & T.M. / (916)
319-3965
FN: 0006836