BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 310
                                                                  Page  1

          Date of Hearing:   July 7, 2009

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                            Jared William Huffman, Chair
                    SB 310 (Ducheny) - As Amended:  June 22, 2009

          SENATE VOTE  :   22-14
           
          SUBJECT  :   Stormwater: Watershed Improvement Plans

           SUMMARY  :   Authorizes local government agencies that have  
          permits for stormwater system discharges to create a watershed  
          improvement plan (WIP) to improve stormwater management.   
          Specifically,  this bill  :

          1)Authorizes a city, county or special district that is a  
            permittee or co-permittee under a National Pollutant Discharge  
            Elimination System (NPDES) permit for a municipal stormwater  
            system to develop a watershed improvement plan.

             a)   Specifies required elements of a WIP, including  
               financing, best management practices, and protection of  
               water quality, 

             b)   Authorizes RWQCBs to participate in the preparation of a  
               WIP.

          2)Requires Regional Water Quality Control Boards (RWQCBs) to  
            review and approve a WIP if they find that the proposed plan  
            will facilitate compliance with one or more water quality  
            requirements.

          3)Authorizes a county, city or specified district, or  
            combination thereof, to impose fees on activities that  
            generate or contribute to runoff, stormwater, or surface  
            runoff pollution to pay the costs of the preparation of a WIP  
            or the implementation of a WIP.

          4)Authorizes a county, city, or special district, or combination  
            thereof, to plan, design, implement, construct, operate, and  
            maintain controls and facilities to improve water quality.

          5)Clarifies that this act does not alter requirements for water  
            rights.









                                                                  SB 310
                                                                  Page  2

           EXISTING LAW  

          1)Establishes the NPDES to regulate the discharge of pollutants,  
            including urban stormwater, into U.S. waters, pursuant to the  
            federal Clean Water Act.

          2)Authorizes SWRCB to issue discharge permits under the federal  
            Clean Water Act (CWA).

           FISCAL EFFECT  :   According to the Senate Appropriations  
          Committee this bill would result in an annual cost to the RWQCBs  
          of approximately $200,000 to review WIPs submitted by local  
          governments.  The cost to local agencies to develop and  
          implement the WIPs is not known.  The State and local cost would  
          be recovered from fees placed on generators of runoff only if  
          the WIP is approved by the RWQCB.

           COMMENTS  :   This bill would create an alternative process for  
          addressing stormwater management.  Instead of regulating  
          stormwater project-by-project, city-by-city, or  
          permittee-by-permittee, this bill would allow discharge  
          permittees to address stormwater by developing a "watershed  
          improvement plan."  This plan would address both water quality  
          and quantity (i.e. stormwater retention) in the entire  
          watershed, if approved by the RWQCB.

          California's RWQCBs have expanded the regulation of urban  
          stormwater runoff, leading to city taxpayers paying the costs  
          for implementing stormwater control programs, particularly for  
          existing development.  As builders put up shopping centers and  
          subdivisions, they increase the amount of impervious surfaces  
          and accelerate water runoff.  New developments are often  
          required to mitigate their stormwater impacts, although some  
          developers assert that they are required to pay for more than  
          their share.  Major Builders Council sponsored this bill.

          While the regulatory limits on stormwater have expanded,  
          Proposition 218's constitutional limits on fees make it  
          difficult for local officials to fund stormwater or charge  
          property-related fees for stormwater facilities and services -  
          requiring notices, hearings, protests, and elections.  SB 310  
          attempts to resolve this dilemma by allowing local governments,  
          with approved plans, to charge user-based or regulatory fees for  
          implementing the plans.  Howard Jarvis Taxpayers Association  
          (HJTA) opposes the bill based on the fee provisions, asserting  








                                                                  SB 310
                                                                  Page  3

          that these fees would not be regulatory because they would be  
          collected from every developed property and would fund public  
          facilities, not regulatory programs, to address stormwater.   
          HJTA asserts that they would not be user-based or regulatory,  
          although it should be noted that this bill imposes the fee only  
          on those activities that generate runoff.

          RWQCB review of these plans may create substantial costs, but  
          this bill, in its current version, allows the RWQCB to request  
          funds to recover the cost of reviewing the proposed plans only  
          if it approves the plan.  The Environmental Safety and Toxic  
          Materials Committee, which heard the bill on June 30, passed the  
          bill on the condition that the author accepted amendments to  
          allow the RWQCB to recover costs from the entity proposing the  
          WIP.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Major Builders Council (co-sponsor)
          California Building Industry Association (co-sponsor)
          California Association of Realtors
           
            Opposition  :

          Howard Jarvis Taxpayers Association



           Analysis Prepared by  :    Alf W. Brandt / W., P. & W. / (916)  
          319-2096