BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1284
                                                                  Page 1

          Date of Hearing:   June 15, 2010

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                  Pedro Nava, Chair
                    SB 1284 (Ducheny) - As Amended:  June 2, 2010

           SENATE VOTE  :   31-0
           
          SUBJECT  :  Water code permit violations.

           SUMMARY  :  Exempts certain violations of waste discharge  
          reporting requirements from existing mandatory minimum penalties  
          (MMPs).  Extends the time limit under which dischargers must  
          come into compliance with a permit requirement from five years  
          to ten years.  Specifically,  this bill  : 

          1. Revises current law to allow a Regional Water Quality Control  
             Board (RWQCB), after a public hearing, to extend the time  
             schedule for bringing a waste discharge into compliance for  
             an additional five years, to a possible total time schedule  
             of ten years if the discharger can demonstrate that  
             additional time is necessary in order to reach compliance  
             with effluent limitations.

          2. Provides that the failure to file a discharge monitoring  
             report for a reporting period in which no discharges occur  
             does not constitute a "serious violation" that gives rise to  
             mandatory minimum penalties if the discharger submits a  
             written statement to the regional board under penalty of  
             perjury stating that in fact no discharges occurred and  
             stating the reasons for the failure to file.

          3. Provides that where a discharger has not previously received  
             notification from the State Water Resources Control Board  
             (SWRCB) or a RWQCB of an enforcement action imposing MMP and  
             where the current violation consists of failures to file  
             discharge monitoring reports for reporting periods where  
             dischargers did not violate numeric effluent limitations,  
             that discharger will be subject to a total fines of $3,000  
             per required report.  Provides that after this one-time fine,  
             a discharger who subsequently fails to file the same report  
             will be fined in accordance with the current law.  Sunsets  
             this provision on January 2016.

          4. Provides that the limitations on MMPs created by this bill  








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             would apply to dischargers who currently have outstanding  
             notices of violation as of the effective date of the act.  
           
           EXISTING LAW  :

          1)Authorizes, under The Porter-Cologne Water Quality Act, SWRCB  
            and the RWQCBs to set waste discharge requirements.

          2)Provides for the imposition of civil penalties, including an  
            MMP of $3,000 for each serious waste discharge violation.  The  
            penalties may be issued administratively by the SWRCB or the  
            RWQCB or through the superior court.  This may be in addition  
            to other penalties and fees.


           FISCAL EFFECT  :   According to the Senate Appropriations  
          Committee analysis, because the bill exempts some violations  
          from MMPs, the bill is likely to reduce future penalty revenues.  
           The amount of any potential penalty revenue loss is unknown.

           COMMENTS  :  

           1)Need for the bill  .  According to the sponsor, MMPs are a  
            deterrent and a punishment for willful violators, and should  
            remain in place for that intended purpose.  However, the  
            sponsors feel that the way the statute is currently drafted;  
            the definition of a "serious violation" warranting the  
            imposition of an MMP is far too broad and exposes public  
            agencies who simply failed to file a report indicating no  
            discharges to the vast penalties.  The sponsor asserts that SB  
            1284 would provide that certain violations involving the  
            failure to file a discharge monitoring report for no  
            discharges or legal discharges should not be subject to those  
            MMPs.

           2)Mandatory minimum penalties (MMPs)  were established in 1999 in  
            response to concerns over the SWRCB and RWQCB failing to take  
            enforcement actions against Water Code violations.  According  
            to the SWRCB, the California Water Code section 13385(h)  
            requires an MMP of $3,000 for each "serious" violation. 

             a)   The SWRCB and the RWQCBs are also required by Water Code  
               section 13385(i) to assess MMPs of $3,000 for multiple  
               chronic violations.  This penalty applies when the  
               discharger does any of the following four or more times in  








                                                                  SB 1284
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               any period of six consecutive months:

             b)   Violates effluent limitations; 
             c)   Fails to file a report of waste discharge or file and  
               incomplete report; or 
             d)   Violates a toxicity effluent limitation where the WDR  
               does not contain pollutant-specific effluent limitations  
               for toxic pollutants. 

           3)MMPs for failure to report  .  The MMP statute was designed to  
            address the failure of the SWRCB and the RWQCBs to enforce  
            reporting requirements waste for discharge permits.  In 2003,  
            the Legislature strengthened the MMP laws by specifically  
            adding waste discharge reporting failures to the MMP (AB 1541  
            - Montanez, Chapter 609, Statutes of 2003).  The 2003  
            provisions were added to the stature when it was found that  
            only 1% of over 4000 reporting violations were subject to the  
            existing penalties.

           4)The Pico Water District case  .  The proponents of this bill  
            have cited the penalties assessed against the Pico Water  
            District for failure to file 16 separate reports from 2005 to  
            2008 for discharges from wells into the San Gabriel River.   
            The Pico Water District has asserted that because of changes  
            in management at the district, as well as changes in their  
            consulting engineering firm, they were unaware of the need to  
            submit reports as required by their discharge permits.

            The total fine assessed in 2008 by the Los Angeles RWQCB was  
            $627,000.  The fine resulted from the $3,000 fine being  
            charged for each reporting period that the required reports  
            were not submitted over the 3 year period.  In January of 2009  
            Pico Water District appealed the fine amount and has requested  
            that the entire fine be removed.  That appeal is current  
            pending.

           5)Related legislation.   AB 25 (Gilmore) modifies MMP for small  
            communities by increasing the size of the size of low income  
            communities that are allowed to apply MMPs to the cost of  
            remediation of the causes of water code violations.  This  
            legislation was held in the Senate Environmental Quality  
            Committee.  
           
           6)Double-referral to the Assembly Judiciary Committee  .  Should  
            this measure be approved by this Committee, the do pass motion  








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            must include the action to re-refer the bill to the Assembly  
            Committee on Judiciary.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 

           Association of California Water Agencies (co-source)  
           Regional Council of Rural Counties (co-source)
          California Association of Sanitation Agencies
          California Chamber of Commerce
          California Special Districts Association
          California State Association of Counties
          California Water Association
          City of Camarillo
          Crescenta Valley Water District
          El Dorado Irrigation District
          Inland Empire Utilities Agency
          Lake Berryessa Resort Improvement District
          League of Cities
          Napa Berryessa Resort Improvement District
          Napa County
          Pico Water District

           Opposition 
           California Coast Keeper Alliance
          Sierra Club


           Analysis Prepared by  :    Bob Fredenburg / E.S. & T.M. / (916)  
          319-3965