BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1284
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   SB 1284 (Ducheny) - As Amended:  June 23, 2010 

          Policy Committee:                              Environmental  
          Safety and Toxic Materials                    Vote: 9-0
                       Judiciary                              10-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill exempts certain waste discharge reporting violations  
          from existing mandatory minimum penalties (MMPs).  Specifically,  
          this bill:


          1)Provides that failure to file a discharge monitoring report  
            for a reporting period in which no discharge occur does not  
            constitute a "serious violation" triggering MMPs, if certain  
            conditions are met.

          2)Establishes a one-time $3,000 fine per delinquent report for a  
            discharger who has not received notice from the State Water  
            Resources Control Board or a regional water quality control  
            board of an enforcement action imposing MMPs and who has not  
            violated effluent limitations.  Subsequent reporting  
            violations would be subject to the penalties described in  
            current law.  This provision would sunset January 1, 2014.

          3)Allows a regional board to extend the time schedule for  
            bringing a waste discharge into compliance for an additional  
            five years, to a possible total time schedule of 10 years if  
            the discharger can demonstrate additional time is necessary to  
            comply with effluent limitations.

           FISCAL EFFECT  

          1)Minor absorbable costs to the state water board and regional  
            boards.









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          2)Potential loss of penalty revenue, likely in the hundreds of  
            thousands of dollars.  (Waste Discharge Permit Fund and  
            Cleanup and Abatement Fund)

           COMMENTS  

           1)Rationale  .  Supporters contend MMPs should apply to willful  
            violators of waste discharge laws but not to entities, such as  
            public agencies, that fail to file a report indicating no  
            discharges occurred during a given period.  These supporters  
            describe this bill as maintaining the dissuasive effect of  
            MMPs while providing fairer, less burdensome penalties on  
            those who commit minor and technical violations.   

           2)Background  .  

              a)   Maximum Minimum Penalties  .  MMPs were established in  
               1999 in response to concerns that the state and regional  
               water boards were failing to enforce Water Code violations.  
                Existing statute requires an MMP of $3,000 for each  
               "serious" violation. The state and regional water boards  
               are also required 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  
               any period of six consecutive months: Violates effluent  
               limitations; fails to file a report of waste discharge or  
               file an incomplete report; or violates a toxicity effluent  
               limitation where the report does not contain  
               pollutant-specific effluent limitations for toxic  
               pollutants. 

              b)   The Case of Pico Union  .  Proponents site the case of the  
               Pico Union Water District as an example of the inordinate  
               burden that can result from the imposition of MMPs.  The  
               water district failed to file 16 separate reports from 2005  
               to 2008 for discharges into the San Gabriel River from  
               wells.  The Pico Union Water District asserts they were  
               unaware of the need to submit such reports.  As a result of  
               district's failure to file the reports, the Los Angeles  
               water board fined Pico Union $627,000.  In January of 2009  
               the water district appealed the fine amount and requested  
               the entire fine be removed.  That appeal is currently  
               pending.

           3)Support  .  This bill is supported by the Association of  








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            California Water Agencies (ACWA) and the Regional Council of  
            Rural Counties (RCRC), who contend the statute requiring MMPs  
            is too broad and can result in an inordinate burden on  
            entities that have made relatively minor or technical  
            violations of the water code.

           4)There is no registered opposition to this bill.  

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081