BILL ANALYSIS �
AB 467
Page 1
ASSEMBLY THIRD READING
AB 467 (Eng)
As Amended January 26, 2012
2/3 vote. Urgency
ENVIRONMENTAL SAFETY 8-0 APPROPRIATIONS
17-0
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|Ayes:|Wieckowski, Miller, |Ayes:|Fuentes, Harkey, |
| |Campos, Davis, Feuer, | |Blumenfield, Bradford, |
| |Bonnie Lowenthal, | |Charles Calderon, Campos, |
| |Morrell, Valadao | |Chesbro, Donnelly, Gatto, |
| | | |Hall, Hill, Ammiano, |
| | | |Mitchell, Nielsen, Norby, |
| | | |Solorio, Wagner |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Modifies the allocation of the Safe Drinking Water, Water
Quality and Supply, Flood Control, River and Coastal Protection Act
of 2006 (Proposition 84) funds collected from responsible parties
for groundwater contamination cleanup. Specifically, this bill :
1)Makes legislative findings that the California Department of
Public Health (CDPH) shall adopt guidelines to address the use of
funds recovered by local agencies from parties responsible for
groundwater contamination.
2)Makes legislative findings that the CDPH, in determining the
circumstances when repayments from responsible parties may be
utilized by the local agency for additional groundwater cleanup
activities, the CDPH shall give preference to projects that meet
one or more of the following conditions:
a) The grant amount and the amount of monies recovered from the
parties responsible for the groundwater contamination will not
exceed the total cost of cleaning up the contamination or
preventing future contamination;
b) The local agency has additional areas of groundwater
contamination within its jurisdiction for which there is no
identified responsible party and the funds will be used to
cleanup the contamination;
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c) The local agency will utilize the repayment funds for the
cleanup of groundwater contamination where the cost recovery
from responsible parties is insufficient to pay the full cost
of cleanup; or,
d) The local agency will use the recovered funds to cleanup
groundwater at a site designated pursuant to the federal
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (federal Superfund).
3)Authorizes the CDPH guidelines adopted to meet the repayment
requirements to include provisions that allocate up to 3% of
recovered funds to pay for oversight by the CDPH to ensure that
the local agency expends any recovered funds consistent with the
requirements of Proposition 84.
4)Authorizes the CDPH to establish an agreement between the local
agency and the CDPH that specifies that:
a) The local agency is required to take appropriate action to
recover costs from parties responsible for the groundwater
contamination;
b) Funds recovered by the local agency from the parties
responsible for the groundwater contamination will be deemed to
be under the control and authority of the State of California;
and,
c) The funds recovered by the local agency may be used for
ongoing groundwater cleanup activities.
5)Provides that allowing local agencies to keep recovered funds is
consistent with the provisions of Proposition 84 that require
repayment to CDPH for costs that are subsequently recovered from
parties responsible for the groundwater contamination.
6)Provides that this is an urgency measure, 2/3 vote required.
EXISTING LAW :
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1)Authorizes, under Proposition 84 the state to sell about $5.4
billion in general obligation bonds for safe drinking water; water
quality; water supply; flood control; natural resource protection;
and, park improvements.
2)Requires the CDPH, when implementing the provisions of Proposition
84, among other things, to develop and adopt guidelines and
regulations, consult with other entities, conduct studies, and
follow certain procedures for establishing a project, grant, loan
or other financial assistance program.
3)Provides that the CDPH must require repayment of Proposition 84
funds from parties responsible for contamination.
FISCAL EFFECT : According to the Assembly Appropriations Committee,
this bill may result in a potential redirection of funds, possibly
in the millions of dollars, to certain local groundwater cleanup
projects, and away from the CDPH or the State Treasury (Proposition
84 bond funds). Potential litigation costs of an unknown amount,
but possibly in the hundreds of thousands of dollars, to defend the
provisions of this bill, should they be challenged. (General Fund)
COMMENTS :
Need for the bill . According to the author, this bill is needed,
"to allow local agencies that have been awarded Proposition 84 funds
from CDPH for groundwater projects that are able to subsequently
recover funds from responsible parties to keep the money to fund
additional groundwater cleanup activities. Should local agencies be
successful in recovering the costs from responsible parties, this
bill will save significant State administrative costs and allow the
local agencies to use all of the recovered funds for groundwater
cleanup."
San Gabriel Valley groundwater contamination . This bill is
supported by the Upper San Gabriel Valley Municipal Water District,
which is involved in the cleanup of the Superfund sites in the San
Gabriel Valley. These sites include multiple areas of contaminated
groundwater in the 170-square mile San Gabriel Valley. The
contaminated areas underlie significant portions of the cities of
Alhambra, Arcadia, Azusa, Baldwin Park, Industry, Irwindale, El
Monte, La Puente, Monrovia, Rosemead, South El Monte, and West
Covina.
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Proposition 84 . Approved by the voters in 2006, authorized $60
million to the CDPH for loans and grants for projects to prevent or
reduce contamination of groundwater that serves as a source of
drinking water for the San Gabriel Valley. The CDPH requires
repayment for costs that are subsequently recovered from parties
responsible for the contamination.
Is this a modification to Proposition 84 ? When the voters approved
Proposition 84, the initiative included specific language requiring
the repayment of funds from those persons or businesses that caused
the toxic contamination. The initiative included Public Resources
Code (PRC) Section 75025, which mandates that the CDPH require
repayment of subject funds. The full text of PRC Section 75025 is
as follows:
The sum of sixty million dollars ($60,000,000) shall be
available to the Department of Health Services for the
purpose of loans and grants for projects to prevent or
reduce contamination of groundwater that serves as a
source of drinking water. The Department of Health
Services shall require repayment for costs that are
subsequently recovered from parties responsible for the
contamination. The Legislature may enact legislation
necessary to implement this section.
While the language of Proposition 84 allows the Legislature to enact
legislation to implement the programs, on the other hand it is not
clear if the repayment requirements of the original bond act would
be met under the provisions of this bill.
Does this bill require local agencies to return funds recovered from
parties responsible for the groundwater contamination to the state ?
The bill now provides that any funds recovered by the local agency
may be deemed to be under the control and authority of the state and
therefor repaid to the state as required by Proposition 84. Since
this money will, in fact, not be returned to the state for repayment
of Proposition 84 bond cost, the Legislature deeming it repaid may
be not consistent with the requirements of Public Resources Code
75025 as approved by the voters.
Uncodified legislative priorities for Proposition 84 funds . The
bill establishes priorities for the allocation of funds recovered
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from responsible parties including the intent that funds be used at
federal Superfund sites like the San Gabriel Valley. This direction
is not included in the codified mandate for CDPH to establish
guidelines for the recovery of funds from responsible parties and
the bill fails to provide a method for the legislative finding to be
implemented by the CDPH.
Analysis Prepared by : Bob Fredenburg / E.S. & T.M. / (916)
319-3965
FN: 0003078