BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 467|
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THIRD READING
Bill No: AB 467
Author: Eng (D), et al.
Amended: 5/31/12 in Senate
Vote: 27 - Urgency
SENATE ENVIRONMENTAL QUALITY COMMITTEE : 6-0, 6/18/12
AYES: Simitian, Strickland, Blakeslee, Hancock, Lowenthal,
Pavley
NO VOTE RECORDED: Kehoe
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/16/12
AYES: Kehoe, Walters, Alquist, Dutton, Lieu, Price,
Steinberg
ASSEMBLY FLOOR : Not relevant
SUBJECT : Drinking water
SOURCE : San Gabriel Basin Water Quality Authority
DIGEST : This bill allows a grantee of the Safe Drinking
Water, Water Quality and Supply, Flood Control, River and
Coastal Bond Act of 2006 to conduct groundwater cleanup
activities to continue those activities as specified.
ANALYSIS :
Existing law:
1. Under the California Safe Drinking Water Act (SDWA),
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requires the Department of Public Health (DPH) to
regulate drinking water and enforce the federal Safe
Drinking Water Act and other regulations.
2. Under the Safe Drinking Water, Water Quality and Supply,
Flood Control, River and Coastal Protection Bond Act of
2006 (Proposition 84):
A. Authorizes $5.388 billion in general obligation
bonds to fund safe drinking water, water quality and
supply, flood control, waterway and natural resource
protection, water pollution and contamination
control, state and local park improvements, public
access to natural resources, and water conservation
efforts. (Public Resources Code (PRC) Section 75001
et seq.)
B. Provides $60 million to DPH 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. (PRC Section 75025).
C. Requires DPH, when implementing the provisions of
Proposition 84, among other things, to develop and
adopt guidelines and regulations for establishing a
project, grant, loan or other financial assistance
program, including specific provisions for the
repayment of costs that are subsequently recovered
from parties responsible for the contamination. (PRC
Section 75100 and 75101).
D. Requires repayment to DPH of costs that are
subsequently recovered from parties responsible for
the contamination. (PRC Section 75025).
This bill:
1. Specifies that the regulations prepared by DPH for
allocation of Proposition 84 recovered funds must be
adopted as emergency regulations, as specified.
Specifies that the regulations adopted shall include a
provision authorizing DPH to enter into an agreement
with the grantee that recovers the funds that would
authorize the expenditure of the recovered funds to
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implement ongoing treatment and remediation activities
in accordance with the purposes for which funds may be
granted.
2. Provides as an alternative to expending funds to oversee
grantees, DPH and the Department of Toxic Substances
Control (DTSC) may enter into a memorandum of
understanding that would do either of the following:
A. Authorize the DTSC to provide oversight activities
described in lieu of the DPH.
B. Transfer recovered funds from the Groundwater
Contamination Prevention Account to the Site
Remediation Account.
C. Any funds transferred from the Groundwater
Contamination Prevention Account to the Site
Remediation Account would be appropriated therefrom
to DTXC for purposes of implementing an agreement
with a grantee pursuant to the regulations adopted.
3. Establishes the Groundwater Contamination Prevention
Account in the State Treasury and requires funds
recovered from responsible parties to be deposited into
the account.
4. Authorizes DPH to expend up to 3% of the recovered funds
to pay for DPH oversight costs to ensure the grantee
expends the recovered funds on additional groundwater
cleanup activities.
Background
SB 1679 (Russell), Chapter 776, Statutes of 1992, enacted
the San Gabriel Basin Water Quality Authority Act. The
SWRCB and the Los Angeles Regional Water Quality Control
Board had investigated the groundwater conditions since
1979. The basin is the primary drinking water source for
residents and the United States Environmental Protection
Agency (EPA) had placed four areas of the basin on its
Superfund list in 1984. The EPA released a "San Gabriel
Basinwide Technical Plan" in 1990, describing a strategy to
remediate groundwater pollution. The above three entities
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prepared a "white paper" describing institutional and
financial aspects of a comprehensive local groundwater
management program and concluded that a local program must
possess powers to construct and operate cleanup works, to
coordinate and regulate groundwater extraction and cleanup,
and to finance activities.
The three water agencies in the basin formed a joint powers
authority (JPA) and the watermaster (i.e., a judicially
created association of private and public groundwater
users) obtained authority to regulate pumping for water
quality protection. However, because of concerns that the
JPA was not effective, SB 1679 created the act with certain
powers to address the contamination problems.
In 1992, the Legislature was also considering SB 44
(Torres), a bill giving the JPA more power to address the
problem. AB 2173 (Margett), Chapter 281, Statutes of 1996,
extended a 1998 sunset to 2002, reduced the cap on the
annual pumping right assessment from $35 to $20 per acre
foot, and established a "limited function status"
provision. AB 2544 (Calderon) Chapter 905, Statutes of
2000, increased the number of board members from five to
seven and required two members to be producer members,
reduced the annual pumping right assessment cap from $20 to
$13, revised the board voting practices for certain
actions, and made various other changes to the act. SB 334
(Romero), Chapter 192, Statutes of 2003, reduced the annual
pumping right assessment cap from $13 to $10.
SB 822 (Margett), Chapter 271, Statutes of 2005, authorized
the San Gabriel Basin Water Quality Authority to receive
state funds for the purpose of meeting certain nonfederal
matching fund requirements.
State of Proposition 84 funding . Of the $60 million
authorized under Proposition 84 to DPH for groundwater
cleanup grants $38,353,935 has been allocated in the first
round of projects. There is $14,546,065 remaining. The
cost of the second round of invited projects would be
$20,929,000, meaning that many of these projects will not
be funded.
Comments
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According to the author, this bill is needed to allow local
agencies that have been awarded Proposition 84 funds from
DPH for groundwater projects, and that subsequently recover
funds from responsible parties, to keep the recovered funds
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.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, there
would be ongoing costs of $150,000 per year from the
General Fund beginning in 2013-14 for staff time to review
and track recovered funds.
SUPPORT : (Verified 8/21/12)
San Gabriel Basin Water Quality Authority (source)
Association of California Water Agencies
California Water Association
Inland Empire Utilities Agency
Metropolitan Water District of Southern California
San Gabriel Valley Civic Alliance
San Gabriel Valley Council of Governments
San Gabriel Valley Economic Partnership
San Gabriel Valley Water Associations
San Gabriel Valley Water Company
Upper San Gabriel Municipal Water District
Water Replenishment District of Southern California
West Valley Water District
DLW:m 8/21/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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