BILL ANALYSIS �
AB 640
Page 1
ASSEMBLY THIRD READING
AB 640 (Logue)
As Amended January 4, 2012
Majority vote
ENVIRONMENTAL SAFETY 8-0
APPROPRIATIONS 17-0
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|Ayes:|Wieckowski, Miller, |Ayes:|Fuentes, Harkey, |
| |Campos, Chesbro, 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 : Increases the size of small community facilities that
are allowed to use mandatory minimum civil penalties (MMPs) for
remediation of water code violations. Specifically, this bill
expands the definition of small community publicly owned
treatment works (POTWs) that are allowed to use MMPs for
remediation of water code violations by increasing the allowable
population serving the small community POTW from 10,000 to
20,000 persons.
EXISTING LAW :
1)Authorizes the State Water Resources Control Board (SWRCB) and
the California regional water quality control boards (RWQCBs)
to prescribe waste discharge requirements in accordance with
the federal Clean Water Act. (Water Code Section 13385(a).)
2)Imposes a mandatory minimum penalty, with certain exceptions,
of $3,000 for each serious waste discharge violation, as
defined, or for certain other described violations if those
violations occur four or more times in any period of six
consecutive months. (Water Code Section 13385(h).)
3)Authorizes the SWRCB or a RWQCB to choose to require a POTW
serving a small community, in lieu of assessing the MMP
against that POTW, to spend an equivalent amount toward
completion of a compliance project proposed by that POTW if
AB 640
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certain requirements are met. (Water Code Section 13385(k).)
4)Defines a "publicly owned treatment works serving a small
community" as a publicly owned treatment works that serves a
population of 10,000 or fewer. (Water Code Section 13385(k)
(2).)
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this bill would result in multiple fiscal effects
including:
1)Minor, absorbable costs to the State Water Resources Control
Board and the regional boards resulting from increased
oversight of water systems committed to remedying water code
violations rather than simply paying minimum mandatory
penalties (MMPs).
2)Unknown, potentially significant annual water code violation
penalty revenue loss, ranging from $100,000 to $1 million
annually. Absent this bill, penalty revenues would be used to
clean up and abate water pollution sources. Under this bill,
these penalty revenues will be used by eligible water
facilities to make system improvements to abate or prevent
water pollution.
COMMENTS :
Need for the bill . According to the author, "AB 640 would
provide much needed relief to POTWs that serve small communities
that are facing financial difficulty. It encourages POTWs to
work toward compliance as their primary objective, and makes
paying for fines secondary."
Mandatory minimum penalties (MMPs) . MMPs were established in
1999 in response to concerns over the SWRCB and RWQCBs 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.
The SWRCB and the RWQCBs are also required by Water Code
Section 13385(i) to assess MMPs of $3,000 for multiple chronic
violations.
The MMP statute was designed to address the failure of the SWRCB
and the RWQCBs enforcement of reporting requirements for waste
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discharge permits. In 2003, the Legislature strengthened the
MMP laws by specifically adding waste discharge reporting
failures to the MMP (AB 1541 (Monta�ez), Chapter 609, Statutes
of 2003). The 2003 provisions were added to the statute when it
was found that only 1% of over 4,000 reporting violations were
subject to the existing penalties.
Current definitions of small communities . The Water Code
contains definitions for "small community" with population caps
for certain programs and the Public Resources Code provides yet
another definition of the small communities eligible for
specialized regulatory considerations. These statutory
population maximums range from 3,500 to 20,000 residence.
SWRCB Water Quality Improvement Initiative: mandatory minimum
penalties for water code violations . In 2008, the SWRCB adopted
the Water Quality Improvement Initiative which included a series
of recommendations to improve enforcement of water quality laws
in California. Included in this report were the recommendations
contained in this bill. The SWRCB report recommended increasing
the population MMP criteria from a maximum of 10,000 people to a
maximum of 20,000 people.
Analysis Prepared by : Bob Fredenburg / E.S. & T.M. / (916)
319-3965
FN: 0003030