BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1669
                                                                  Page  1

          Date of Hearing:   May 16, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     AB 1669 (Perea) - As Amended:  May 1, 2012 

          Policy Committee:                              Environmental 
          Safety and Toxic Materials                    Vote: 6-1

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

           SUMMARY  

          This bill creates the Nitrate at Risk Area Fund, administered by 
          the State Water Resources Control Board (SWRCB), funds within 
          which, upon appropriation, shall be used to pay for solutions 
          for disadvantaged communities suffering from 
          nitrate-contaminated groundwater.
           The bill also requires the Department of Public Health (DPH), 
          working with the SWRCB, to designate such areas by using 
          existing data on public water systems.

           FISCAL EFFECT  

          1)One-time costs to DPH of an unknown amount, but in the range 
            of several hundred thousand dollars, to identify disadvantaged 
            communities suffering from nitrate-contaminated groundwater.
             
          2)One-time minor costs to SWRCB, in the tens of thousands of 
            dollars, to assist DPH.
           
          3)Cost pressure in an unknown amount, likely in the millions of 
            dollars, to provide funding for expenditures from the Nitrate 
            at Risk Area Fund to finance solutions for disadvantaged 
            communities suffering from nitrate-contaminated groundwater 
            for their source of drinking water that do not have a reliable 
            access to safe, affordable drinking water.

           COMMENTS  

           1)Rationale  .  The author notes that many communities in 
            California, especially those in the agricultural regions, rely 
            on groundwater supplies for drinking water that are 








                                                                  AB 1669
                                                                  Page  2

            increasingly contaminated by nitrates.  The author contends 
            low-income families are especially harmed by such 
            contamination because they must spend a large percentage of 
            their incomes on bottled drinking water.  The author intends 
            this bill to help channel money to communities that need it 
            and expedite the development and funding of drinking water 
            solutions.

           2)Background. Water Boards and Department of Public Health 
            Regulate Water Quality.   The State Water Resources Control 
            Board, in conjunction with nine semiautonomous regional 
            boards, regulates water quality in the state. The regional 
            boards-which are funded by the state board and are under the 
            state board's oversight-implement water quality programs in 
            accordance with policies, plans, and standards developed by 
            the state board.  

             The state board carries out its water quality responsibilities 
            by (a) establishing wastewater discharge policies and 
            standards; (b) implementing programs to ensure that the waters 
            of the state are not contaminated by underground or 
            aboveground tanks; and (c) administering state and federal 
            loans and grants to local governments for the construction of 
            wastewater treatment, water reclamation, and storm drainage 
            facilities. 
             
             DPH regulates over 8,000 public water systems, which can be 
            either publicly or privately owned, that regularly supply 
            drinking water to at least 25 people or 15 service 
            connections. These systems include both groundwater systems 
            and surface water systems and supply drinking water to the 
            majority of Californians.
            
             Existing law requires DPH to permit a public water system that 
            demonstrates it can provide a reliable and adequate supply of 
            water at all times that is pure, wholesome, potable and does 
            not endanger the health of consumers. A public water system 
            must notify users of contaminants found in water supplies, of 
            certain failures in water quality and water quality 
            monitoring, and of other imminent dangers to public health.  
             
           3)Recent Statute Requires Water Quality Reports.  Chapter 670, 
            Statutes of 2008 (AB 2222, Caballero) requires SWRCB to submit 
            a report to the Legislature that identifies communities that 
            rely on contaminated groundwater as a primary source of 








                                                                  AB 1669
                                                                  Page  3

            drinking water; the principal contaminants and constituents of 
            concern; and potential solutions and funding sources to clean 
            up or treat groundwater or provide alternative water supplies. 
             According to the board's draft AB 2222 report, 682 
            communities, serving more than 21 million people, rely on 
            groundwater contaminated by at least one contaminant. The 
            draft report hedges, warning that its findings do not 
            necessarily reflect the quality of water that is served to the 
            public, since many communities treat their water prior to 
            delivery.
             
             Chapter 1, Statutes of 2008 Second Extraordinary Session (SBX2 
            1, Perata) required the SWRCB, in consultation with other 
            agencies, to prepare a report to the Legislature focusing on 
            nitrate groundwater contamination and potential remediation 
            solutions. In response, SWRCB commissioned a UC Davis study, 
            released in January 2012, titled Addressing Nitrate in 
            California's Drinking Water.  The study found widespread 
            groundwater contamination in the Central Valley and Salinas 
            Valley, the areas in which the study focused.

           4)Unfunded Study; Unfunded Fund.   The author intends this bill 
            to help identify solutions and channel funds to communities 
            that, undeniably, suffer disproportionately from nitrate 
            contamination.  However, the bill provides no money to fund 
            either the study required by the bill of the fund it creates.  
             
           5)Related Legislation.  
           
              a)   AB 2208 (Perea)  authorizes DPH, when implementing the 
               Safe Drinking Water State Revolving Fund program, to 
               consolidate multiple community projects to meet safe 
               drinking water standards. AB 2208 is pending before this 
               committee. 

              b)   AB 2238 (Perea)  requires DPH to promote the 
               consolidation of small community water systems that serve 
               disadvantaged communities. AB 2238 is pending before this 
               committee. 

              c)   AB 2334 (Fong)  requires the Department of Water 
               Resources to analyze drinking water and wastewater services 
               affordability for low-income residents.  AB 2334 is pending 
               before this committee.  









                                                                  AB 1669
                                                                  Page  4

              d)   AB 2529 (Wieckowski)  authorizes DPH to adopt interim 
               regulations and take other actions to expedite the process 
               of providing funds for drinking water projects, especially 
               to severely disadvantaged communities. AB 2529 is pending 
               before this committee.

           6)Support.   This bill is supported by the Community Water Center 
            (sponsor) and several groups that advocate for the right of 
            Californians to have access to clean, affordable water.  

          7)There is no opposition formally registered to this bill.
           
           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081