BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 900
                                                                  Page 1

          Date of Hearing:   June 28, 2011

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                Bob Wieckowski, Chair
                    SB 900 (Steinberg) - As Amended:  May 9, 2011

           SENATE VOTE  :   34-0
           
          SUBJECT  :   Regional Water Quality Control Boards (RWQCBs) 
          membership.

           SUMMARY  :   Modifies the conflict of interest requirements for 
          appointees to the RWQCBs.

          Specifically,  this bill  :

             1)   Allows a person to be appointed and serve as a member of 
               a RWQCB if they receive a significant income from a person 
               subject to waste discharge requirements, or an applicant 
               for waste discharge requirements if the waste discharge is 
               outside the jurisdiction of that regional board.

             2)   Provides that the provisions of the bill shall be 
               implemented only with the approval of the United States 
               Environmental Protection Agency (US EPA) pursuant to the 
               Federal Clean Water Act.


           EXISTING LAW  
           
           Under the Porter-Cologne Water Quality Act:

             1)   Provides that the SWRCB and nine Regional Water 
               Quality Control Boards (RWQCBs) as the principal state 
               agencies with the responsibility for controlling water 
               quality in California.

             2)   Provides that the SWRCB be comprised of five full-time 
               salaried board members who each fill a different 
               specialized position based on expertise (representing the 
               public, engineering expertise, water quality expertise 
               and water supply).  The members are appointed by the 
               Governor and confirmed by the Senate.










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             3)   Provides that the nine RWQCBs are semi-autonomous and 
               are comprised of nine part-time Board members who each 
               fill a different specialized position representing a 
               specific interest:  (water supply, conservation, and 
               production; irrigated agriculture; industrial water use; 
               municipal government; county government; recreation, fish 
               and wildlife; public; and two water quality members).  
               The members are appointed by the Governor and confirmed 
               by the Senate.

             4)   Prohibits a person from being a member of SWRCB or a 
               RWQCB if that person receives or has received during the 
               previous two years a significant portion of his or her 
               income directly from a person subject to waste discharge 
               requirements or applicants for prescribed waste discharge 
               requirements.

           FISCAL EFFECT  :   This bill is non-fiscal.

           COMMENTS  : 
           Need for the bill  .  According to the sponsors of this bill, 
          "This change in statute will expand the pool of candidates 
          eligible to serve on Regional Water Boards (RWQCB) by focusing 
          the application of the 10-percent rule to apply on a per-region 
          basis.  Currently, people who receive more than 10 percent of 
          their incomes from regulated interests are ineligible to serve 
          which makes the pool of qualified individuals small.  This bill 
          would apply the provision to income from persons or entities 
          that receive NPDES permits from the member's regional water 
          board but would not apply the restriction to income that is from 
          persons or entities subject to an NPDES permit issued by other 
          RWQCB."

           Standards for appointment to the RWQCBs  .  California Water Code 
          Section 13201 provides for the Governor to appoint nine members 
          to each of the nine RWQCBs.  Each board member must reside or 
          have a principal place of business within the region.  
          Appointments are subject to confirmation by the state Senate.

          Both federal and state law provides that to be eligible for 
          appointment to a RWQCB, that member must be free of conflicts of 
          interest.  The Federal Clean Water Act (Section 304 of the Clean 
          Water Act) provides that the US EPA Administrator shall 
          promulgate guidelines establishing the minimum procedural and 
          other elements of any State program including a requirement that 








                                                                  SB 900
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          no board or body which approves permit applications or portions 
          thereof shall include, as a member, any person who receives, or 
          has during the previous two years received, a significant 
          portion of his income directly or indirectly from permit holders 
          or applicants for a permit.

          California's Porter-Cologne Water Quality Control Act (Water 
          Code section 13388) mirrors federal law and provides that no 
          person shall be a member of the SWRCB or a RWQCB if he or she 
          receives or has received during the previous two years a 
          significant portion of his income directly or indirectly from 
          any person subject to waste discharge requirements or applicants 
          for waste discharge requirements.

           Augments in support:    A coalition of business and agricultural 
          interests are supporting the proposed change to RWQCB conflict 
          of interest standards.  Specifically, they have stated, "In 
          2008, the California Environmental Protection Agency developed 
          the Water Quality Improvement Initiative in an effort to improve 
          the ability to identify, appoint and retain qualified candidates 
          to serve on Regional Water Quality Control Boards.  The 10 
          percent rule was one proposal that came out of that effort as it 
          has been problematic finding qualified people to serve".  
           
           Augments in opposition:   A coalition of environmental groups 
          have opposed the proposed changes to the conflict of interest 
          standards as they have raised issues about the operational 
          effect of the change as well as the need for federal conformance 
          under the Federal Clean Water Act.  Specifically they state, 
          "This weakening effort raises significant legal concerns, as the 
          conflicts requirement is a federal Clean Water Act mandate, and 
          state law cannot scale back on federal CWA requirements.  It has 
          been our regular, direct experience over many years of seeking 
          to fill Regional Water Board seats with qualified members that 
          this task can sometimes be challenging - but for reasons other 
          than a potential conflict outside of the region where the 
          appointee lives and works.  In particular, statewide permit 
          conflicts (changes to which are extremely unlikely to pass 
          federal U.S. EPA legal scrutiny) and low pay ($100/day) and are 
          the major difficulties with filling seats, not other-region 
          business ties.  Moreover, contrary to the sponsor's assertion, 
          it is inaccurate to state that the federal 10% conflict 
          provisions have caused a "dramatic reduction" in the pool of 
          farmers eligible to be appointed. In fact, because the "10% 
          rule" only applies to CWA NPDES permit holders, and the Act 








                                                                  SB 900
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          exempts irrigated agriculture return flows, irrigated 
          agriculture appointees regulated only by waivers under the 
          state's Porter-Cologne Act are not bound by this federal CWA 
          conflicts mandate."  

          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           

          Alliance of Western Milk Producers 
          American Council of Engineering Companies of California 
          California Agricultural Irrigation Association 
          California Association of Sanitation Agencies 
          California Business Properties Association 
          California Chamber of Commerce 
          California Citrus Mutual 
          California Cotton Ginners and Growers Associations 
          California Farm Bureau Federation
          California Forestry Association 
          California Grain and Feed Association 
          California Grape and Tree Fruit League 
          California League of Food Processors 
          California Manufacturers & Technology Association 
          California Metals Coalition 
          California Pear Growers 
          California Rice Commission 
          California Rice Industry Association 
          California Seed Association 
          California State Floral Association
          California Trucking Association 
          California Warehouse Association 
          California Wheat Growers Association 
          Chemical Industry Council of California 
          East San Joaquin Water Quality Coalition 
          El Dorado Irrigation District 
          Grower-Shipper Association of Central California 
          Grower-Shipper Association of Santa Barbara and San Luis Obispo 
          Counties 
          Kings River Conservation District 
          Kings River Water Association 
          Monterey County Farm Bureau 
          Nisei Farmers League 
          Northern California Water Association 
          Pacific Egg and Poultry Association 








                                                                  SB 900
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          Paso Robles Wine Country Alliance 
          Salinas Valley Chamber of Commerce 
          Santa Barbara County Farm Bureau 
          Southern San Joaquin Valley Water Quality Coalition 
          Valley Ag Water Coalition 
          Western Agricultural Processors Association 
          Western Growers 
          Western Plant Health Association 
          Wine Institute


           
          Opposition
           
          California Coastkeeper Alliance
          Heal the Bay
          Clean Water Action
          California Sportfishing Protection Alliance
          Sierra Club California



          Analysis Prepared by:    Bob Fredenburg / E.S. & T.M. / (916) 
          319-3965