BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 900
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          SENATE THIRD READING
          SB 900 (Steinberg)
          As Amended  May 9, 2011
          Majority vote 

           SENATE VOTE  :34-0  
           
           ENVIRONMENTAL SAFETY          9-0                               
           
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          |Ayes:|Wieckowski, Miller, Campos, |   |                          |
          |     |                            |   |                          |
          |     |Chesbro, Davis, Feuer,      |   |                          |
          |     |Bonnie Lowenthal, Morrell,  |   |                          |
          |     |Valadao                     |   |                          |
          |     |                            |   |                          |
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          SUMMARY  :  Modifies the conflict of interest requirements for 
          appointees to Regional Water Quality Control Boards (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 provided that 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 (U.S. EPA) pursuant to the Federal Clean 
            Water Act.

           EXISTING LAW  :
           
           Under the Porter-Cologne Water Quality Act:

          1)Provides that the State Water Resources Control Board 
            (SWRCB) and RWQCBs are the principal state agencies with the 
            responsibility for controlling water quality in California.

          2)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; 








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            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.

          3)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  :  None

           



          COMMENTS  : 

           Need for the bill  :  According to the sponsors of this bill, 
          Western Growers, "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."

          Both the Federal Clean Waste Act and California's Porter-Cologne 
          Water Quality Control Act provides that to be eligible for 
          appointment to a RWQCB, that member must be free of conflicts of 
          interest.  The Federal Clean Water Act (Clean Water Act, Section 
          304) provides that the U.S. EPA Administrator shall promulgate 
          guidelines establishing the minimum procedural and other 
          elements of any state program including a requirement that 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 








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          portion of his income directly or indirectly from permit holders 
          or applicants for a permit.

           Arguments 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."  
           
           Arguments in opposition  :  A coalition of environmental groups 
          has opposed the proposed changes to the conflict of interest 
          standards and 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 
          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."  


          Analysis Prepared by  :    Bob Fredenburg / E.S. & T.M. / (916) 
          319-3965                                               FN:  
          0001438









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