BILL ANALYSIS �
AB 1043
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Date of Hearing: April 30, 2013
ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
Luis Alejo, Chair
AB 1043 (Chau) - As Amended: April 16, 2013
SUBJECT : Safe Drinking Water, Water Quality and Supply, Flood
Control, River and Coastal Protection Act of 2006 (Proposition
84).
SUMMARY : Modifies the disposition of Proposition 84 funds
collected from responsible parties for groundwater contamination
clean-up. Specifically, this bill :
1)Allows local agencies receiving grants or loans from
Proposition 84 from the Department of Public Health (DPH) for
groundwater projects that are able to subsequently recover
costs from responsible parties, to keep that money to fund
additional groundwater cleanup activities.
2)In order to be eligible to the use of Proposition 84 funds
recovered from responsible parties, the local agency must meet
the following requirements:
a) Sites eligible for cost recovery are those authorized by
Federal Superfund Comprehensive Environmental Response,
Compensation, and Liability Act or other federal or state
law;
b) The local agency must submit an expenditure plan to the
Department of Toxic Substances Control (DTSC) for its
review and approval; and
c) Funds recovered from a responsible party that are in
excess of the costs to conduct a project shall be remitted
to DTSC for deposit into the Site Remediation Account for
orphan groundwater contamination cleanup projects at sites.
EXISTING LAW :
1)Authorizes, under Proposition 84, approved by the voters in
2006, the State to sell about $5.4 billion in general
obligation bonds for safe drinking water, water quality, and
water supply; flood control; natural resource protection; and
park improvements.
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2)Requires the DPH, when implementing the provisions of
Proposition 84, to, among other things, to develop and adopt
guidelines and regulations, consult with other entities,
conduct studies, and follow certain procedures for
establishing a project, grant, loan or other financial
assistance program implementing the initiative.
3)Requires DPH to require repayment of Proposition 84 funds from
parties responsible for contamination.
FISCAL EFFECT : Not known
COMMENTS :
Need for the bill: According to the author, this bill is
needed, "to allow local agencies that have been awarded
Proposition 84 funds from DPH for groundwater projects that are
able to subsequently recover funds from responsible parties to
keep the money 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."
San Gabriel Valley groundwater contamination: This bill is
supported by the Upper San Gabriel Valley Municipal Water
District, which is involved in the cleanup of the superfund
sites in the San Gabriel Valley. These sites include multiple
areas of contaminated groundwater in the 170-square mile San
Gabriel Valley. The contaminated areas underlie significant
portions of the cities of Alhambra, Arcadia, Azusa, Baldwin
Park, Industry, Irwindale, El Monte, La Puente, Monrovia,
Rosemead, South El Monte, and West Covina.
According to the Federal Environmental Protection Agency (US
EPA), the groundwater contamination in the San Gabriel Valley
was first detected in 1979. By 1984, when USEPA added four
areas of contamination to the Superfund National Priorities
List, 59 wells were known to be contaminated with high levels of
volatile organic compounds.
The San Gabriel Basin aquifer is a major source of drinking
water for Southern California. Despite the contamination, the
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Valley's groundwater continues to provide approximately 90% of
the drinking water used by San Gabriel Valley businesses and
residents. EPA's Superfund projects are assisting in restoring
water supplies that have been affected by the contamination.
Additional projects have been funded by federal grants, local
assessments on water sales, and water rates.
Proposition 84 : Approved by the voters in 2006, Proposition 84
authorized $60 million to the CDPH 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.
The DPH requires repayment for costs that are subsequently
recovered from parties responsible for the contamination.
Modification to Proposition 84: When the voters approved
Proposition 84, the initiative included specific language
requiring the repayment of funds from those persons or
businesses that caused the toxic contamination. The initiative
included Public Resources Code Section 75025, which mandates
that the DPH require repayment of subject funds. The full text
of PRC Section 75025 is as follows:
The sum of sixty million dollars ($60,000,000)
shall be available to the Department of Health
Services for the purpose of loans and grants for
projects to prevent or reduce contamination of
groundwater that serves as a source of drinking
water. The Department of Health Services shall
require repayment for costs that are subsequently
recovered from parties responsible for the
contamination. The Legislature may enact
legislation necessary to implement this section.
While the language of Proposition 84 allows the Legislature to
enact legislation to implement the programs, on the other hand
it is not clear if the repayment requirements to the State as
provided in the original bond act would be met under the
provisions of this bill.
Prior Legislation:
AB 467 (Eng) 2012: AB 467 was similar to AB 1043 and was
approved by the Legislature in 2012 but vetoed by Governor
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Brown. In the veto message Governor Brown suggested a simpler
structure for addressing the issue of cost recovered funds,
specifically;
"I support the leveraging of all available funding by
ensuring that recovered funds are effectively used in the
jurisdictions that recover them. Unfortunately, the
structure that was developed is cumbersome and inefficient.
I am directing the Department of Public Health and the
Department of Toxic Substances Control, to once again work
with the Legislature to develop a more streamlined way to
reinvest these funds."
REGISTERED SUPPORT / OPPOSITION :
Support:
San Gabriel Basin Water Quality Authority (Sponsor)
Three Valley Municipal Water District
San Gabriel Valley Municipal Water District
Opposition:
None on file.
Analysis Prepared by : Bob Fredenburg/ E.S. & T.M. / (916)
319-3965