BILL ANALYSIS �
AB 1043
Page 1
Date of Hearing: May 15, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1043 (Chau) - As Amended: April 16, 2013
Policy Committee: Environmental
Safety and Toxic Materials Vote: 7-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
Modifies the disposition of Proposition 84 funds collected from
responsible parties for groundwater contamination clean-up in
the San Gabriel Valley. 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 use 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.
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.
FISCAL EFFECT
AB 1043
Page 2
1)Unknown revenue losses, potentially in the range of the Prop
84 groundwater remediation program at the DPH (bond funds)
offset to a limited degree by reduced administrative costs to
DPH.
Current law requires repayment for costs that are subsequently
recovered from parties responsible for the contamination.
These funds are designated for San Gabriel groundwater
clean-up.
2)Minor, absorbable costs to DTSC to review and approve
expenditure plans.
COMMENTS
1)Purpose. According to the author, this bill is intended to
allow local agencies that have been awarded Prop 84 funds from
DPH for groundwater projects who subsequently recover funds
from responsible parties to use the money to fund additional
groundwater cleanup activities.
2)Background . Proposition 84 was approved by the voters in 2006
and among other things authorized $60 million to the DPH 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.
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
AB 1043
Page 3
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
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.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081