BILL ANALYSIS �
AB 1043
Page 1
ASSEMBLY THIRD READING
AB 1043 (Chau)
As Amended April 16, 2013
Majority vote
ENVIRONMENTAL SAFETY 7-0
APPROPRIATIONS 17-0
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|Ayes:|Alejo, Dahle, Bloom, |Ayes:|Gatto, Harkey, Bigelow, |
| |Donnelly, Lowenthal, | |Bocanegra, Bradford, Ian |
| |Stone, Ting | |Calderon, Campos, |
| | | |Donnelly, Eggman, Gomez, |
| | | |Hall, Ammiano, Linder, |
| | | |Pan, Quirk, Wagner, Weber |
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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 California Department of Public Health
(CDPH) 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.
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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.
2)Requires the CDPH, 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 CDPH to require repayment of Proposition 84 funds
from parties responsible for contamination.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, unknown revenue losses, potentially in the range of
the Prop 84 groundwater remediation program at the CDPH (bond
funds) offset to a limited degree by reduced administrative
costs to DPH. The bill would result in minor, absorbable costs
to DTSC to review and approve expenditure plans.
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 CDPH 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
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portions of the cities of Alhambra, Arcadia, Azusa, Baldwin
Park, Industry, Irwindale, El Monte, La Puente, Monrovia,
Rosemead, South El Monte, and West Covina.
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 CDPH 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 (PRC) Section 75025, which
mandates that the CDPH 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:
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AB 467 (Eng) 2012: AB 467 was similar to AB 1043 and was
approved by the Legislature in 2012 but vetoed by Governor
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.
Analysis Prepared by : Bob Fredenburg/ E.S. & T.M. / (916)
319-3965
FN: 0000839