BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1630
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          Date of Hearing:   March 25, 2014

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                  Luis Alejo, Chair
                 AB 1630 (Alejo) - As Introduced:  February 10, 2014
           
          SUBJECT  :   Integrated water quality plan: Salinas Valley.

           SUMMARY  :   Appropriates $2 million from the Waste Discharge  
          Permit Fund (WDPF) to the State Water Resources Control Board  
          (State Water Board) for use by the Greater Monterey County  
          Regional Water Management Group to develop an integrated plan to  
          address the drinking water and wastewater needs of the  
          disadvantaged communities in the Salinas Valley.  Specifically,  
           this bill  :  

          1)Appropriates to the State Water Board $2 million from the  
            fines and penalties moneys deposited into the WDPF for use by  
            the Greater Monterey County Regional Water Management Group to  
            develop an integrated plan to address the drinking water and  
            wastewater needs of disadvantaged communities in the Salinas  
            Valley whose waters have been affected by waste discharges.

          2)Requires that the appropriated funds be available for  
            assessment and feasibility studies necessary to develop the  
            plan.

          3)Requires the Greater Monterey County Regional Water Management  
            Group to develop the plan in consultation with appropriate  
            stakeholders, including the State Water Board, the State  
            Department of Public Health (DPH), and representatives of  
            disadvantaged communities.

          4)Requires that the plan include identification of disadvantaged  
            communities without safe drinking water and recommendations  
            for planning, infrastructure, and other water management  
            actions that achieve affordable, sustainable solutions for  
            disadvantaged communities, including communities without  
            public water systems.

           EXISTING LAW  :

          1)Creates the WDPF, into which waste discharge permit fees are  
            deposited.  Requires that funds generated by the imposition of  
            fines, penalties, and liabilities be deposited into the WDPF.   








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            Requires these moneys to be separately accounted for, and to  
            be expended by the State Water Board, upon appropriation by  
            the Legislature, to assist regional boards, and other public  
            agencies with authority to clean up waste or abate the effects  
            of the waste, in cleaning up or abating the effects of the  
            waste on waters of the state.

          2)Establishes, in the Integrated Regional Water Management  
            Planning Act, the Integrated Regional Water Management (IRWM)  
            program.  Authorizes a regional water management group to  
            prepare and adopt an integrated regional water management  
            plan.

          3)Requires DPH to allocate $2 million of Drinking Water, Water  
            Quality and Supply, Flood Control, River and Coastal  
            Protection Bond Act of 2006 (Proposition 84) funds to Tulare  
            County for the development of an integrated water quality and  
            wastewater treatment program plan to address the drinking  
            water and wastewater needs of disadvantaged communities in the  
            Tulare Lake Basin.  Requires the Department of Water Resources  
            (DWR), in consultation with DPH, to submit the plan to the  
            Legislature.

          4)Requires the State Water Board to identify potential  
            remediation solutions and funding sources to recover costs  
            expended by the state to clean up or treat groundwater, and to  
            ensure the provision of safe drinking water to all  
            communities, requires the State Water Board to develop pilot  
            projects in the Tulare Lake Basin and the Salinas Valley that  
            focus on nitrate contamination and fulfill specific statutory  
            requirements.

          5)Requires the State Water Board to prepare and submit a report  
            to the Legislature that will improve understanding of the  
            causes of nitrate groundwater contamination, identify  
            potential remediation solutions and funding sources to recover  
            costs expended by the state to clean up or treat groundwater,  
            and ensure the provision of safe drinking water to all  
            communities.

           FISCAL EFFECT  :   Not known.

           COMMENTS  :   

           Need for the bill  :  According to the author's office, "The  








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          Salinas Valley is one of the regions in the country with the  
          largest agricultural production.  However, years of intensive  
          fertilizer and pesticide use have left a legacy of water  
          pollution in the region's surface and groundwater.  Nitrate  
          groundwater contamination not only imposes serious health risks  
          but it also results in major costs for small rural communities  
          like the ones in the Salinas Valley.  The purpose of this bill  
          is to identify affordable and efficient ways in which Salinas  
          Valley water quality can be improved and communities can have  
          access to safe drinking water."

           Nitrate contamination in California  :  Senate Bill SB X2 1  
          (Perata), Chapter 1, Statutes of 2008 Second Extraordinary  
          Session, required the State Water Board, in consultation with  
          other agencies, to prepare a report to the Legislature focusing  
          on nitrate groundwater contamination in the state and potential  
          remediation solutions.  In response, the State Water Board  
          contracted with the University of California at Davis (UCD) to  
          gather information for the report, which was released in January  
          2012.  The study showed that nitrate loading to groundwater in  
          the four-county Tulare Lake Basin and the Monterey County  
          portion of the Salinas Valley is widespread and chronic, and is  
          overwhelmingly the result of crop and animal agricultural  
          activities.  Due to long transit times, the impact of nitrates  
          on groundwater resources will likely worsen in scope and  
          concentration for several decades. 

          According to the UCD study, infants who drink water containing  
          nitrate in excess of the maximum contaminant level (MCL) for  
          drinking water may quickly become seriously ill and, if  
          untreated, may die because high nitrate levels can decrease the  
          capacity of an infant's blood to carry oxygen  
          (methemoglobinemia, or "blue baby syndrome").  High nitrate  
          levels may also affect pregnant women and susceptible adults.   
          In addition, nitrate and nitrite ingestion in humans has been  
          linked to goitrogenic (anti-thyroid) actions on the thyroid  
          gland, fatigue, reduced cognitive functioning, maternal  
          reproductive complications, including spontaneous abortion, and  
          a variety of carcinogenic outcomes.

          The UCD study proposed a range of actions that could be taken to  
          address groundwater and drinking water contamination, including  
          policy and regulatory changes and funding options.  To examine  
          these proposed actions and to "identify specific, creative,  
          viable solutions," in June 2012, Governor Brown convened a  








                                                                  AB 1630
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          Drinking Water Stakeholder Group.  The Drinking Water  
          Stakeholder Group, comprised of representatives from, among  
          others, California state and local agencies, the agricultural  
          community, the environmental justice community, academia, and  
          other water-related entities, proposed three "urgent legislative  
          concepts," which were discussed and agreed upon at the August 1,  
          2012, meeting of the full Stakeholder Group.  The Stakeholder  
          Group subsequently submitted an eight-page "Report of the  
          Drinking Water Stakeholder Group," dated August 20, 2012, of  
          which one of the proposed concepts was:

               "Directly target funding for IRWMs (or other entity where  
               appropriate) to develop an inventory of need and a plan for  
               local solutions (including shared solutions) for  
               disadvantaged communities in unincorporated areas in each  
               hydrologic region of the state as is being used in the  
               Tulare Lake Basin Disadvantaged Community Water Study (SBX2  
               1 (Perata, 2008)).  Begin with the Salinas Valley."
           
          AB 1630 is based on this recommendation from the Drinking Water  
          Stakeholder Group.
           
          Integrated regional water management (IRWM)  :  The IRWM program  
          was created by SB 1672 
          (Costa), Chapter 767, Statutes of 2002, to promote integrated  
          regional water management to ensure sustainable water uses,  
          reliable water supplies, better water quality, environmental  
          stewardship, efficient urban development, protection of  
          agriculture, and a strong economy.  Subsequently, voter-approved  
          initiatives Proposition 50 (2002), Proposition 84 (2006), and  
          Proposition 1E (2006) have funded IRWM projects.

          Nineteen organizations, including government agencies, nonprofit  
          organizations, educational organizations, water service  
          districts, private water companies, and organizations  
          representing agricultural, environmental, and community  
          interests created a "region" for the purposes of IRWM planning  
          and project implementation in Monterey County.  In addition,  
          about 250 individuals representing more than 150 agencies,  
          organizations, and interest groups are included on the  
          stakeholder list for the Greater Monterey County IRWM planning  
          effort.  Stakeholders are invited to attend Regional Water  
          Management Group meetings, participate in workshops, and provide  
          input and comments on the IRWM Plan. 









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          The goal of the Regional Water Management Group for the Greater  
          Monterey County is to create a comprehensive IRWM plan for the  
          Greater Monterey County region.  According to the Regional Water  
          Management Group, the region includes the entire Salinas River  
          watershed north of the San Luis Obispo County line, and includes  
          the entire Monterey County exclusive of the Pajaro River  
          Watershed IRWM region and Monterey Peninsula, Carmel Bay, and  
          the South Monterey Bay IRWM region established under Proposition  
          50. 

          The Regional Water Management Group for the Greater Monterey  
          County is designated as the recipient of the funds appropriated  
          in AB 1630.  

           Waste Discharge Permit Fund (WDPF):   Current law authorizes the  
          State Water Board and the Regional Water Boards to impose civil  
          liability, and fines and penalties under a variety of Water Code  
          and Health and Safety Code sections for certain statutory and/or  
          regulatory water quality and underground storage tank  
          violations.  Revenues from these fines and penalties are  
          statutorily required to be deposited into the Cleanup and  
          Abatement Account (CAA) or a special account in the WDPF,  
          depending upon which statute is being used to impose the fine or  
          penalty.  The WDPF also is funded by regulatory fees.  

          Current law allows the State Water Board to allocate moneys in  
          the CAA and the fines and penalties portion of the WDPF to  
          public agencies and to the regional water boards for cleaning up  
          or abating waste that adversely affects water quality, for  
          addressing water pollution problems that pose a public health  
          threat, and for overseeing the cleanup or abatement of water  
          pollution problems.  Funds in the WDPF are subject to  
          appropriation by the Legislature.

          Fines and penalty funds in the WDPF are statutorily required to  
          be tracked separately from the fees collected and deposited in  
          the fund.  According to the State Water Board, there is  
          currently a balance of $2.9 million in the WDPF.  In addition,  
          the balance of the fund will increase over time as a result of  
          continued enforcement actions and assessment and payment of  
          penalties.  

          The Governor's 2014-15 budget proposes an expenditure of $1.8  
          million from the WDPF to the State Water Board for enforcement  
          actions related to illegal marijuana cultivation and $500,000 in  








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          WDPF funding for the Department of Fish and Wildlife for similar  
          enforcement actions.  The proposed funding for AB 1630 would  
          conflict with the Governor's proposed budget.

           Prior legislation  :  This bill is a reintroduction of AB 1  
          (Alejo, 2013).  AB 1 passed out of the Assembly Environmental  
          Safety and Toxic Materials Committee on a 6-0 vote, but was held  
          in the Assembly Appropriations Committee.  Similar legislation  
          was proposed in 2012.  That bill, AB 403 (Alejo), passed out of  
          the Senate Environmental Quality Committee on a 6 - 0 vote, but  
          was held in the Senate Appropriations Committee.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support
           
          Association of California Water Agencies
          Clean Water Action 
          Community Water Center

           Opposition 

           None received.
           
          Analysis Prepared by  :    Bob Fredenburg / E.S. & T.M. / (916)  
          319-3965