BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB1630
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          Date of Hearing:   April 9, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                 AB 1630 (Alejo) - As Introduced:  February 10, 2014 

          Policy Committee:                              Environmental  
          Safety and Toxic Materials                    Vote: 5-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill appropriates $2 million to the State Water Resources  
          Control Board (SWRCB) from the Waste Discharge Permit Fund  
          (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.  Specifically, this bill:

          1)Requires the plan to address the needs of disadvantaged  
            communities in the Salinas Valley whose waters have been  
            affected by waste discharges and include recommendations for  
            planning, infrastructure and water management actions  
            necessary to provide efficient and affordable access to safe  
            drinking water.

          2)Requires the appropriated funds to be available for the  
            assessment and land feasibility studies necessary to develop  
            the plan.  Allows remaining funds, if any, to be spent on  
            projects or further implementation studies.

          3)Requires the Greater Monterey County Regional Water Management  
            Group to consult with the SWRCB, Department of Public Health,  
            representatives of disadvantaged communities and other  
            appropriate stakeholders. 

           FISCAL EFFECT  

          1)A $2 million appropriation from the Waste Discharge Permit  
            Fund. 

          2)Unknown, likely minor, costs to SWRCB and the Department of  








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            Public Health for participation in the development of the  
            plan.
                
           Revenues from regulatory fees, fines and penalties for water  
          quality and underground storage tank violations are deposited in  
          the WDPF to be used for waste clean-up or abatement. 
             
           According to the SWRCB, there is currently a balance of  
          approximately $2.9 million in the account.  The Governor's  
          2014-15 proposed budget includes $2.3 million from this account  
          for state and regional water boards and the Department of Fish  
          and Wildlife to regulate marijuana growing operations to prevent  
          or reduce adverse water quality and fish and wildlife impacts.   
          Another $1 million is proposed to be spent during FYs 2015-16  
          and 2016-17 for similar purposes.  
              
          If the Legislature approves the Governor's proposal, there may  
          not be sufficient funding in the account.   According to the  
          SWRCB, future penalty funds are difficult to predict and have  
          ranged from $200,000 and $1.5 million per year.  In anticipation  
          of some future funds, the Governor's proposed expenditures  
          exceed the current account balance by $400,000.

           COMMENTS  

           1)Purpose  .  This bill provides the funds necessary to develop an  
            Integrated Water Management plan for the Salinas Valley to  
            identify ways in which water quality can be improved and  
            greater access to safe drinking water can be provided to  
            disadvantaged communities in this region.

           2)Background  .  Polluted surface and groundwater pose serious  
            health risks and will require major remediation efforts.  The  
            UC Davis Nitrate Report, released in January of 2012,  
            identified irrigated agriculture as the single largest source  
            of nitrate pollution in groundwater.  The report also  
            identifies the Salinas Valley as a significantly impacted  
            area. 

            The Regional Water Management Group for the Greater Monterey  
            County is was formed to create a comprehensive plan for the  
            region.  The group includes government agencies and private  
            and public organizations throughout the region.   

           3)Prior Legislation.  This bill is a reintroduction of last  








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            year's AB 1 (Alejo) which was held on this committee's  
            Suspense File.  

           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081