BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE JUDICIARY COMMITTEE
                         Senator Hannah-Beth Jackson, Chair
                              2013-2014 Regular Session


          AB 2442 (Gordon)
          As Amended June 4, 2014
          Hearing Date: June 24, 2014
          Fiscal: No
          Urgency: No
          TH   
                    

                                        SUBJECT
                                           
             Porter-Cologne Water Quality Control Act: Remedial Action:  
                                      Liability

                                      DESCRIPTION  

          This bill would provide immunity from civil liability to the  
          State Water Resources Control Board, Regional Water Boards, and  
          their contractors, for actions taken in furtherance of an  
          investigation, cleanup, abatement, or other remedial work,  
          unless the action was performed in a reckless manner.  This bill  
          would also state that the above entities shall not incur any  
          obligation to undertake additional investigation, cleanup,  
          abatement, or other remedial work, solely as a result of having  
          taken such actions.

                                      BACKGROUND  

          The Legislature passed the Porter-Cologne Water Quality Control  
          Act (Act) in 1969 which granted the State Water Resources  
          Control Board and nine Regional Water Quality Control Boards  
          with broad duties and powers to preserve and enhance all  
          beneficial uses of the waters of the state.  (See Wat. Code Sec.  
          13000 et. seq.)  Among other things, the Act grants the state  
          and regional water boards the authority to regulate discharges  
          of pollutants, to issue cleanup and abatement orders to those  
          who discharge waste in violation of the Act, and to undertake  
          cleanup, abatement, and remedial actions.  For cleanup actions  
          undertaken by a state or regional water board, the Act  
          authorizes the board to bring a cost recovery action against the  
          parties responsible for discharging the waste.

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          Under existing law, the state and regional water boards may  
          incur liability for any independent harm caused by their cleanup  
          activities to the same extent as any other party.  (See Gov.  
          Code Sec. 815.2.)  Some stakeholders have identified this  
          potential for liability as a factor that limits the willingness  
          of the boards to engage in cleanup activities.  One stakeholder,  
          the Clean Water Fund, has suggested that limiting the liability  
          of the boards may incentivize them to undertake more cleanups.   
          In its December 2013 report "Cleaning up California's Polluted  
          Waters," Clean Water Fund states:

            Cleanup or actions to stop the spread of pollution performed  
            by government agencies such as the water boards can enhance  
            water remediation programs.  The Regional Boards do have  
            authority, albeit subject to limitations, to remediate certain  
            pollution sources when the responsible party is recalcitrant  
            or unknown.  They are, however, reluctant to do so because  
            under current "Good Samaritan" laws, once they get involved  
            they are then permanently considered a "responsible party" and  
            potentially subject to a heavy burden of liability for even  
            limited actions.  Good Samaritan laws, therefore, can have a  
            chilling effect on state action.

            There are two categories of "Good Samaritans."  The first  
            includes non-governmental agencies and is governed by federal  
            law.  Thus any changes to the law would have to be done at  
            that level.  The second category consists of government  
            agencies and is under state jurisdiction.  While current state  
            law provides the Department of Toxic Substances Control with a  
            limited degree of liability protection when they enter and  
            take action at a hazardous site, the water boards do not have  
            the same explicit protections.

            While it would be unwise to eradicate liability needed to  
            protect environmental and environmental justice interests,  
            workshop participants did recommend working with the  
            California Legislature to define and provide reasonable limits  
            to liability for the water boards within the State's water  
            code.  (Ventura and Gordon, Cleaning up California's Polluted  
            Waters (Dec. 2013)  [as of June 22, 2014]  
            p. 17.)

          This bill would provide immunity from civil liability to the  
          state water board, a regional water board, or any authorized  
          person for damages or penalties resulting from any act or  
                                                                      



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          omission taken in furtherance of any investigation, cleanup,  
          abatement, or other remedial work unless the act or omission was  
          performed in a reckless manner.  This bill would also provide  
          that the state water board, a regional water board, or any  
          authorized person would not incur any obligation to undertake  
          additional investigation, cleanup, abatement, or other remedial  
          work solely because of its decision to undertake that initial  
          work.

                                CHANGES TO EXISTING LAW
           
           Existing law  provides that any person who discharges waste into  
          the waters of this state in violation of any waste discharge  
          requirement shall, upon order of the regional water board, clean  
          up the waste or abate the effects of the waste.  (Wat. Code Sec.  
          13304(a).)

           Existing law  provides that a regional water board may expend  
          moneys to perform any cleanup, abatement, or remedial work  
          required to prevent substantial pollution, nuisance, or injury  
          to any waters of the state.  (Wat. Code Sec. 13304(b).)
           Existing law  provides that a regional water board shall be  
          permitted reasonable access to the affected property as  
          necessary to perform any cleanup, abatement, or other remedial  
          work.  Existing law also provides that a regional water board  
          may contract with a water agency to perform, under the direction  
          of the regional board, investigations of existing or threatened  
          groundwater pollution or nuisance.  (Wat. Code Sec. 13304(b).)

           Existing law  provides that if the waste is cleaned up or the  
          effects of the waste are abated other necessary remedial action  
          is taken by any governmental agency, the person or persons who  
          discharged the waste are liable to that governmental agency to  
          the extent of the reasonable costs actually incurred in cleaning  
          up the waste, abating the effects of the waste, supervising  
          cleanup or abatement activities, or taking other remedial  
          action.  (Wat. Code Sec. 13304(c).)  

          Existing law  provides that a public entity is not liable for an  
          injury, whether such injury arises out of an act or omission of  
          the public entity or a public employee or any other person,  
          except as otherwise provided by statute.  (Gov. Code Sec. 815.)

           Existing law  provides that a public entity is liable for injury  
          proximately caused by an act or omission of an employee of the  
          public entity within the scope of his employment if the act or  
                                                                      



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          omission would have given rise to a cause of action against that  
          employee or his personal representative.  (Gov. Code Sec.  
          815.2.)

           Existing law  provides that where a public entity is under a  
          mandatory duty imposed by an enactment that is designed to  
          protect against the risk of a particular kind of injury, the  
          public entity is liable for an injury of that kind proximately  
          caused by its failure to discharge the duty unless the public  
          entity establishes that it exercised reasonable diligence to  
          discharge the duty.  (Gov. Code Sec. 815.6.)

           This bill  would provide that if the state or a regional water  
          board, either directly or by contracting for services,  
          undertakes to perform an investigation, cleanup, abatement, or  
          other remedial work, both of the following shall apply:
           the state board, regional board, or any authorized person  
            shall not be civilly liable for damages or penalties for any  
            act or omission in furtherance of any investigation, cleanup,  
            abatement, or other remedial work, unless the act or omission  
            was performed in a reckless manner; and
           the state board, regional board, or any authorized person  
            shall not incur any obligation to undertake additional  
            investigation, cleanup, abatement, or other remedial work,  
            solely as a result of having conducted the work.

           This bill  would define "authorized person" to mean any of the  
          following:
           an employee or independent contractor of the state board or  
            regional board;
           a person from whom investigation, cleanup, abatement, or other  
            remedial work is contracted by the state board or regional  
            board; and
           an employee or independent contractor of either of the above.
           This bill  would specify that the above immunities shall apply to  
          claims presented and to causes of action in civil complaints or  
          writ petitions filed on or after January 1, 2015.

                                        COMMENT
           
          1.  Stated need for the bill  
          
          The author writes:
          
            Under current law, the Water Boards can perform, or contract  
            for, the investigation, cleanup, abatement, or remedial work  
                                                                      



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            that is required to address waste discharges that have  
            polluted, or threaten to pollute, waters of the state.   
            However, the Water Boards often are reluctant to exert their  
            authority to investigate and clean up water pollution problems  
            that may threaten public health or the environment due to  
            liability concerns including: 
                 [p]otential liability claims that the Water Boards'  
               actions at a site makes them a responsible party and that  
               their limited actions at a site did not fully protect all  
               affected persons[;]
                 [c]laims for reimbursement of incidental property  
               damage[;] or 
                 [p]otential negligence, nuisance or trespass claims,  
               including those that may arise from pollution migrating  
               away from the site where the Water Boards performed an  
               investigation or cleanup.  

            As a result, even when the Water Boards are faced with a  
            severe pollution problem and there is no apparent financially  
            viable responsible party (so-called "orphan sites," like, for  
            instance, historical releases from dry cleaner facilities),  
            the Water Boards may decline to act due to liability concerns.  
             This concern may sometimes cause the Water Boards to avoid  
            expending available resources to address a significant portion  
            of a water quality problem, even where it can be done in a  
            low-cost manner.  

            Current law provides liability protection to the Department of  
            Toxic Substances Control and its contractors from civil or  
            criminal trespass, or other acts necessary to carry out  
            corrective action under the Hazardous Substance Account Act.   
            Existing law also provides limited immunity to the Water  
            Boards and other third parties who voluntarily undertake  
            cleanup of abandoned mine sites, but this liability protection  
            only applies to mine cleanups and does not extend to threats  
            to water quality that are not associated with mines.         

            This bill would provide the Water Boards with explicit  
            protection from civil liability related to investigating or  
            cleaning up water pollution.  This would remove a significant  
            barrier in current law that deters the Water Boards from  
            taking actions to investigate, prevent or clean up pollution.   


            This bill would largely address the Water Boards' concerns  
            over potential liability claims that a limited action by the  
                                                                      



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            State Water Board or Regional Water Board to investigate or  
            cleanup a site did not fully protect all affected persons, and  
            claims for reimbursement of incidental property damage or  
            other tort claims that may arise in connection with a Water  
            Board's investigation or cleanup.  

            This change in law would enable the Water Boards to more  
            freely (1) undertake partial investigations to determine  
            whether or not water is polluted to an extent that would  
            warrant further action at a site, and (2) choose to address a  
            pollution source to remedy or prevent an immediate health  
            risk, but not become subject to claims that the Water Boards  
            are responsible for conducting additional work at the site.   
            This will result in restoration of sites and protection of  
            water quality to meet water quality standards, and reduce  
            present and potential hazards to health and the environment.

          2.  Liability of Public Entities  

          California law generally provides public entities with tort  
          immunity that insulates them from civil liability, including  
          liability resulting from injuries caused by water pollution  
          abatement activities.  The California Tort Claims Act (Gov. Code  
          Sec. 810 et seq.) states that "a public entity is not liable for  
          an injury, whether such injury arises out of an act or omission  
          of the public entity or a public employee or any other person"  
          unless otherwise provided by statute.  (Gov. Code Sec. 815(a).)   
          Thus, in order to hold a public entity liable for any tort, a  
          plaintiff would first have to identify a specific relevant  
          statute that waived the public entity's sovereign immunity and  
          exposed it to liability.  Absent a specific statute that  
          expressly waives sovereign immunity, California's public  
          entities cannot be held liable in tort.  (See Brown v. Poway  
          Unified School Dist. (1993) 4 Cal.4th 820, 829 ["a public entity  
          is not liable for injuries except as provided by statute"].)

          Liability against the state water board, a regional water board,  
          or its contractors, might attach in situations where an employee  
          of these entities acts or fails to act in a manner that  
          ultimately leads to an injury.  Government Code Section 815.2  
          removes immunity under certain conditions when an injury  
          proximately results from the act or omission of an employee of a  
          public entity.  This section provides that "a public entity is  
          liable for injury proximately caused by an act or omission of an  
          employee of the public entity within the scope of his employment  
          if the act or omission would have given rise to a cause of  
                                                                      



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          action against that employee or his personal representative."  
          (Gov. Code Sec. 815.2.)  Thus, if a public employee knew of the  
          existence of a particular fault in a water cleanup plan, such as  
          the likelihood that a particular cleanup activity would result  
          in or exacerbate water pollution migration, and yet failed to  
          take any corrective action to mitigate that known harm, the  
          employing public entity might incur some civil liability if an  
          individual was injured or their property was damaged because of  
          the faulty planning and subsequent cleanup activities.

          As a matter of policy, the Legislature has generally been  
          reluctant to further immunize the acts of public employees and  
          public agencies except in narrow circumstances.  Immunity from  
          liability disincentivizes careful planning and acting on the  
          part of governmental actors.  When an agency enjoys immunity  
          from civil liability, it is relieved of the responsibility to  
          act with due regard and an appropriate level of care in the  
          conduct of its activities.  Immunity provisions are also  
          disfavored because they preclude parties from recovering when  
          they are injured, and force injured parties to absorb losses for  
          which they are not responsible.

          Staff notes that the Legislature has, in the past, provided  
          additional immunities to agencies tasked with remediating  
          environmental contamination.  For example, Section 25358.1 of  
          the Health and Safety Code immunizes the Department of Toxic  
          Substances Control from liability for certain acts that are  
          necessary to carry out corrective actions.  However, this  
          immunity is the exception, not the norm.  Rather, the normal  
          course is to hold government agencies and their employees to the  
          same standard as all other actors.  Indeed, the California Tort  
          Claims Act broadly represents the Legislature's preference to  
          hold state agencies to the same level of care that all other  
          Californians must adhere to under like circumstances.  The  
          immunity proposed in this bill is especially troubling because  
          it explicitly extends the state and regional water board's  
          immunity to its contractors and their subcontractors.  Further,  
          it should be noted that the proposed immunity would not only  
          protect the boards and their contractors from having to pay  
          damages in a civil suit, it may also preclude litigants from  
          being able to use injunctive relief to force these actors to  
          alter planned cleanups.  (See Esparza v. County of Los Angeles  
          (2014) 224 Cal.App.4th 452, 460 [plaintiffs may not circumvent  
          legislative immunity by obtaining injunctive relief].)

          If the Committee believes some measure of immunity ought to be  
                                                                      



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          provided to the state and regional water boards, the better  
          course of action may be to replicate the immunity provision  
          already granted to the Department of Toxic Substances Control  
          for similar cleanup activities.  That immunity, unlike the one  
          proposed in this bill, explicitly extends only to those actions  
          "necessary" to carry out a corrective action.

             Suggested Amendment  :

            On page 4, strike lines 8 through 12, and insert:  (i) Neither  
            the state board nor a regional board shall be held liable in a  
            civil proceeding for trespass or for any other acts which are  
            necessary to carry out investigations or corrective actions  
            authorized by this section.
          

           Support  :  Clean Water Action

           Opposition  :  None Known


                                        HISTORY
           
           Source  :  State Water Resources Control Board

           Related Pending Legislation  :  SB 1130 (Roth, 2014) would provide  
          limited immunity from liability relating to the reconstruction  
          of a public water system in Riverside County for the Eastern  
          Municipal Water District, the Elsinore Valley Municipal Water  
          District, the Western Municipal Water District, and the  
          Metropolitan Water District of Southern California.  SB 1130 is  
          in the Assembly Committee on Appropriations.

           Prior Legislation  :

          AB 440 (Gatto, Ch. 588, Stats. 2013) provided, among other  
          things, limited immunity to local agencies that undertake and  
          complete certain environmental cleanup actions in accordance  
          with an approved cleanup plan.

          AB 389 (Montanez, Ch. 705, Stats. 2004) provides limited  
          immunity to purchasers of abandoned mining sites, provided  
          certain investigations and cleanup actions are taken.

          SB 47 (Sher, Ch. 23, Stats. 1999) reauthorized the state  
          Superfund law and reconveyed limited immunity to the Department  
                                                                      



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          of Toxic Substances Control for certain removal or remedial  
          actions, as specified.

           Prior Vote  :

          Senate Committee on Environmental Quality (Ayes 5, Noes 2)
          Assembly Floor (Ayes 52, Noes 22)
          Assembly Committee on Environmental Safety and Toxic Materials  
          (Ayes 5, Noes 2)

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