BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 2442
          Author:   Gordon (D), et al.
          Amended:  7/1/14 in Senate
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  5-2, 6/18/14
          AYES:  Hill, Hancock, Jackson, Leno, Pavley
          NOES:  Gaines, Fuller

           SENATE JUDICIARY COMMITTEE  :  5-2, 6/24/14
          AYES:  Jackson, Corbett, Lara, Leno, Monning
          NOES:  Anderson, Vidak
           
          ASSEMBLY FLOOR  :  52-22, 5/8/14 - See last page for vote


           SUBJECT  :    Porter-Cologne Water Quality Control Act:  remedial  
          action:  liability

           SOURCE  :     State Water Resources Control Board


           DIGEST  :    This bill provides the State Water Resources Control  
          Board (SWRCB) and the regional boards with limited protection  
          from civil liability related to investigating and cleaning up  
          water pollution.  

           ANALYSIS  :    

          Existing law:  

          1.Requires, under the Porter-Cologne Water Quality Control Act  
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            (Porter-Cologne), a person who discharges waste into the  
            waters of the state in violation of waste discharge  
            requirements or other order or prohibition issued by a  
            California regional water quality control board (regional  
            boards) or the SWRCB to clean up the waste or to abate the  
            effects of the waste. 

          2.Authorizes the SWRCB and regional boards to investigate actual  
            or suspected waste discharges that threaten water quality.   
            Provides that if no viable responsible party (RP) or  
            discharger is identified for a polluted site, the SWRCB or  
            regional boards may contract for the cleanup.

          3.Authorizes the SWRCB and the regional boards to require a  
            person, who has discharged waste so as to cause or threaten to  
            cause pollution or nuisance, to clean up the waste and abate  
            the effects of the discharge. 

          4.Provides liability immunity for the Department of Toxic  
            Substances Control (DTSC) to enter upon any lands for the  
            purpose of taking removal or remedial action.

          5.Authorizes, under the Polanco Act, a local agency to  
            investigate and clean up releases or spills within the  
            boundaries of the local agency, and provides immunity from  
            further liability to the local agency and any person who  
            enters into an agreement with that local agency to develop the  
            property as well as future property owners.  Defines "local  
            agency" as a county, a city, a city and county, or a housing  
            authority.

          This bill:  

          1.Provides that if the SWRCB or a regional 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:

             A.   Neither the SWRCB nor a regional board shall be held  
               liable in a civil proceeding for trespass or any other acts  
               that are necessary to carry out investigations or  
               corrective actions authorized under existing law.

             B.   The SWRCB, regional board, or any authorized person  

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               shall not incur any obligation to undertake additional  
               investigation, cleanup, abatement, or other remedial work,  
               solely as a result of having conducted the work.

          1.Prohibits the SWRCB, regional board, or any authorized person  
            from incurring any obligation to undertake additional  
            investigation, cleanup, abatement, or other remedial work  
            solely because of its decision to undertake that work.

          2.Requires that these provisions apply to a claim against a  
            public entity presented on or after January 1, 2015, or, if no  
            claim is presented, to a cause of action in a civil complaint  
            or a writ petition filed on or after January 1, 2015. 

          3.Makes various technical, nonsubstantive changes.

           Background
           
           Penn Mine Case  .  The liability for the SWRCB and the regional  
          boards for their actions in cleaning up toxic waste sites was  
          highlighted in the efforts to control runoff from the Penn Mine.  
           The Penn Mine is an abandoned copper and zinc mine adjacent to  
          the Mokelumne River that operated intermittently from the 1860s  
          through the 1950s.  In the 1960s, the East Bay Municipal Utility  
          District (EBMUD) acquired part of the Penn Mine property to  
          build the Comanche Reservoir.  In 1978, EBMUD and the Central  
          Valley Regional Water Quality Control Board constructed a  
          remediation project in an attempt to reduce the impacts caused  
          by acid mine drainage from the abandoned mine.  The Central  
          Valley regional board and EBMUD were subsequently found jointly  
          responsible under the Clean Water Act for the acid mine drainage  
          due to their operation of the remediation project.  (Committee  
          to Save Mokelumne River v. East Bay Municipal Utility District  
          (9th Cir. 1993) 13 F.3d 305.) 

          In the appeal of the court order on the Penn Mine case, the  
          court pointed out that unlike the federal Comprehensive  
          Environmental Response, Compensation and Liability Act, which  
          provides a statutory liability exemption, the federal Clean  
          Water Act contains no such exemption.  Given the absence of any  
          statutory authority to exempt the Central Valley regional board  
          or EBMUD from liability under the Clean Water Act, the district  
          court was correct in establishing state liability of their  
          cleanup activities.  While state law cannot provide liability  

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          relief from federal requirements, there would still be liability  
          under federal law for cleanups that result in unauthorized  
          discharges to surface water bodies that are covered under the  
          Clean Water Act (such as in the case of Penn Mine).  However,  
          there are waters that are not protected under the Clean Water  
          Act but which are protected under Porter-Cologne, such as  
          groundwater.  In those cases, there would only be potential  
          liability under state law for actions that we may take to clean  
          up, or partially clean up, water contamination.   

           State Remediation Intervention  .  The SWRCB, regional boards, and  
          the DTSC have statutory authority and responsibility for the  
          oversight of remediating contaminated water and land in  
          California.  

          The regional boards or the DTSC generally enter into a cleanup  
          and abatement order with RPs to require the RP to conduct or  
          contract for the cleanup of the contaminated site.

          When there is not a viable RP or the RP is found unable to pay  
          for the remedial action, contaminated brownfield sites languish  
          potentially causing economic, environmental and public health  
          harm.

          As funds are available, and sites are identified that are in  
          need of state intervention, the state's cleanup agencies (DTSC,  
          SWRCB and regional boards) investigate and cleanup contaminated  
          sites to prevent further environmental and human health harm. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           SUPPORT  :   (Verified  7/1/14)

          State Water Resources Control Board (source)

           ARGUMENTS IN SUPPORT  :    According to SWRCB, the sponsor of this  
          bill: 

            Currently, the Water Boards often are reluctant to fully  
            exercise their authority to investigate and/or clean up water  
            pollution problems that may threaten public health and the  
            environment due to liability concerns. 


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            Under current law, SWRCB can perform, or contract for, the  
            investigation, cleanup, abatement, or remedial work 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/or clean up water pollution problems that may  
            threaten public health or the environment due to liability  
            concerns including:  1) potential liability claims that the  
            Water Boards' actions at a site makes them a responsible party  
            and that their limited actions at a site do not fully protect  
            all affected persons, 2) claims for reimbursement of  
            incidental property damage, or 3) potential trespass actions  
            that may arise due to the Water Boards' investigations or  
            cleanups.  Thus, even when the Water Boards are faced with a  
            severe pollution problem and there is no apparent financially  
            viable responsible party, the Water Boards are likely to  
            decline to act due to liability concerns.


           ASSEMBLY FLOOR  :  52-22, 5/8/14
          AYES:  Alejo, Ammiano, Atkins, Bloom, Bocanegra, Bonilla, Bonta,  
            Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,  
            Chesbro, Cooley, Dababneh, Daly, Dickinson, Fong, Frazier,  
            Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray, Hall, Roger  
            Hern�ndez, Holden, Jones-Sawyer, Levine, Lowenthal, Medina,  
            Mullin, Muratsuchi, Nazarian, Pan, Perea, Quirk, Quirk-Silva,  
            Rendon, Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting,  
            Weber, Wieckowski, Williams, Yamada, John A. P�rez
          NOES:  Allen, Bigelow, Ch�vez, Conway, Dahle, Donnelly, Fox,  
            Beth Gaines, Grove, Hagman, Harkey, Jones, Linder, Logue,  
            Maienschein, Melendez, Nestande, Olsen, Patterson, Wagner,  
            Waldron, Wilk
          NO VOTE RECORDED:  Achadjian, Eggman, Gorell, Mansoor, V. Manuel  
            P�rez, Vacancy


          RM:k  7/2/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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