BILL ANALYSIS                                                                                                                                                                                                    �






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


          AB 2712 (Daly)
          As Amended April 23, 2014
          Hearing Date: June 24, 2014
          Fiscal: Yes
          Urgency: No
          TMW


                                        SUBJECT
                                           
          Hazardous Materials:  Orange County Water District:  Groundwater  
                                     Remediation

                                      DESCRIPTION  

          Existing law, the Orange County Water District Act, establishes  
          the authority of the Orange County Water District (District) to  
          perform actions useful or necessary to replenish the underground  
          water basin within the District, or to augment and protect the  
          quality of the common water supplies of the district.

          This bill would require the District, as a precondition to  
          recovering response costs from a party responsible for  
          groundwater contamination, to:  (1) provide notice of its  
          contamination remediation action to the relevant regional water  
          quality control board and the Department of Toxic Substances  
          Control; (2) meet and confer with agencies and, if feasible, any  
          responsible party; and (3) comply with the requirements of the  
          National Oil and Hazardous Substances Pollution Contingency Plan  
          (commonly called "National Contingency Plan" (NCP)) that apply  
          to the State pursuant to the Comprehensive Environmental  
          Response Compensation and Liability (CERCLA) or the  
          Carpenter-Presley-Tanner Hazardous Substance Account Act.

          (This analysis reflects author's amendments to be offered in  
          Committee.)

                                      BACKGROUND  

          The Orange County Water District Act (OCWDA) was enacted as an  
          uncodified measure by SB 1201 (Edwards, Ch. 924, Stats. 1933)  
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          and authorized the Orange County Water District (District) to  
          perform actions necessary to replenish its underground water  
          basin, or to augment and protect the quality of the common water  
          supplies in the district.  The OCWDA was amended by SB 1335  
          (Bergeson, Ch. 802, Stats. 1989) to allow the District to  
          conduct water quality investigations, perform cleaning,  
          abatement or remedial work as prescribed, and provide a  
          methodology for recovery of costs from the person causing or  
          threatening to cause the contamination or pollution.
          This bill would proscribe specified notice and meet and confer  
          requirements as a precondition to the District recovering  
          response costs from the party responsible for the contamination.

          This bill was heard by the Senate Environmental Quality  
          Committee on June 18, 2014, and passed out on a vote of 7-0.

                                CHANGES TO EXISTING LAW
           
           Existing law  , the Orange County Water District Act (OCWD)  
          establishes the Orange County Water District (OCWD), consisting  
          of specified lands in the County of Orange, including the Cities  
          of Anaheim, Fullerton, and Santa Ana.  (Stats. 1933, Ch. 924,  
          Sec. 1 - Uncod. Acts.)

           Existing law  authorizes the OCWD to investigate the quality of  
          the surface and groundwaters within the District to determine  
          whether the waters are contaminated or polluted and authorizes  
          the District to expend funds to perform any cleanup, abatement,  
          or remedial work to prevent, abate, or contain the contamination  
          of, or pollution to, the surface or groundwaters of the  
          District.  (Stats. 1933, Ch. 924, Sec. 2(1) Uncod. Acts.)

           Existing law  requires the person causing or threatening to cause  
          the contamination or pollution to be liable to the District for  
          reasonable costs actually incurred in cleaning up or containing  
          the contamination or pollution, abating the effects of the  
          contamination or pollution, or taking other remedial action.   
          (Stats. 1933, Ch. 924, Sec.8, as added by Stats. 1989, Ch. 802,  
          Sec. 4 - Uncod. Acts.)

           This bill  would require the District to do all of the following  
          when taking action to cleanup or contain contamination or  
          pollution abating the effects thereof, or, in the case of  
          threatened contamination or pollution, taking other necessary  
          emergency, removal, or remedial actions:
           provide notice of the action to the office of the regional  
                                                                      



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            water quality control board for the region in which the action  
            shall be taken and the Department of Toxic Substances Control;
           with respect to the contamination or pollution, meet and  
            confer with any agency that may be an administering agency and  
            make reasonable efforts to meet and confer with any  
            responsible party that is subject to an order or directive of  
            the administering agency; and
           comply with the requirements of the National Contingency Plan  
            that apply to the State of California pursuant to the  
            Comprehensive Environmental Response, Compensation, and  
            Liability Act of 1980 and with the Carpenter-Presley-Tanner  
            Hazardous Substance Account Act.

           This bill  would provide legislative intent language to address  
          the process for groundwater remediation projects and encourage a  
          memorandum of understanding to establish a process for review of  
          the District's proposed groundwater remediation projects.

           This bill  would also provide findings and declarations related  
          to the potential conflict and inconsistent regulation of  
          business and landowners in Orange County that may be responsible  
          for conducting groundwater investigations and cleanups at their  
          sites.

                                        COMMENT
           
          1.  Stated need for the bill  
          
          The author writes:
          
            The Orange County Water District [(District)] recently  
            proposed comprehensive cleanup plans which overlap, in whole,  
            or in part, geographically and hydro-geologically, with  
            cleanups and other activities overseen by the [Department of  
            Toxic Substances Control (DTSC)], Regional Board and  
            [Certified Unified Program Agencies (CUPA)].  The [District]  
            plans create the distinct possibilities of inconsistent  
            determinations as to the proper cleanup standards and what  
            work will actually be conducted.  This could lead to  
            conflicting and inconsistent plans and the possibility of more  
            contamination remaining in the groundwater for longer periods  
            of time.

            AB 2712 creates a clear path to actual water cleanup by  
            requiring the [District to] comply with the National  
            Contingency Plan regulations.  The National Contingency Plan  
                                                                      



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            ("NCP") is a long-standing [United States Environmental  
            Protection Agency (USEPA)] regulation used by federal, state  
            and local officials and by environmental professionals  
            throughout the country as guidance for assessing hazards at  
            and planning for cleanups of contaminated sites.  The NCP  
            includes guidance for collecting and evaluating data,  
            assessing hazards to humans and the environment, deciding  
            whether the hazards posed by a site warrant its cleanup,  
            evaluating alternative remedies if some cleanup is warranted,  
            and has provisions for actively seeking community comments  
            throughout the NCP process.  This time-tested process will  
            bring much-needed certainty to Orange County businesses and  
            all of those interested in cleaning up our groundwater.
          
          2.  Notice and meet and confer requirements  

          According to the sponsor, the Orange County Business Council,  
          this bill is a product of compromise between the Orange County  
          Business Council and the District.  The sponsor asserts that  
          this agreement establishes a positive framework that will enable  
          the District to discharge its primary responsibility for  
          managing the groundwater basin under northern and central Orange  
          County while encouraging a transparent and coordinated process  
          for the clean-up of contaminated groundwater.

          Prior to recent amendments, this bill would have created  
          additional administrative steps to be taken by the District in  
          order for a person causing or threatening to cause contamination  
          or pollution to be liable to the District for cleanup,  
          containment, abatement, or other remedial actions taken  
          regarding that contamination or pollution.  However, now this  
          bill just requires the District to provide notice to specified  
          state and federal agencies of those actions taken by the  
          District.  This bill would also require the District to meet and  
          confer with any administering agency and make reasonable efforts  
          to meet and confer with any responsible party subject to an  
          order or directive of the administering agency.

          3.  Opposition's concerns  

          This bill is being amended to remove the requirement that the  
          District take specified actions in order for the contaminating  
          party to be liable.  The Committee received a letter from the  
          Sierra Club California, who opposed that requirement.  It is  
          unknown if the amendments satisfy the Sierra Club's concerns  
          with this bill.
                                                                      



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          4.  Author's amendments  

          This bill was approved by the Senate Committee on Environmental  
          Quality on June 18, 2014.  Due to procedural timing constraints,  
          the author agreed in that Committee to take the following  
          amendments in this Committee.

             Author's amendments  :

             1.   On page 4, in lines 36-37, strike ", and the district  
               takes action in accordance with subdivision (d),"
             2.   On page 5, strike lines 9-13 and insert "(d) The  
               district shall do all of the following when cleanup or  
               containing contamination or pollution abating the effects  
               thereof, or, in the case of threatened contamination or  
               pollution, taking other necessary emergency, removal, or  
               remedial actions:"
             3.   On page 5, in line 17, after contamination" insert "or  
               pollution"
             4.   On page 5, in line 21, strike "for consistency with" and  
               insert "of"
             5.   On page 5, in line 22, strike "would"
             6.   On page 5, in line 23, strike "if it were seeking to  
               recover costs"
             7.   On page 5, in line 26, strike "or" and insert "and with"
             8.   On page 5, in line 27, strike "Substances" and insert  
               "Substance"


           Support  :  Advanced Medical Technology Association; Anaheim  
          Chamber of Commerce; Association of California Insurance  
          Companies; California Apartment Association; California Building  
          Industry Association; California Business Properties  
          Association; California Business Roundtable; California Chamber  
          of Commerce; California Healthcare Institute; Fresno Area  
          Chamber of Commerce; Fullerton Chamber of Commerce; Huntington  
          Beach Chamber of Commerce; Irvine Chamber of Commerce; Los  
          Angeles Area Chamber of Commerce; Orange County Auto Dealers  
          Association; Orange County Technology Action Network; Orange  
          County Water District; Personal Care Products Council;  
          Sacramento Metropolitan Chamber of Commerce; San Gabriel Valley  
          Economic Partnership; South Orange County Economic Coalition

           Opposition  :  Sierra Club California

                                                                      



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                                        HISTORY
           
           Source  :  Orange County Business Council

           Related Pending Legislation  :  None Known

           Prior Legislation  :

          SB 658 (Correa, 2013) would have required the person also to be  
          liable for the costs actually incurred in investigating the  
          contamination or pollution.  The bill would provide that these  
          remedies are in addition to all other legal and equitable  
          remedies available to the water district, including declaratory  
          relief.  SB 658 was held on the Senate Floor.

          SB 1335 (Bergeson, Ch. 802, Stats. 1989) See Background.

          SB 1201 (Edwards, Ch. 924, Stats. 1933) See Background.

           Prior Vote  :

          Senate Committee on Environmental Quality (Ayes 7, Noes 0)
          Assembly Floor (Ayes 73, Noes 1)
          Assembly Committee on Appropriations (Ayes 17, Noes 0)
          Assembly Committee on Local Government (Ayes 9, Noes 0)
          Assembly Environmental Safety and Toxic Materials (Ayes 6, Noes  
          0)

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