BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
AB 2712 (Daly) - Hazardous materials: Orange County Water
District: groundwater contamination.
Amended: July 1, 2014 Policy Vote: EQ 7-0, Jud 7-0
Urgency: No Mandate: Yes
Hearing Date: August 4, 2014 Consultant:
Marie Liu
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 2712 would require the Orange County Water
District (OCWD) to take specific actions when cleaning up or
containing contamination in surface or groundwaters within its
jurisdiction.
Fiscal Impact: Unknown, but likely no more than $140,000
annually (General/special fund) for the Department of Toxic
Substances Control (DTSC) or the regional board to provide
oversight for groundwater clean-up activities. Costs are likely
recoverable from OCWD through a MOU.
Background: The Orange County Water District Act (Chapter 924 of
the Statutes of 1933) establishes the authority of OCWD 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.
Specifically, the OWCD can 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.
Proposed Law: This bill would require the OCWD to take the
following actions when taking necessary emergency, removal or
remedial actions for contamination or pollution in its waters:
Notify the appropriate regional water quality control board
and DTSC.
Meet and confer with any agency that may be an administering
agency.
Make reasonable efforts to meet and confer with any
responsible party.
Comply with the requirements of the federal National
AB 2712 (Daly)
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Contingency Plan and the Hazardous Substance Account Act.
This bill also declare that it is the intent of the Legislature
that the OCWD enter into a memorandum of understanding with
DTSC, the Santa Ana Regional Water Quality Control Board, and
the Orange County Health Care Agency to establish the process to
review OCWD's groundwater remediation process.
Staff Comments: Absent this bill, both DTSC and the regional
board may have some oversight responsibilities over OCWD's
remediation projects. However, by requiring OCWD to notify DTSC
and the Santa Ana regional water quality control board regarding
cleanup or containment activity, and declaring Legislative
intent that these agencies enter into an MOU regarding such
activities, this bill makes it more likely that both agencies
will be involved and incur oversight costs. These costs depend
on the scope of the project and the terms of such an MOU and are
therefore unknown, but are unlikely to be greater than $140,000
annually. Costs incurred by DTSC and the regional board are
generally recoverable through an agreement with the project
proponent. If the MOU described in the Legislative intent is
entered into, cost recovery provisions will most likely be part
of that agreement.
This bill creates a local mandate by requiring local agencies -
OCWD and the administering agency - to take certain actions.
These costs would likely be in the low tens of thousands of
dollars. But because both OCWD and the administering agency have
fee authority, staff believes that the mandate would not be
reimbursable.
Recommended Amendments: This bill uses the term "administering
agency" without a definition. This term is generally used in the
codes to refer to a certified unified program agency. Because
this bill is uncodified, staff recommends that "administering
agency" be defined.