BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 2712
          Author:   Daly (D), et al.
          Amended:  7/1/14 in Senate
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  7-0, 6/18/14
          AYES:  Hill, Gaines, Fuller, Hancock, Jackson, Leno, Pavley

           SENATE JUDICIARY COMMITTEE  :  7-0, 6/24/14
          AYES:  Jackson, Anderson, Corbett, Lara, Leno, Monning, Vidak

           SENATE APPROPRIATIONS COMMITTEE  :  5-0, 8/14/14
          AYES:  De Le�n, Hill, Lara, Padilla, Steinberg
          NO VOTE RECORDED:  Walters, Gaines

           ASSEMBLY FLOOR  :  73-1, 5/27/14 - See last page for vote


           SUBJECT  :    Hazardous materials:  Orange County Water District:   
          groundwater
                      remediation

           SOURCE  :     Orange County Business Council


           DIGEST  :    This bill establishes a process for groundwater  
          cleanup for the Orange County Water District (OCWD) Act.

           ANALYSIS  :    Existing law, under the OCWD Act: 

          1. Establishes the OCWD, consisting of specified lands in the  
             Orange County, including the Cities of Anaheim, Fullerton,  
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             and Santa Ana.

          2. Authorizes the OCWD to investigate the quality of the surface  
             and groundwaters within the OCWD to determine whether the  
             waters are contaminated or polluted and authorizes the OCWD  
             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 OCWD.

          3. Requires the person causing or threatening to cause the  
             contamination or pollution to be liable to the OCWD 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.

          This bill:

          1. Makes the following legislative findings:

             A.    The OCWD shall adopt a policy that addresses the  
                process for timely groundwater remediation projects that  
                include clarity and certainty of the process for all  
                interested parties; and, 

             B.    The OCWD shall enter into a memorandum of understanding  
                (MOU) between the OCWD, the Department of Toxic Substances  
                Control (DTSC), the Santa Ana Regional Water Quality  
                Control Board, and the Orange County Health Care Agency to  
                establish a process of review for the district's proposed  
                groundwater remediation projects. 

          2. Authorizes the OCWD to conduct any investigations of the  
             quality of the surface and groundwaters within the OCWD that  
             it determines to be necessary and appropriate to determine  
             whether those waters are contaminated or polluted.

          3. Provides that in order for the OCWD to obtain cost recovery  
             from responsible parties for the costs of cleaning up, or  
             containing contamination, or taking other emergency removal  
             or remedial action, the OCWD is required to:

             A.    Provide notice of the cleanup plan to the office of the  
                Santa Ana Regional Water Quality Control Board and the  

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                DTSC;

             B.    Meet and confer with state agencies, and make  
                reasonable efforts to meet and confer with any responsible  
                party that is subject to an order or directive of such  
                administering agency; and
             C.    Comply with the requirements for consistency with the  
                National Oil and Hazardous Substances Pollution  
                Contingency Plan (NCP) that applies to the State if it  
                were seeking to recover costs under the Comprehensive  
                Environmental Response Compensation and Liability (CERCLA)  
                or the California Hazardous Substance Account Act.

           Background
           
          The OCWD was formed in 1933 by the California State Legislature  
          enactment of the OCWD Act to protect Orange County's rights to  
          water in the Santa Ana River.  OCWD's primary responsibility is  
          managing the vast groundwater basin under northern and central  
          Orange County that supplies water to more than 20 cities and  
          water agencies, serving more than 2.3 million Orange County  
          residents. 

          OCWD primarily recharges the basin with water from the Santa Ana  
          River and, to a lesser extent, with imported water purchased  
          from the Metropolitan Water District of Southern California.   
          OCWD currently holds rights to all Santa Ana River flows  
          reaching Prado Dam.  Water enters the groundwater basin via  
          settling or percolation ponds in the cities of Anaheim and  
          Orange.  Behind Prado Dam (constructed and owned by the U.S.  
          Army Corps of Engineers for flood prevention), OCWD owns 2,400  
          acres in Riverside County, which the OCWD uses for water  
          conservation, water quality improvement, and environmental  
          enhancement.

          OCWD monitors the groundwater taken out each year to ensure that  
          the basin is not overdrawn, refills the basin, and carries out  
          an assessment program to pay for operating expenses and the cost  
          of imported replenishment water.  The groundwater basin holds  
          millions of acre-feet of water (an acre-foot satisfies the needs  
          of two families for one year).  The groundwater basin provides  
          more than half of all water used within the OCWD.  Protection,  
          safety and enhancement of groundwater are OCWD's highest  
          priorities.  With one of the most sophisticated groundwater  

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          protection programs in the country, OCWD uses more than 700  
          wells providing more than 1,400 sampling points-from which OCWD  
          takes more than 18,000 water samples and conducts more than  
          350,000 analyses every year.  OCWD's monitoring program looks  
          for more than 330 constituents-far more than the 122 required by  
          the regulatory agencies.

          In 1989, Section 8 of the OCWD Act was amended to allow OCWD to  
          recover from parties, who contaminate groundwater, the OCWD's  
          costs in remediating contamination. 

           Groundwater Contamination in Orange County  .  Key contaminants of  
          concern for the Orange County Basin include:  total dissolved  
          solids, nitrate, volatile organic compounds (VOCs), perchlorate,  
          colored water, and N-Nitrosodimethylamine (NDMA).  The nitrate  
          and VOC contaminants are located in shallow aquifers.  In many  
          portions of the groundwater basin, shallow water is prevented  
          from migrating into deeper aquifers due to aquitards (impervious  
          formations).  

           NOTE:  For information on the North Basin and South Basin  
                 lawsuits and their current dispositions, refer to the  
                 Senate Environmental Quality Committee analysis of  
                 4/23/14.

           The NCP process  .  The NCP defines the organizational structure  
          and procedures for preparing for and responding to discharges of  
          oil and releases of hazardous substances, pollutants, and  
          contaminants.  The NCP was developed by the United States  
          Environmental Protection Agency (EPA) in response to CERCLA  
          amendments of 1980, and by Section 311(d) of the Clean Water  
          Act. 

          The NCP outlines a process for investigating and remediating  
          federal National Priority List Sites (i.e., federal Superfund  
          Sites).  This process has also been adopted by California EPA  
          DTSC for State "Superfund" Sites.

          The NCP process involves investigating the nature and extent of  
          contamination (remedial Investigation); conducting a Human  
          Health Risk Assessment; conducting a Feasibility Study, which  
          includes developing and evaluating several remedial  
          alternatives; selecting a proposed remedy; preparing a Proposed  
          Remedial Action Plan (Proposed Plan); soliciting public and  

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          government agency review and comment on the Proposed Plan; final  
          remedy selection; and then Remedial Design and Remedial Action  
          (construction and long-term operation and maintenance). 

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

          According to the Senate Appropriations Committee, unknown, but  
          likely no more than $140,000 annually (General/special fund) for  
          the DTSC or the regional board to provide oversight for  
          groundwater clean-up activities.  Costs are likely recoverable  
          from OCWD through a MOU.

           SUPPORT  :   (Verified  8/15/14)

          Orange County Business Council (source)
          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

           ARGUMENTS IN SUPPORT  :    The support argues that this bill is  
          needed to ensure that scarce resources intended for cleaning up  
          contaminated water supplies do not end up being wasted on  
          needless litigation.  

           ASSEMBLY FLOOR  :  73-1, 5/27/14

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

          RM:d  8/16/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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