UNFINISHED BUSINESS  

Bill No: SB 519

Author: Bradford (D)

Amended: 8/12/19

Vote: 21

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 4/3/19

AYES: Allen, Bates, Hill, Skinner, Stern, Stone, Wieckowski

SENATE APPROPRIATIONS COMMITTEE: 6-0, 5/16/19

AYES: Portantino, Bates, Bradford, Hill, Jones, Wieckowski

SENATE FLOOR: 38-0, 5/23/19

AYES: Allen, Archuleta, Atkins, Bates, Beall, Borgeas, Bradford, Caballero, Chang, Dodd, Durazo, Galgiani, Glazer, Grove, Hertzberg, Hill, Hueso, Hurtado, Jackson, Jones, Leyva, McGuire, Mitchell, Monning, Moorlach, Morrell, Nielsen, Pan, Portantino, Roth, Rubio, Skinner, Stern, Stone, Umberg, Wieckowski, Wiener, Wilk

ASSEMBLY FLOOR: 79-0, 9/9/19 - See last page for vote

SUBJECT: Hazardous substances: underground storage tanks

SOURCE: Water Replenishment District of Southern California

DIGEST:

This bill authorizes the State Water Resources Control Board (SWRCB) to utilize funding from the Site Cleanup Subaccount of the Underground Storage Tank (UST) Cleanup Fund for the reasonable and necessary costs incurred by the Department of Toxic Substance Control (DTSC) or water replenishment districts to identify and remediate groundwater contamination.

Assembly Amendments add DTSC to the list of eligible applicants who could receive Subaccount funds and additionally authorize the issuance of a grant for remediation actions at a location at which a responsible party has been required to undertake or contract for investigation or cleanup pursuant to a specified order issued by the department.

ANALYSIS:

Existing law:

1. Requires the Secretary for Environmental Protection to implement a unified hazardous waste and hazardous materials management program, known as the unified program.
2. Requires every county to apply to the secretary to be certified to implement the unified program, and authorizes a city or local agency that meets specified requirements to apply to be certified to implement the unified program. As a certified unified program agency, or CUPA.
3. Provides for the formation, organization, and functioning of water replenishment districts for the purposes of replenishing the groundwater supplies within the district to store, transport, recapture, recycle, purify, treat, or manage the control water for beneficial uses.
4. Establishes the UST Cleanup Fund and authorizes the SWRCB to expend moneys in the fund for certain purposes, including for transfer to the Site Cleanup Subaccount, upon appropriation by the Legislature. Specifies that funds may be used for grants to the SWRCB, a regional water quality control board, or a local agency for the reasonable and necessary costs of actions to remediate the harm or threat of harm to human health, safety, and the environment caused by existing or threatened surface or groundwater contamination at a location.
5. Defines “local agency” to mean a unified program or a city or county certified by the board.
6. Defines an UST as any one or combination of tanks, including pipes connected thereto, that is used for the storage of hazardous substances and that is substantially or totally beneath the surface of the ground.

This bill:

1. Authorizes the SWRCB to additionally expend moneys in the Site Cleanup Subaccount of the UST Cleanup Fund for the reasonable and necessary costs incurred by the DTSC or water replenishment districts to identify the source of surface or groundwater contamination, and for remediation costs, as provided.
2. Authorizes, additionally, the issuance of a grant for remediation actions at a location at which a responsible party has been required to undertake or contract for investigation or cleanup pursuant to a specified order issued by the department, subject to that same condition.

Background

The Barry Keene UST Cleanup Fund Act of 1989 was established to protect public health and safety and the environment from releases of petroleum and other hazardous substances from USTs and to reimburse petroleum UST owners for costs associated with the cleanup of leaking petroleum USTs. The UST Program is limited to only petroleum-type sites where petroleum was stored in USTs.

The Site Cleanup Subaccount Program, established in 2014 by SB 445 (Hill, 2014), is a funding program that allows SWRCB to issue grants for projects that address the harm or threat of harm to human health, safety, and/or the environment from polluted surface water and/or groundwater. The evaluation process includes consideration of the degree of threat, whether the site is located in a small or disadvantaged community, the cost and benefits of the cleanup, and the financial resources of the responsible parties. 

The Site Cleanup Subaccount Program, as compared to the UST Cleanup Fund, has a much wider range of type of sites and pollutants (largely solvents) associated with industrial and commercial uses. The SWRCB regulates and oversees the investigation and cleanup of “non-federally owned” sites where recent or historical unauthorized releases of pollutants to the environment, including soil, groundwater, surface water, and sediment, have occurred. Sites in the program are varied and may include pesticide and fertilizer facilities, rail yards, ports, equipment supply facilities, metals facilities, industrial manufacturing and maintenance sites, dry cleaners, bulk transfer facilities, refineries, and some brownfields.

Water replenishment districts are charged with protecting and preserving the groundwater supplies within their district for beneficial uses and may take any action within the district to remove contaminants from the groundwater supplies, determine the existence, extent, and location of contaminants in the groundwater supplies of the district, and perform or obtain engineering, hydrologic, and scientific studies for any of the foregoing purposes. However, under current law, WRDs are not eligible to receive grants from the Site Cleanup Subaccount.

Comments

Purpose of Bill. According to the author, “SB 519 allows the State Water Resources Control Board (SWRCB) to distribute funds from the Site Cleanup Subaccount Program (SCAP) to water replenishment districts when they are considered the best option for remediating groundwater contamination. The problem is existing law does not allow water replenishment districts to receive funds from this subaccount despite the fact that these grants fund surface or groundwater projects.

“Water replenishment districts are well positioned to immediately prevent harm to public health, safety and the environment because their primary purpose is to store, purify, treat, and manage groundwater reservoirs. Furthermore, water replenishment districts are equipped to handle cases where there is a threat to groundwater because groundwater basins and aquifers are their only priority. Access to the funds in this subaccount are vital to making sure water replenishment districts have the means to address water contamination directly.

“SB 519 will streamline the remediation process and help ensure that water replenishment districts can be considered and awarded this crucial funding related to groundwater cleanup when they are determined the right people for the job.”

Related/Prior Legislation

SB 445 (Hill, Chapter 547, Statutes of 2014) extended the current SWRCB program for the clean-up of USTs from 2016 to 2026 and established the Site Cleanup Subaccount.

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

According to the Assembly Appropriations Committee, the Site Cleanup Subaccount receives an annual appropriation in the range of $19 million to $24 million from a $.003 petroleum storage fee charge. According to SWRCB, the Subaccount is currently not oversubscribed. However, adding DTSC and the Water Replenishment District of Southern California will likely increase demand on the subaccount. The resulting cost pressure is unknown and depends on the number and magnitude of the projects. SWRCB estimated minor and absorbable administrative costs on a prior version of this bill that did not include DTSC as an eligible recipient. Now that DTSC has been added, additional resources may be necessary.

SUPPORT: (Verified 9/9/19)

Water Replenishment District of Southern California (source)

Association of California Water Agencies

River in Action

OPPOSITION: (Verified 9/9/19)

None received

ASSEMBLY FLOOR: 79-0, 9/9/19

AYES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Brough, Burke, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wicks, Wood, Rendon

Prepared by: Gabrielle Meindl / E.Q. / (916) 651-4108

9/9/19 22:55:34

**** END ****

SENATE THIRD READING

STR Bill Id:SB 519

Author:(Bradford)

As Amended Ver:August 12, 2019

Majority vote

SUMMARY:

Authorizes the State Water Resources Control Board (State Water Board) to use funds in the Site Cleanup Subaccount of the Underground Storage Tank Cleanup Fund program to pay for expenditures incurred by a water replenishment district or the Department of Toxic Substances Control (DTSC) in identifying sources of, or remediating harm caused by, surface or groundwater contamination.

Major Provisions

COMMENTS:

Site Cleanup Program: The Site Cleanup Program (SCP) regulates and oversees the investigation and cleanup of 'non-federally owned' sites where recent or historical unauthorized releases of pollutants to the environment, including soil, groundwater, surface water, and sediment, have occurred. The State Water Board manages the program on a state-wide basis by overseeing the SCP budget, maximizing the collection of debt owed to the state, establishing contracts for special projects, and conducting SCP roundtables with the regional boards on a quarterly basis to share information, discuss ways to facilitate procedures and improve the program, and update the regional boards on any changes or additions to existing procedures. The regional water quality control boards (regional boards) oversee the activities of the discharger or responsible party pertaining to the cleanup of pollution in water sources or bodies at sites to ensure that the dischargers clean up and abate the effects of discharges in an appropriate or specified manner.

Site Cleanup Subaccount: The Site Cleanup Subaccount Program (SCAP) is a non-competitive funding program established in 2014, which allows the State Water Board to issue grants or contracts for reasonable and necessary costs associated with projects that remediate the harm or threat of harm to human health, safety, or the environment caused by existing or threatened surface water or groundwater contamination. With an appropriation of $19.75 million through 2025, SCAP was primarily established to investigate and clean up contaminated sites without regard to the source of the contamination, particularly where there are no viable responsible parties. SCAP may also fund projects that are not eligible for other Division of Financial Assistance funding programs and projects that are focused on corrective action. SCAP requires that 1) project sites must be subject to a regulatory directive, order, or notification, or 2) the responsible party lacks sufficient financial resources to perform the required work.

Water Replenishment District of Southern California (WRD): WRD, the sponsor of this bill, was formed in 1959 to manage the groundwater replenishment and groundwater quality activities for 43 cities that overlie the Central Basin and West Coast Basin (CBWCB) in southern Los Angeles County, which currently supply more than 40% of the water used by region. WRD has been monitoring the CBWCB for nearly 60 years, performing extensive collection, analysis, and reporting of groundwater data to ensure proper resource management.

Although WRD is well-equipped to identify contamination sources and remediate harm caused by threatened surface or groundwater contamination, it is currently not authorized to use the funds available in the SCAP. Furthermore, DTSC is responsible for restoring contaminated resources and enforcing hazardous waste laws, and currently works with the State Water Board on remediation efforts but is also not authorized to use SCAP funds. This bill reconciles this by authorizing the State Water Board to expend funds in the SCAP to either a water replenishment district or DTSC under the same statutory requirements that apply to the State Water Board, a regional board, or a local agency. While there may be a concern that expending funds to a water replenishment district may take away resources from other projects, existing law requires that the State Water Board consider all of the following factors when approving expenditures for specific locations: the degree of threat to human health, safety, and the environment; whether the location is a small or financially disadvantaged community; the cost and potential environmental benefit of the investigation or cleanup; other potential sources of funding; and, any other factor the State Water Board deems necessary. Because SCAP expenditures are subject to approval by the State Water Board, this bill essentially provides the State Water Board with additional approaches to investigate and clean up surface and ground water contamination.

According to the Author:

"Water replenishment districts are well positioned to immediately prevent harm to public health, safety and the environment because their primary purpose is to store, purify, treat, and manage groundwater reservoirs. Furthermore, water replenishment districts are equipped to handle cases where there is a threat to groundwater because groundwater basins and aquifers are their only priority. Access to the funds in this subaccount are vital to making sure water replenishment districts have the means to address water contamination directly. SB 519 will streamline the remediation process and help ensure that water replenishment districts can be considered and awarded this crucial funding related to groundwater cleanup when they are determined the right people for the job."

Arguments in Support:

WRD states, "SB 519 would enable the board and WRD to respond more quickly to undertake a cleanup project in an effort to prevent neighboring drinking water wells from becoming contaminated. The longer a contaminant plume remains underground, the greater the probability that groundwater pumping will pull the contaminant into the drinking water supply. It will be less costly to cleanup up contamination before it affects drinking water wells."

Arguments in Opposition:

None received.

FISCAL COMMENTS:

According to the Assembly Appropriations Committee, the SCAP receives an annual appropriation in the range of $19 million to $24 million from a $.003 petroleum storage fee charge, and is currently not oversubscribed. However, adding DTSC and WRD will likely increase demand on the SCAP. The resulting cost pressure is unknown and depends on the number and magnitude of the projects. Additional resources may also be necessary for administrative costs.

VOTES:

SENATE FLOOR: 38-0-0

YES: Allen, Archuleta, Atkins, Bates, Beall, Borgeas, Bradford, Caballero, Chang, Dodd, Durazo, Galgiani, Glazer, Grove, Hertzberg, Hill, Hueso, Hurtado, Jackson, Jones, Leyva, McGuire, Mitchell, Monning, Moorlach, Morrell, Nielsen, Pan, Portantino, Roth, Rubio, Skinner, Stern, Stone, Umberg, Wieckowski, Wiener, Wilk

ASM ENVIRONMENTAL SAFETY AND TOXIC MATERIALS: 7-0-2

YES: Quirk, Arambula, Bauer-Kahan, Cristina Garcia, Holden, Mathis, Obernolte

ABS, ABST OR NV: Melendez, Muratsuchi

ASM APPROPRIATIONS: 18-0-0

YES: Gonzalez, Bigelow, Bloom, Bonta, Brough, Calderon, Carrillo, Chau, Diep, Eggman, Fong, Gabriel, Eduardo Garcia, Maienschein, Obernolte, Petrie-Norris, Quirk, Robert Rivas

UPDATED:

VERSION: August 12, 2019

CONSULTANT: Pajau Vangay / E.S. & T.M. / (916) 391-3965 FN: 0001590

Date of Hearing: August 14, 2019

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

SBPCA Bill Id:SB 519

Author:(Bradford) – As Amended Ver:August 12, 2018

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill authorizes the State Water Resources Control Board (SWRCB) to utilize funding from the Site Cleanup Subaccount of the Underground Storage Tank (UST) Cleanup Fund for the reasonable and necessary costs incurred by the Department of Toxic Substance Control (DTSC) or water replenishment districts (there is currently only one in the state) to identify and remediate groundwater contamination.

FISCAL EFFECT:

1. The Site Cleanup Subaccount is receives an annual appropriation in the range of $19 million to $24 million from a $.003 petroleum storage fee charge. According to SWRCB, the subaccount is currently not oversubscribed. However, adding DTSC and the Water Replenishment District of Southern California (WRD) will likely increase demand on the subaccount. The resulting cost pressure is unknown and depends on the number and magnitude of the projects.
2. SWRCB estimated minor and absorbable administrative costs on a prior version of the bill that did not include DTSC as an eligible recipient. Now that DTSC has been added, additional resources may be necessary.

COMMENTS:

Background and Purpose. The Site Cleanup Subaccount Program was established in 2014 and allows the SWRCB to issue grants for projects that remediate the harm or threat of harm to human health, safety or the environment caused by existing or threatened surface water or groundwater contamination. There are no funding limits for applications.

Existing law provides for the formation, organization and functioning of water replenishment districts. The districts are charged with protecting and preserving the groundwater supplies within their district for beneficial uses and may take any action within the district to remove contaminants from the groundwater supplies, determine the existence, extent and location of contaminants in the groundwater supplies of the district, and perform or obtain engineering, hydrologic and scientific studies for any of the foregoing purposes. There is currently only one district formed under this enabling statute, that is WRD.

This bill allows SWRCB to grant funds to WRD for reasonable and necessary expenditures to identify the source of surface or groundwater contamination; and to remediate the harm or threat of harm to human health, safety and the environment caused by existing or threatened surface or groundwater contamination, under the direction of the SWRCB, a regional board, a local agency or another appropriate regulatory agency with authority for cleanup oversight.

SWRCB is allowed to expend funds in the subaccount at a location that SWRCB or a regional board has, through their authority, required a responsible party to undertake or contract for the investigation or cleanup of groundwater contamination, and the responsible party lacks sufficient financial resources to do so.

This bill allows SWRCB to issue a grant to DTSC to provide for investigation and remediation under the same circumstances, that is when a responsible party lacks financial resources to fulfill its legal obligation.

Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081

Date of Hearing: July 2, 2019

ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS

Bill Quirk, Chair

SBPCA Bill Id:SB 519

Author:(Bradford) – As Amended Ver:March 25, 2019

SENATE VOTE: 38-0

SUBJECT: Hazardous substances: underground storage tanks

SUMMARY: Authorizes the State Water Resources Control Board (State Water Board) to use funds in the Site Cleanup Subaccount of the Underground Storage Tank (UST) Cleanup Fund program to pay for expenditures incurred by a water replenishment district in identifying sources of, or remediating harm caused by, surface or groundwater contamination. Specifically, this bill:

1. Authorizes funds in the Site Cleanup Subaccount to additionally pay for reasonable and necessary expenditures incurred by:
   1. A water replenishment district for identifying surface or groundwater contamination sources, as specified; or,
   2. A water replenishment district, under the direction of the State Water Board, a regional water board, a local agency, or another appropriate regulatory agency, for remediating harm or threat of harm caused by surface or groundwater contamination, as specified.
2. Makes other clarifying technical changes.

EXISTING LAW:

1. Defines a "regional board" or "regional water board" as a California regional water quality control board. (Health and Safety Code (HSC) § 25281(b))
2. Defines a "local agency" as the unified program agency, or a city or county certified by the board, to implement the local oversight program. (HSC § 25281(i))
3. Authorizes a regional board to investigate the quality of any waters of the state within its region. (Water Code (WC) § 13267)
4. Requires any person who has discharged waste into waters of the state in violation of any waste discharge requirement to clean up the discharge and abate the effects thereof. (WC § 13304(a))
5. Authorizes the regional water board to expend available moneys to perform supervision of cleanup and abatement activities, to perform the cleanup, abatement, or remedial work itself or with the cooperation of any other governmental agency. (WC § 13304(b))
6. Authorizes a regional water board to contract with a water agency that draws groundwater from the affected aquifer, a metropolitan water district, or a local public agency responsible for water supply or water quality in a groundwater basin, to perform investigations of existing or threatened groundwater pollution or nuisance. (WC § 13304(b)(4))
7. Authorizes a water replenishment district to take any action to protect and preserve groundwater supplies, including:
   1. Preventing groundwater contamination;
   2. Removing contaminants in groundwater supplies;
   3. Determining existence, extent, and location of contaminants;
   4. Determining persons responsible for contaminants; and,
   5. Performing or obtaining engineering, hydrologic, and scientific studies. (WC § 60224 et seq.)
8. Authorizes the State Water Board to expend funds from the Site Cleanup Subaccount to:
   1. Pay for reasonable and necessary expenditures that the State Water Board, a regional board, or a local agency incurs to identify the source of surface or groundwater contamination;
   2. Pay for reasonable and necessary expenditures that the State Water Board, a regional board, or a local agency incurs to remediate harm or threat of harm to human health, safety, and the environment caused by existing or threatened surface or groundwater contamination;
   3. Issue grants for the reasonable and necessary costs of actions to remediate the harm or threat of harm to human health, safety, and the environment caused by existing or threatened surface or groundwater contamination at specific locations; and,
   4. Pay for the actual, reasonable costs that the Attorney General incurs in an investigation or cleanup undertaken in a civil action. (WC § 25299.50.6 et seq.)
9. Requires the State Water Board to consider the following factors when approving remediation expenditures for specific locations:
   1. The degree to which human health, safety, and the environment are threatened by contamination at the location;
   2. Whether the location is located in a small or financially disadvantaged community;
   3. The cost and potential environmental benefit of the investigation or cleanup;
   4. Whether there are other potential sources of funding for the investigation or cleanup; and,
   5. Any other information the State Water Board identifies as necessary for consideration. (WC § 60224(b)(2))

FISCAL EFFECT: Unknown.

COMMENTS:

Need for the bill: According to the author,

"SB 519 allows the State Water Resources Control Board (SWRCB) to distribute funds from the Site Cleanup Subaccount Program (SCAP) to water replenishment districts when they are considered the best option for remediating groundwater contamination. The problem is existing law does not allow water replenishment districts to receive funds from this subaccount despite the fact that these grants fund surface or groundwater projects.

Water replenishment districts are well positioned to immediately prevent harm to public health, safety and the environment because their primary purpose is to store, purify, treat, and manage groundwater reservoirs. Furthermore, water replenishment districts are equipped to handle cases where there is a threat to groundwater because groundwater basins and aquifers are their only priority. Access to the funds in this subaccount are vital to making sure water replenishment districts have the means to address water contamination directly.

SB 519 will streamline the remediation process and help ensure that water replenishment districts can be considered and awarded this crucial funding related to groundwater cleanup when they are determined the right people for the job."

The Unified Program: The Unified Program protects Californians from hazardous waste and hazardous materials by ensuring consistency throughout the state regarding the implementation of administrative requirements, permits, inspections, and enforcement at the local regulatory level. The California Environmental Protection Agency (CalEPA) oversees the statewide implementation of the Unified Program and its 81 certified local agencies, known as Certified Unified Program Agencies (CUPAs), which apply regulatory standards established by the Governor’s Office of Emergency Services, the Department of Toxic Substances Control, the Office of the State Fire Marshal, the State Water Board, and CalEPA.

Site Cleanup Program: The Site Cleanup Program (SCP) regulates and oversees the investigation and cleanup of 'non-federally owned' sites where recent or historical unauthorized releases of pollutants to the environment, including soil, groundwater, surface water, and sediment, have occurred. Sites in the program are varied and include, but are not limited to, pesticide and fertilizer facilities, rail yards, ports, equipment supply facilities, metals facilities, industrial manufacturing and maintenance sites, dry cleaners, bulk transfer facilities, refineries, and some brownfields. These releases are generally not from strictly petroleum USTs. The types of pollutants encountered at the sites are diverse and include solvents, pesticides, heavy metals, and fuel constituents.

The State Water Board and regional boards have legal authority to regulate site cleanup via statutes, State Water Board plans and policies, and the Regional Water Quality Control Plans. The regional boards oversee the activities of the discharger or responsible party pertaining to the cleanup of pollution at sites to ensure that the dischargers clean up and abate the effects of discharges in a manner that promotes attainment of either background water quality, or the best water quality that is reasonable if background levels of water quality cannot be restored, considering all demands being made and to be made on those waters and the total values involved, beneficial and detrimental, economic and social, tangible and intangible. The State Water Board manages the program on a state-wide basis by overseeing the SCP budget, maximizing the collection of debt owed to the state, establishing contracts for special projects, and conducting SCP roundtables with the regional boards on a quarterly basis to share information, discuss ways to facilitate procedures and improve the program, and update the regions on any changes or additions to existing procedures. The State Water Board is also involved with petitions that are filed by an aggrieved person to review an action or failure to act by a regional board. Currently, the regional boards actively oversee 3,452 cleanup sites; there are an additional 1,616 sites in backlog that are awaiting regional board regulatory oversight.

Funding mechanisms for site cleanup: There are five main types of funding mechanisms for sites in the SCP: voluntary cleanups executed and funded by the discharger; "Cleanup and Abatement Order" cleanups executed and funded by the discharger; cleanups executed by the regional board or another public agency, county, municipality, or city and funded by the state via the Cleanup and Abatement Account; the Site Cleanup Subaccount Program (SCAP); and, brownfield cleanup using available grants and loans.

Site Cleanup Subaccount: The Site Cleanup Subaccount Program (SCAP) is a non-competitive funding program established in 2014, which allows the State Water Board to issue grants or contracts for reasonable and necessary costs associated with projects that remediate the harm or threat of harm to human health, safety, or the environment caused by existing or threatened surface water or groundwater contamination. With an appropriation of $19.75 million through 2025, SCAP was primarily established to investigate and clean up contaminated sites without regard to the source of the contamination, particularly where there are no viable responsible parties. SCAP may also fund projects that are not eligible for other Division of Financial Assistance funding programs and projects that are focused on corrective action. SCAP requires that (1) project sites must be subject to a regulatory directive, order, or notification (unless it is infeasible to issue such an order), or (2) the responsible party lacks sufficient financial resources to perform the required work. Examples of the types of projects that have been funded by SCAP include:

1. Excavation and removal of soils contaminated with chlorinated solvents from former dry cleaners;
2. Identification of contaminant source areas;
3. Groundwater cleanups of chlorinated solvents using in-situ treatment or groundwater extraction;
4. Soil and groundwater cleanups of industrial metals plating shops;
5. Remedial investigation of potential contaminant source areas;
6. Installation, operation, and maintenance of soil vapor extraction or other remediation systems for the cleanup of volatile organic compounds; and,
7. Interim vapor intrusion mitigation and remedial action planning for soil vapor contaminants.

Water replenishment districts: Water replenishment districts are special districts established for the primary purpose of replenishing groundwater. They are authorized to buy and sell water; exchange water; distribute water; spread, sink, and inject water into the underground; store, transport, recapture, recycle, purify, treat or otherwise manage and control water; and, build the necessary works to achieve ground water replenishment. Water replenishment districts are also authorized to protect and preserve groundwater supplies, using a number of means necessary, which includes identifying contamination sources and remediation. According to the State Water Board, there is currently one water replenishment district in the state of California, which is likely a result of both the high demand for water and lack of available water resources in southern California.

The Water Replenishment District of Southern California (WRD), the sponsor of this bill, was formed in 1959 to manage the groundwater replenishment and groundwater quality activities for 43 cities that overlie the Central Basin and West Coast Basin (CBWCB) in southern Los Angeles County, which currently supply over 40 percent of the water used by region. WRD has been monitoring the CBWCB for nearly 60 years, performing extensive collection, analysis, and reporting of groundwater data to ensure proper resource management. For example, in 2017-2018, WRD collected over 550 groundwater samples from its monitoring well network and analyzed them for more than 100 water quality constituents to produce over 55,000 individual data points to help track the water quality in the CBWCB (Regional Groundwater Monitoring Report Water Year 2017-2018, WRD).

Although WRD is well-equipped to identify contamination sources and remediate harm caused by threatened surface or groundwater contamination, it is currently not authorized to use the funds available in the SCAP. SB 519 addresses this by authorizing the State Water Board to expend funds in the SCAP to a water replenishment district, under the same statutory requirements that apply to the State Water Board, a regional board, or a local agency. While there may be a concern that expending funds to a water replenishment district may take away resources from other projects, existing law requires that the State Water Board consider all of the following factors when approving expenditures for specific locations: the degree of threat to human health, safety, and the environment; whether the location is a small or financially disadvantaged community; the cost and potential environmental benefit of the investigation or cleanup; other potential sources of funding; and, any other factor the State Water Board deems necessary. Because SCAP expenditures are subject to approval by the State Water Board, SB 519 essentially provides the State Water Board with another approach to investigate and clean up surface and ground water contamination.

Related Legislation:

1. SB 445 (Hill, Chapter 547, Statutes of 2014). Increased the fee assessed on petroleum stored in USTs from $.014 per gallon to $0.02 per gallon. Dedicated a portion of the fee to establish the SCAP for investigating and cleaning up contaminated sites without regard to the source of the contamination and reimbursing school districts for UST cleanups. Extended the State Water Board program for the cleanup of USTs from 2016 to 2026.

REGISTERED SUPPORT / OPPOSITION:

Support

Water Replenishment District of Southern California (Sponsor)

Association of California Water Agencies (ACWA)
California Association of Professional Scientists

Opposition

None received

Analysis Prepared by: Pajau Vangay / E.S. & T.M. /

 THIRD READING  

Bill No: SB 519

Author: Bradford (D)

Amended: 3/25/19

Vote: 21

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 4/3/19

AYES: Allen, Bates, Hill, Skinner, Stern, Stone, Wieckowski

SENATE APPROPRIATIONS COMMITTEE: 6-0, 5/16/19

AYES: Portantino, Bates, Bradford, Hill, Jones, Wieckowski

SUBJECT: Hazardous substances: underground storage tanks

SOURCE: Water Replenishment District of Southern California

DIGEST: This bill authorizes the State Water Resources Control Board (SWRCB) to expend moneys in the Site Cleanup Subaccount of the Underground Storage Tank (UST) Cleanup Fund to water replenishment districts (WRDs) for the costs to identify and/or remediate the harm or threat of harm to human health, safety, and the environment caused by existing or threatened surface or groundwater contamination.

ANALYSIS:

Existing law:

1. Requires the Secretary for Environmental Protection to implement a unified hazardous waste and hazardous materials management program, known as the unified program.
2. Requires every county to apply to the Secretary to be certified to implement the unified program, and authorizes a city or local agency that meets specified requirements to apply to be certified to implement the unified program. As a certified unified program agency, or CUPA.
3. Provides for the formation, organization, and functioning of WRDs for the purposes of replenishing the groundwater supplies within the district to store, transport, recapture, recycle, purify, treat, or manage the control water for beneficial uses.
4. Establishes the UST Cleanup Fund and authorizes the SWRCB to expend moneys in the fund for certain purposes, including for transfer to the Site Cleanup Subaccount, upon appropriation by the Legislature. Specifies that funds may be used for grants to the SWRCB, a regional water quality control board, or a local agency for the reasonable and necessary costs of actions to
   remediate the harm or threat of harm to human health, safety, and the environment caused by existing or threatened surface or groundwater contamination at a location.
5. Defines “local agency” to mean a unified program or a city or county certified by the board.
6. Defines an “underground storage tank” as any one or combination of tanks, including pipes connected thereto, that is used for the storage of hazardous substances and that is substantially or totally beneath the surface of the ground.

This bill authorizes the SWRCB to additionally expend moneys in the Site Cleanup Subaccount of the UST Cleanup Fund to WRDs for reasonable and necessary expenditures to:

1. Identify the source of surface or groundwater contamination; and
2. Remediate the harm or threat of harm to human health, safety, and the environment caused by existing or threatened surface or groundwater contamination, under the direction of the board, a regional board, a local agency, or another appropritate regulatory agency with authority for cleanup oversight.

Background

The Barry Keene UST Cleanup Fund Act of 1989 was established to protect public health and safety and the environment from releases of petroleum and other hazardous substances from USTs and to reimburse petroleum UST owners for costs associated with the cleanup of leaking petroleum USTs. The UST Program is limited to only petroleum-type sites where petroleum was stored in USTs.

The Site Cleanup Subaccount Program, established in 2014 by SB 445 (Hill, Chapter 547, Statutes of 2014), is a funding program that allows SWRCB to issue grants for projects that address the harm or threat of harm to human health, safety, and/or the environment from polluted surface water and/or groundwater. The evaluation process includes consideration of the degree of threat, whether the site is located in a small or disadvantaged community, the cost and benefits of the cleanup, and the financial resources of the responsible parties.

The Site Cleanup Subaccount Program, as compared to the UST Cleanup Fund, has a much wider range of type of sites and pollutants (largely solvents) associated with industrial and commercial uses. The SWRCB regulates and oversees the investigation and cleanup of “non-federally owned” sites where recent or historical unauthorized releases of pollutants to the environment, including soil, groundwater, surface water, and sediment, have occurred. Sites in the Program are varied and may include pesticide and fertilizer facilities, rail yards, ports, equipment supply facilities, metals facilities, industrial manufacturing and maintenance sites, dry cleaners, bulk transfer facilities, refineries, and some brownfields.

WRDs are charged with protecting and preserving the groundwater supplies within their district for beneficial uses and may take any action within the district to remove contaminants from the groundwater supplies, determine the existence, extent, and location of contaminants in the groundwater supplies of the district, and perform or obtain engineering, hydrologic, and scientific studies for any of the foregoing purposes. However, under current law, WDRs are not eligible to receive grants from the Site Cleanup Subaccount.

Comments

Purpose of bill. According to the author, “SB 519 allows the State Water Resources Control Board (SWRCB) to distribute funds from the Site Cleanup Subaccount Program (SCAP) to water replenishment districts when they are considered the best option for remediating groundwater contamination. The problem is existing law does not allow water replenishment districts to receive funds from this subaccount despite the fact that these grants fund surface or groundwater projects.

“Water replenishment districts are well positioned to immediately prevent harm to public health, safety and the environment because their primary purpose is to store, purify, treat, and manage groundwater reservoirs. Furthermore, water replenishment districts are equipped to handle cases where there is a threat to groundwater because groundwater basins and aquifers are their only priority. Access to the funds in this subaccount are vital to making sure water replenishment districts have the means to address water contamination directly.

“SB 519 will streamline the remediation process and help ensure that water replenishment districts can be considered and awarded this crucial funding related to groundwater cleanup when they are determined the right people for the job.”

Related/Prior Legislation

SB 445 (Hill, Chapter 547, Statutes of 2014) extended the current SWRCB program for the clean-up of USTs from 2016 to 2026 and established the Site Cleanup Subaccount.

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

According to the Senate Appropriations Committee, by allowing a WRD to be an eligible applicant, this bill could create increased demand on funding in the Site Cleanup Subaccount. The resulting cost pressure is unknown and would depend on the number and magnitude of projects that would now be eligible. While there is currently only one entity—the Water Replenishment District of Southern California that could benefit from this bill’s provisions, a single project could range from the tens of thousands to potentially in the low millions of dollars. The SWRCB estimates minor and absorbable costs as a result of this bill since the staff time required to review applications and administer any funding agreements would be relatively minor, and adequately funded by the administrative share of the Site Cleanup Subaccount.

SUPPORT: (Verified 5/16/19)

Water Replenishment District of Southern California (source)

Association of California Water Agencies

River in Action

OPPOSITION: (Verified 5/16/19)

None received

Prepared by: Gabrielle Meindl / E.Q. / (916) 651-4108

5/18/19 11:57:53

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SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

SB 519 (Bradford) - Hazardous substances: underground storage tanks

Bill Summary:

This bill authorizes the State Water Resources Control Board (SWRCB) to utilize funding from the Site Cleanup Subaccount of the Underground Storage Tank (UST) Cleanup Fund for a water replenishment district’s costs to identify and/or remediate groundwater contamination.

Fiscal Impact:

• By allowing a water replenishment district to be an eligible applicant, this bill could create increased demand on funding in the Site Cleanup Subaccount. The resulting cost pressure is unknown and would depend on the number and magnitude of projects that would now be eligible. While there is currently only one entity—the Water Replenishment District of Southern California that could benefit from the bill’s provisions, a single project could range from the tens of thousands to potentially in the low millions of dollars.
• The SWRCB estimates minor and absorbable costs as a result of this measure since the staff time required to review applications and administer any funding agreements would be relatively minor, and adequately funded by the administrative share of the Site Cleanup Subaccount.

Background: Existing law requires the Secretary for Environmental Protection to implement a unified hazardous waste and hazardous materials management program, known as the unified program. Every county is required to apply to the Secretary to be certified to implement the unified program. Existing law authorizes a city or local agency that meets specified requirements to apply to be certified to implement the unified program.

Existing law establishes the UST Cleanup Fund and authorizes the SWRCB to expend moneys in the fund for certain purposes, including for transfer to the Site Cleanup Subaccount, upon appropriation by the Legislature.

Existing law defines “local agency” to mean a unified program or a city or county certified by the board and an “underground storage tank” as any one or combination of tanks, including pipes connected thereto, that is used for the storage of hazardous substances and that is substantially or totally beneath the surface of the ground.

Existing law provides for the formation, organization, and functioning of water replenishment districts. The districts are charged with protecting and preserving the groundwater supplies within their district for beneficial uses and may take any action within the district to remove contaminants from the groundwater supplies, determine the existence, extent, and location of contaminants in the groundwater supplies of the district, and perform or obtain engineering, hydrologic, and scientific studies for any of the foregoing purposes.

Proposed Law:

This bill authorizes the SWRCB to additionally expend moneys in the Site Cleanup Subaccount of the UST Cleanup Fund to water replenishment districts for reasonable and necessary expenditures to identify the source of surface or groundwater contamination; and remediate the harm or threat of harm to human health, safety, and the environment caused by existing or threatened surface or groundwater contamination, under the direction of the board, a regional board, a local agency, or another appropriate regulatory agency with authority for cleanup oversight.

Related Legislation:

SB 445 (Hill, Chapter 547, Statutes of 2014) extended the current SWRCB program for the clean-up of USTs from 2016 to 2026 and established the Site Cleanup Subaccount.

Staff Comments:

The Site Cleanup Subaccount Program was established in 2014 and allows the SWRCB to issue grants for projects that remediate the harm or threat of harm to human health, safety, or the environment caused by existing or threatened surface water or groundwater contamination. The program has an annual appropriation of $19.75 million and there are no funding request limits for applicants. The program does not currently allow water replenishment districts to receive funding from the Site Cleanup Subaccount despite their ability to address groundwater contamination threats. By allowing a water replenishment district to be an eligible applicant, this bill could create increased demand for funding in the Subaccount. The resulting cost pressure is unknown and would depend on the number and magnitude of projects that would now be eligible. It appears that there is only one entity—the Water Replenishment District of Southern California that would benefit from the bill’s provisions.

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SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Allen, Chair

2019 - 2020 Regular

Bill No: SB 519

SUBJECT: Hazardous substances: underground storage tanks

DIGEST: This bill authorizes the State Water Resources Control Board (SWRCB) to expend moneys in the Site Cleanup Subaccount of the Underground Storage Tank (UST) Cleanup Fund to water replenishment districts for the costs to identify and/or remediate the harm or threat of harm to human health, safety, and the environment caused by existing or threatened surface or groundwater contamination.

ANALYSIS:

Existing law:

1. Requires the Secretary for Environmental Protection to implement a unified hazardous waste and hazardous materials management program, known as the unified program.
   
2. Requires every county to apply to the secretary to be certified to implement the unified program, and authorizes a city or local agency that meets specified requirements to apply to be certified to implement the unified program. As a certified unified program agency, or CUPA.
   
3. Provides for the formation, organization, and functioning of water replenishment districts for the purposes of replenishing the groundwater supplies within the district to store, transport, recapture, recycle, purify, treat, or manage the control water for beneficial uses.
   
4. Establishes the UST Cleanup Fund and authorizes the SWRCB to expend moneys in the fund for certain purposes, including for transfer to the Site Cleanup Subaccount, upon appropriation by the Legislature. Specifies that funds may be used for grants to the SWRCB, a regional water quality control board, or a local agency for the reasonable and necessary costs of actions to
   
   
   
   remediate the harm or threat of harm to human health, safety, and the environment caused by existing or threatened surface or groundwater contamination at a location.
   
5. Defines “local agency” to mean a unified program or a city or county certified by the board.
   
6. Defines an underground storage tank (UST) as any one or combination of tanks, including pipes connected thereto, that is used for the storage of hazardous substances and that is substantially or totally beneath the surface of the ground.

This bill:

1. Authorizes the SWRCB to additionally expend moneys in the Site Cleanup Subaccount of the UST Cleanup Fund to water replenishment districts (WRD) for reasonable and necessary expenditures to:
   
   1. identify the source of surface or groundwater contamination; and
      
   2. remediate the harm or threat of harm to human health, safety, and the environment caused by existing or threatened surface or groundwater contamination, under the direction of the board, a regional board, a local agency, or another appropritate regulatory agency with authority for cleanup oversight.

Background

The Barry Keene UST Cleanup Fund Act of 1989 was established to protect public health and safety and the environment from releases of petroleum and other hazardous substances from USTs and to reimburse petroleum UST owners for costs associated with the cleanup of leaking petroleum USTs. The UST Program is limited to only petroleum-type sites where petroleum was stored in USTs.

The Site Cleanup Subaccount Program, established in 2014 by SB 445 (Hill, 2014), is a funding program that allows SWRCB to issue grants for projects that address the harm or threat of harm to human health, safety, and/or the environment from polluted surface water and/or groundwater. The evaluation process includes consideration of the degree of threat, whether the site is located in a small or disadvantaged community, the cost and benefits of the cleanup, and the financial resources of the responsible parties. 

The Site Cleanup Subaccount Program, as compared to the UST Cleanup Fund, has a much wider range of type of sites and pollutants (largely solvents) associated with industrial and commercial uses. The SWRCB regulates and oversees the investigation and cleanup of ‘non-federally owned’ sites where recent or historical unauthorized releases of pollutants to the environment, including soil, groundwater, surface water, and sediment, have occurred. Sites in the program are varied and may include pesticide and fertilizer facilities, rail yards, ports, equipment supply facilities, metals facilities, industrial manufacturing and maintenance sites, dry cleaners, bulk transfer facilities, refineries, and some brownfields.

Water replenishment districts are charged with protecting and preserving the groundwater supplies within their district for beneficial uses and may take any action within the district to remove contaminants from the groundwater supplies, determine the existence, extent, and location of contaminants in the groundwater supplies of the district, and perform or obtain engineering, hydrologic, and scientific studies for any of the foregoing purposes. However, under current law, WDRs are not eligible to receive grants from the Site Cleanup Subaccount.

Comments

1. Purpose of Bill. According to the author, “SB 519 allows the State Water Resources Control Board (SWRCB) to distribute funds from the Site Cleanup Subaccount Program (SCAP) to water replenishment districts when they are considered the best option for remediating groundwater contamination. The problem is existing law does not allow water replenishment districts to receive funds from this subaccount despite the fact that these grants fund surface or groundwater projects.

“Water replenishment districts are well positioned to immediately prevent harm to public health, safety and the environment because their primary purpose is to store, purify, treat, and manage groundwater reservoirs. Furthermore, water replenishment districts are equipped to handle cases where there is a threat to groundwater because groundwater basins and aquifers are their only priority. Access to the funds in this subaccount are vital to making sure water replenishment districts have the means to address water contamination directly.

“SB 519 will streamline the remediation process and help ensure that water replenishment districts can be considered and awarded this crucial funding related to groundwater cleanup when they are determined the right people for the job.”

Related/Prior Legislation

SB 445 (Hill, Chapter 547, Statutes of 2014) extends the current SWRCB program for the clean-up of USTs from 2016 to 2026 and established the Site Cleanup Subaccount.

SOURCE:

Water Replenishment District of Southern California

SUPPORT:

Association of California Water Agencies

River in Action

OPPOSITION:

None received

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