Under existing law, the State Water Resources Control Board and the 9 California regional water quality control boards regulate water quality and prescribe waste discharge requirements in accordance with the Porter-Cologne Water Quality Control Act and the federal National Pollutant Discharge Elimination System permit program established by the federal Clean Water Act. Existing law requires each regional board to formulate and adopt water quality control plans for all areas within the region, as provided.

Existing law requires specified moneys to be paid into the State Water Pollution Cleanup and Abatement Account, which is established in the State Water Quality Control Fund, including, among other moneys, the proceeds of civil penalties for violations of certain waste discharge requirements. Existing law continuously appropriates moneys in the account for specified purposes, including, among others, the payment of grant moneys to eligible entities to assist in cleaning up a waste, abating the effects of a waste on waters of the state, or addressing an urgent drinking water need.

This bill would require the State Water Resources Control Board, no later than January 1 of each year, to post on its internet website a report describing the receipts and expenditures of the State Water Pollution Cleanup and Abatement Account, as provided. The bill would require the board to provide the initial report no later than January 1, 2026, and to include data for the period from July 1, 2017, to June 30, 2025, inclusive, in that report, as provided. The bill would require the board, no later than June 30, 2025, to separately account within the State Water Pollution Cleanup and Abatement Account all categories of receipts, including, among other categories, enforcement fines.

Under existing law, the State Water Resources Control Board and the 9 California regional water quality control boards regulate water quality and prescribe waste discharge requirements in accordance with the Porter-Cologne Water Quality Control Act and the federal National Pollutant Discharge Elimination System permit program established by the federal Clean Water Act. Existing law requires each regional board to formulate and adopt water quality control plans for all areas within the region, as provided.

Existing law requires specified moneys to be paid into the State Water Pollution Cleanup and Abatement Account, which is established in the State Water Quality Control Fund, including, among other moneys, the proceeds of civil penalties for violations of certain waste discharge requirements. Existing law continuously appropriates moneys in the account for specified purposes, including, among others, the payment of grant moneys to eligible entities to assist in cleaning up a waste, abating the effects of a waste on waters of the state, or addressing an urgent drinking water need.

This bill would require the State Water Resources Control Board, no later than January 1 of each year, to post on its internet website a report describing the receipts and expenditures of the State Water Pollution Cleanup and Abatement Account, as provided. The bill would require the board to provide the initial report no later than January 1, 2026, and to include data for the period from July 1, 2017, to June 30, 2025, inclusive, in that report, as provided. The bill would require the board, no later than June 30, 2025, to separately account within the State Water Pollution Cleanup and Abatement Account all categories of receipts, including, among other categories, enforcement fines.

Under existing law, the State Water Resources Control Board and the 9 California regional water quality control boards regulate water quality and prescribe waste discharge requirements in accordance with the Porter-Cologne Water Quality Control Act and the federal National Pollutant Discharge Elimination System permit program established by the federal Clean Water Act. Existing law requires each regional board to formulate and adopt water quality control plans for all areas within the region, as provided.

Existing law requires specified moneys to be paid into the State Water Pollution Cleanup and Abatement Account, which is established in the State Water Quality Control Fund, including, among other moneys, the proceeds of civil penalties for violations of certain waste discharge requirements. Existing law continuously appropriates moneys in the account for specified purposes, including, among others, the payment of grant moneys to eligible entities to assist in cleaning up a waste, abating the effects of a waste on waters of the state, or addressing an urgent drinking water need.

This bill would require the State Water Resources Control Board to, Board, no later than January 1 of each year, to post on its internet website a report describing the receipts and expenditures of the State Water Pollution Cleanup and Abatement Account, as provided. The bill would require the board to provide the initial report no later than January 1, 2026, and to include data from the years 2017 to 2025, for the period from July 1, 2017, to June 30, 2025, inclusive, in that report. report, as provided. The bill would require the board, no later than June 30, 2025, to separately account within the State Water Pollution Cleanup and Abatement Account all categories of receipts, including, among other categories, enforcement fines.

Under existing law, the State Water Resources Control Board and the 9 California regional water quality control boards regulate water quality and prescribe waste discharge requirements in accordance with the Porter-Cologne Water Quality Control Act and the federal National Pollutant Discharge Elimination System permit program established by the federal Clean Water Act. Existing law requires each regional board to formulate and adopt water quality control plans for all areas within the region, as provided.

Existing law requires specified moneys to be paid into the State Water Pollution Cleanup and Abatement Account, which is established in the State Water Quality Control Fund, including, among other moneys, the proceeds of civil penalties for violations of certain waste discharge requirements. Existing law continuously appropriates moneys in the account for specified purposes, including, among others, the payment of grant moneys to eligible entities to assist in cleaning up a waste, abating the effects of a waste on waters of the state, or addressing an urgent drinking water need.

This bill would require the State Water Resources Control Board to, no later than January 1 of each year, post on its internet website a report describing the receipts and expenditures of the State Water Pollution Cleanup and Abatement Account, as provided. The bill would require the board to provide the initial report no later than January 1, 2026, and to include data from the years 2017 to 2025, inclusive, in that report.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 2318

Author:(Papan)

As Amended Ver:August 19, 2024

Majority vote

SUMMARY

Requires, no later than January 1 of each year and beginning on January 1, 2026, the State Water Resources Control Board (State Water Board) to post on its internet website a report describing the receipts and expenditures of the State Water Pollution Cleanup and Abatement Account (Abatement Account).

Senate Amendments

1) Require the State Water Board, no later than June 30, 2025, to separately account within the Abatement Account, all categories of receipts, including but not limited to, enforcement fines, cost recovery, and judicially approved settlements or judicial orders that include specified limitations on the use of the funds.

COMMENTS

Federal Clean Water Act (CWA): The federal CWA establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters. Under the CWA, the United States Environmental Protection Agency has implemented pollution control programs, including setting wastewater standards for industrial facilities, as well as setting water quality standards for all contaminants in surface waters. The CWA made it unlawful to discharge any pollutant from a point source into navigable waters without a permit. Industrial, municipal, and other facilities must obtain a permit under the National Pollutant Discharge Elimination System in order to discharge into surface water.

State regulation of water pollution: The State Water Board is responsible for administering the federal CWA and California's Porter-Cologne Water Quality Control Act (Water Quality Act), enacted in 1969, which set up the statewide structure for water quality control. The Water Quality Act designates the State Water Board as the water pollution control agency for all purposes stated in the CWA, and it authorizes the State Water Board to exercise any powers that the federal CWA delegates to the state. The State Water Board and the Regional Water Quality Control Boards (Regional Water Boards) are charged with preventing and reducing water pollution in rivers, streams, lakes, beaches, bays, and groundwater.

State Water Pollution Cleanup and Abatement Account (Abatement Account): The Abatement Account was created to provide public agencies with grants for the cleanup or abatement of a condition of pollution when there are no viable responsible parties available to undertake the work. The Abatement Account is supported by court judgments and administrative civil liabilities assessed by the State Water Board and the Regional Water Boards. In some instances, a court judgment or settlement agreement specifies how collected funds are to be spent (e.g., a specific cleanup, investigation, or supplemental environmental project). Those funds may be set aside in the Abatement Account for that identified purpose, consistent with statutes governing uses of the Abatement Account.

The Abatement Account is also used as a clearing account for the State Water Board's Site Cleanup Program. Responsible parties (RPs) sign a cost recovery agreement with a Regional Water Quality Control Board (Regional Water Board), Abatement Account funds are used to pay the associated Regional Water Board staff oversight costs, and the costs recovered from RPs return to the Abatement Account. After accounting for these needs and other prior encumbrances, remaining Abatement Account funds may be utilized for the purposes allowed by the statute.

Eligible entities that could apply for this funding include public agencies, as well as certain not-for-profit organizations and tribal governments that serve a disadvantaged community and that have the authority to clean up or abate the effects of a waste.

In 2015, the Legislature enacted Assembly Bill (AB) 92 (Budget Committee, Chapter 2, Statutes of 2015) to help provide grant funding to address emergency drinking water issues. Among its provisions, AB 92 expanded the types of projects that can be funded from the Abatement Account to include projects to address an urgent drinking water need, without regard to whether the need for drinking water is a result of the discharge of waste; expanded the pool of applicants eligible for funding from the Abatement Account to include community water systems that serve a disadvantaged community; exempted projects funded from the Abatement Account from state contracting and procurement requirements to the extent necessary to take immediate action to protect public health and safety; and, authorized the State Water Board to adopt guidelines for the allocation and administration of the Abatement Account funds.

Abatement Account Funding: According to the detailed budget information released as part of the Governor's proposed 2024-2025 budget, appropriations to the State Water Quality Control Fund where the Abatement Account is located, averaged approximately $34 million over the past couple of fiscal years. However, the budget does not show any detailed expenditures. Additionally, currently on the State Water Board's website there is a list of some projects funded from 2013-2023. This list may not be comprehensive as it shows expenditures for the following years: $5.3 million in 2015, does not list 2016, $14 million in 2017, $1.1 million in 2018, $2.1 million in 2019, nothing listed in 2020, and $308,000 in 2021. This bill would require the State Water Board to provide a public list of the expenditures by category of the Abatement Account.

Recent legislation: AB 753 (Papan, 2023), would have created the Waterway Recovery Account (Waterway Account) within the Waste Discharge Permit Fund, and transferred 50% of the funds from the Abatement Account to the Waterway Account for projects and programs to address water quality issues. This bill was vetoed by the Governor. In part, the Governor's veto message stated:

"While I appreciate the author's intent to improve cleanup of local waterways in disadvantaged communities, this bill reallocates revenue from an oversubscribed fund that is utilized to clean up waste, abate the effects of waste on waters of the state, and address urgent drinking water needs. This funding represents a critical need and we cannot afford to redirect it to a new account."

This bill: Requires, no later than January 1 of each year, the State Water Board to post on its internet website a report describing the receipts and expenditures by category of the Abatement Account, beginning January 1, 2026. AB 2318 does not propose to shift or transfer any funds from the Abatement Account, rather it simply seeks public transparency as to the money received into the Abatement Account and the expenditures from the Abatement Account.

According to the Author

"Historically, the State Water Board has returned much of the money from the Cleanup and Abatement Account to the Regional Water Boards to clean up waterways in the communities most impacted by pollution. However, the Water Board no longer sends that money back to local communities at the same rate.

Many disadvantaged communities around the state have seen water quality issues persist or worsen. Until these communities receive more funding from the Cleanup and Abatement Account, they will continue to lack the resources to clean up their local waterways.

Though AB 753, which proposed to send 50% of the CAA funds back to the regional boards on a proportional basis, had bipartisan support in the legislature, it was vetoed by the Governor. In the Governor's veto message, he described the fund as oversubscribed, and thus the funding could not be redirected to the regional boards. However, there is little information about the account that is publicly available to give this assertion merit and the information that does exist paints a different picture. Up until 2017, the State Water Board, publicly provided information about which project were being funded on the agency's website. AB 2318 is a modest bill which will require the SWB [State Water Board] to return to this practice, providing clarity and transparency on the account."

Arguments in Support

According to the Coastkeeper Alliance, writing in support of the bill:

"Because it will provide the information and transparency necessary for the public to know whether communities harmed by water quality violations are being invested in to restore their watershed and open spaces.

The State Water Pollution Cleanup and Abatement Account (CAA) was designed as a safety net, intended to make sure that even when polluters could not be found, there was adequate financing to clean contaminated sites. This account is funded through a variety of sources, including criminal and civil penalties and any money contributed to the account and accepted by the state board.

However, nothing mandates that the funds polluters pay into the CAA must be used to remediate the damage caused by the violation, or even that the State Water Board needs to repay a regional board for its restorative work. Instead, CAA funds can be used for projects anywhere in the state.

In order to ensure CAA enforcement fines are properly being re-invested into the communities most harmed by water quality violations, we strongly support AB 2318."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee, enactment of this bill could result in minor and absorbable costs to the State Water Board.

VOTES:

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

YES: Garcia, Hoover, Connolly, McKinnor, Papan, Reyes, Ta

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Jim Patterson, Pellerin, Ta, Villapudua

ASSEMBLY FLOOR: 72-0-8

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

ABS, ABST OR NV: Cervantes, Megan Dahle, Friedman, Gabriel, Holden, Lowenthal, Mathis, Luz Rivas

SENATE FLOOR: 40-0-0

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

UPDATED

VERSION: August 19, 2024

CONSULTANT: Josh Tooker / E.S. & T.M. / (916) 319-3965 FN: 0004597

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 2318

Author:(Papan)

As Amended Ver:August 19, 2024

Majority vote

SUMMARY

Requires, no later than January 1 of each year and beginning on January 1, 2026, the State Water Resources Control Board (State Water Board) to post on its internet website a report describing the receipts and expenditures of the State Water Pollution Cleanup and Abatement Account (Abatement Account).

Senate Amendments

1) Require the State Water Board, no later than June 30, 2025, to separately account within the Abatement Account, all categories of receipts, including but not limited to, enforcement fines, cost recovery, and judicially approved settlements or judicial orders that include specified limitations on the use of the funds.

COMMENTS

Federal Clean Water Act (CWA): The federal CWA establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters. Under the CWA, the United States Environmental Protection Agency has implemented pollution control programs, including setting wastewater standards for industrial facilities, as well as setting water quality standards for all contaminants in surface waters. The CWA made it unlawful to discharge any pollutant from a point source into navigable waters without a permit. Industrial, municipal, and other facilities must obtain a permit under the National Pollutant Discharge Elimination System in order to discharge into surface water.

State regulation of water pollution: The State Water Board is responsible for administering the federal CWA and California's Porter-Cologne Water Quality Control Act (Water Quality Act), enacted in 1969, which set up the statewide structure for water quality control. The Water Quality Act designates the State Water Board as the water pollution control agency for all purposes stated in the CWA, and it authorizes the State Water Board to exercise any powers that the federal CWA delegates to the state. The State Water Board and the Regional Water Quality Control Boards (Regional Water Boards) are charged with preventing and reducing water pollution in rivers, streams, lakes, beaches, bays, and groundwater.

State Water Pollution Cleanup and Abatement Account (Abatement Account): The Abatement Account was created to provide public agencies with grants for the cleanup or abatement of a condition of pollution when there are no viable responsible parties available to undertake the work. The Abatement Account is supported by court judgments and administrative civil liabilities assessed by the State Water Board and the Regional Water Boards. In some instances, a court judgment or settlement agreement specifies how collected funds are to be spent (e.g., a specific cleanup, investigation, or supplemental environmental project). Those funds may be set aside in the Abatement Account for that identified purpose, consistent with statutes governing uses of the Abatement Account.

The Abatement Account is also used as a clearing account for the State Water Board's Site Cleanup Program. Responsible parties (RPs) sign a cost recovery agreement with a Regional Water Quality Control Board (Regional Water Board), Abatement Account funds are used to pay the associated Regional Water Board staff oversight costs, and the costs recovered from RPs return to the Abatement Account. After accounting for these needs and other prior encumbrances, remaining Abatement Account funds may be utilized for the purposes allowed by the statute.

Eligible entities that could apply for this funding include public agencies, as well as certain not-for-profit organizations and tribal governments that serve a disadvantaged community and that have the authority to clean up or abate the effects of a waste.

In 2015, the Legislature enacted Assembly Bill (AB) 92 (Budget Committee, Chapter 2, Statutes of 2015) to help provide grant funding to address emergency drinking water issues. Among its provisions, AB 92 expanded the types of projects that can be funded from the Abatement Account to include projects to address an urgent drinking water need, without regard to whether the need for drinking water is a result of the discharge of waste; expanded the pool of applicants eligible for funding from the Abatement Account to include community water systems that serve a disadvantaged community; exempted projects funded from the Abatement Account from state contracting and procurement requirements to the extent necessary to take immediate action to protect public health and safety; and, authorized the State Water Board to adopt guidelines for the allocation and administration of the Abatement Account funds.

Abatement Account Funding: According to the detailed budget information released as part of the Governor's proposed 2024-2025 budget, appropriations to the State Water Quality Control Fund where the Abatement Account is located, averaged approximately $34 million over the past couple of fiscal years. However, the budget does not show any detailed expenditures. Additionally, currently on the State Water Board's website there is a list of some projects funded from 2013-2023. This list may not be comprehensive as it shows expenditures for the following years: $5.3 million in 2015, does not list 2016, $14 million in 2017, $1.1 million in 2018, $2.1 million in 2019, nothing listed in 2020, and $308,000 in 2021. This bill would require the State Water Board to provide a public list of the expenditures by category of the Abatement Account.

Recent legislation: AB 753 (Papan, 2023), would have created the Waterway Recovery Account (Waterway Account) within the Waste Discharge Permit Fund, and transferred 50% of the funds from the Abatement Account to the Waterway Account for projects and programs to address water quality issues. This bill was vetoed by the Governor. In part, the Governor's veto message stated:

"While I appreciate the author's intent to improve cleanup of local waterways in disadvantaged communities, this bill reallocates revenue from an oversubscribed fund that is utilized to clean up waste, abate the effects of waste on waters of the state, and address urgent drinking water needs. This funding represents a critical need and we cannot afford to redirect it to a new account."

This bill: Requires, no later than January 1 of each year, the State Water Board to post on its internet website a report describing the receipts and expenditures by category of the Abatement Account, beginning January 1, 2026. AB 2318 does not propose to shift or transfer any funds from the Abatement Account, rather it simply seeks public transparency as to the money received into the Abatement Account and the expenditures from the Abatement Account.

According to the Author

"Historically, the State Water Board has returned much of the money from the Cleanup and Abatement Account to the Regional Water Boards to clean up waterways in the communities most impacted by pollution. However, the Water Board no longer sends that money back to local communities at the same rate.

Many disadvantaged communities around the state have seen water quality issues persist or worsen. Until these communities receive more funding from the Cleanup and Abatement Account, they will continue to lack the resources to clean up their local waterways.

Though AB 753, which proposed to send 50% of the CAA funds back to the regional boards on a proportional basis, had bipartisan support in the legislature, it was vetoed by the Governor. In the Governor's veto message, he described the fund as oversubscribed, and thus the funding could not be redirected to the regional boards. However, there is little information about the account that is publicly available to give this assertion merit and the information that does exist paints a different picture. Up until 2017, the State Water Board, publicly provided information about which project were being funded on the agency's website. AB 2318 is a modest bill which will require the SWB [State Water Board] to return to this practice, providing clarity and transparency on the account."

Arguments in Support

According to the Coastkeeper Alliance, writing in support of the bill:

"Because it will provide the information and transparency necessary for the public to know whether communities harmed by water quality violations are being invested in to restore their watershed and open spaces.

The State Water Pollution Cleanup and Abatement Account (CAA) was designed as a safety net, intended to make sure that even when polluters could not be found, there was adequate financing to clean contaminated sites. This account is funded through a variety of sources, including criminal and civil penalties and any money contributed to the account and accepted by the state board.

However, nothing mandates that the funds polluters pay into the CAA must be used to remediate the damage caused by the violation, or even that the State Water Board needs to repay a regional board for its restorative work. Instead, CAA funds can be used for projects anywhere in the state.

In order to ensure CAA enforcement fines are properly being re-invested into the communities most harmed by water quality violations, we strongly support AB 2318."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee, enactment of this bill could result in minor and absorbable costs to the State Water Board.

VOTES:

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

YES: Garcia, Hoover, Connolly, McKinnor, Papan, Reyes, Ta

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Jim Patterson, Pellerin, Ta, Villapudua

ASSEMBLY FLOOR: 72-0-8

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

ABS, ABST OR NV: Cervantes, Megan Dahle, Friedman, Gabriel, Holden, Lowenthal, Mathis, Luz Rivas

UPDATED

VERSION: August 19, 2024

CONSULTANT: Josh Tooker / E.S. & T.M. / (916) 319-3965 FN: 0004597

 THIRD READING  

Bill No: AB 2318

Author: Papan (D)

Amended: 8/19/24 in Senate

Vote: 21

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 7/3/24

AYES: Allen, Dahle, Gonzalez, Hurtado, Menjivar, Nguyen, Skinner

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 72-0, 5/21/24 - See last page for vote

SUBJECT: State Water Pollution Cleanup and Abatement Account: receipts and expenditures: report

SOURCE: California Coastkeeper Alliance

DIGEST:

This bill requires, no later than January 1 of each year, the State Water Resources Control Board (State Water Board) to post on its internet website a report describing the receipts and expenditures of the State Water Pollution Cleanup and Abatement Account (CAA).

Senate Floor Amendments of 8/19/24 require the State Water Board, no later than June 30, 2025, to separately account within the CAA all categories of receipts, including, among other categories, enforcement fines. The amendments also require the State Water Board, commencing no later than January 1, 2025, to separately account for, within the CAA, all categories of receipts, including enforcement fines, cost recovery, and judicially-approved settlements or judicial orders that include specified limitation on the use of the funds.

ANALYSIS:

Existing law:

1. Establishes the federal Clean Water Act (CWA) to regulate discharges of pollutants into the waters of the United States (U.S.) and to regulate quality standards for surface waters. (33 United States Code (U.S.C.) §1251 et seq.)
2. Establishes the Porter-Cologne Water Quality Control Act (Water Quality Act), which prohibits the discharge of pollutants to surface waters unless the discharger obtains a permit from the State Water Board. (Water Code (WC) § 13000 et seq.)
3. Establishes the CAA within the State Water Quality Control Fund, which is administered by the State Water Board. (WC § 13440)

4) Provides to the CAA half of all funds collected due to criminal penalties and all funds from civil penalties received under the Porter Cologne Water Quality Control Act. (WC § 13441)

5) Authorizes the State Water Board to approve grants from the CAA, to any eligible entity to assist in cleaning up a waste, abating the effects of a waste on waters of the state, or addressing an urgent drinking water need. Eligible entities include: a public agency, a tribal government, a not-for-profit organization serving a disadvantaged community, or a community water system that serves a disadvantaged community. (WC § 13442)

This bill:

1. Requires, no later than January 1, of each year, the State Water Board to post on its internet website a report describing the receipts and expenditures of the CAA for the most recent completed fiscal year.
2. Requires the State Water Board to provide the initial report, required by this bill, no later than January 1, 2026, and to include data for the period from July 1, 2017, to June 30, 2025, inclusive, in the report.
3. Requires the report include, but not be limited to: a list of applications that contain the amount of funds requested, the State Water Board's decision on the application, the amount of funds granted, a description of the project funded, and if the application was denied a reason for denial; the total and individual deposits to the CAA originating from enforcement fines; the total amount of funds diverted to supplemental environmental projects funded from enforcement fines, as provided; and the total amount of deposits to the CAA originating from each regional board and, the total amount of grants provided to projects within each region.
4. Require the State Water Board, commencing no later than January 1, 2025, to separately account for within the CAA all categories of receipts, including enforcement fines, cost recovery, and judicially-approved settlements or judicial orders that include specified limitations on the use of the funds.

Background

1. Federal Clean Water Act (CWA). The Federal Water Pollution Control Act of 1948 was the first major U.S. law to address water pollution. The law was amended in 1972 and became commonly known as the Clean Water Act (CWA). The federal CWA establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters. Under the CWA, the United States Environmental Protection Agency (US EPA) has implemented pollution control programs, including setting wastewater standards for industrial facilities, as well as setting water quality standards for all contaminants in surface waters. The CWA made it unlawful to discharge any pollutant from a point source into navigable waters without a permit. Industrial, municipal, and other facilities must obtain a permit under the National Pollutant Discharge Elimination System in order to discharge into surface water.
2. State regulation of water pollution. The State Water Board is responsible for administering the federal CWA and California’s Water Quality Act, enacted in 1969, which set up the statewide structure for water quality control. The Water Quality Act designates the State Water Board as the water pollution control agency for all purposes stated in the CWA, and it authorizes the State Water Board to exercise any powers that the federal CWA delegates to the State. The State Water Board and the Regional Water Boards are charged with preventing and reducing water pollution in rivers, streams, lakes, beaches, bays, and groundwater.
3. State Water Pollution Cleanup and Abatement Account (CAA). The CAA was created to provide public agencies with grants for the cleanup or abatement of a condition of pollution when there are no viable responsible parties available to undertake the work. The CAA is supported by court judgments and administrative civil liabilities assessed by the State Water Board and the Regional Water Boards. In some instances, a court judgment or settlement agreement specifies how collected funds are to be spent (e.g., a specific cleanup, investigation, or supplemental environmental project). Those funds may be set aside in the CAA for that identified purpose, consistent with statutes governing the uses of the CAA.

The CAA is also used as a clearing account for the State Water Board's Site Cleanup Program. Responsible parties (RPs) sign a cost recovery agreement with a Regional Water Quality Control Board (Regional Water Board), CAA funds are used to pay the associated Regional Water Board staff oversight costs, and the costs recovered from RPs return to the CAA. After accounting for these needs and other prior encumbrances, remaining CAA funds may be utilized for the purposes allowed by the statute. Eligible entities that could apply for this funding include public agencies, as well as certain not-for-profit organizations and tribal governments that serve a disadvantaged community and that have the authority to clean up or abate the effects of a waste.

In 2015, the Legislature enacted AB 92 (Budget Committee, Chapter 2, Statutes of 2015) to help provide grant funding to address emergency drinking water issues. Among its provisions, AB 92 expanded the types of projects that can be funded from the CAA to include projects to address an urgent drinking water need, without regard to whether the need for drinking water is a result of the discharge of waste; expanded the pool of applicants eligible for funding from the CAA to include community water systems that serve a disadvantaged community; exempted projects funded from the CAA from state contracting and procurement requirements to the extent necessary to take immediate action to protect public health and safety; and, authorized the State Water Board to adopt guidelines for the allocation and administration of the CAA funds.

1. CAA Funding. According to the detailed budget information released as part of the Governor's proposed 2024-2025 budget, appropriations to the State Water Quality Control Fund where the CAA is located, averaged approximately $34 million over the past couple of fiscal years. However, the budget does not show any detailed expenditures. Additionally, currently on the State Water Board's website, there is a list of some projects funded from 2013-2023. This list may not be comprehensive as it shows expenditures for the following years: $5.3 million in 2015, doesn't list 2016, $14 million in 2017, $1.1 million in 2018, $2.1 million in 2019, nothing listed in 2020, and $308,000 in 2021. This bill would require the State Water Board to provide a public list of the expenditures of the CAA.
2. Recent legislation. AB 753 (Papan, 2023) would have created the Waterway Recovery Account (Waterway Account) within the Waste Discharge Permit Fund and transferred fifty percent of the funds from the CAA to the Waterway Account for projects and programs to address water quality issues. The bill was vetoed by the Governor. In part, the Governor's veto message stated:

"While I appreciate the author's intent to improve clean up of local waterways in disadvantaged communities, this bill reallocates revenue from an oversubscribed fund that is utilized to clean up waste, abate the effects of waste on waters of the state, and address urgent drinking water needs. This funding represents a critical need and we cannot afford to redirect it to a new account."

1. Interaction with other legislation. AB 2501 (Alvarez), introduced in 2024, authorizes the State Water Board to accept moneys from donations, grants, etc. from public agencies, foundations, or other not-for-profit entities for the purpose of planning, permitting, or providing technical support for projects of public benefit. AB 2501 also provides that these funds are to be deposited and separately accounted for in the CAA. The provisions of this bill, if enacted, would apply to AB 2501 if it is also enacted. AB 2501 was heard and passed by this committee on June 19, 2024.

Comments

1. Purpose of Bill. According to the author, "Historically, the State Water Board has returned much of the money from the Cleanup and Abatement Account to the Regional Water Boards to clean up waterways in the communities most impacted by pollution. However, the Water Board no longer sends that money back to local communities at the same rate.

“Many disadvantaged communities around the state have seen water quality issues persist or worsen. Until these communities receive more funding from the Cleanup and Abatement Account, they will continue to lack the resources to clean up their local waterways.

“Though AB 753, which proposed to send 50% of the CAA [Cleanup and Abatement Account] funds back to the regional boards on a proportional basis, had bipartisan support in the legislature, it was vetoed by the Governor. In the Governor’s veto message, he described the fund as oversubscribed, and thus the funding could not be redirected to the regional boards. However, there is little information about the account that is publicly available to give this assertion merit and the information that does exist paints a different picture. Up until 2017, the State Water Board, publicly provided information about which projects were being funded on the agency’s website. AB 2318 is a modest bill which will require the SWB [State Water Board] to return to this practice, providing clarity and transparency on the account."

1. Show me the money. This bill requires, no later than January 1 of each year, the State Water Board to post on its internet website a report describing the receipts and expenditures of the CAA, beginning January 1, 2026. This bill does not propose to shift or transfer any funds from the CAA, rather it simply seeks public transparency as to the money received into the CAA and the expenditures from the CAA.
   

Related/Prior Legislation

AB 2501 (Alvarez, 2024) authorizes the State Water Board to accept moneys from donations, grants, etc. from public agencies, foundations, or other not-for-profit entities for the purpose of planning, permitting, or providing technical support for projects of public benefit. The bill is pending action in the Senate Appropriations Committee.

AB 753 (Papan, 2023) would have created the Waterway Account within the Waste Discharge Permit Fund and transferred fifty percent of the funds from the CAA to the Waterway Account for projects and programs to address water quality issues. The bill was vetoed by the Governor.

AB 2113 (Robert Rivas, 2022) would have created four new accounts in the Waste Discharge Permit Fund and, subject to a future legislative act, transferred up to a total of fifty percent of the annual proceeds from the CAA to these four new accounts for specified purposes. The bill was held on the suspense file of the Assembly Appropriations Committee.

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

SUPPORT: (Verified 8/14/24)

None received

OPPOSITION: (Verified 8/14/24)

None received

ASSEMBLY FLOOR: 72-0, 5/21/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Cervantes, Megan Dahle, Friedman, Gabriel, Holden, Lowenthal, Mathis, Luz Rivas

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

8/20/24 17:23:00

**** END ****

 THIRD READING 

Bill No: AB 2318

Author: Papan (D)

Introduced: 2/12/24

Vote: 21

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 7/3/24

AYES: Allen, Dahle, Gonzalez, Hurtado, Menjivar, Nguyen, Skinner

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 72-0, 5/21/24 - See last page for vote

SUBJECT: State Water Pollution Cleanup and Abatement Account: receipts and expenditures: report

SOURCE: California Coastkeeper Alliance

DIGEST: This bill requires, no later than January 1 of each year, the State Water Resources Control Board (State Water Board) to post on its internet website a report describing the receipts and expenditures of the State Water Pollution Cleanup and Abatement Account (Abatement Account).

ANALYSIS:

Existing law:

1. Establishes the federal Clean Water Act (CWA) to regulate discharges of pollutants into the waters of the United States (U.S.) and to regulate quality standards for surface waters. (Title 33 United States Code (U.S.C.) §1251 et seq.)
2. Establishes the Porter-Cologne Water Quality Control Act (Water Quality Act), which prohibits the discharge of pollutants to surface waters unless the discharger obtains a permit from the State Water Board. (Water Code (WC) § 13000 et seq.)
3. Establishes the Abatement Account within the State Water Quality Control Fund, which is administered by the State Water Board. (WC § 13440)

4) Provides to the Abatement Account half of all funds collected due to criminal penalties and all funds from civil penalties received under the Porter Cologne Water Quality Control Act. (WC § 13441)

5) Authorizes the State Water Board to approve grants from the Abatement Account, to any eligible entity to assist in cleaning up a waste, abating the effects of a waste on waters of the state, or addressing an urgent drinking water need. Eligible entities include: a public agency, a tribal government, a not-for-profit organization serving a disadvantaged community, or a community water system that serves a disadvantaged community. (WC § 13442)

This bill:

1. Requires, no later than January 1, of each year, the State Water Board to post on its internet website a report describing the receipts and expenditures of the Abatement Account.
2. Requires the State Water Board to complete the initial report, required by this bill, no later than January 1, 2026, and that initial report shall include data from the years 2017 to 2025, inclusive.
3. Requires the report include but not be limited to: a list of applications that contain the amount of funds requested, the State Water Board's decision on the application, the amount of funds granted, a description of the project funded, and if the application was denied a reason for denial; the total and individual deposits to the account originating from enforcement fines; information on supplemental environmental projects funded in connection with enforcement fines; and the total amount of deposits to the Abatement Account originating from each region and, the total amount of grants provided to each region.

Background

1. Federal Clean Water Act (CWA). The Federal Water Pollution Control Act of 1948 was the first major U.S. law to address water pollution. The law was amended in 1972 and became commonly known as the Clean Water Act (CWA). The federal CWA establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters. Under the CWA, the United States Environmental Protection Agency (US EPA) has implemented pollution control programs, including setting wastewater standards for industrial facilities, as well as setting water quality standards for all contaminants in surface waters. The CWA made it unlawful to discharge any pollutant from a point source into navigable waters without a permit. Industrial, municipal, and other facilities must obtain a permit under the National Pollutant Discharge Elimination System in order to discharge into surface water.
2. State regulation of water pollution. The State Water Board is responsible for administering the federal CWA and California’s Water Quality Act, enacted in 1969, which set up the statewide structure for water quality control. The Water Quality Act designates the State Water Board as the water pollution control agency for all purposes stated in the CWA, and it authorizes the State Water Board to exercise any powers that the federal CWA delegates to the State. The State Water Board and the Regional Water Boards are charged with preventing and reducing water pollution in rivers, streams, lakes, beaches, bays, and groundwater.
3. State Water Pollution Cleanup and Abatement Account (Abatement Account). The Abatement Account was created to provide public agencies with grants for the cleanup or abatement of a condition of pollution when there are no viable responsible parties available to undertake the work. The Abatement Account is supported by court judgments and administrative civil liabilities assessed by the State Water Board and the Regional Water Boards. In some instances, a court judgment or settlement agreement specifies how collected funds are to be spent (e.g., a specific cleanup, investigation, or supplemental environmental project). Those funds may be set aside in the Abatement Account for that identified purpose, consistent with statutes governing the uses of the Abatement Account.

The Abatement Account is also used as a clearing account for the State Water Board's Site Cleanup Program. Responsible parties (RPs) sign a cost recovery agreement with a Regional Water Quality Control Board (Regional Water Board), Abatement Account funds are used to pay the associated Regional Water Board staff oversight costs, and the costs recovered from RPs return to the Abatement Account. After accounting for these needs and other prior encumbrances, remaining Abatement Account funds may be utilized for the purposes allowed by the statute.

Eligible entities that could apply for this funding include public agencies, as well as certain not-for-profit organizations and tribal governments that serve a disadvantaged community and that have the authority to clean up or abate the effects of a waste.

In 2015, the Legislature enacted AB 92 (Budget Committee, Chapter 2, Statutes of 2015) to help provide grant funding to address emergency drinking water issues. Among its provisions, AB 92 expanded the types of projects that can be funded from the Abatement Account to include projects to address an urgent drinking water need, without regard to whether the need for drinking water is a result of the discharge of waste; expanded the pool of applicants eligible for funding from the Abatement Account to include community water systems that serve a disadvantaged community; exempted projects funded from the Abatement Account from state contracting and procurement requirements to the extent necessary to take immediate action to protect public health and safety; and, authorized the State Water Board to adopt guidelines for the allocation and administration of the Abatement Account funds.

1. Abatement Account Funding. According to the detailed budget information released as part of the Governor's proposed 2024-2025 budget, appropriations to the State Water Quality Control Fund where the Abatement Account is located, averaged approximately $34 million over the past couple of fiscal years. However, the budget does not show any detailed expenditures. Additionally, currently on the State Water Board's website, there is a list of some projects funded from 2013-2023. This list may not be comprehensive as it shows expenditures for the following years: $5.3 million in 2015, doesn't list 2016, $14 million in 2017, $1.1 million in 2018, $2.1 million in 2019, nothing listed in 2020, and $308,000 in 2021. This bill would require the State Water Board to provide a public list of the expenditures of the Abatement Account.
2. Recent legislation. AB 753 (Papan, 2023) would have created the Waterway Recovery Account (Waterway Account) within the Waste Discharge Permit Fund and transferred fifty percent of the funds from the Abatement Account to the Waterway Account for projects and programs to address water quality issues. The bill was vetoed by the Governor. In part, the Governor's veto message stated, "While I appreciate the author's intent to improve clean up of local waterways in disadvantaged communities, this bill reallocates revenue from an oversubscribed fund that is utilized to clean up waste, abate the effects of waste on waters of the state, and address urgent drinking water needs. This funding represents a critical need and we cannot afford to redirect it to a new account."
3. Interaction with other legislation. AB 2501 (Alvarez), introduced in 2024, authorizes the State Water Board to accept moneys from donations, grants, etc. from public agencies, foundations, or other not-for-profit entities for the purpose of planning, permitting, or providing technical support for projects of public benefit. AB 2501 also provides that these funds are to be deposited and separately accounted for in the Abatement Account. The provisions of this bill, if enacted, would apply to AB 2501 if it is also enacted. AB 2501 was heard and passed by the Senate Environmental Quality Committee on June 19, 2024.

Comments

1. Purpose of Bill. According to the author, "Historically, the State Water Board has returned much of the money from the Cleanup and Abatement Account to the Regional Water Boards to clean up waterways in the communities most impacted by pollution. However, the Water Board no longer sends that money back to local communities at the same rate.

“Many disadvantaged communities around the state have seen water quality issues persist or worsen. Until these communities receive more funding from the Cleanup and Abatement Account, they will continue to lack the resources to clean up their local waterways.

“Though AB 753, which proposed to send 50% of the CAA [Cleanup and Abatement Account] funds back to the regional boards on a proportional basis, had bipartisan support in the legislature, it was vetoed by the Governor. In the Governor’s veto message, he described the fund as oversubscribed, and thus the funding could not be redirected to the regional boards. However, there is little information about the account that is publicly available to give this assertion merit and the information that does exist paints a different picture. Up until 2017, the State Water Board, publicly provided information about which projects were being funded on the agency’s website. AB 2318 is a modest bill which will require the SWB [State Water Board] to return to this practice, providing clarity and transparency on the account."

1. Show me the money. This bill requires, no later than January 1 of each year, the State Water Board to post on its internet website a report describing the receipts and expenditures of the Abatement Account, beginning January 1, 2026. This bill does not propose to shift or transfer any funds from the Abatement Account, rather it simply seeks public transparency as to the money received into the Abatement Account and the expenditures from the Abatement Account.

Related/Prior Legislation

AB 2501 (Alvarez, 2024) authorizes the State Water Board to accept moneys from donations, grants, etc. from public agencies, foundations, or other not-for-profit entities for the purpose of planning, permitting, or providing technical support for projects of public benefit. The bill is pending action in the Senate Appropriations Committee.

AB 753 (Papan, 2023) would have created the Waterway Account within the Waste Discharge Permit Fund and transferred fifty percent of the funds from the Abatement Account to the Waterway Account for projects and programs to address water quality issues. The bill was vetoed by the Governor.

AB 2113 (Robert Rivas, 2022) would have created four new accounts in the Waste Discharge Permit Fund and, subject to a future legislative act, transferred up to a total of fifty percent of the annual proceeds from the Abatement Account to these four new accounts for specified purposes. The bill was held on the suspense file of the Assembly Appropriations Committee.

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

SUPPORT: (Verified 8/5/24)

California Coastkeeper Alliance (Source)

OPPOSITION: (Verified 8/5/24)

None received

ASSEMBLY FLOOR: 72-0, 5/21/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Cervantes, Megan Dahle, Friedman, Gabriel, Holden, Lowenthal, Mathis, Luz Rivas

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

8/14/24 16:49:12

**** END ****

 CONSENT  

Bill No: AB 2318

Author: Papan (D)

Introduced: 2/12/24

Vote: 21

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 7/3/24

AYES: Allen, Dahle, Gonzalez, Hurtado, Menjivar, Nguyen, Skinner

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 72-0, 5/21/24 - See last page for vote

SUBJECT: State Water Pollution Cleanup and Abatement Account: receipts and expenditures: report

SOURCE: California Coastkeeper Alliance

DIGEST: This bill requires, no later than January 1 of each year, the State Water Resources Control Board (State Water Board) to post on its internet website a report describing the receipts and expenditures of the State Water Pollution Cleanup and Abatement Account (Abatement Account).

ANALYSIS:

Existing law:

1. Establishes the federal Clean Water Act (CWA) to regulate discharges of pollutants into the waters of the United States (U.S.) and to regulate quality standards for surface waters. (Title 33 United States Code (U.S.C.) §1251 et seq.)
2. Establishes the Porter-Cologne Water Quality Control Act (Water Quality Act), which prohibits the discharge of pollutants to surface waters unless the discharger obtains a permit from the State Water Board. (Water Code (WC) § 13000 et seq.)
3. Establishes the Abatement Account within the State Water Quality Control Fund, which is administered by the State Water Board. (WC § 13440)

4) Provides to the Abatement Account half of all funds collected due to criminal penalties and all funds from civil penalties received under the Porter Cologne Water Quality Control Act. (WC § 13441)

5) Authorizes the State Water Board to approve grants from the Abatement Account, to any eligible entity to assist in cleaning up a waste, abating the effects of a waste on waters of the state, or addressing an urgent drinking water need. Eligible entities include: a public agency, a tribal government, a not-for-profit organization serving a disadvantaged community, or a community water system that serves a disadvantaged community. (WC § 13442)

This bill:

1. Requires, no later than January 1, of each year, the State Water Board to post on its internet website a report describing the receipts and expenditures of the Abatement Account.
2. Requires the State Water Board to complete the initial report, required by this bill, no later than January 1, 2026, and that initial report shall include data from the years 2017 to 2025, inclusive.
3. Requires the report include but not be limited to: a list of applications that contain the amount of funds requested, the State Water Board's decision on the application, the amount of funds granted, a description of the project funded, and if the application was denied a reason for denial; the total and individual deposits to the account originating from enforcement fines; information on supplemental environmental projects funded in connection with enforcement fines; and the total amount of deposits to the Abatement Account originating from each region and, the total amount of grants provided to each region.

Background

1. Federal Clean Water Act (CWA). The Federal Water Pollution Control Act of 1948 was the first major U.S. law to address water pollution. The law was amended in 1972 and became commonly known as the Clean Water Act (CWA). The federal CWA establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters. Under the CWA, the United States Environmental Protection Agency (US EPA) has implemented pollution control programs, including setting wastewater standards for industrial facilities, as well as setting water quality standards for all contaminants in surface waters. The CWA made it unlawful to discharge any pollutant from a point source into navigable waters without a permit. Industrial, municipal, and other facilities must obtain a permit under the National Pollutant Discharge Elimination System in order to discharge into surface water.
2. State regulation of water pollution. The State Water Board is responsible for administering the federal CWA and California’s Water Quality Act, enacted in 1969, which set up the statewide structure for water quality control. The Water Quality Act designates the State Water Board as the water pollution control agency for all purposes stated in the CWA, and it authorizes the State Water Board to exercise any powers that the federal CWA delegates to the State. The State Water Board and the Regional Water Boards are charged with preventing and reducing water pollution in rivers, streams, lakes, beaches, bays, and groundwater.
3. State Water Pollution Cleanup and Abatement Account (Abatement Account). The Abatement Account was created to provide public agencies with grants for the cleanup or abatement of a condition of pollution when there are no viable responsible parties available to undertake the work. The Abatement Account is supported by court judgments and administrative civil liabilities assessed by the State Water Board and the Regional Water Boards. In some instances, a court judgment or settlement agreement specifies how collected funds are to be spent (e.g., a specific cleanup, investigation, or supplemental environmental project). Those funds may be set aside in the Abatement Account for that identified purpose, consistent with statutes governing the uses of the Abatement Account.

The Abatement Account is also used as a clearing account for the State Water Board's Site Cleanup Program. Responsible parties (RPs) sign a cost recovery agreement with a Regional Water Quality Control Board (Regional Water Board), Abatement Account funds are used to pay the associated Regional Water Board staff oversight costs, and the costs recovered from RPs return to the Abatement Account. After accounting for these needs and other prior encumbrances, remaining Abatement Account funds may be utilized for the purposes allowed by the statute.

Eligible entities that could apply for this funding include public agencies, as well as certain not-for-profit organizations and tribal governments that serve a disadvantaged community and that have the authority to clean up or abate the effects of a waste.

In 2015, the Legislature enacted AB 92 (Budget Committee, Chapter 2, Statutes of 2015) to help provide grant funding to address emergency drinking water issues. Among its provisions, AB 92 expanded the types of projects that can be funded from the Abatement Account to include projects to address an urgent drinking water need, without regard to whether the need for drinking water is a result of the discharge of waste; expanded the pool of applicants eligible for funding from the Abatement Account to include community water systems that serve a disadvantaged community; exempted projects funded from the Abatement Account from state contracting and procurement requirements to the extent necessary to take immediate action to protect public health and safety; and, authorized the State Water Board to adopt guidelines for the allocation and administration of the Abatement Account funds.

1. Abatement Account Funding. According to the detailed budget information released as part of the Governor's proposed 2024-2025 budget, appropriations to the State Water Quality Control Fund where the Abatement Account is located, averaged approximately $34 million over the past couple of fiscal years. However, the budget does not show any detailed expenditures. Additionally, currently on the State Water Board's website, there is a list of some projects funded from 2013-2023. This list may not be comprehensive as it shows expenditures for the following years: $5.3 million in 2015, doesn't list 2016, $14 million in 2017, $1.1 million in 2018, $2.1 million in 2019, nothing listed in 2020, and $308,000 in 2021. This bill would require the State Water Board to provide a public list of the expenditures of the Abatement Account.
2. Recent legislation. AB 753 (Papan, 2023) would have created the Waterway Recovery Account (Waterway Account) within the Waste Discharge Permit Fund and transferred fifty percent of the funds from the Abatement Account to the Waterway Account for projects and programs to address water quality issues. The bill was vetoed by the Governor. In part, the Governor's veto message stated, "While I appreciate the author's intent to improve clean up of local waterways in disadvantaged communities, this bill reallocates revenue from an oversubscribed fund that is utilized to clean up waste, abate the effects of waste on waters of the state, and address urgent drinking water needs. This funding represents a critical need and we cannot afford to redirect it to a new account."
3. Interaction with other legislation. AB 2501 (Alvarez), introduced in 2024, authorizes the State Water Board to accept moneys from donations, grants, etc. from public agencies, foundations, or other not-for-profit entities for the purpose of planning, permitting, or providing technical support for projects of public benefit. AB 2501 also provides that these funds are to be deposited and separately accounted for in the Abatement Account. The provisions of this bill, if enacted, would apply to AB 2501 if it is also enacted. AB 2501 was heard and passed by the Senate Environmental Quality Committee on June 19, 2024.

Comments

1. Purpose of Bill. According to the author, "Historically, the State Water Board has returned much of the money from the Cleanup and Abatement Account to the Regional Water Boards to clean up waterways in the communities most impacted by pollution. However, the Water Board no longer sends that money back to local communities at the same rate.

“Many disadvantaged communities around the state have seen water quality issues persist or worsen. Until these communities receive more funding from the Cleanup and Abatement Account, they will continue to lack the resources to clean up their local waterways.

“Though AB 753, which proposed to send 50% of the CAA [Cleanup and Abatement Account] funds back to the regional boards on a proportional basis, had bipartisan support in the legislature, it was vetoed by the Governor. In the Governor’s veto message, he described the fund as oversubscribed, and thus the funding could not be redirected to the regional boards. However, there is little information about the account that is publicly available to give this assertion merit and the information that does exist paints a different picture. Up until 2017, the State Water Board, publicly provided information about which projects were being funded on the agency’s website. AB 2318 is a modest bill which will require the SWB [State Water Board] to return to this practice, providing clarity and transparency on the account."

1. Show me the money. This bill requires, no later than January 1 of each year, the State Water Board to post on its internet website a report describing the receipts and expenditures of the Abatement Account, beginning January 1, 2026. This bill does not propose to shift or transfer any funds from the Abatement Account, rather it simply seeks public transparency as to the money received into the Abatement Account and the expenditures from the Abatement Account.

Related/Prior Legislation

AB 2501 (Alvarez, 2024) authorizes the State Water Board to accept moneys from donations, grants, etc. from public agencies, foundations, or other not-for-profit entities for the purpose of planning, permitting, or providing technical support for projects of public benefit. The bill is pending action in the Senate Appropriations Committee.

AB 753 (Papan, 2023) would have created the Waterway Account within the Waste Discharge Permit Fund and transferred fifty percent of the funds from the Abatement Account to the Waterway Account for projects and programs to address water quality issues. The bill was vetoed by the Governor.

AB 2113 (Robert Rivas, 2022) would have created four new accounts in the Waste Discharge Permit Fund and, subject to a future legislative act, transferred up to a total of fifty percent of the annual proceeds from the Abatement Account to these four new accounts for specified purposes. The bill was held on the suspense file of the Assembly Appropriations Committee.

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

SUPPORT: (Verified 8/5/24)

California Coastkeeper Alliance (Source)

OPPOSITION: (Verified 8/5/24)

None received

ASSEMBLY FLOOR: 72-0, 5/21/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Cervantes, Megan Dahle, Friedman, Gabriel, Holden, Lowenthal, Mathis, Luz Rivas

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

8/6/24 16:10:50

**** END ****

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Allen, Chair

2023 - 2024 Regular

SUBJECT: State Water Pollution Cleanup and Abatement Account: receipts and expenditures: report

DIGEST: Requires, no later than January 1 of each year, the State Water Resources Control Board (State Water Board) to post on its internet website a report describing the receipts and expenditures of the State Water Pollution Cleanup and Abatement Account (Abatement Account).

ANALYSIS:

Existing law:

1. Establishes the federal Clean Water Act (CWA) to regulate discharges of pollutants into the waters of the United States (U.S.) and to regulate quality standards for surface waters. (33 United States Code (U.S.C.) §1251 et seq.)
2. Establishes the Porter-Cologne Water Quality Control Act (Water Quality Act), which prohibits the discharge of pollutants to surface waters unless the discharger obtains a permit from the State Water Board. (Water Code (WC) § 13000 et seq.)
3. Establishes the Abatement Account within the State Water Quality Control Fund, which is administered by the State Water Board. (WC § 13440)

4) Provides to the Abatement Account half of all funds collected due to criminal penalties and all funds from civil penalties received under the Porter Cologne Water Quality Control Act. (WC § 13441)

5) Authorizes the State Water Board to approve grants from the Abatement Account, to any eligible entity to assist in cleaning up a waste, abating the effects of a waste on waters of the state, or addressing an urgent drinking water need. Eligible entities include: a public agency, a tribal government, a not-for-profit organization serving a disadvantaged community, or a community water system that serves a disadvantaged community. (WC § 13442)

This bill:

1. Requires, no later than January 1, of each year, the State Water Board to post on its internet website a report describing the receipts and expenditures of the Abatement Account.
2. Requires the State Water Board to complete the initial report, required by this bill, no later than January 1, 2026, and that initial report shall include data from the years 2017 to 2025, inclusive.
3. Requires the report include but not be limited to: a list of applications that contain the amount of funds requested, the State Water Board's decision on the application, the amount of funds granted, a description of the project funded, and if the application was denied a reason for denial; the total and individual deposits to the account originating from enforcement fines; information on supplemental environmental projects funded in connection with enforcement fines; and the total amount of deposits to the Abatement Account originating from each region and, the total amount of grants provided to each region.

Background

1. Federal Clean Water Act (CWA). The Federal Water Pollution Control Act of 1948 was the first major U.S. law to address water pollution. The law was amended in 1972 and became commonly known as the Clean Water Act (CWA). The federal CWA establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters. Under the CWA, the United States Environmental Protection Agency (US EPA) has implemented pollution control programs, including setting wastewater standards for industrial facilities, as well as setting water quality standards for all contaminants in surface waters. The CWA made it unlawful to discharge any pollutant from a point source into navigable waters without a permit. Industrial, municipal, and other facilities must obtain a permit under the National Pollutant Discharge Elimination System in order to discharge into surface water.
2. State regulation of water pollution. The State Water Board is responsible for administering the federal CWA and California’s Water Quality Act, enacted in 1969, which set up the statewide structure for water quality control. The Water Quality Act designates the State Water Board as the water pollution control agency for all purposes stated in the CWA, and it authorizes the State Water Board to exercise any powers that the federal CWA delegates to the State. The State Water Board and the Regional Water Boards are charged with preventing and reducing water pollution in rivers, streams, lakes, beaches, bays, and groundwater.
3. State Water Pollution Cleanup and Abatement Account (Abatement Account). The Abatement Account was created to provide public agencies with grants for the cleanup or abatement of a condition of pollution when there are no viable responsible parties available to undertake the work. The Abatement Account is supported by court judgments and administrative civil liabilities assessed by the State Water Board and the Regional Water Boards. In some instances, a court judgment or settlement agreement specifies how collected funds are to be spent (e.g., a specific cleanup, investigation, or supplemental environmental project). Those funds may be set aside in the Abatement Account for that identified purpose, consistent with statutes governing uses of the Abatement Account.

The Abatement Account is also used as a clearing account for the State Water Board's Site Cleanup Program. Responsible parties (RPs) sign a cost recovery agreement with a Regional Water Quality Control Board (Regional Water Board), Abatement Account funds are used to pay the associated Regional Water Board staff oversight costs, and the costs recovered from RPs return to the Abatement Account. After accounting for these needs and other prior encumbrances, remaining Abatement Account funds may be utilized for the purposes allowed by the statute.

Eligible entities that could apply for this funding include public agencies, as well as certain not-for-profit organizations and tribal governments that serve a disadvantaged community and that have the authority to clean up or abate the effects of a waste.

In 2015, the Legislature enacted AB 92 (Budget Committee, Chapter 2, Statutes of 2015) to help provide grant funding to address emergency drinking water issues. Among its provisions, AB 92 expanded the types of projects that can be funded from the Abatement Account to include projects to address an urgent drinking water need, without regard to whether the need for drinking water is a result of the discharge of waste; expanded the pool of applicants eligible for funding from the Abatement Account to include community water systems that serve a disadvantaged community; exempted projects funded from the Abatement Account from state contracting and procurement requirements to the extent necessary to take immediate action to protect public health and safety; and, authorized the State Water Board to adopt guidelines for the allocation and administration of the Abatement Account funds.

1. Abatement Account Funding. According to the detailed budget information released as part of the Governor's proposed 2024-2025 budget, appropriations to the State Water Quality Control Fund where the Abatement Account is located, averaged approximately $34 million over the past couple of fiscal years. However, the budget does not show any detailed expenditures. Additionally, currently on the State Water Board's website, there is a list of some projects funded from 2013-2023. This list may not be comprehensive as it shows expenditures for the following years: $5.3 million in 2015, doesn't list 2016, $14 million in 2017, $1.1 million in 2018, $2.1 million in 2019, nothing listed in 2020, and $308,000 in 2021. This bill would require the State Water Board to provide a public list of the expenditures of the Abatement Account.
2. Recent legislation. AB 753 (Papan, 2023) would have created the Waterway Recovery Account (Waterway Account) within the Waste Discharge Permit Fund and transferred fifty percent of the funds from the Abatement Account to the Waterway Account for projects and programs to address water quality issues. This bill was vetoed by the Governor. In part, the Governor's veto message stated:

"While I appreciate the author's intent to improve clean up of local waterways in disadvantaged communities, this bill reallocates revenue from an oversubscribed fund that is utilized to clean up waste, abate the effects of waste on waters of the state, and address urgent drinking water needs. This funding represents a critical need and we cannot afford to redirect it to a new account."

1. Interaction with other legislation. AB 2501 (Alvarez), introduced in 2024, authorizes the State Water Board to accept moneys from donations, grants, etc. from public agencies, foundations, or other not-for-profit entities for the purpose of planning, permitting, or providing technical support for projects of public benefit. AB 2501 also provides that these funds are to be deposited and separately accounted for in the Abatement Account. The provisions of AB 2318, if enacted, would apply to AB 2501 if it is also enacted. AB 2501 was heard and passed by this committee on June 19, 2024.

Comments

1. Purpose of Bill. According to the author, "Historically, the State Water Board has returned much of the money from the Cleanup and Abatement Account to the Regional Water Boards to clean up waterways in the communities most impacted by pollution. However, the Water Board no longer sends that money back to local communities at the same rate.

“Many disadvantaged communities around the state have seen water quality issues persist or worsen. Until these communities receive more funding from the Cleanup and Abatement Account, they will continue to lack the resources to clean up their local waterways.

“Though AB 753, which proposed to send 50% of the CAA [Cleanup and Abatement Account] funds back to the regional boards on a proportional basis, had bipartisan support in the legislature, it was vetoed by the Governor. In the Governor’s veto message, he described the fund as oversubscribed, and thus the funding could not be redirected to the regional boards. However, there is little information about the account that is publicly available to give this assertion merit and the information that does exist paints a different picture. Up until 2017, the State Water Board, publicly provided information about which projects were being funded on the agency’s website. AB 2318 is a modest bill which will require the SWB [State Water Board] to return to this practice, providing clarity and transparency on the account."

1. Show me the money. This bill requires, no later than January 1 of each year, the State Water Board to post on its internet website a report describing the receipts and expenditures of the Abatement Account, beginning January 1, 2026. AB 2318 does not propose to shift or transfer any funds from the Abatement Account, rather it simply seeks public transparency as to the money received into the Abatement Account and the expenditures from the Abatement Account.
   

Related/Prior Legislation

AB 2501 (Alvarez, 2024) authorizes the State Water Board to accept moneys from donations, grants, etc. from public agencies, foundations, or other not-for-profit entities for the purpose of planning, permitting, or providing technical support for projects of public benefit. This bill is pending action in the Senate Appropriations Committee.

AB 753 (Papan, 2023) would have created the Waterway Account within the Waste Discharge Permit Fund and transferred fifty percent of the funds from the Abatement Account to the Waterway Account for projects and programs to address water quality issues. This bill was vetoed by the Governor.

AB 2113 (Robert Rivas, 2022) would have created four new accounts in the Waste Discharge Permit Fund and, subject to a future legislative act, transferred up to a total of fifty percent of the annual proceeds from the Abatement Account to these four new accounts for specified purposes. This bill was held on the suspense file of the Assembly Appropriations Committee.

SOURCE:

California Coastkeeper Alliance

SUPPORT:

None received

OPPOSITION:

None received

Positions reflect letters received by noon one week prior to the hearing.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 2318

Author:(Papan)

As Introduced Ver:February 12, 2024

Majority vote

SUMMARY

Requires, no later than January 1 of each year, the State Water Resources Control Board (State Water Board) to post on its internet website a report describing the receipts and expenditures of the State Water Pollution Cleanup and Abatement Account (Abatement Account).

Major Provisions

COMMENTS

Federal Clean Water Act (CWA): The federal CWA establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters. Under the CWA, the United States Environmental Protection Agency has implemented pollution control programs, including setting wastewater standards for industrial facilities, as well as setting water quality standards for all contaminants in surface waters. The CWA made it unlawful to discharge any pollutant from a point source into navigable waters without a permit. Industrial, municipal, and other facilities must obtain a permit under the National Pollutant Discharge Elimination System in order to discharge into surface water.

State regulation of water pollution: The State Water Board is responsible for administering the federal CWA and California's Porter-Cologne Water Quality Control Act (Water Quality Act), enacted in 1969, which set up the statewide structure for water quality control. The Water Quality Act designates the State Water Board as the water pollution control agency for all purposes stated in the CWA, and it authorizes the State Water Board to exercise any powers that the federal CWA delegates to the state. The State Water Board and the Regional Water Quality Control Boards (Regional Water Boards) are charged with preventing and reducing water pollution in rivers, streams, lakes, beaches, bays, and groundwater.

State Water Pollution Cleanup and Abatement Account (Abatement Account): The Abatement Account was created to provide public agencies with grants for the cleanup or abatement of a condition of pollution when there are no viable responsible parties available to undertake the work. The Abatement Account is supported by court judgments and administrative civil liabilities assessed by the State Water Board and the Regional Water Boards. In some instances, a court judgment or settlement agreement specifies how collected funds are to be spent (e.g., a specific cleanup, investigation, or supplemental environmental project). Those funds may be set aside in the Abatement Account for that identified purpose, consistent with statutes governing uses of the Abatement Account.

The Abatement Account is also used as a clearing account for the State Water Board's Site Cleanup Program. Responsible parties (RPs) sign a cost recovery agreement with a Regional Water Quality Control Board (Regional Water Board), Abatement Account funds are used to pay the associated Regional Water Board staff oversight costs, and the costs recovered from RPs return to the Abatement Account. After accounting for these needs and other prior encumbrances, remaining Abatement Account funds may be utilized for the purposes allowed by the statute.

Eligible entities that could apply for this funding include public agencies, as well as certain not-for-profit organizations and tribal governments that serve a disadvantaged community and that have the authority to clean up or abate the effects of a waste.

In 2015, the Legislature enacted Assembly Bill (AB) 92 (Budget Committee, Chapter 2, Statutes of 2015) to help provide grant funding to address emergency drinking water issues. Among its provisions, AB 92 expanded the types of projects that can be funded from the Abatement Account to include projects to address an urgent drinking water need, without regard to whether the need for drinking water is a result of the discharge of waste; expanded the pool of applicants eligible for funding from the Abatement Account to include community water systems that serve a disadvantaged community; exempted projects funded from the Abatement Account from state contracting and procurement requirements to the extent necessary to take immediate action to protect public health and safety; and, authorized the State Water Board to adopt guidelines for the allocation and administration of the Abatement Account funds.

Abatement Account Funding: According to the detailed budget information released as part of the Governor's proposed 2024-2025 budget, appropriations to the State Water Quality Control Fund where the Abatement Account is located, averaged approximately $34 million over the past couple of fiscal years. However, the budget does not show any detailed expenditures. Additionally, currently on the State Water Board's website there is a list of some projects funded from 2013-2023. This list may not be comprehensive as it shows expenditures for the following years: $5.3 million in 2015, does not list 2016, $14 million in 2017, $1.1 million in 2018, $2.1 million in 2019, nothing listed in 2020, and $308,000 in 2021. This bill would require the State Water Board to provide a public list of the expenditures of the Abatement Account.

Recent legislation: AB 753 (Papan, 2023), would have created the Waterway Recovery Account (Waterway Account) within the Waste Discharge Permit Fund, and transferred fifty percent of the funds from the Abatement Account to the Waterway Account for projects and programs to address water quality issues. This bill was vetoed by the Governor. In part, the Governor's veto message stated:

"While I appreciate the author's intent to improve cleanup of local waterways in disadvantaged communities, this bill reallocates revenue from an oversubscribed fund that is utilized to clean up waste, abate the effects of waste on waters of the state, and address urgent drinking water needs. This funding represents a critical need and we cannot afford to redirect it to a new account."

Interaction with other legislation: AB 2501 (Alvarez) has been introduced in 2024, authorizes the State Water Board to accept moneys from donations, grants, etc. from public agencies, foundations or other not-for-profit entities for the purpose of planning, permitting, or providing technical support for projects of public benefit. AB 2501 also provides that these funds are to be deposited and separately accounted for in the Abatement Account. The provisions of this AB 2318, if enacted, would apply to AB 2501 if it is also enacted. As of the writing of this analysis, AB 2501 is on the suspense file in the Assembly Appropriations Committee

This bill: Requires, no later than January 1 of each year, the State Water Board to post on its internet website a report describing the receipts and expenditures of the Abatement Account, beginning January 1, 2026. AB 2318 does not propose to shift or transfer any funds from the Abatement Account, rather it simply seeks public transparency as to the money received into the Abatement Account and the expenditures from the Abatement Account.

According to the Author

"Historically, the State Water Board has returned much of the money from the Cleanup and Abatement Account to the Regional Water Boards to clean up waterways in the communities most impacted by pollution. However, the Water Board no longer sends that money back to local communities at the same rate.

Many disadvantaged communities around the state have seen water quality issues persist or worsen. Until these communities receive more funding from the Cleanup and Abatement Account, they will continue to lack the resources to clean up their local waterways.

Though AB 753, which proposed to send 50% of the CAA funds back to the regional boards on a proportional basis, had bipartisan support in the legislature, it was vetoed by the Governor. In the Governor's veto message, he described the fund as oversubscribed, and thus the funding could not be redirected to the regional boards. However, there is little information about the account that is publicly available to give this assertion merit and the information that does exist paints a different picture. Up until 2017, the State Water Board, publicly provided information about which project were being funded on the agency's website. AB 2318 is a modest bill which will require the SWB [State Water Board] to return to this practice, providing clarity and transparency on the account."

Arguments in Support

According to the Coastkeeper Alliance, writing in support of the bill:

"Because it will provide the information and transparency necessary for the public to know whether communities harmed by water quality violations are being invested in to restore their watershed and open spaces.

The State Water Pollution Cleanup and Abatement Account (CAA) was designed as a safety net, intended to make sure that even when polluters could not be found, there was adequate financing to clean contaminated sites. This account is funded through a variety of sources, including criminal and civil penalties and any money contributed to the account and accepted by the state board.

However, nothing mandates that the funds polluters pay into the CAA must be used to remediate the damage caused by the violation, or even that the State Water Board needs to repay a regional board for its restorative work. Instead, CAA funds can be used for projects anywhere in the state.

In order to ensure CAA enforcement fines are properly being re-invested into the communities most harmed by water quality violations, we strongly support AB 2318."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee, enactment of this bill could result in minor and absorbable costs to the State Water Board.

VOTES

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

YES: Garcia, Hoover, Connolly, McKinnor, Papan, Reyes, Ta

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Jim Patterson, Pellerin, Ta, Villapudua

UPDATED

VERSION: February 12, 2024

CONSULTANT: Josh Tooker / E.S. & T.M. / (916) 319-3965 FN: 0003011

Date of Hearing: April 10, 2024

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 2318

Author:(Papan) – As Introduced Ver:February 12, 2024

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

SUMMARY:

This bill requires the State Water Resources Control Board (State Water Board), no later than January 1 of each year, to post a report on its website describing the receipts and expenditures of the State Water Pollution Cleanup and Abatement Account (CAA).

In addition, this bill, among other things:

1) Requires the State Water Board to complete the initial report no later than January 1, 2026, and requires the initial report to include data from the years 2017 to 2025, inclusive.

2) Requires the report to include:

a) A list of applications that, for each application, contains: the amount of funds the application requested; the State Water Board's decision on the application; the amount of funds granted to the applicant; a description of the project funded, and if the application was denied, a reason for the denial or partial funding.

b) The total and individual deposits to the CAA originating from enforcement fines.

c) Information on supplemental environmental projects funded in connection with enforcement fines.

d) The total amount of deposits to the CAA originating from each region and the total amount of grants provided to each region.

FISCAL EFFECT:

The State Water Board anticipates minor and absorbable costs to implement this bill. However, because this bill has the primary purpose of creating a reporting requirement, it is a candidate for this committee’s suspense file, consistent with the committee’s rules and practice.

COMMENTS:

1) Purpose. According to the author:

Though AB 753, which proposed to send 50% of the CAA funds back to the regional boards on a proportional basis, had bipartisan support in the legislature, it was vetoed by the Governor. In the Governor’s veto message, he described the fund as oversubscribed, and thus the funding could not be redirected to the regional boards. However, there is little information about the account that is publicly available to give this assertion merit and the information that does exist paints a different picture. Up until 2017, the State Water Board, publicly provided information about which project were being funded on the agency’s website. AB 2318 is a modest bill which will require the SWB [State Water Board] to return to this practice, providing clarity and transparency on the account.

2) Background. The CAA – which was created to provide public agencies with grants for the cleanup or abatement of pollution when there are no viable responsible parties available to undertake the work – is primarily supported by court judgments and administrative civil liabilities assessed by the State Water Board and Regional Water Boards. Eligible entities for this funding include public agencies, as well as certain nonprofits and tribal governments that serve disadvantaged communities and that have the authority to clean up or abate the effects of a waste. The CAA’s primary purpose is to serve as a flexible and easily accessible source of funds to address emergency response, such as hazard mitigation during post-wildfire clean-up; providing bottled water to communities served by a failing water system; and removing invasive species from state waters.

In some instances, a court judgment or settlement agreement specifies how collected funds must be spent (for example, a specific cleanup, investigation, or supplemental environmental project). The CAA is also used as a “clearing account” for the State Water Board’s Site Cleanup Program. A responsible party (RP) sign a cost recovery agreement with a Regional Water Board, CAA funds are used to pay the associated Regional Water Board staff oversight costs, and costs recovered from the RP return to the CAA. After accounting for these needs and other prior encumbrances, the State Water Board may utilize remaining CAA funds for other purposes allowed by law, such as projects that clean up waste or abate the effects of waste on waters of the State and projects that address urgent drinking water needs. For example, the State Water Board used $25.2 million from CAA between 2014 and 2017 to address drought-related and drinking water emergencies.

According to the State Water Board, the fund balance for CAA as of June 30, 2023, is approximately $34 million, of which approximately $13 million is committed to projects. The State Water Board notes that while the CAA is not currently oversubscribed, demand on the fund could increase at any time as a result of drought impacts, unexpected emergency funding needs, limited availability of General Fund dollars, and reduction in revenue from fines and penalties, which are difficult to predict.

3) Related Legislation. AB 753 (Papan) of this legislative session would have created the Waterway Recovery Account (Waterway Account) within the Waste Discharge Permit Fund, and annually transferred 40% of the CAA’s annual proceeds to the Waterway Account. AB 753 would also have required the State Water Board to allocate the Waterway Account moneys to each Regional Water Board for projects to improve water quality on a proportional basis based on moneys generated in each region. AB 753 was vetoed.

Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081

Date of Hearing: March 19, 2024

ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS

Eduardo Garcia, Chair

ABPCA Bill Id:AB 2318 (

Author:Papan) – As Introduced Ver:February 12, 2024

SUBJECT: State Water Pollution Cleanup and Abatement Account: receipts and expenditures: report

SUMMARY: Requires, no later than January 1 of each year, the State Water Resources Control Board (State Water Board) to post on its internet website a report describing the receipts and expenditures of the State Water Pollution Cleanup and Abatement Account (Abatement Account). Specifically, this bill:

1) Requires, no later than January 1, of each year, the State Water Board to post on its internet website a report describing the receipts and expenditures of the Abatement Account.

2) Requires the State Water Board to complete the initial report, required by this bill, no later than January 1, 2026, and that initial report shall include data from the years 2017 to 2025, inclusive.

3) Requires the report include but not be limited to: a list of applications that contain the amount of funds requested, the State Water Board's decision on the application, the amount of funds granted, a description of the project funded, and if the application was denied a reason for denial; the total and individual deposits to the account originating from enforcement fines; information on supplemental environmental projects funded in connection with enforcement fines; and the total amount of deposits to the Abatement Account originating from each region and, the total amount of grants provided to each region.

EXISTING LAW:

1. Establishes the federal Clean Water Act (CWA) to regulate discharges of pollutants into the waters of the United States (U.S.) and to regulate quality standards for surface waters. (33 United States Code (U.S.C.) §1251 et seq.)
2. Establishes the Porter-Cologne Water Quality Control Act (Water Quality Act), which prohibits the discharge of pollutants to surface waters unless the discharger obtains a permit from the State Water Board. (Water Code (WC) § 13000 et seq.)
3. Establishes the Abatement Account within the State Water Quality Control Fund, which is administered by the State Water Board. (WC § 13440)

4) Provides to the Abatement Account half of all funds collected due to criminal penalties and all funds from civil penalties received under the Porter Cologne Water Quality Control Act. (WC § 13441)

5) Authorizes the State Water Board to approve grants from the Abatement Account, to any eligible entity to assist in cleaning up a waste, abating the effects of a waste on waters of the state, or addressing an urgent drinking water need. Eligible entities include: a public agency, a tribal government, a not-for-profit organization serving a disadvantaged community, or a community water system that serves a disadvantaged community. (WC § 13442)

FISCAL EFFECT: Unknown.

COMMENTS:

Need for the bill: According to the author,

"Historically, the State Water Board has returned much of the money from the Cleanup and Abatement Account to the Regional Water Boards to clean up waterways in the communities most impacted by pollution. However, the Water Board no longer sends that money back to local communities at the same rate.

Many disadvantaged communities around the state have seen water quality issues persist or worsen. Until these communities receive more funding from the Cleanup and Abatement Account, they will continue to lack the resources to clean up their local waterways.

Though AB 753, which proposed to send 50% of the CAA funds back to the regional boards on a proportional basis, had bipartisan support in the legislature, it was vetoed by the Governor. In the Governor’s veto message, he described the fund as oversubscribed, and thus the funding could not be redirected to the regional boards. However, there is little information about the account that is publicly available to give this assertion merit and the information that does exist paints a different picture. Up until 2017, the State Water Board, publicly provided information about which project were being funded on the agency’s website. AB 2318 is a modest bill which will require the SWB [State Water Board] to return to this practice, providing clarity and transparency on the account."

Federal Clean Water Act (CWA): The Federal Water Pollution Control Act of 1948 was the first major U.S. law to address water pollution. The law was amended in 1972, and became commonly known as the Clean Water Act (CWA). The federal CWA establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters. Under the CWA, the US EPA has implemented pollution control programs, including setting wastewater standards for industrial facilities, as well as setting water quality standards for all contaminants in surface waters. The CWA made it unlawful to discharge any pollutant from a point source into navigable waters without a permit. Industrial, municipal, and other facilities must obtain a permit under the National Pollutant Discharge Elimination System in order to discharge into surface water.

State regulation of water pollution: The State Water Board is responsible for administering the federal CWA and California’s Water Quality Act, enacted in 1969, which set up the statewide structure for water quality control. The Water Quality Act designates the State Water Board as the water pollution control agency for all purposes stated in the CWA, and it authorizes the State Water Board to exercise any powers that the federal CWA delegates to the State. The State Water Board and the Regional Water Boards are charged with preventing and reducing water pollution in rivers, streams, lakes, beaches, bays, and groundwater.

State Water Pollution Cleanup and Abatement Account (Abatement Account): The Abatement Account was created to provide public agencies with grants for the cleanup or abatement of a condition of pollution when there are no viable responsible parties available to undertake the work. The Abatement Account is supported by court judgments and administrative civil liabilities assessed by the State Water Board and the Regional Water Boards. In some instances, a court judgment or settlement agreement specifies how collected funds are to be spent (e.g., a specific cleanup, investigation, or supplemental environmental project). Those funds may be set aside in the Abatement Account for that identified purpose, consistent with statutes governing uses of the Abatement Account.

The Abatement Account is also used as a clearing account for the State Water Board's Site Cleanup Program. Responsible parties (RPs) sign a cost recovery agreement with a Regional Water Quality Control Board (Regional Water Board), Abatement Account funds are used to pay the associated Regional Water Board staff oversight costs, and the costs recovered from RPs return to the Abatement Account. After accounting for these needs and other prior encumbrances, remaining Abatement Account funds may be utilized for the purposes allowed by the statute.

Eligible entities that could apply for this funding include public agencies, as well as certain not-for-profit organizations and tribal governments that serve a disadvantaged community and that have the authority to clean up or abate the effects of a waste.

In 2015, the Legislature enacted AB 92 (Budget Committee, Chapter 2, Statutes of 2015) to help provide grant funding to address emergency drinking water issues. Among its provisions, AB 92 expanded the types of projects that can be funded from the Abatement Account to include projects to address an urgent drinking water need, without regard to whether the need for drinking water is a result of the discharge of waste; expanded the pool of applicants eligible for funding from the Abatement Account to include community water systems that serve a disadvantaged community; exempted projects funded from the Abatement Account from state contracting and procurement requirements to the extent necessary to take immediate action to protect public health and safety; and, authorized the State Water Board to adopt guidelines for the allocation and administration of the Abatement Account funds.

Abatement Account Funding: According to the detailed budget information released as part of the Governor's proposed 2024-2025 budget, appropriations to the State Water Quality Control Fund where the Abatement Account is located, averaged approximately $34 million over the past couple of fiscal years. However, the budget does not show any detailed expenditures. Additionally, currently on the State Water Board's website there is a list of some projects funded from 2013-2023. This list may not be comprehensive as it shows expenditures for the following years: $5.3 million in 2015, doesn't list 2016, $14 million in 2017, $1.1 million in 2018, $2.1 million in 2019, nothing listed in 2020, and $308,000 in 2021. This bill would require the State Water Board to provide a public list of the expenditures of the Abatement Account.

Recent legislation: AB 753 (Papan, 2023), would have created the Waterway Recovery Account (Waterway Account) within the Waste Discharge Permit Fund, and transferred fifty percent of the funds from the Abatement Account to the Waterway Account for projects and programs to address water quality issues. This bill was vetoed by the Governor. In part, the Governor's veto message stated:

"While I appreciate the author's intent to improve clean up of local waterways in disadvantaged communities, this bill reallocates revenue from an oversubscribed fund that is utilized to clean up waste, abate the effects of waste on waters of the state, and address urgent drinking water needs. This funding represents a critical need and we cannot afford to redirect it to a new account."

Interaction with other legislation: AB 2501 (Alvarez) has been introduced in 2024, authorizes the State Water Board to accept moneys from donations, grants, etc. from public agencies, foundations or other not-for-profit entities for the purpose of planning, permitting, or providing technical support for projects of public benefit. AB 2501 also provides that these funds are to be deposited and separately accounted for in the Abatement Account. The provisions of this AB 2318, if enacted, would apply to AB 2501 if it is also enacted. AB 2501 is currently set for hearing in this same committee, the Assembly Environmental Safety and Toxic Materials Committee.

This bill: Requires, no later than January 1 of each year, the State Water Board to post on its internet website a report describing the receipts and expenditures of the Abatement Account, beginning January 1, 2026. AB 2318 does not propose to shift or transfer any funds from the Abatement Account, rather it simply seeks public transparency as to the money received into the Abatement Account and the expenditures from the Abatement Account.

Arguments in Support: According to the Coastkeeper Alliance, writing in support of the bill,

"Because it will provide the information and transparency necessary for the public to know whether communities harmed by water quality violations are being invested in to restore their watershed and open spaces.

The State Water Pollution Cleanup and Abatement Account (CAA) was designed as a safety net, intended to make sure that even when polluters could not be found, there was adequate financing to clean contaminated sites. This account is funded through a variety of sources, including criminal and civil penalties and any money contributed to the account and accepted by the state board.

However, nothing mandates that the funds polluters pay into the CAA must be used to remediate the damage caused by the violation, or even that the State Water Board needs to repay a regional board for its restorative work. Instead, CAA funds can be used for projects anywhere in the state.

In order to ensure CAA enforcement fines are properly being re-invested into the communities most harmed by water quality violations, we strongly support AB 2318."

Arguments in Opposition:

None on file.

Related legislation:

1) AB 2501 (Alvarez). Authorizes the State Water Board to accept moneys from donations, grants, etc. from public agencies, foundations or other not-for-profit entities for the purpose of planning, permitting or providing technical support for projects of public benefit. This bill is pending action in the Assembly Environmental Safety and Toxic Materials Committee.

2) AB 753 (Papan, 2023). Would have created the Waterway Account within the Waste Discharge Permit Fun, and transferred fifty percent of the funds from the Abatement Account to the Waterway Account for projects and programs to address water quality issues. This bill was vetoed by the Governor.

3) AB 2113 (Robert Rivas, 2022). Would have created four new accounts in the Waste Discharge Permit Fund and, subject to a future legislative act, transferred up to a total of fifty percent of the annual proceeds from the Abatement Account to these four new accounts for specified purposes. This bill was held on the suspense file of the Assembly Appropriations Committee.

4) AB 339 (Mathis, Chapter 439, Statutes of 2017). Extends the ability of State Water Board to fund projects addressing an urgent drinking water need from the Abatement Account by deleting the sunset for this provision.

5) AB 91 (Budget Committee, Chapter 1, Statutes of 2015). Appropriated $15 million from the Abatement Account to the State Water Board to fund actions to address drought-related drinking water emergencies or threatened emergencies. Also, appropriated $4 million from the Abatement Account to the State Water Board to provide interim emergency drinking water to disadvantaged communities with contaminated drinking water supplies.

6) AB 92 (Budget Committee, Chapter 2, Statutes of 2015). Expanded the use of the Cleanup and Abatement Account for uses beyond mitigation of waste and unreasonable use to include urgent drinking water needs. Sunsets these provisions on July 1, 2018.

7) SB 826 (Budget Committee, Chapter 23, Statutes of 2016). Appropriated $15 million from the Abatement Account to the State Water Board to fund actions to address drought-related drinking water emergencies or threatened emergencies.

REGISTERED SUPPORT / OPPOSITION:

Support

California Coastkeeper Alliance

Opposition

None on file.

Analysis Prepared by: Josh Tooker / E.S. & T.M. /